Costs, Rates and Premiums – Get to Know the Numbers Behind Car Insurance Policies

Do you want to learn how much is the average auto insurance premium in your state? How about the top 10 most and least expensive cities in the country to insure a vehicle? Or the most and least expensive cars to insure?

Keep reading, in this guide we will cover key auto insurance statistics that can be of help to those looking for a good deal.

Average auto insurance premium payments, by state

Car insurance costs depend on may factors, such as driver's age, sex, driving record and etc. Yet, there is another factor that can make auto insurance cost increase if the same driver just switches states. As you can already guess, we are talking about location.

It turns out that for a variety of socio-political reasons car insurance rates vary from one state to another. And here are the "winner" states with highest and lowest averages on auto insurance premiums per year:

auto insurance premums by state

Those in red color are states with auto insurance premiums above the national average of $1,438. Those in blue color on the other hand are states with auto insurance premiums below the national average. To summarize:

The top ten states with the highest averages on auto insurance premium are:

  • Louisiana,
  • Oklahoma,
  • Michigan,
  • West Virginia,
  • Washington D.C.,
  • Montana,
  • Rhode Island,
  • Wyoming,
  • California,
  • and Georgia.

The ten states, which had the lowest averages for 2012, are:

  • Arizona,
  • New Hampshire,
  • South Carolina,
  • Ohio,
  • Vermont,
  • North Carolina,
  • Idaho,
  • Wisconsin,
  • Iowa,
  • and Maine.

To check the average premium per year in your state, see the table below:

State Average premium per year
Alabama $1,345
Alaska $1,431
Arizona $1,176
Arkansas $1,334
California $1,709
Colorado $1,322
Connecticut $1,665
Delaware $1,652
Florida $1,654
Georgia $1,694
Hawaii $1,594
Idaho $1,011
Illinois $1,192
Indiana $1,301
Kansas $1,410
Kentucky $1,572
Louisiana $2,536
Maryland $1,372
Massachusetts $1,378
Michigan $2,013
Minnesota $1,264
Mississippi $1,502
Missouri $1,455
Montana $1,856
Nebraska $1,244
Nevada $1,223
New Hampshire $1,133
New Jersey $1,608
New Mexico $1,274
New York $1,413
North Carolina $1,022
North Dakota $1,426
Ohio $1,099
Oklahoma $2,047
Oregon $1,241
Pennsylvania $1,598
Rhode Island $1,830
South Carolina $1,108
South Dakota $1,303
Tennessee $1,228
Texas $1,661
Utah $1,315
Vermont $1,063
Virginia $1,297
Washington $1,305
Washington, D.C. $1,866
West Virginia $2,002
Wisconsin $987
Wyoming $1,732
National average $1,438

Top ten cities with the highest average yearly premium on car insurance

Based on an analysis, reported by Money MSN on July 2012, the following cities have the highest yearly average:

City Average Annual Premium
Highland Park, Michigan $4,214
Hamtramck, Michigan $3,953
Fort Hamilton, New York $3,947
Brooklyn, New York $3,819
Detroit, Michigan $3,709
Grosse Pointe Park, Mich. $3,504
Bronx, New York $3,443
Allison, Texas $3,385
St. Albans, New York $3,233
Springfield Gardens, New York $3,213

Top ten cities with the lowest average on yearly premiums on auto insurance

The same Money MSN report cites the following cities as the least expensive to insure a vehicle:

City Average Annual Premium
Bullhead City, Arizona $730
Chloride, Arizona $731
Oatman, Arizona $731
Pine Point, Maine $733
West Scarborough, Maine $733
Lake Havasu City, Arizona $734
Cumberland Foreside, Maine $735
Amity, Maine $736
Ashland, Maine $736
Blaine, Maine $736

Cars that cost more to insure

Here is the list of cars that cost more in terms of auto insurance than the rest of the vehicles in the market. The following table lists the top ten most expensive cars to get auto insurance coverage:

Model Brand Body Type / Classification National Average, Yearly rate
R8 Spyder Quattro Audi Convertible $3,384
CL600 Coupe Mercedes Coupe $3,307
S600 Mercedes Sedan $2,948
R8 4.2 Quattro Audi Coupe $2,903
Panamera Turbo Porsche Coupe $2,738
750i Hybrid   Sedan $2,701
911 Turbo Porsche Convertible $2,674
911 Turbo S Porsche Convertible $2,674
CL65 AMG Mercedes Coupe $2,669
750Li Hybrid BMW Sedan $2,641
SL63 AMG Mercedes Convertible $2,615
CL63 AMG Mercedes Coupe $2,613
XKR Supercharged Jaguar Convertible $2,585
 S63 AMG Mercedes Sedan $2,542
C63 AMG Mercedes Coupe $2,532
Audi A8 L Quattro Audi Coupe $2,513
SL550 Mercedes Convertible $2,458
GT-R Turbo Nissan Coupe $2,457
750XI BMW Sedan $2,446
750i BMW Sedan $2,430

According to data from Quadrant Information Services, commissioned by Insure.com

Cars that cost the least to insure

Based on the same report made by Insure.com, the following cars cost the least to get auto insurance for 2012:

Model Brand Body Type / Classification National Average, Yearly rate
Sienna LE Toyota Minivan $1,111
Sienna Toyota Minivan $1,114
Patriot Sport Jeep SUV $1,116
Compass Sport Jeep SUV $1,118
Sierra K1500 GMC Pick up, Regular Cab $1,121
Silverado 1500 Chevrolet Pick up, Regular Cab $1,125
Grand Caravan SXT Dodge Minivan $1,129
Escape XLS Ford SUV $1,137
Sienna Toyota Minivan $1,139
Silverado 1500 Chevrolet Pick up, Extended Cab $1,143
Journey SXT Dodge SUV $1,143
Odyssey LX Honda Minivan $1,146
Sportage Kia SUV $1,151
Santa Fe GLS Hyundai SUV $1,152
Wrangler Unlimited Sport Jeep SUV $1,154
Frontier S Nissan Pick up, King Cab $1,162
Frontier SV Nissan Pick up, King Cab $1,163
Tucson GL Hyundai SUV $1,166
Escape XLT Ford SUV $1,167
Canyon GMC Pick up $1,167

According to data from Quadrant Information Services, commissioned by Insure.com

Recent trends on the auto insurance industry

If you are interested in where the auto insurance industry is going, here are the recent trends observed:

  • Increase in the number of uninsured drivers on our roads. The current state of the economy has caused many people to lose their jobs. Because of this, many drivers can no longer afford to pay their auto insurance. Many simply let their policies be canceled because they are strapped for cash. The implication of this trend to you is that you need to be sure you have coverage for the uninsured or underinsured motorist.

  • Competition of auto insurance rates will continue to be intense. The battle among auto insurance providers will heat up as each one will try to attract more consumers. Insurance rates will not likely increase but they will not be going down soon because of the competition.

  • Discounts for drivers who are less accident-prone. Many companies are expected to provide discounts to drivers who drive more safely.

  • Mileage based coverage. In this coverage, the driver who drives around less will be provided with discounts by the insurance carrier. This feature is expected to become more popular in the days ahead.

  • Rise in mobile applications in relation to auto insurance. With the proliferation of smart phones such as Apple's iPhone, carriers are expected to take advantage of the situation with the use of mobile apps. The use of these phones for  filing of claims and paying of bills are expected to increase in a short period of time.

Meryl Golden, an executive at Earnix, shared the following thoughts about trends in industry:

  • The increasing role of the Internet in the auto insurance. Shopping for a policy is now much more convenient. Many insurance companies are quick to recognize the potential as many of them expanded their online activities to facilitate the distribution of auto insurance policies. Many of the websites of carriers also provide a free source of information.

  • Reemerging of a system that allows comparison of rates. In the past, many agents used a comparative system. However, the rates that the system then showed were not accurate because the raters could not retrieve consumer's credit scores - which is why the system was abandoned. Today, the use of the system has reemerged because the raters now have access to credit scores. Because of this, Ms. Golden believes that this makes the auto insurance market more competitive.

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