Another Top-10 List — Most and Least Expensive States for Auto Insurance

After housing and healthcare costs, for many households their next largest expenditure is their automobile or light truck. While the purchase cost for autos is more uniform than housing costs across the country, the same is not true for annual auto insurance.

Figuring where the most and least cost states for auto insurance is not an easy proposition. Costs vary for a large array of factors, some of which are listed below:

  • Driver demographics (age, sex, and in some states credit history and status)
  • Amount driven
  • Driving history (tickets, accidents, insurance claims)
  • Type of car driven, accessories and trim-level
  • Zip Code
  • State-specific Tort laws
  • State Laws, such as whether the state has no-fault insurance or not
  • Traffic congestion
  • Crime
  • Insurer competition
  • Percentage of insured drivers
  • Local court systems completed a very complex analysis to get a more apples-to-apples comparison. Their analysis was based on the following:

  • 40-year old male driver with a clean driving record and good credit
  • Rates were taken from six large insurance carriers in 10 Zip Codes in each state
  • Full coverage policy
  • Study averaged rates for the 20 best-selling vehicles in the U.S. These makes and models made up approximately 40 percent of all vehicles sold in the prior year
  • Each auto model was rated on the cheapest-to-insure trim level

Car models included in the survey:

Ford F-150 Platinum 4WD Supercrew
Chevrolet Silverado 1500 LS 2WD Regular Cab
Dodge Ram 1500 Tradesman Regular Cab
Toyota Camry LE sedan
Honda Accord LX sedan manual transmission
Toyota Corolla L sedan
Nissan Altima 2.5 sedan
Honda Civic LX sedan manual transmission
Ford Fusion S sedan
Ford Escape S 2WD
Chevrolet Cruze LS manual transmission
Toyota RAV4 LE 4WD SUV
Chevrolet Equinox LS 2WD SUV
Hyundai Elantra SE sedan
Ford Focus S sedan
Hyundai Sonata SE sedan
GMC Sierra 1500 2WD Regular Cab
Ford Explorer 2WD SUV
Toyota Prius Five hatchback

So what are the most expensive and least expensive states for auto insurance based on the’s methodology?

12-21-15 table

The range in auto insurance costs is massive, with Michigan, the most expensive state, costing more than 200 percent greater than the least expensive state – Maine.

Want to see what the typical cost for insurance is for your state? To read the entire report click pointed out that these findings are not consistent with an annual study by the NAIC, which included no adjustments for the type of auto driven or the level of coverage purchased.

Unlike your homeowner’s insurance, auto insurance coverage in most circumstances is an asset that depreciates in value. Housing, on the other hand, has increased in value in recent years. Unlike auto insurance, homeowners may need to discuss what the current replacement cost is for their dwelling and increase their insurance coverage accordingly.


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