Car Insurance Expense: Louisiana Leads The Pack Followed By Michigan

By Janet Peterson on April 18, 2010, 7:16 am Posted in Business News

When a person thinks of states with high car insurance rates, Western states known for fast drivers, and New York, a state filled with rude drivers, might immediately come to mind. Neither California nor New York residents pay the most to insure their automobiles, according to a recent issue of Consumer Reports.

Most Expensive to Insure A Car In Louisiana

The state that earned the highest rates for car insurances was Louisiana. High mileage and heavy commuting was one factor that contributed to its ranking on the list, but it was not the most significant factor that insurance companies consider. Louisiana state law prohibits people involved in auto accidents for filing a court case for totals that involves less than $50,000.

Because of the high limit, many insurance companies will settle the claims outside of court for nearly the amount. The higher payouts result in higher premiums. Louisiana is not the only state to suffer from high premiums, Michigan, Oklahoma and Montana make round out the list of the top four most expensive states in which to buy automobile insurance.

Where Can A Consumer Insure A Car Cheaply

A consumer who owns a car in Maine can expect to pay $902 per year on average for his automobile coverage. Insurance rates in Vermont came in only slightly higher in yearly rates than its neighbor to the North. Both states have a relatively low number of cars on the highways of these northern New England states. Residents of Maine and Vermont also report a lower number of commuter miles.

 

Rates of 2,400 vehicles were collected to get an idea of the average rates. The study assumed that the car was driven by a married male in his forties. The survey also assumed that the owner had a policy with a $500 deductible and had a daily commute of less than twelve miles.

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