Car insurance rates vary dramatically. Not only do they depend on your age and driving history, but insurance rates can be much higher in certain states. According to NBC News, Michigan drivers pay 136 percent more than the national average. Where does your state rank? Later, we’ll show you how to reduce your monthly car insurance payment.
Find out if you can pay less on car insurance. Get a free instant auto insurance quote from CARCHEX today.
Top Ten Most Expensive States
The top ten most expensive states for car insurance are:
- Michigan
- Rhode Island
- New York
- Delaware
- Louisiana
- Connecticut
- New Jersey
- Florida
- Nevada
- California
Didn’t find your state on the list? Check out CNBC’s interactive chart that shows a comparison of all 50 states, including which county in each state has the highest and lowest rates.
Why Michigan Car Insurance Costs So Much
One reason Michigan is so expensive is because all the state’s car insurance plans include unlimited lifetime personal injury protection. Also, Michigan has a high number of uninsured motorists which drives up the average cost of car insurance.
If you live in Wayne County, Michigan, expect to pay even more. Wayne car owners pay a whopping 45 percent more than the Michigan state average. This may not be surprising as Detroit is located in Wayne, and nearly half of Detroit’s drivers don’t have car insurance.
NORTH CAROLINA DRIVERS PAYS LESS
North Carolina drivers, on the other hand, pay the least in car insurance nationwide according to NBC News. One main reason for the low cost is due to strict state regulations which allows North Carolina drivers to enjoy 41 percent lower rates than the national average.
The Top Ten Least Expensive States
The least expensive states for car insurance are (least expensive at top):
- North Carolina
- Idaho
- Ohio
- Maine
- Wisconsin
- Tennessee
- Missouri
- Wyoming
- Iowa
- Virginia
Ways To Decrease Your Car Insurance Costs
There are a variety of ways you can lower your car insurance premiums. Some strategies are:
- Pay A Higher Deductible – The deductible is how much you pay out of pocket for any insurance claim. If you agree to pay more, your monthly premium goes down.
- Anti-Theft Services – GPS tracking and vehicle alarms may help reduce your insurance rates.
- Good Grades & Driver’s Ed – Teens who get good grades in school may qualify for lower car insurance premiums. Driver’s education classes may also be rewarded with lower insurance rates.
- Safe Driving – An accident free driving record is probably the best way to get your car insurance premiums down.
- Tech Solutions – There are many innovative smartphone and other technological applications that can cut insurance costs.
- Change Insurers – Rates between insurers can vary widely. It pays to shop around.
Want to get a lower car insurance rate? Get a free car insurance quote from CARCHEX now and see if you can save.