If you live in one of these states, expect to pay more for car insurance coverage
As many drivers know, car insurance rates can vary greatly from state to state. The differences in car insurance rates in the most expensive states are due to several factors. If you are a driver in one of the 10 most expensive states for auto insurance, you are probably paying more than what the drivers in other areas of the country do.
Annual studies by associations such as the National Association of Insurance Commissioners (NAIC) the Insurance Research Council (IRC) and consumer groups such as J.D. Power & Associates routinely rank states for insurance costs. The most recent studies for 2012-2013 determined that the 10 most expensive states for car
insurance coverage in the United States are:
- Michigan
- Louisiana
- New York
- West Virginia
- Kentucky
- Mississippi
- Delaware
- Arkansas
- Nevada
- Florida
Studies vary in how costs are calculated and how states are ranked accordingly, but one of the more fair comparisons is to examine the percentage of a policyholder's annual income that is spent on car insurance coverage annually.
Michigan is considered to be the state with the most expensive auto insurance rates, with the average policyholder spending eight percent of his or her annual income on car insurance. The high rate for insurance is due in part to the state's auto insurance laws. The state allows for unlimited personal injury protection in the event of an accident. Since insurance companies have the potential cost of paying out an unlimited amount for a driver's injuries, the cost is passed on to the consumer.
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The number of injury claims that drivers make can also have an impact on the price of insurance in a state. Louisiana makes the list of the highest car insurance rate states partially because of the high rate of personal injury claims made by residents in the state. Drivers in Louisiana are more likely to hire an attorney for a claim, perhaps in part because the state sets relatively low mandatory liability coverage levels for licensed drivers.
States with a higher percentage of uninsured drivers also have higher premium costs than those drivers who do 
carry insurance. This is perhaps one reason why Mississippi and Florida are on the list of most expensive states for car insurance. These are two of the top five states in the country for number of uninsured drivers, according to the IRC, with Mississippi topping the list for 2012.
Strategies for lowering your costs
If you live or drive a car in one of these states, there are steps you can take to fight against the trend and work to keep your car insurance costs low. Talk to your insurance agent to determine what types of discounts you might qualify for.
If you are able to remain accident-free, most insurance companies offer a safe driving discount. Raising your deductible can help keep your monthly expenses down, though you will have to pay more out of pocket in the event of an accident.
You may want to consider eliminating extraneous coverage options you may be carrying on your car insurance policies. Perhaps you can eliminate any collision coverage you may be carrying on an older car, since your policy may cost you more per month in premiums than the car would be worth if totaled. Do you have children living on their own that are still listed as named drivers on your policy? That can be adding to your costs too.
Auto insurance rates in states that have made this top 10 list can be very expensive. There are ways you can get great coverage and work to lower your costs in these states and speaking with a skilled insurance agent may be a great first step in finding out how, Reply! can connect you to insurance agents in your area who can help you find the best insurance coverage and rates for your state.