Compare-autoinsurance.org Presents The Most Expensive States For Auto Insurance in 2018
LOS ANGELES, March 24, 2019 /PRNewswire-PRWeb/ -- Insurance information website Insure.com has published its ranking of states with the highest and lowest annual insurance rates. The price difference between states is more abrupt than previously thought. According to Insure.com, the national average for annual premiums is $1,365.
The most expensive states for car insurance are:
-- Michigan. For the fifth time in a row, Michigan is the most expensive state. The average premium is $2,239 (64 percent higher than the national average). However, there is a slight improvement, since the last year's average premiums were $155 more expensive. The unique no-fault auto insurance system is considered to be the reason for such high premiums. Michigan requires drivers to carry PIP. Most other no-fault states put a limit on the PIP amount but Michigan guarantees unlimited lifetime medical benefits to auto accident victims, which dramatically increases an insurers risk. The high medical costs and the unlimited nature of the no-fault systems are the ones who cause Michigan to occupy the first position in the top of the most expensive states. -- Lousiana. The Pelican State averaged an annual premium of $2,126, which is 56 percent higher than the national average. Louisiana is frequently on top 5 most expensive states. The main problem here is the high number of uninsured drivers. It is estimated that around 13% of Louisiana drivers do not have insurance. Also, there is a high number of underinsured drivers, who carry only the state's minimum. -- Florida. Last year, the Sunshine State was the fifth most expensive. This year, it occupied third place, with an average premium of $2,050, which is 50 percent higher than the national average. Uninsured drivers are also a problem here, with 26,7% of drivers beings uninsured. Florida's high population density is also a major factor that increases the costs. Plus, Florida is a favorite tourist attraction and the traffic is really dense. Traffic jams are common. -- Rhode Island. Rhode Island is the perfect example of how dense population influences rates. It is the smallest state in the country but it shelters around 1 million people. It is the second densest state in the country right behind New Jersey. So many drivers crammed in a small space will lead to more accidents and more claims. The average premium is $1,852 or 36 percent above the national average. -- Connecticut. The average premium is $1,831 putting it 34 percent more expensive than the national average. The main reasons for this expensive premium is the high density of cars. Plus, most of the drivers here drive really expensive cars.
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SOURCE Compare-Autoinsurance.org