Think car insurance rates are high in your state? Many factors affect rates, including the costs of car repair and medical care, the level of insurance fraud in a state, the number of uninsured drivers, and population density.
It's no surprise, however, that one of the major factors is state regulations: the type of insurance system a state uses and the rules for how that system operates can have a huge impact on rates.
CarInsuranceQuotes.com recently compared the median household income and median price of an annual car insurance policy in all 50 states and the District of Columbia, and ranked them based on the percentage of household income going toward car insurance.
Here we present the 10 costliest states for car insurance from that list. Click here to see the full list, and see the 10 states with the lowest percentages on the final slide.
10. Florida
Median annual household income: $53,093
Media price of annual car insurance policy: $1,784
Percentage of household income going toward car insurance: 3.3%
9. Nevada
Median annual household income: $60,192
Median price of annual car insurance policy: $2,070
Percentage of household income going toward car insurance: 3.4%
8. New York
Median annual household income: $65,897
Median price of annual car insurance policy: $2,334
Percentage of household income going toward car insurance: 3.5%
7. Delaware
Median annual household income: $68,746
Median price of annual car insurance policy: $2,456
Percentage of household income going toward car insurance: 3.5%
6. Arkansas
Median annual household income: $47,049
Median price of annual car insurance policy: $1,722
Percentage of household income going toward car insurance: 3.6%
5. Mississippi
Median annual household income: $45,484
Median price of annual car insurance policy: $1,840
Percentage of household income going toward car insurance: 4%
4. West Virginia
Median annual household income: $48,927
Median price of annual car insurance policy: $2,074
Percentage of household income going toward car insurance: 4.2%
3. Kentucky
Median annual household income: $50,392
Median price of annual car insurance policy: $2,292
Percentage of household income going toward car insurance: 4.5%
2. Louisiana
Median annual household income: $52,456
Median price of annual car insurance policy: $2,912
Percentage of household income going toward car insurance: 5.5%
1. Michigan
Median annual household income: $56,101
Median price of annual car insurance policy: $4,490
Percentage of household income going toward car insurance: 8%
Top 10 Lowest-Cost States for Car Insurance:
42. Maine – 1.993% (percentage of household income going to car insurance)
43. Virginia – 1.992%
44. California – 1.991%
45. New Hampshire – 1.988%
46. Iowa – 1.973%
47. Oregon – 1.955%
48. Alaska – 1.752%
49. Hawaii – 1.634%
50. North Carolina – 1.625%
51. Massachusetts – 1.434%
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