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Where is car insurance the most expensive?
Why do rates vary state to state? Shouldn't insurance be the same everywhere?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“
Car insurance
rates vary state to state because each state regulates its insurance laws. Louisiana
has the highest insurance rates in the country, with the average rate more than 30% higher than Michigan, which has the next highest cost of insurance.Since each state regulates car insurance, rates can’t stay the same in every geographic area. Additionally, every state has its own
minimum amount of car insurance
required. As this coverage varies, insurance costs may be more or less depending on the required coverage.- New York
- Louisiana
- Rhode Island
- Georgia
- Nevada
- Florida
- Michigan
- New Jersey
- Connecticut
- Delaware
Insurance is higher in these states due to a high level of minimum coverage and the likelihood of claims.
If a state is known for natural disasters, insurance companies will expect more claims meaning they’re taking on more risk. Therefore, they need to charge more for insurance. Similarly, if a state has a high level of required insurance, insurance companies will need to pay out more in a claim. Again, they’d need to charge more to ensure that they have enough money to cover policyholders.
While it may cost more to get insurance in these states, it doesn’t mean insurance is expensive for every policyholder. Most insurance companies are still able to provide affordable rates for a large number of policyholders.
If you live in one of these high-cost states, don’t give up on finding a cheaper rate. Instead, use the
Jerry
app. In just minutes, you can sign up to compare rates and find the coverage you need without breaking the bank.”View full answer
- Gregory R.
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