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Auto Insurance price comparison by state
Old 04-13-2010, 08:04 AM   #1
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Auto Insurance price comparison by state

Good information to review if you're considering moving after ER.

Where Auto Insurance Is Most Expensive - Bucks Blog - NYTimes.com

Rank State Average Premium
1 Louisiana
2 Michigan
3 Oklahoma
4 Montana
5 California
I am always surprised when NJ doesn't lead or come near the top in any expense category.
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Old 04-13-2010, 08:17 AM   #2
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When we moved from Texas to Louisiana in 2008 I was shocked at the increases in our car insurance, renters insurance and umbrella policy. I'm pleased to say that they came back down when we moved back
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Old 04-13-2010, 08:24 AM   #3
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Wow, Louisiana's average premium is $500 higher than Michigan, and almost 3 times higher than the least-expensive states.
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Why is Louisiana so expensive? It's a veritable vortex of all the factors that increase the number of accidents and drive up rates: drunk drivers, heavy traffic, poor roads, and a lot of wet weather, to be specific. As well, it's got a greater frequency of claims than many other states - drivers in Louisiana are happy to see each other in court.
How much do these factors really affect local drivers? Here are some examples:
  1. Drunk Driving: Louisiana has drive-through liquor stores, and a culture that celebrates excess drinking.
  2. Wet weather: Louisiana is home to four of the ten rainiest cities in the US (New Orleans, Baton Rouge, Lafayette, and Lake Charles).
  3. Poor Roads: Ask any trucker, Louisiana's highways are the worst in the country
  4. Personal Behavior: Residents of Louisiana aren't significantly worse drivers than people in other parts of the country, but they are less likely to wear seatbelts.
Other elements that make Louisiana's car insurance the most expensive include high insurance taxes, and the number of automobiles that were destroyed in Hurricane Katrina more than two years ago. As well, there's the classification of Louisiana as an "urban driving" state, despite the fact that most of the cities are not particularly large, and many of the roads are two-lane streets.
Of all of these factors, however, it's the high number of claims that has the most impact. State Farm, for example, reports that in 2006 Louisiana had more than double the bodily injury claims and a third more property damage claims than the company-wide total, and the highest number of claims of the five-state zone that also includes Arkansas, Kansas, Missouri, and Oklahoma.
Apparently the only good news in Louisiana is that you are less likely to hit a deer on the road than in any of the neighboring states. I wonder about that - might be some under-reporting going on there. "Boudreaux, quick come help me unload this deer I done hit on the highway. We gone make us some deer gumbo, yes!"
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Old 04-13-2010, 08:30 AM   #4
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All of the listed average rates seem way high to me -- my policy costs about half of the lowest one listed. I've lived in several states over the years and never paid anywhere near those prices. Guess it still serves the purpose of comparison between states (maybe).
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Old 04-13-2010, 08:34 AM   #5
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All of the listed average rates seem way high to me -- my policy costs about half of the lowest one listed. I've lived in several states over the years and never paid anywhere near those prices. Guess it still serves the purpose of comparison between states (maybe).
I agree.
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Old 04-13-2010, 08:50 AM   #6
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I hope these premiums are for a year and not for the usual 6-month renewal period. The $1,462 listed in Texas is about $300 more than I pay for an entire year with two fairly new vehicles, $500 deductible collision and 300K/500K/100K liability.
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Old 04-13-2010, 09:03 AM   #7
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I hope these premiums are for a year and not for the usual 6-month renewal period. The $1,462 listed in Texas is about $300 more than I pay for an entire year with two fairly new vehicles, $500 deductible collision and 300K/500K/100K liability.
Sounds about the same as us. I just paid the 6 month premium on our 3 yr-old Prius and it was $338. Moving from Louisiana AND selling one of our 2 cars has made a big difference in our car ownership costs. The low mileage and no driving to work also contributed to the lower premiums so I can't make a direct comparison between the 2 states for the same car.
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Old 04-13-2010, 09:53 AM   #8
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The article says the cost of car insurance in Louisiana is $2510.87 . I pay a little over $1600/year for all the insurance they will sell me on my Venza.

When I was talking to my agent about it, she told me that my bill would have been over twice that if I lived in New Orleans proper (Orleans Parish) instead of in a suburb. It seems that in New Orleans there are those who will intentionally jump in front of you, try to cause an accident, and then go for a big court settlement. Unfortunately this seems to be an extremely effective way to earn a living among some in Orleans Parish and it raises the insurance prices there. From what I understand, a lot of this type of behavior has been eliminated in Mississippi due to tort reform, limiting awards in cases like this. I notice Mississippi's insurance rates are much lower than those in Louisiana.
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Old 04-13-2010, 12:37 PM   #9
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I'm thinking the Michigan rates are pushed up by the exorbitant rates in Detroit, proper. This list suggests $2100 average, but DW and I both pay about $500 a year for full coverage on vehicles 2 and 6 years old.
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Old 04-13-2010, 12:48 PM   #10
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I sometimes wonder how they calculate auto insurance premiums. Earlier this year, we bought 2 new cars, a 2010 Toyota Camry to replace a 9-year old VW Jetta and a 2010 Mazda Miata to replace a 13-year old Mazda Miata. I expected a whopper of an increase in car insurance premiums. But our monthly premiums have only gone up $13 (same coverage as before)... We now pay about $1,115/year for our two new cars, and it's only because we have high liability limits. We live in AL.
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Old 04-13-2010, 01:08 PM   #11
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Strange...I read through the table in the article three times and I can't figure out why there are 51 states.

Oops! Nevermind...they listed Washington D.C. as a state.
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Old 04-13-2010, 01:12 PM   #12
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Strange...I read through the table in the article three times and I can't figure out why there are 51 states.
They also included Washington, DC in this chart.
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Old 04-13-2010, 01:19 PM   #13
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They also included Washington, DC in this chart.
Thanks Ziggy, we must have cross posted. I just caught it and had edited my original post before seeing your reply.
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Old 04-13-2010, 02:34 PM   #14
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I sometimes wonder how they calculate auto insurance premiums. Earlier this year, we bought 2 new cars, a 2010 Toyota Camry to replace a 9-year old VW Jetta and a 2010 Mazda Miata to replace a 13-year old Mazda Miata. I expected a whopper of an increase in car insurance premiums. But our monthly premiums have only gone up $13 (same coverage as before)... We now pay about $1,115/year for our two new cars, and it's only because we have high liability limits. We live in AL.
I think the small difference in premium is that the cost of repair is the same (as opposed to the write-off cost). For example, replacing the fender and bumper plus re-alignnment, labor costs etc. are the same for a new car as a 5 year old car.
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Old 04-13-2010, 05:33 PM   #15
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Having lived in Missouri and Maryland in the past 18 months, and now Louisiana, the numbers seem about right. My cost in Missouri was a little over half the price in Louisiana, even with a state issued military discount.

My other observation is that people love to drive slow here in LA. In MD, if you go slow, you get run off the road by the average flow of traffic, but here 10mph lower than the limit seems to be perfectly acceptable.
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Old 04-13-2010, 06:47 PM   #16
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The cost shown for North Dakota also seems high. My insurance is $710 per year with $500 deductible on a 2007 Lincoln MKX.
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