Maine first on low car insurance rates

6 years ago

FOSTER CITY, Calif. — A national consumer insurance website ranked Maine first in the nation for lowest auto insurance rates in a report issued Aug. 8.

According to data analysis by Insure.com, Maine is the cheapest state for car insurance, with an average annual premium of $864. This is the third year in a row, and sixth time out of the eight years the comparison study has been conducted, that Maine has grabbed the title of the cheapest state.

Another New England state, Vermont, was fourth lowest with an average yearly cost of $948. Ohio was second, at an average of $919; Idaho, third at $942; and North Carolina, fifth at $1,010.

Insure.com stated Maine, Ohio and Idaho all have “large swatches of rural areas [and] competitive insurance marketplaces.”

“States with cheaper car insurance rates tend to be more rural regions of the nation,” said Penny Gusner, consumer analyst for Insure.com. “A higher concentration of motorists in metro areas leads to crashes, claims and thus higher auto insurance rates. Car insurance companies see rural regions with less traffic to be less of risk and, thus, charge less.”

On the opposite end of the spectrum, Michigan topped state rankings for most expensive car insurance rates, with an average annual rate of $2,395. Following were Louisiana, second at $1,921; Connecticut, third at $1,897; Rhode Island, fourth at $1,848; and Florida, fifth at $1,840.

For an example of how rates compare for specific vehicles, insuring a 2017 Toyota Camry LE in Michigan costs, on average, $2,711. In Maine, the average rate for the best-selling sedan is just $945.

Car insurance requirements vary by state, and that’s one reason for the differences in rates. Other reasons include state legal systems, how the state is affected by natural disasters, crime rates and the frequency and severity of claims.

In its analysis, Insure.com commissioned Quadrant Information Services to calculate auto insurance rates from six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm) in 10 ZIP codes per state. Rates were compiled in May 2017.

They averaged rates in each state for the cheapest-to-insure 2017 models of 20 best-selling vehicles and ranked each state by that average. Rates were based on full coverage for a hypothetical single, 40-year-old male 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. Analysis was based on that driver having a clean record and good credit.

For more information, visit Insure.com on the web.