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Michigan Holds Highest Average Car Insurance Rates for 2011

If you get a great sense of satisfaction when paying for car insurance, you’ll feel perfectly at home in Automobile’s home state of Michigan, which has the priciest rates in the United States.

This year, the national annual auto insurance average grew $131.74 to $1561. The numbers were crunched for a 40-year-old single male and samples over 2000 vehicles from the 2011 model year. John Doe here drives 12 miles for work and carries coverage of 100/300/50 with $500 comprehensive and collision deductibles. Uninsured coverage is factored in too.

Average annual insurance rates for 2011 (descending order)

1. Michigan – $2541
2. Louisiana – $2453
3. Oklahoma – $2197
4. Montana – $2190
5. Washington, D.C. – $2146
6. California – $1991
7. Mississippi – $1896
8. New Mexico – $1837
9. Arkansas – $1836
10. Maryland – $1807
11. North Dakota – $1794
12. Connecticut – $1786
13. Rhode Island – $1747
14. Wyoming – $1714
15. Hawaii – $1707
16. South Dakota – $1707
17. Georgia – $1670
18. New Jersey – $1663
19. West Virginia – $1633
20. Kentucky – $1629
21. New York – $1627
22. Minnesota – $1614
23. Washington – $1584
24. Missouri – $1563
25. National average – $1561
26. Indiana – $1518
27. Colorado – $1508
28. Texas – $1492
29. Delaware – $1489
30. Florida – $1476
31. Nebraska – $1470
32. Pennsylvania – $1468
33. Kansas – $1461
34. Alaska – $1454
35. New Hampshire – $1334
36. Massachusetts – $1328
37. Idaho – $1325
38. Alabama – $1306
39. Oregon – $1306
40. Nevada – $1300
41. Illinois – $1290
42. Arizona – $1280
43. Utah – $1272
44. Virginia – $1237
45. Iowa – $1179
46. North Carolina – $1154
47. Ohio – $1152
48. Tennessee – $1146
49. Wisconsin – $1128
50. Maine – $1126
51. South Carolina – $1095
52. Vermont – $995

As was the case in 2010, the three most expensive states – Michigan, Louisiana, and Oklahoma – remain unchanged, though the Great Lakes State swapped with the Bayou State for the top spot.

Michigan is saddled with astronomical personal injury costs and Louisiana’s judicial system provokes high-cost lawsuits, both of which only drive up insurance rates. Oklahoma’s primary nemesis is said to be a high percentage of uninsured drivers, though vehicle-damaging weather is a big contributor.

At $995, Vermont takes over for Maine, last year’s least-expensive state.

“Because Vermont is still not thought of as a particularly litigious state, we have a lot of auto insurance carriers vying for a fairly small piece of the pie,” said John Handy, president of the Vermont Insurance Agents Association and The Essex Agency principal. “And despite our long hard winters, Vermont drivers are a seasoned lot. We tend to hunker down and stay off the roads.”

Low traffic and “rural sensibilities,” according to Handy, undeniably help Vermont as well.

Source: Insure.com

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