Drivers, Beware: The 10 States Where Car Insurance Costs the Most

When it comes to auto insurance rates, not all states are created equal.  Here’s a look at which states have the highest annual premiums, as ranked by Insure.com. Photo Source: Reuters

10. Georgia Average premium for 2012: $1,694 It may be known as ‘The Peach State’, but auto insurance rates in Georgia aren’t so sweet – especially when compared to those of its neighbors.  Drivers in South Carolina pay an average of $1,108 and Alabama drivers pay $1,345. Photo Source: Reuters

9. California Average premium for 2012: $1,709 Cruising down the West coast doesn’t come cheap. California drivers currently pay an average of $1,709 to insure their vehicles, $271 more than the national average. Photo Source: Reuters

8. Wyoming Average premium for 2012: $1,732 While Wyoming has the eighth highest auto insurance rate in the nation, neighbor state Idaho has the fourth lowest rate, boasting an average premium of $1,011. That’s a difference of $721 – no small potatoes. Photo Source: Reuters

7. Rhode Island Average premium for 2012: $1,830 Rhode Island may be the smallest state in the U.S., but its residents pay big bucks for auto insurance. In nearby Maine, drivers pay an average premium of $889, the lowest in the country. Maine also has the smallest percentage of uninsured drivers in the country, at 4.5%. Photo Source: Reuters

6. Montana Average premium for 2012: $1,856 In the wild, wild West, car insurance premiums are wildly high. Montana residents pay an average of $1,856 for coverage, $418 more than the national average. Photo Source: Reuters

5. Washington, D.C. Average premium for 2012: $1,866 Whether you’re inside the Beltway or just driving it, auto insurance rates in D.C. are some of the highest in the nation. In nearby Maryland, rates are only $1,372 and in Virginia, they’re $1,297. Photo Source: Reuters

4. West Virginia Average premium for 2012: $2,002 Insuring a car in West Virginia costs about $705 more than it does in Virginia, and $903 more than it does in neighboring Ohio. Photo Source: Reuters

3. Michigan Michigan’s car insurance rates are the third-highest in the nation, mostly as a result of costs associated with the state’s ‘no-fault’ insurance system. As Insure.com reports, people injured in car accidents in Michigan are guaranteed unlimited medical benefits for the treatment of their injuries; to support that policy, drivers are required to buy personal injury protection and pay a $145-per-vehicle assessment to the Michigan Catastrophic Claims Association.

2. Oklahoma Average premium for 2012: $2,047 Oklahoma consistently ranks as one of the most expensive states for car insurance, and for good reason:  an estimated 24% of Oklahoma’s drivers are uninsured, which Insure.com says means higher premiums for others on the road. The state also suffered storm losses over the last few years that have kept pressure on insurance costs. Photo Source: Reuters

1. Louisiana Average premium for 2012: $2,536 The most expensive state in which to buy car insurance is Louisiana, whose Lower Ninth Ward, Bywater and Holy Cross neighborhoods have the highest car insurance rates in the state. Insure.com reports that uninsured drivers and a controversial legal process involving auto insurance claims are partially to blame. Photo Source: Reuters