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QuestionInsurance Question  I was wondering, overall, what states would you say have the cheapest insurance rates?

AnswerAuto Insurance Answer

Currently according to the CPI, the least expensive states are North Dakota, Illinois, Nebraska, South Dakota, Idaho, Vermont, and Montana.

Currently according to the CPI, the most expensive states and districts are Washington D.C., New Jersey, New York, Louisiana, Michigan, Maryland, and Rhode Island.

Other studies, like NAIC's premium study tried to calculate average expenditures. It assumed that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance on each vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages. While this study provided information it didn't provide an accurate overview of actual quotes, like CPI.

Auto insurance is more expensive in urban areas because of the higher density of traffic, increased likelihood of theft and vandalism, and greater incidence of fraud. Therefore, the states listed above may be the most and least expensive as a whole there are specific cities throughout the United States that are found to be the cheapest or most costly and are found in other states.

A study of 2007 car insurance rates by Runzheimer International found Detroit, Michigan to be the more expensive city to have auto insurance coverage in at a cost of $5027 and Eau Claire, Wisconsin to have the least expensive insurance with rates of $869. This was as of June 2007 and assumed $100,000/$300,000/$50,000 liability limits, collision and comprehensive with $500 deductibles, and $100,000/$300,000 uninsured coverage.

Other expensive cities were Philadelphia, PA ($3779), Newark, NJ ($3381) and Los Angeles, CA ($3027). Other cheap cities to insure a vehicle were found to be Norfolk, VA, ($952) Raleigh, NC ($966) and Bismarck, ND ($989).

Click here to view an interactive map of the car insurance laws in the United States. Look up individual state requirements for minimum insurance and follow the state links to get important information about insurance in each state. Then you can get a inexpensive car insurance quote here with us.

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