FOSTER CITY, Ca. – Michigan holds the dubious title of the most expensive state for auto insurance for the third year in a row, with annual premiums more than twice the national average.
So says Insure.com’s annual rankings of the most and least expensive states for auto insurance. Maine was the least expensive for the second year in a row with an average annual policy price of $807. In comparison, the average annual premium in Michigan is $2,738 – more than double the national average of $1,325.
Top five most expensive states to insure for 2016
- Michigan
- Montana
- New Jersey
- Louisiana
- Oklahoma
“The factors that cause Michigan to be the most expensive aren’t likely to change any time soon,” said Penny Gusner, consumer analyst for Insure.com. “Michigan’s no-fault requirement, while trying to curb insurance fraud, causes astronomical rates. It then creates a high percentage of drivers who cannot afford to be insured – raising rates even more so. It’s a dangerous cycle.”
Top five least expensive states to insure for 2016
- Maine
- Ohio
- Wisconsin
- Idaho
- New Hampshire
The top three are least-expensive group regulars. Maine, Ohio and Wisconsin have all been in the top five multiple times since the report began in 2010.
“Most of the least expensive states don’t have as large metropolitan areas as the most expensive group. With less congestion comes fewer accidents and less risk for insurers. It’s one of the most straight-forward aspects lowering car insurance premiums in those states,” Gusner said. “Ohio has an extremely competitive insurance industry. There are more than 650 issuers competing for business within the state.”
The Insure.com report uses the average rates for the 20 best-selling vehicles for 2016 to date. By highlighting the most popular vehicles, averages are more accurate without high-end sports or luxury cars slanting the data.
Insure.com commissioned Quadrant Information Services to calculate auto insurance rates from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state. Rates were compiled in February 2016.
We averaged rates in each state for the cheapest-to-insure 2016 model-year versions of America’s 20 best-selling vehicles and ranked each state by that average. Rates are for comparative purposes only within the same model year.
Rates are based on full coverage for a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Actual rates will depend on individual driver factors.
See the full story, including the average insurance rates for every state and the top 20 best-selling vehicles, at Insure.com’s Car insurance rates by state, 2016 edition.
