Louisiana Tops State Rankings of Car Insurance Rates; Maine Lowest

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Insure.com’s annual state rankings by auto insurance rates show states’ residents hit hardest by high premiums.

Even if you live in a state with high average rates you can probably reduce your bill. Shopping around is the best way to save the biggest amount. Ask your insurance company if you’re getting all possible discounts.

Driving a Mercedes-Benz CL65 AMG coupe in Oregon will inflict the most painful car insurance bill possible in the nation – more than any other vehicle or state of residence – with an average annual premium of $5,867, and that’s for a driver with a clean record.

Driving a Toyota Tacoma pickup in Wyoming is the cheapest possible combination of vehicle and state for insurance rates, with an average annual premium of $698.

Insure.com’s annual study of car insurance rates in each state shows who’s paying the biggest bills. Overall, when averages of all vehicles are considered, Louisiana and Michigan are the most expensive places to buy auto insurance. Maine residents enjoy the lowest average annual rates (see rankings below).

Frequent and expensive auto insurance claims among residents propel states to the top rankings. Rural states often benefit from their lack of urban areas, which are hot spots for accidents and claims, helping keep rates down.

“Louisiana can’t catch a break,” said Amy Danise, editorial director of Insure.com. “It is consistently at the top of our rankings. One way to mitigate the rate pain is to buy the cheapest car to insure in the state, which is the Jeep Patriot Sport in Louisiana. The worst choice would be a Mercedes-Benz S65 AMG sedan, which carries the highest rates in Louisiana.”

The dollar figures below are calculated by averaging the rates of more than 750 vehicles in the 2013 model year.

The most and least expensive states for car insurance – 2013

1. Louisiana - $2,699
2. Michigan - $2,520
3. Georgia - $2,155
4. Oklahoma - $2,074
5. Washington, D.C. - $2,006
6. Montana - $1,914
7. California - $1,819
8. West Virginia - $1,816
9. Rhode Island - $1,735
10. Kentucky - $1,725
11. Connecticut - $1,723
12. New Jersey - $1,697
13. Alabama - $1,667
14. Missouri - $1,638
15. Massachusetts - $1,625
16. Pennsylvania - $1,604
17. Delaware - $1,586
18. Hawaii - $1,583
19. Texas - $1,545
20. Arkansas - $1,545
21. Maryland - $1,528

National average - $1,510

22. North Dakota - $1,501
23. Wyoming - $1,496
24. Alaska - $1,455
25. Utah - $1,438
26. Kansas - $1,435
27. Minnesota - $1,432
28. New Mexico - $1,431
29. Tennessee - $1,408
30. South Dakota - $1,397
31. Oregon - $1,387
32. Nebraska - $1,384
33. New York - $1,369
34. Florida - $1,364
35. Mississippi - $1,345
36. Nevada - $1,341
37. Virginia - $1,322
38. Illinois - $1,322
39. South Carolina - $1,288
40. Colorado - $1,271
41. Wisconsin - $1,228
42. Arizona - $1,227
43. Washington - $1,226
44. Indiana - $1,183
45. Vermont - $1,176
46. Idaho - $1,133
47. New Hampshire - $1,112
48. Ohio - $1,106
49. North Carolina - $1,085
50. Iowa - $1,028
51. Maine - $934

Forces behind the rates in the highest and lowest states include:

No. 1: Louisiana: A high portion of Louisiana drivers who are in accidents file bodily injury claims. Also, car accident lawsuits for less than $50,000 go before elected judges rather than juries, and the elected judges are seen as siding with consumers more than the insurance companies.

No. 2: Michigan: Michigan residents carry heavy financial burden under the state’s guarantee of unlimited, lifetime personal injury protection (PIP) benefits for treatment of injuries from a car accident. Car insurance companies pay out the first $500,000 for medical treatment, and expenses above that are paid by the Michigan Catastrophic Claims Association. Everyone’s premium includes an assessment from the association, which is $175 per vehicle for 2013.

No. 51: Maine: Agents in Maine credit the state’s rural landscape with helping to hold down claims and insurance rates. They also think Maine’s graduated licensing program, which places tight restrictions on young drivers, helps reduce accidents.

“Even if you live in a state with high average rates you can probably reduce your bill,” said Danise. “Shopping around is the best way to save the biggest amount. But even if you don’t want to switch insurers, you can ask your company if you’re getting all possible discounts and check insurance rates before you buy your next car – similar vehicles can have large insurance differences.”

See the full article at http://www.insure.com/car-insurance/car-insurance-rates.html.

Insure.com’s recent car insurance comparison study and tool rank the most and least expensive 2013 vehicles to insure in each state and nationwide.

Survey methodology
Insure.com commissioned Quadrant Information Services to provide auto insurance rates for more than 750 car models from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state.

Rates for all vehicles were averaged in each state to create the rankings. Rates are for comparative purposes within the same model year.

Rates are based on insurance for a single 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Actual rates will depend on individual driver factors.

About Insure.com

Insure.com is a comprehensive resource of consumer insurance information and data. The website features articles, news and tools on auto, home, health and life insurance topics; life insurance quotes; and car insurance comparison tools. Consumers have access to free car insurance quotes and guidance on finding the right insurance policy, saving money and solving claims problems. Insure.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that best meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.

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Amy Danise

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