Each year Insure.com publishes their study that compares car insurance rates by state. Different factors impact your rates, including the driver’s age, driving record, credit score (Insurance Financial Score), and where you live. State laws also has a huge effect on what insurance companies pay in claims when things go wrong, which in turn drives up premiums.
The average annual insurance premiums were calculated based on rates from six large carriers along with 10 zip codes in each state. In each quote, full-coverage policies were quoted for a hypothetical 40 year old male driver with good credit and no accidents. This driver commutes 12 miles to work each day, with policy limits of $100,000 for injury liability for one person, $300,000 for all injuries, $50,000 for property damage in an accident, and a $500 deductible on collision and comprehensive coverage.
The national average annual premium is $1318. Maine is the best at $864 annually, whereas Michigan is the most expensive at $2394. Ohio ranks #2 nationally, with an annual premium of only $919.
Here are the top 10 cheapest states for car insurance:
- Maine – Average annual premium of $864
- Ohio – Strong competition in the auto insurance market in Ohio contributes to its low cost. Ohio has fair and vigilant regulations.
- North Carolina
- South Dakota
Here are the top 10 most expensive states for car insurance:
- Rhode Island
- Washington, D.C.