Insure.com recently released its annual rankings of the most and least expensive states for auto insurance. The ranking found Maine remains the cheapest state in the country for the second year in a row with an average annual policy price of $807.
Michigan also holds on to its title of the most expensive state for the third consecutive year, with an average rate annual premium of $2,738 – more than double the national average of $1,325.
The top five least expensive states to insure for 2016 are:
- Maine
- Ohio
- Wisconsin
- Idaho
- New Hampshire
The top three are least-expensive group regulars. Maine, Ohio and Wisconsin have all been in the top five multiple times since the report began in 2010.
“Most of the least expensive states don’t have as large metropolitan areas as the most expensive group,” said Penny Gusner, consumer analyst for Insure.com. “With less congestion comes fewer accidents and less risk for insurers. It’s one of the most straightforward aspects lowering car insurance premiums in those states. Ohio has an extremely competitive insurance industry. There are more than 650 issuers competing for business within the state.”
The top five most expensive states to insure for 2016 are:
- Michigan
- Montana
- New Jersey
- Louisiana
- Oklahoma
“The factors that cause Michigan to be the most expensive aren’t likely to change any time soon,” said Gusner. “Michigan’s no-fault requirement, while trying to curb insurance fraud, causes astronomical rates. It then creates a high percentage of drivers who cannot afford to be insured – raising rates even more so. It’s a dangerous cycle.”
The Insure.com report uses the average rates for the 20 best-selling vehicles for 2016 to date. By highlighting the most popular vehicles, averages are more accurate without high-end sports or luxury cars slanting the data.
