Introduction
Auto insurance is a requirement in almost all U.S. states. According to the National Association of Insurance Commissioners (NAIC), the average annual auto insurance premium was $1,004 in 2017. However, this varies widely depending on several factors, such as the location, the car make and model, the driving record, and more. In this article, we will explore where auto insurance is most expensive based on different variables.
Location
Insurance companies consider the location when setting premiums. If you live in a densely populated urban area or a place with high crime rates, you will likely pay more for auto insurance. According to data from the NAIC, the top states with the highest average annual auto insurance premiums in 2017 were:
- Michigan: $2,239
- Louisiana: $1,921
- Florida: $1,840
- Oklahoma: $1,778
- Washington, D.C.: $1,773
On the other hand, the states with the lowest average annual auto insurance premiums were:
- North Dakota: $566
- Iowa: $634
- South Dakota: $653
- Wyoming: $694
- Idaho: $726
Car make and model
Some car makes and models are more expensive to insure than others. Insurance companies consider the vehicle's safety rating, repair costs, theft rates, and other factors when determining premiums. According to data from Insure.com, the top 10 most expensive cars to insure in 2021 are:
- Mercedes-Benz S-Class: $3,147
- BMW i8: $3,128
- BMW M8: $3,114
- Mercedes-Benz AMG GT R: $3,108
- Audi R8: $2,903
- BMW M760i xDrive: $2,822
- Nissan GT-R: $2,691
- Porsche 911 Carrera GT2 RS: $2,641
- Porsche 911 GT2 RS: $2,609
- Audi RS7: $2,557
On the other hand, the top 10 least expensive cars to insure in 2021 are:
- Honda CR-V: $1,519
- Subaru Outback: $1,549
- Jeep Wrangler: $1,599
- Jeep Compass: $1,652
- Ford Escape: $1,655
- Mazda CX-5: $1,669
- Subaru Forester: $1,735
- Honda HR-V: $1,750
- Jeep Cherokee: $1,754
- Subaru Crosstrek: $1,757
Driving record
Your driving record, including accidents, tickets, and DUIs, can have a significant impact on your auto insurance premiums. According to a study by Insurance.com, drivers with a clean record pay an average of $1,416 for auto insurance, while those with a DUI conviction pay an average of $2,556.
Conclusion
Auto insurance premiums vary depending on several factors, including location, car make and model, and driving record. Before purchasing auto insurance, it's crucial to research and compare quotes from different insurance companies to find the best coverage at an affordable price.