Driving is a part of life for nearly 230 million Americans, and car insurance premiums are a necessary part of that. The cost of car insurance can vary greatly from person to person, and even more so from state to state. Six of the ten most expensive states for auto insurance premiums were also among the top ten states in population density. No-fault states, such as Florida and Michigan, tend to have higher car insurance premiums than other states.
This is because no-fault states require drivers to have Personal Injury Protection (PIP) insurance that covers their own medical bills in the event of an accident and limits the driver's rights to sue for damages after an accident. The cost of car insurance can also be affected by the cost of living in a particular state. States with lower median incomes, such as Georgia, Louisiana, Michigan, and South Carolina, tend to have higher premium costs. Adding a teenager to a car insurance policy can also cause a significant rate increase for the average driver.
On the other hand, states with fewer chances of accidents and weather-related claims tend to have lower car insurance costs. South Dakota drivers are recommended to get a policy with Auto-Owners, American Family, or State Farm, as these companies offer the lowest rates for minimum auto insurance coverage. It's important to compare auto insurance quotes from several insurers in order to find the best rates. Every state has its own car insurance laws, so it's important to be aware of your state's requirements when shopping for car insurance.