Comments on: Auto Insurance Rate Averages by State

By: Guzzo

Guzzo — Sat, 14 Aug 2010 07:54:46 +0000

I’m not sure that I put too much faith in the AARP rankings. A few years ago when I moved from NC to AZ (the car theft capitol of America), my insurance rates doubled. Yet AARP has NC and AZ ranked equally.

By: Eric

Eric — Fri, 06 Aug 2010 17:40:45 +0000

The no-fault laws are not what makes Michigan the second highest cost auto insurance state. It is the fact that Michigan is the only state in the country that mandates UNLIMITED LIFETIME medical benefits for auto related injuries.

Also, there is no fee schedule for medical treatment and serices, which make it even more difficult to control costs.

These are the issues any Michigan resident should discuss with their local and state elected officials.

By: Keith

Keith — Wed, 04 Aug 2010 13:13:25 +0000

My father was in insurance for over 25 years. Louisiana was one of only three states in which the company would not do business. Apparently it had to do with a combination of an extremely unfriendly insurance commission along with a tendency toward civil legal forms (as opposed to the common law legal forms used in every other U.S. state), which are a result of the strong French heritage in the state. I guess that difference makes any legal disputes much more expensive (and insurance companies deal with more legal disputes than just about anyone else). I’m sure there are other factors as well, but I wouldn’t be surprised if its a competition issue if many of the large insurers don’t want to write policies there

By: Mike

Mike — Sun, 01 Aug 2010 22:23:04 +0000

Okay Shane, then please compare the states laws versus each other and tell me if there are any trends, because I don’t see any yet. See below.

Same source:

States with Serious Injury Thresholds: In the following states, you can file a liability claim if you are at least relatively seriously hurt. The criteria of seriousness can be expressed in terms of a written description (e.g. permanent disfigurement, scarring, or fractured bones) or expressed in terms of length of disability (e.g. disability for more than 60 days).

Injuries that qualify as serious are defined by each state’s law. The states that use severity as a threshold are:

Florida
Michigan
New Jersey
New York

Even though all these states use severity as a threshold, Michigan is still far worse than the other three no fault.

What gives?

By: Shane

Shane — Sat, 31 Jul 2010 20:38:19 +0000

Not all no-fault laws are the same, Mike. There’s huge variation there.

In some cases, all claims are “no fault.” In other states, only the medical portion is.

In some cases, percentge of fault can be apportioned (even in “no fault” states like Florida).

By: Joshua Rogers

Joshua Rogers — Sat, 31 Jul 2010 14:03:33 +0000

I’m inclined to think law and law enforcement must have a lot to do with it. I recently moved, and found the drivers in my new state are much more courteous on a whole, however there is a big cultural difference about drinking and driving. Here it seems more commonly acceptable to drive after a drink or two, and I’ve even been told that until recently it was legal to have an open container in the car (not sure I buy that one)

I know thats a cultural difference, but its likely due to differences in law and law enforcement. Getting tossed in the slammer for DWI is a big difference than a ‘fine’.

By: Mike

Mike — Sat, 31 Jul 2010 00:46:57 +0000

Here is a list of no fault states and their ranking in the list:

Florida-25
Hawaii-32
Kansas-18
Kentucky-19
Massachusetts-45
Michigan-2
Minnesota-29
New Jersey-22
New York-23
North Dakota-31
Pennsylvania-26
Utah -36

With the exception of MI at the high end and MA at the low end, no fault insurance states tend to be in the middle of the pack.

Why is my state so awful?

BTW, here is the link to the list of no fault states.

http://accident-law.freeadvice.....idents.htm

By: Doug@CheapScholar.org

Doug@CheapScholar.org — Thu, 29 Jul 2010 18:02:41 +0000

I am glad to see Ohio in the lower level of the cost bracket. For some reason it appears all of our neighbors are getting hit with higher rates. Michigan..ouch…

We must live in an invisible bubble that keeps all the bad drivers in surrounding states!

By: Marshall the Middleclass Millionaire

Marshall the Middleclass Millionaire — Thu, 29 Jul 2010 13:05:06 +0000

Here I was thinking I was getting hosed in NJ with high property taxes and sales tax, while car insurance is really average..I also don’t pump my own gas

By: Kevin H

Kevin H — Thu, 29 Jul 2010 03:34:36 +0000

You should do an article on comparing auto insurances.

By: Roberta

Roberta — Thu, 29 Jul 2010 01:19:07 +0000

we live in Louisiana and I think one reason is the high
numbe of uninsured.

By: Dog

Dog — Thu, 29 Jul 2010 00:38:52 +0000

in addition to being the second highest among the states, i don’t understand why our michigan premium keeps going up. mine on average increases roughly 10% at every renewal even though i’ve never had any ticket or claim.

By: jim

jim — Wed, 28 Jul 2010 22:50:51 +0000

These figures are not what the average person in the state pays for auto insurance. They are looking at what a 40 year old guy with certain cars and certain coverage would pay. I think its specifically for new 2010 cars as well which explains it being higher than you might think if you have an older cheaper car. Average spending is less than these figures.

I found an article talking about the high rates in Louisiana that said:
“Theories abound as to why the state’s insurance rates are so high. Some point to the litigious nature of Louisiana and poor driving habits. Others wonder about the rate of car thefts and vandalism.”

And its not Katrina caused : “Insurance Commissioner Jim Donelon said the problem of high auto insurance rates in the state is not new; the state has been in the top 10 of car insurance prices for at least the two decades he has been monitoring the numbers. “

By: Jenna

Jenna — Wed, 28 Jul 2010 21:45:29 +0000

Yahoo! Glad I’m in a “dark green” state. Definitely encouraging for someone who might be getting a new (to me) car.

By: Alexandria

Alexandria — Wed, 28 Jul 2010 19:53:36 +0000

@JD – When we moved to Sacramento from the Bay Area, our car insurance just about doubled.

Anyway, these figures can vary WIDELY within states, too.

IF you want to sum up Sacramento drivers, it’s “GET OUT OF MY WAY!!!” I have seen lots of road rage here, too. I never thought I Would call Bay Area driving “pleasant,” but now I do. I can only guess this has something to do with our auto insurance premiums.

By: Mark

Mark — Wed, 28 Jul 2010 15:52:18 +0000

No-fault “should” reduce insurance costs because it keeps the lawyers out of the picture.

It would be interesting to see the cost of Un/Underinsured motorist coverage in different places. It seems to be a growing problem, and hence a growing insurance cost.

@Ron: Re Minnesota driving habits – I have lived in three states and driven in 20. I can assure you that, bad as you think they are, Minnesota drivers are far more courteous than just about anywhere else I have driven.

By: Ron

Ron — Wed, 28 Jul 2010 14:28:44 +0000

Minnesota has a “No Fault” insurance law and is in the middle-of-the-pack at 29.

In Minnesota, all drivers (except motorcycles) are required to carry no-fault insurance ((motorcyclists are required to carry liability insurance). Our no-fault law, as I understand it, covers quite a few benefits in the event of an accident (property damage, medical, wage loss, etc.) which your company pays to you as quickly as possible.

The caveat is in regard to property damage, where if one driver is found to be wholly at fault, his/her ultimately company picks up the bill. If there is shared fault determined, insurers pay based on determined fault. And, if there is a dispute, after paying out to their clients, the insurers then battle one another.

The goal is to get people reimbursed quickly so they may resume their lives and let the insurers deal with any legal battles.

As for other reasons for having middle-of-the-pack rates in Minnesota, it certainly is NOT because of the outstanding drivers here. Each year, driver behavior seems to get worse (and are certainly not aided by our out-of-date and under-maintained road system).

By: Scott

Scott — Wed, 28 Jul 2010 13:51:06 +0000

No-fault states (you get hit by someone else and your insurance, not theirs, has to pay) almost always have the highest rates. I know Michigan is one, maybe Louisiana is another.

By: JD

JD — Wed, 28 Jul 2010 13:19:13 +0000

Where did they come up with these figures? I have 3 cars insured in CA and none of them are as high as the figure for CA. In fact the most expensive which is for my teenage son is a little more than half the CA figure.

By: Dennis

Dennis — Wed, 28 Jul 2010 12:01:58 +0000

A company that insures autos in Louisiana probably also issues property insurance and other lines of insurance in the state. To survive as a company they may need to compensate for losses or risk on their other property insurance by raising their auto rates.

By: Mike

Mike — Wed, 28 Jul 2010 11:06:09 +0000

I find it fascinating that I am in Michigan, which is the second MOST expensive state.

But next door is Ohio, which is 49th on the list and is the 2nd LEAST expensive state.

One thing for sure, geographic region does not seem to play a critical roll.