Some States Simply Cheaper Than Others

By Author: Norris Rios
Total Articles: 572
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State to state, rates are incredibly different. However, which states were expensive and which were cheap has remained very stable over the years. Not anymore, according to the latest data. Prices have changed by leaps and bounds since the financial disaster hit a few years ago. While the country has recovered somewhat and insurance companies sure haven't been hurt too much (their profits have gone up), workers and small business owners are still feeling the hit on their finances. Insurance is one of those costs.
The Ten Cheapest States for Auto Insurance

These states are listed in order of the average cost of insuring a motor vehicle per year, the very lowest price to the higher prices.

* Vermont - $951
* South Carolina - $1,094
* Maine - $1,122
* Wisconsin - $1,123
* Tennessee - $1,141
* Ohio - $1,150
* North Carolina - $1,154
* Iowa - $1,162
* Virginia - $1,239
* Utah - $1,271

The Ten Most Expensive States for Auto Insurance

These states are listed in order of the average cost of insuring a motor ...
... vehicle per year, the very highest price to the lower prices.

* Michigan - $2,500
* Louisiana - $2,450
* Oklahoma - $2,192
* Montana - $2,189
* California - $1,988
* Mississippi - $1,886
* New Mexico - $1,876
* Arkansas - $1,825
* Maryland - $1,807
* North Dakota - $1,791

These numbers are based on quotes taken for a median aged driver from each state, asking for $100,000 liability coverage for one person on one vehicle, $300,000 on all injured parties, and $50,000 in total property damage coverage. These numbers were selected to remain consistent for comparison with a previous survey.

Why have some states gone up?

The cost of insurance in the most expensive state (Michigan) is almost three times the cost in the least expensive state (Vermont)!!! Why?

First off, uninsured motorists. These guys drive without insurance, and they don't get into any fewer accidents either. As a result, insured people end up paying more money. Sure, uninsured motorists who cause collisions might owe just as much money, but it is the people with insurance that end up paying for things right now. As a result of this, insurance rates go up because they are actually taking on more risk than it seems.

Next, the caps on personal injury protection payments given to those injured in collisions have gone up. In Michigan, there aren't any caps at all. While this is good for those injured parties, it does drive prices up.

Finally, litigation costs are a big reason prices have gone up across the United States.

Have prices really gone down in other states?

In some cases yes, but in the majority of cases they have either stayed roughly the same or gone up a bit. Everywhere is getting more expensive for car insurance in general, but some places are just climbing higher than others.

Why is Vermont car insurance so cheap?

Vermont is sparsely populated, which means there isn't much traffic on the roads. There is just less of a chance of getting in a collision.