The percentage of uninsured drivers in a given state, along with other factors like weather and state insurance laws, are in large part what determine the average cost of auto insurance premiums.
According to Amy Danise, senior managing editor of Insure.com,
“We often think of car insurance prices strictly in terms of our own personal details, like our driving record and our coverage amount, but Insure.com’s rankings demonstrate how factors like state laws and the judicial system can be the driving force behind high rates.”Michigan holds the spot as the most expensive place for auto insurance because it’s the only state that guarantees unlimited personal injury protection payments by law, which is very costly for insurance companies. Louisiana is the second most expensive state because of its judicial system, which generally favors individuals--meaning that insurance companies tend to lose in court, again driving up costs for insurers. By comparison, a representative driver in Vermont pays 87 percent less for insurance coverage than the same driver in Michigan because of the lower level of traffic congestion in Vermont and the large number of insurers competing for business.