Car insurance premiums are a fact of life for nearly 230 million American drivers. The cost of car insurance can vary greatly, not only from person to person, but also from state to state. Six of the 10 most expensive states for auto insurance premiums were also among the top 10 states in population density. Louisiana was the only state with a higher cost of premiums and a population density in the lower half of the Census Bureau density ranking. Conversely, most of the cheaper states for auto insurance had lower population densities.
According to Census Bureau definition, 81% of Americans live in urban areas. Median disposable income wasn't as much of a factor, at least at the state level. Only four of the 10 most expensive states for auto insurance premiums in the Northeast Corridor had median incomes above the national average. States with the lowest average incomes, such as Georgia, Louisiana, Michigan, and South Carolina, also have some of the highest premium costs. Recently, a new auto insurance industry report showed that Michigan is no longer the most expensive state in the country to insure a car.
However, local laws, regulations, and other factors can still cause wide variations in car insurance rates depending on the state. Car insurance rates vary by state and insurance company due to several factors that affect premiums. MoneyGeek has determined that the ten states with the cheapest full coverage insurance in the country are: Alabama, Arkansas, Idaho, Iowa, Maine, Mississippi, North Carolina, Ohio, Virginia and Wisconsin. One way to keep car insurance rates low is to improve your driving habits and credit score, seek out discounts, and use usage-based insurance (pay per mile). In at-fault or tort states, the driver responsible for an accident (or their auto insurance company) compensates the other driver for their losses. This means that non-at-fault drivers don't have to file a claim with their own auto insurer for medical expenses. States like Minnesota have average car insurance rates due to their cost of living, quality of infrastructure, population density and number of licensed drivers.
Meanwhile, Alabama's low living costs help moderate car insurance costs despite its volatile weather and crime rate. Mississippi drivers typically pay about the same as the national average for full-coverage auto insurance. Rising inflation and medical costs can increase auto insurance premiums. Health care providers say these changes have decimated their industry and put danger to patients who suffered catastrophic injuries. One of the best ways to protect yourself is to hire an experienced car accident lawyer who can advise you through the process and help you properly assess your injuries.