For seven lengthy years, Michigan policyholders paid greater common automobile insurance coverage charges than drivers in another a part of the nation.
However that doubtful honor has moved from the far north of the nation to the far south.
Louisiana is now dwelling to the best common insurance coverage fee, based on Insure.com’s annual tally of auto insurance coverage prices nationwide.
The state has been creeping towards the highest spot for some time, ending within the prime 5 quite a few occasions. In a press launch, Penny Gusner, senior shopper analyst for Insure.com, says:
“Whereas most states skilled fee declines over the previous yr, the price of insurance coverage in Louisiana leaped by 19%. The common premium within the state is now $2,839, making it 99% costlier than the nationwide common.”
Why are charges so excessive in Louisiana? Insure.com says many uninsured drivers (11.7% of all drivers within the state) and underinsured drivers are a part of the explanation. As well as, what Insure.com characterizes as “straightforward lawsuits” even have pushed charges a lot greater.
The states with the best common automobile insurance coverage charges in 2021 are:
- Louisiana — $2,839
- Michigan — $2,112
- Florida — $2,082
- California –$1,966
- Missouri — $1,895
Insure.com says Michigan’s fall from first place to second is “based mostly on a technicality.” Adjustments to the state’s no-fault auto insurance coverage legal guidelines now enable drivers to pick the quantity of private damage safety (PIP) protection they carry.
Beforehand, drivers needed to buy PIP protection that assured limitless, lifetime medical advantages to auto accident victims. That legislation brought on danger to soar for insurance coverage corporations, and so they handed on the price to prospects within the type of greater premiums.
In the meantime, the 5 states with the most affordable common automobile insurance coverage charges in 2021 are:
- Maine — $858
- New Hampshire — $885
- Wisconsin — $938
- Idaho — $985
- Ohio — $992
Find out how to decrease your automobile insurance coverage prices
Gusner notes that among the finest methods to tame your auto insurance coverage prices is to buy round occasionally, as “charges fluctuate based mostly on a number of things that stretch past location.”
In the event you hate the concept of taking the time to buy round, a service resembling The Zebra or Gabi will collect quotes for you so you may decide the most effective fee.
These corporations focus on streamlining the buying expertise. In brief, they do the work so that you don’t should.
To study extra, try:
Disclosure: The data you learn right here is all the time goal. Nonetheless, we generally obtain compensation whenever you click on hyperlinks inside our tales.
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