Car prices surged during the pandemic, but have you noticed car insurance has too?
Sixty-three percent of Americans said they're most concerned with their ability to pay for their car insurance, according to researcher doxoINSIGHTS, based on data from bill payment platform doxo of more than 8 million paying consumers across 97% of U.S. ZIP codes. That was tied with internet and cable and second only to utilities, which 73% of consumers were most worried about being able to pay, it said.
All isn’t equal though. Auto insurance is much more expensive in some states than others, but that doesn’t mean you can snooze if you live in a lower-cost state. Some lower-cost car insurance states are expected to see sharp increases in coming years that will boost rates to among the highest in the nation.
Here’s the breakdown of which states have the highest rates now and where they’re expected to be in 10 years, according to German-based car subscription service Finn using data from insurance company Insure. Some may surprise you.
Which states have the highest auto insurance rates now?
1. Florida’s average annual premium: $2,560
The Sunshine State "is so expensive as Florida has the highest proportion of uninsured drivers,” Finn said in its report. “20% of drivers lack even minimum liability insurance, pushing costs onto insured drivers through higher premiums.”
2. Louisiana’s average annual premium: $2,546
“Like Florida, Louisiana also has a large proportion of uninsured drivers at slightly more than 10%, pushing up premiums,” Finn said. “Even drivers with insurance often only have minimum coverage, which won’t protect them from anything more than minor accidents. Drivers in the Pelican State are also highly litigious, with more vehicle-related lawsuits than any other region contributing to higher premiums.”
3. Delaware’s average annual premium: $2,137
Delaware’s small but crowded, “meaning more accidents and higher repair costs pushing up premiums,” Finn said. “The state’s large coastline also increases costs as drivers are more at risk of severe weather causing accidents and damage to vehicles."
Which states pay the least for car insurance?
1. Ohio’s average annual premium: $1,023
A saturated and highly competitive insurance market helps keep rates low, as well as an abundance of safe drivers, Finn said. Ohioans can pay $625 less than the national average of $1,023.
2. Maine’s average annual premium: $1,116
Low population density makes accidents less likely, and a very low rate of vehicle thefts and a small proportion of uninsured drivers help keep insurance rates low.