Owning a car comes with responsibilities that go beyond the maintenance services to keep them on the road. Car insurance is required in most states. Most auto owners need to carry a minimum of liability coverage in their policy should they be at fault for a collision.
These policies also have the ability to cover both collision and comprehensive coverages. Thus, protecting the car owner in the event of an accident. In 2019, residents in three states, in particular, paid the highest car insurance premiums compared to residents across the United States as a whole according to Insure.com.
Those residing in Michigan experienced the most expensive car insurance premiums for 2019. This was not their first year, as they have held the highest car insurance premiums for five years prior.
The reason for this is the way that Michigan handles the medical portion of car insurance. Personal Injury Protection (PIP) coverage is part of Michigan’s “no fault” law that ensures drivers’ medical bills are covered in the event of an accident. Auto insurance companies are responsible for up to $500,000 for medical coverage according to this part of the law, which is a big reason premiums in the state are so high.
Following closely behind Michigan, the state of Louisiana is home to the second most expensive car insurance premiums across the United States. The reason is due to the outstanding number of residents in the state who are driving completely uninsured. Not to mention, those who are underinsured, only carrying the required minimum of liability coverage.
With these two groups combined, this is nearly half of the Louisiana population not carrying any, or enough, insurance.
Because many residents choose to not obtain proper car insurance, the premiums for residents who take out a car insurance policy in Louisiana are higher than residents in other states.
In most of the accidents that are reported, the uninsured and the underinsured motorists frequent the court systems with lawsuits, affecting the rates for everybody.
The residents of Florida also have higher than average car insurance premiums. They took third place in the most expensive annual rates.
Residents of Florida deal with high car insurance premiums because of an outstanding number of high-risk drivers living within the state. Many of the residents within the state of Florida are uninsured, with estimations around 25%.
This means 1 in every 4 cars passed on the highway in Florida is expected to not carry any form of car insurance, despite a minimum liability coverage and PIP coverage requirement.
Also, a good portion of Florida drivers are college students, which are newer drivers. This means they are not used to the driving patterns and roads of Florida. In contrast to these drivers is the significant number of Floridians who are older residents and are also a high risk of driving on the highways. Both of these types of drivers are considered high-risk by insurance companies.
Living with car insurance
Since most states have a minimum requirement of car insurance, many residents find themselves seeking out the best policies within their state. Each of these states had different criteria for their raised car insurance premiums.
Whether someone lives in one of these states with high car insurance premiums or a state where they are more affordable, it is essential that each auto owner take their time shopping around for the best car insurance policy that fits their needs.