States With the Highest Auto Insurance Rates

According to a new analysis from Insure.com, an insurance rate comparison site, the highest average annual auto insurance premiums are in Louisiana ($2,699), then Michigan is next ($2,520), followed by Georgia ($2,155). Below is the top ten ranked states.

Rank	State	Avg. annual premium
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

No-fault has often been the blamed for high premiums.  Between 1971 and 1976, two dozen states adopted no-fault auto insurance.  Many states did grapple with rising rates under no-fault as well as strong opposition from stakeholders.  Only a dozen no-fault states remain -- Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.  Interestingly, only Michigan and Kentucky are in the top 10 and it is commonly accepted that Michigan's unlimited medical coverage is the real culprit there.

The no-fault states you most hear about with respect to fraud and abuse besides Michigan are New Jersey (ranked 12th), Minnesota (ranked 27th), New York (ranked 33rd) and Florida (ranked 34th).  In fact, 7 no-fault states have average premiums below the U.S. national average of $1,510.  So no-fault can contribute to high rates but it is not the most common factor.

So what is?  Well taking a look at #1 on the list Louisiana, compared to the rest of the country, Louisiana drivers who get in accidents file more bodily injury claims than drivers in other states.  In addition, a greater portion of people filing insurance claims hire attorneys and lawsuits involving claims under $50,000 go before judges instead of juries. Some observers say elected judges are more likely to side with local people than insurance companies.  Finally, there is a high proportion of uninsured drivers on the road.


Wild weather and uninsured drivers keep rates high in Oklahoma. Hailstorms routinely pummel thousands of cars in a few moments, and their owners face decisions over whether to wait for the next time or file a claim -- if they have coverage, that is. Nearly one in four Oklahoma drivers is uninsured, the second-highest rate in the country.

In each state, the conditions that lead to higher rates end up being quite different - it could  be high comprehensive claims, a large number of uninsured drivers, large number of fraud claims, high collision and claim rates or a generous compensation system.