A Mercedes-Benz CL65 AMG coupe is pretty expensive ... but just wait until you see the insurance price tag, especially if you live in Oregon. It's $5,867 a year.
But if you drive a Toyota Tacoma pickup truck in Wyoming, you're not just a cowboy(girl)—you're money smart. You'll only pay $698 a year for car insurance.
According to Insure.com's latest study on car insurance rates, Louisiana and Michigan are on average the most expensive places to buy auto insurance, while Maine has the lowest rates. Lucky for Mainers, since they could use that money on tubs of de-icer and tire chains.
Why are rates so different from state to state? It often has to do with the city versus rural areas. Urban areas have a higher frequency of accidents and claims. The legal landscape for claims in each states also has an effect.
The Most Expensive States for Car Insurance
A high portion of Louisiana drivers who are in accidents file bodily injury claims. Also, car accident lawsuits for less than $50,000 go before elected judges rather than juries, and the elected judges are seen as siding with consumers more than the insurance companies.
Michigan residents carry heavy financial burden under the state’s guarantee of unlimited, lifetime personal injury protection (PIP) benefits for treatment of injuries from a car accident. Car insurance companies pay out the first $500,000 for medical treatment, and expenses above that are paid by the Michigan Catastrophic Claims Association.
And D.C. is about as urban as it gets—it's one big city.
1. Louisiana - $2,699
2. Michigan - $2,520
3. Georgia - $2,155
4. Oklahoma - $2,074
5. Washington, D.C. - $2,006
6. Montana - $1,914
7. California - $1,819
8. West Virginia - $1,816
9. Rhode Island - $1,735
10. Kentucky - $1,725
The Least Expensive States for Car Insurance
Agents in Maine credit the state’s rural landscape with helping to hold down claims and insurance rates. They also think Maine’s graduated licensing program, which places tight restrictions on young drivers, helps reduce accidents.
1. Maine - $934
2. Iowa - $1,028
3. North Carolina - $1,085
4. Ohio - $1,106
5. New Hampshire - $1,112
6. Idaho - $1,133
7. Vermont - $1,176
8. Indiana - $1,183
9. Washington - $1,226
10. Arizona - $1,227
Keep in mind, you won't get these exact rates. They're averaged rates based on insurance for a single 40-year-old male with a clean record and good credit, who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage.
See the rest of the states' rankings at Insure.com.