9 Most Expensive States for Car Insurance

Due to the personal nature of car insurance rate calculations, premiums can vary widely from person to person even within the same zip code. In general, though, some pricing trends transcend the individual and create noticeable differences in rates from one state to another. Variables like the number of drivers in a state or the amount of severe weather a state usually experiences can cause overall insurance rates to be higher or lower for every resident.

1. Michigan

The reason Michigan is one of the most expensive states in which to own car insurance has to do more with the insurance laws than with the way people in the state drive. Michigan has a liberal no-fault system, which means that anyone involved in an accident receives full medical care regardless of the situation. Michigan is also home to one of the largest percentages of uninsured drivers. When you combine the no-fault system with the penalties insurance companies have to cover due to accidents caused by uninsured motorists, the insurance companies in Michigan need to charge more so that they can cover the costs of doing business in the state.

2. Oklahoma

Oklahoma is also plagued by a large number of uninsured drivers, which causes insurance rates to go up for everyone who does carry insurance. The state also experiences severe weather several times a year during the spring and autumn. Hailstorms are a typical part of the storm cycle in Oklahoma, and even small hailstones can break windshields or deep dents. Since hailstorms tend to cover wide areas of a local city during the same storm, insurance companies can face dozens of claims for hail repair after a single thunderstorm.

3. Louisiana

Even though Louisiana helps keep down claims from uninsured drivers through their "No pay, no play" law, the state's insured drivers still pay some of the highest premiums in the country. The reason car insurance costs so much in Louisiana is because accident claims that are filed for less than $50,000 are decided by elected judges. Insurance companies in the state claim that these judges tend to be liberal with their decisions because it is one way to help make sure they continue to be elected. Since insurance companies tend to pay out more than they might have otherwise paid on these claims, they charge more for everyone's insurance to cover those costs.

4. California

California is another state that has more than its fair share of uninsured drivers causing insurance rates to climb. Another reason car insurance is more expensive in the Golden State is that auto theft is a big problem. Insurance companies have to raise premiums for everyone because they are paying out so much toward the repair or replacement of cars that have been stolen. They also raise rates because there is a better chance that many drivers will need to file auto theft claims.

5. Montana

This western state has the fewest residents per square mile of any state in the country, but those residents pay more than most other drivers for their car insurance. One of the main reasons for the high insurance costs in Montana is that the state has almost twice the number of fatal accidents compared to any other state. Insurance companies pay out far more in claims that involve fatalities, so they need to charge more to cover those costs in Montana. The wide-open spaces of Montana cause people to drive more often and further than in most states, which creates more opportunities for accidents.

6. Mississippi

In Mississippi, uninsured drivers are the main reason for high insurance premiums. Almost a solid third of the drivers in Mississippi are uninsured, even though car insurance is legally required throughout the state. Uninsured drivers can be extremely expensive for insurance companies because they don't have the resources to cover damages or injuries caused during an accident. The insured driver's insurance company has to cover the costs and then try to recover the expenses from the uninsured driver through court. Since most uninsured drivers choose to drive without insurance for financial reasons, much of the money is never recovered.

7. Washington, D.C.

The rates for insurance in Washington, D.C., tend to be higher because of the congested traffic in the District. Most of the drivers are commuters who come in from surrounding cities during the workday and drive home in the evening. Tourists who are unfamiliar with the complicated streets are also a danger for drivers trying to navigate through the congestion. The rate of uninsured drivers in D.C. is slightly above the national average, which adds to the car insurance expense for all insured drivers.

8. Arkansas

Drivers in Arkansas pay more for their car insurance because almost 20% of the drivers in the state are uninsured. As with the other states on this list, uninsured motorists can drive up the cost of car insurance because they tend to leave the insured driver's insurance company holding the bag for repairs or injuries related to an accident. As with almost every other state in the nation, Arkansas requires a minimum level of liability insurance for drivers who are registered in the state. Even so, drivers are finding ways to circumvent the law and hit the streets without any coverage at all. Insured drivers are paying the price for the uninsured.

9. North Dakota

Uninsured drivers are part of the problem in North Dakota, but they are not the main trouble for insurance companies. Accident rates account for the higher insurance premiums for drivers in this northern state. Drivers tend to be more reckless on average, so the insurance companies have to raise their rates in order to cover the higher number of claims that are filed within the state. Harsh winter driving conditions could also account for the higher number of accident claims from North Dakota drivers. Since winter is long and there is heavy snowfall during most of it, the risk of weather-related accidents is higher than in more temperate states.

If you live in one of these states, it's doubly important that you find ways to cut car insurance costs. Get a quote comparison every six month and be sure to ask about discounts.