Auto coverage costs douse drivers in some states

Car prices surged during the pandemic, but have you noticed car insurance has too?

Sixty-three percent of Americans said they’re most concerned with their ability to pay for their car insurance, according to researcher doxoINSIGHTS, based on data from bill payment platform doxo of more than 8 million paying consumers across 97% of U.S. ZIP codes.

All isn’t equal though. Auto insurance is much more expensive in some states than others, but that doesn’t mean you can snooze if you live in a lower-cost state. Some lower-cost car insurance states are expected to see sharp increases in coming years that will boost rates to among the highest in the nation.

Here’s the breakdown of which states have the highest rates now and where they’re expected to be in 10 years, according to German-based car subscription service Finn using data from insurance company Insure:

States with highest rates

Florida $2,560. The Sunshine State “is so expensive as Florida has the highest proportion of uninsured drivers,” Finn said in its report. “20% of drivers lack even minimum liability insurance, pushing costs onto insured drivers through higher premiums.”

Louisiana: $2,546. “Like Florida, Louisiana also has a large proportion of uninsured drivers at slightly more than 10%, pushing up premiums,” Finn said. “Even drivers with insurance often only have minimum coverage, which won’t protect them from anything more than minor accidents. Drivers in the Pelican State are also highly litigious, with more vehicle-related lawsuits than any other region contributing to higher premiums.”

Delaware $2,137. Delaware’s small but crowded, “meaning more accidents and higher repair costs pushing up premiums,” Finn said. “The state’s large coastline also increases costs as drivers are more at risk of severe weather causing accidents and damage to vehicles.”

States with lowest rates

Ohio: $1,023. A saturated and highly competitive insurance market helps keep rates low, as well as an abundance of safe drivers, Finn said. Ohioans can pay $625 less than the national average of $1,023.

Maine: $1,116. Low population density makes accidents less likely, and a very low rate of vehicle thefts and a small proportion of uninsured drivers help keep insurance rates low.

Idaho: $1,121. An abundance of rural roads and a sparse population decrease the likelihood of accidents.

Where are rates predicted to rise?

Florida: “Car insurance costs in the state will increase as climate change causes increasingly severe weather events, increasing the risk of damage to vehicles and pushing up premiums,” the report said.

Nevada: If premiums continue to rise at the current rate of 51%, the Silver State ‘s rates will top $3,000 by 2033.

New York:. Car insurance premiums are set to rise by 48% over the next 10 years, Finn said.

Where are rates falling?

Georgia: As of July 1, auto insurance carriers in Georgia could be barred from increasing rates at their discretion if an insurance reform bill passed by the General Assembly receives Gov. Brian Kemp’s signature. The law was passed after some car insurance companies, through a loophole, bypassed regulators and increased rates by as much as 40% in a single calendar year.

Hawaii: “Rates have dropped in the Aloha State as insurance companies in Hawaii are no longer allowed to provide policies that take into account nondriving factors like age and credit score,” Finn said.

Michigan: In 2020, lawmakers signed a bill limiting the circumstances drivers can sue each other for damages. Fewer lawsuits helped cut premium costs, Finn said.