Photo: Courtesy BMW
Sure, Americans can rely on their cars for much longer these days, but unfortunately auto insurance premiums keep rising.Insure.com compiled its annual list of each state’s annual average auto insurance premium. The results are based on premiums for 2012 models.
For the third year in a row, Louisiana, Oklahoma and Michigan ranked the highest.
The top 10 are:
- Louisiana: $2,536
- Oklahoma: $2,047
- Michigan: $2,013
- West Virginia: $2,002
- Washington, D.C.: $1,886
- Montana: $1,856
- Rhode Island: $1,830
- Wyoming: $1,732
- California: $1,709
- Georgia: $1,694
As the survey reports, high premiums are influenced by a variety of factors, including weather conditions and struggling economies.
Agents say the economies in their states have made it difficult for drivers to afford insurance. “I have people in my office on a weekly basis who say they just can’t do it,” Jason Verlinde, vice president of Verlinde Insurance Agency in Richmond, Mich., told Insure.com.
20-four per cent of drivers in Oklahoma are uninsured, according to the report. On the other hand, Maine has the lowest premium ($889) of all the states, and only 4.5 per cent of its drivers are uninsured.
In January, a Consumer Federation of America-backed report, called “Lower-Income Households and the Auto Insurance Marketplace: Challenges and Opportunities,” argued auto insurers disproportionately hit low and middle-income consumers with high-priced policies that make it difficult for them to afford coverage.
Drivers without insurance ultimately drive up costs for insured drivers, as the burden falls on them to cover costs for accidents and injuries.
Still, the report reminds consumers there are some ways to keep costs low.
“Many of these problems are outside the control of drivers,” said Amy Danise, editorial director of Insure.com. “But even if you live in an expensive state, you can hold down your insurance costs by keeping your driving record as clean as possible and selecting a car that is cheap to insure.”
See the full list and premiums at Insure.com.