The Most Expensive Cities to Insure Your Vehicle

by Michele Postler, Monday, January 28, 2013

2012 is now officially behind us and there are a ton of statistical reports being released. One of them is the most expensive states to get car insurance.

The top cities below have the highest cost of car insurance in the country, mostly because of the percentage of uninsured drivers and other factors like driver responsibility points.

If you live in any of these states our hearts go out to you as you are paying almost $1000 more a year on car insurance than the national average.

The study was done by collecting data from Quadrant Information Services which based the statistics on 2000 new cars with a male, forty year old driver that commutes twelve miles per day.


Top Five highest states to purchase auto insurance:

Michigan was number one on the list with an average price of $2,541 per year on car insurance. The car was a newer model and is expected to be high on the insurance pricing guide. The real reason that Michigan has the highest rates is that their insurance system is a no fault system. A no fault system means that the insurance company of the person at fault in an accident pays out the claims and increases that persons insurance premiums to recoup the costs. This restricts people from going to court to claim more money in damages. Some say the main problem with this type of system is that it doesn’t adequately punish reckless or negligent drivers. This type of coverage coupled with the facts that 19% of drivers in Michigan are uninsured make the auto insurance rates the highest in the country.

Louisiana was second on the most expensive car insurance premiums lists. They have a no pay no play system that doesn’t allow uninsured motorists to claim the first $10,000 in damages from the other party, even if it wasn’t their fault. 13% of drivers in Louisiana are uninsured which contributes to the prices of insurance in that state.

Third on the list is Oklahoma, they can contribute their high auto insurance rates to the severe weather systems throughout that area. Most claims by insured motorists are from damages from storms, like hail and high winds. They are also among the highest for uninsured drivers which are about one in four.

Montana is in the top five of most expensive insurance in the country as its fatality rate is 2.12 per 100 million miles driven and is almost two times the national average. The roads are nearly deserted and that can sometimes be a recipe for disaster when driving. Almost 11% of drivers in Montana are uninsured.

Washington DC will round out this list with the uninsured motorist at 15% of total drivers in this state. It is even expensive to buy insurance for an old beater of a car in Washington.

If you are living and insuring a car in any of these five states you are paying almost 70% more insurance than the national average. The contributing factors are that these states have the highest uninsured drivers and your rates reflect that. Your best recourse is to shop around for auto insurance. You can find that many companies offer online full coverage auto insurance quotes, and once you have your information at least you have the peace of mind know that you got the best rate in your state.