Car prices have skyrocketed during the pandemic, but have you noticed that car insurance has, too?
Sixty-three percent of Americans They said they were more concerned with their ability to pay for auto insurance, according to researcher doxoINSIGHTS, based on data from bill payment platform doxo for more than 8 million paying consumers across 97% of US zip codes. That was related to internet and cable, and second only to utilities, where 73% of consumers were very concerned about being able to pay, she said.
All is not equal though. Car insurance is much more expensive in some states than others, but that doesn’t mean you can snooze if you live in a low-cost state. Some low-cost auto insurance states are expected to see sharp increases in the coming years that will boost rates to among the highest in the country.
Here’s a breakdown of which states have the highest rates now and where they’re expected to be in 10 years, according to Germany-based car subscription service Finn using data from insurance company Insure. Some may surprise you.
What States Have The Highest Auto Insurance Rates Right Now?
1. Average annual premium for Florida: $2,560
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The Sunshine State is expensive because Florida has the highest percentage of uninsured drivers, Finn said in her report. 20% of drivers lack even minimal liability insurance, pushing costs back onto insured drivers through higher premiums.”
2. Average annual premium in Louisiana: $2,546
“Like Florida, Louisiana also has a large proportion of uninsured drivers at just over 10%, which leads to higher premiums,” Finn said. “Even drivers who have insurance often only have minimal coverage, which won’t protect them from anything more than minor accidents. Drivers in the Pelican State are also highly litigious, with more auto-related lawsuits than any other area.” Contribute to an increase in insurance premiums.
3. Median annual premium for Delaware: $2,137
Delaware is small but crowded, Finn said, “which means more accidents and higher repair costs which leads to higher insurance premiums.” The state’s extensive coastline also increases costs because drivers are more at risk from severe weather causing accidents and damage to vehicles. ”
Which states pay the least for car insurance?
1. Ohio median annual premium: $1,023
Finn said a saturated and highly competitive insurance market helps keep rates low, as well as an abundance of safe drivers. Ohio residents can pay $625 less than the national average of $1,023.
2. Median annual premium for Maine: $1,116
Low population density reduces the likelihood of accidents, and a very low rate of vehicle theft and a small percentage of uninsured drivers help keep insurance rates low.
3. Median annual premium in Idaho: $1,121
The abundance of country roads and the small number of people reduce the possibility of accidents. The closer you are to larger cities like Boise and Caldwell, Finn said, the higher the average price.
Which countries are expected to see the highest rates of insurance in 10 years?
1. Median annual premium for Florida 2033: $4,813.
Finn said that would be $2,500 more than the projected national average if current trends continue.
“Auto insurance costs in the state will increase as climate change causes increasingly severe weather events, increasing vehicle damage risks and raising insurance premiums,” she said.
2. Estimated Average Annual Premium for Nevada: $3,055
If premiums continue to rise at the current rate of 51%, the Silver State is in second place in 2033.
3. Estimated Average Annual Premium for New Yorkers: $2,990
Finn said auto insurance premiums are set to rise 48% over the next 10 years.
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Are there any places where car insurance rates are lower?
If you’re lucky enough to have lived in Georgia, Hawaii, or Michigan for the past decade, your annual costs come down.
1. Auto insurance rates in Georgia decreased by 24 percent between December 2013 ($2,155) and 2023 ($1,647)
Starting July 1, auto insurers in Georgia can be prevented from increasing rates at their discretion if an insurance reform bill passed by the General Assembly gets Gov. Brian Kemp’s signature. The law was passed after some auto insurers, through a loophole, bypassed regulators and increased rates by up to 40% in one calendar year.
2- Hawaii’s annual insurance premium fell 17% to $1,306 in 2023 from $1,583 in 2013.
“Prices have fallen in the Aloha State as insurance companies in Hawaii are no longer allowed to offer policies that take into account non-payer factors like age and credit score,” Finn said.
3. Michigan rates are down 15% to $2,133 this year from $2,520 a decade ago.
In 2020, lawmakers signed a bill that limits the circumstances in which drivers can sue each other for damages. Finn said the lack of lawsuits helped keep premium costs down.
Where can I see my state’s ranking of auto insurance costs?
You can check out Finn’s full report here To find out what your state pays.
Medora Lee is USA TODAY’s money, markets and personal finance correspondent. You can contact her at [email protected] and sign up for the free Daily Money newsletter for personal financial advice and business news every Monday through Friday morning.
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