The Top 5 Most Expensive States for Auto Insurance in the United States

Premiums are rising and have increased by 3.4%-7.4%. As a vehicle reimbursement solution company these rates affect CarData clients and drivers across the nation.  Below we review the states with the highest premiums and discuss the reasons behind the rates.

Florida – is a no-fault state, there is mandatory $10,000 PIP Personal Injury Protection coverage accounting for one-fourth of the insurance premiums. 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%, and finally 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 LA’s very high rates. Even Geico premiums are double that in other states. Add distracted driving and 7% more collisions, and the insurance companies have raised rates from 4% to 16% per year for the past two years. Louisiana’s highest premium comes in 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 (and maybe #1) in the country and here are the reasons – most comprehensive no-fault insurance system, PIP has unlimited lifetime medical benefits, mandatory property protection insurance, and 21% 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 5 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 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 NY 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.

About CarData Consultants Using efficient vehicle reimbursement programs, CarData provides precise and accurate solutions for the modern, mobile workforce. Through our cutting edge technology, we provide specific calculations and customized allowances tailored to your business. CarData services save money by reducing the disparity between actual and theoretical expenses.

CarData conducts its own primary research on vehicle insurance premiums, and uses publicly available sources including state departments of insurance, and vehicle insurance websites.