March 21, 2016—Carinsurance.com released a report Monday analyzing both the cheapest and most expensive states to have minimum car insurance.
The top-five most expensive states for minimum car insurance coverage, on average, per year, are:
- Michigan: $2,446
- Delaware: $1,520
- Connecticut: $1,097
- New Jersey: $1,086
- Florida: $1,058
The top-five least expensive states for minimum car insurance coverage, on average, per year:
- North Carolina: $385
- Hawaii: $386
- Iowa: $403
- Wyoming: $410
- Alaska: $426
“The amount of coverage you must have to drive legally is different for each state, so that comes into play,” said Michelle Megna, managing editor of CarInsurance.com. “Also, some states have more urban areas and more accidents, or more uninsured drivers than others, so the risk to the insurer is higher in those states. That means rates would generally be higher in those states, too. Finally, each company uses its own formula to set rates, which is why policy costs vary so much regardless of the level of coverage you get.”
Carinsurance.com offered three scenarios for when cheap coverage makes sense: when the car is old and not very valuable; when it isn’t driven much; and when the owner doesn’t have a home, assets or savings to protect.
