Car insurance is a big expense. According to The State of Auto Insurance study conducted by The Zebra, the average annual premium across the 50 states is $1,427 but in Michigan, insurance costs can exceed $2,500.
The study shows Americans are currently paying more for car insurance than ever before. Insurance premiums are up 20 percent since 2011. The study compared more than 50 million car insurance rates across the country to help determine what causes insurance rates to increase or decrease.
These are the ten states with the highest car insurance premiums in the country:
- Michigan: $2,610
- Louisiana: $2,225
- Kentucky: $2,050
- Rhode Island: $2,004
- Florida: $1,878
- Texas: $1,810
- Nevada: $1,802
- Mississippi: $1,800
- New Jersey: $1,679
- Montana: $1,615
If you reside in a state with high auto insurance premiums, there are ways to save on your car insurance. The best thing drivers can do is determine what auto insurance coverage is best for their cars and get quotes from multiple insurance providers.
Determine what auto insurance coverage is best for you
If the cost of full coverage is more than 10 percent of your car’s value, it is okay to only have liability insurance coverage for it. Once you decide on what insurance coverage you need, If you can set aside $1,000 away for a deductible, this can also save you money on insurance. A higher deductible reduces the cost of car insurance.
Get and compare quotes
Almost every insurance providers offers free car insurance quotes online that take a few minutes to complete. Working with an insurance broker is a great option that lets you compare car insurance quotes quickly. Insurance brokers will get multiple quotes for you from top insurance providers for free.
Some drivers may also qualify for car insurance discounts.
Some ways you can save are:
- bundling multiple insurance services with one company
- completing a safe driver course
- insuring more than one car
- being accident-free
- being a student driver with good grades