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Top Five Most Expensive States for Auto Insurance


CarData, a vehicle reimbursement solution company, has reviewed the states with the highest premiums and discusses the reasons behind the rates below: 

Florida—Florida is a no-fault state. There is mandatory $10,000 PIP Personal Injury Protection coverage accounting for one-fourth of the insurance premiums there. Hurricanes and tropical storms necessitate increased comprehensive coverage and with the most recent hurricane these rates are expected to continue to climb. Florida is second in the nation for uninsured drivers on the road at 24 percent, and there is more car insurance fraud than any other state with con men attempting to take advantage of no-fault laws.

The city of Miami tops the charts for Florida with premiums for a salesperson with a speeding ticket, a not-at-fault collision and business use insurance at $4,050. West Palm Beach, Tampa and Fort Lauderdale are right behind.

Louisiana—Natural disasters, overly generous claim settlements, some of the worst maintained roads in the country and the ability to directly sue insurance companies contribute to Louisiana’s high rates. Even Geico premiums are double that in other states. Add distracted driving and 7 percent more collisions, the insurance companies have raised rates from 4 to 16 percent per year for the past two years. Louisiana's highest premium city is New Orleans with premiums for a salesperson with a speeding ticket, a not-at-fault collision and business use insurance at $3,350.

Michigan—Depending on the survey, Michigan has among the highest insurance in the country. The state has the most comprehensive no-fault insurance system, PIP has unlimited lifetime medical benefits, mandatory property protection insurance, and 21 percent of drivers are uninsured. Even a driver with a great record will pay thousands of dollars a year in many Detroit area suburbs. Michigan tops the list, with the highest insurance premiums in Detroit, for a salesperson with a speeding ticket, a not-at-fault collision and business use insurance at $4,388.

New Jersey—high accident rates, PIP up to $250,000, medical fraud and population density are all factors contributing to the Garden State ranking in the top five most expensive states. Unfortunately, PIP fraud has shot up which raises the cost of insurance for everyone in this state.

Newark comes in at $3,474 for a salesperson with a speeding ticket, a not-at-fault collision and business use insurance.

New York—The Empire State is a no-fault state. No-fault doesn't mean that no one is found at fault for an accident, but rather that someone who is injured in an accident would first look to his or her own insurance coverage to pay for expenses. If PIP limits are exceeded, then the at-fault driver's liability coverage can kick in. One of the main contributions to New York's higher rates is the traffic density. With Brooklyn having a population density of 35,369 people per square mile the number of vehicles on the road is large in comparison to other cities. New York City premiums come in at a high of $3,174 for a salesperson with a speeding ticket, a not-at-fault collision and business use insurance.

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