Survey shows Louisiana leads in terms of auto insurance costs
Insure.com, an online insurance marketplace, has released its latest annual survey concerning the average cost of auto insurance throughout the U.S. The survey highlights the cost of auto insurance rates in all states, showing how much consumers can expect to pay to cover their vehicles. This year, the survey shows that Louisiana is at the top of the list of states where auto insurance coverage is most expensive. Maine is the state with the lowest average auto insurance coverage rates.
State is consistently found to be home to high insurance rates
This is not the first time Louisiana has been at the top of this survey from Insure.com. The state has consistently been ranked among the most expensive places to live in terms of auto insurance. The survey suggests that states that are home to frequent and expensive claims are also typically home to the most expensive coverage in the U.S. In recent years, Louisiana has been struggling with a spate of auto insurance fraud, which has contributed to the growing costs of coverage.
Expensive claims and lawsuits do not fare well for insurers
The survey notes that a high portion of Louisiana drivers file bodily injury claims even if they are in a modest accident. Lawsuits generated by these accidents are typically handled by judges in the state that are more likely to side with consumers than with insurance companies. As insurers continue to see losses through such scenarios, they raise rates to compensate. State legislators have been slow to address the issue. Insure.com notes that one of the best ways to mitigate high auto insurance costs in the state is to purchase vehicles that are inexpensive to cover.
Michigan comes in second to Louisiana
The survey shows that Michigan comes in second to Louisiana in terms of auto insurance prices. In Michigan, drivers tend to pay more for coverage due to the state’s unlimited, lifetime personal injury protection laws. Insurance companies suggest that fraud is very prolific in states that have such laws, meaning that losses for these companies are typically higher than those experienced in other states.