By Jennifer Larino, NOLA.com | The Times-Picayune
When it comes to car insurance, living in Louisiana has a hefty premium.
That is according to the latest ranking from Insure.com, which puts out an annual list of the most expensive -- and the cheapest -- places to buy car insurance. The list ranks all 50 states based on the average annual car insurance premium.
This year, Maine, Ohio and Idaho held down the end of the list as the cheapest states to insure your car. Louisiana was (again) among the most expensive.
Read on to see where Louisiana fell in the top 15 most expensive states.
What makes car insurance so expensive?
There are a range of factors that impact the price of car insurance. Some are in your control, like your driving record, claims history and credit score. Others are not, for example, your age.
Here in Louisiana, the number of uninsured drivers on the road is higher than average, driving up rates for those who are insured, Insure.com notes. Louisiana also has a high rate of auto accidents that end up in court and result in large insurance payouts, another factor that is likely causing insurance rates to go up.
Cheap gas may also be to blame. Drivers who have to spend less on gas are more likely to hit the road, resulting in more accidents and more claims.
Average annual premium: $1,369
Average annual premium: $1,375
Average annual premium: $1,409
Average annual premium: $1,440
Average annual premium: $1,476
Average annual premium: $1,506
Average annual premium: $1,526
Average annual premium: $1,538
Average annual premium: $1,673
Average annual premium: $1,696
Average annual premium: $1,840
Average annual premium: $1,848
Average annual premium: $1,897
Connecticut’s premiums are 44 percent above the national average. Why? The state has the highest density of vehicles on the road per square mile in the country, according to Insure.com.
The state also has a lot of wealthy residents -- per capita disposable income was $58,747, the highest nationwide -- who are more likely to buy higher amounts of liability coverage and full coverage for their cars.
Average annual premium: $1,921
Believe it or not, Louisiana had been starting to improve in the national rankings, edging down to the 4th most expensive in recent years. (Louisiana had held the top spot on the Insure.com ranking in 2010, 2012 and 2013.)
It has reversed course again thanks to premiums that are 46 percent above the national average.
Experts estimate 14 percent of Louisiana drivers are driving without insurance. Of those who do have insurance, many are carrying bare bones policies.
Louisiana Insurance Commissioner Jim Donelon told Insure.com about 40 percent of Louisiana drivers carry the minimum car insurance limits required by the state, leading many to rely on the court system to get bigger payouts in the case of an accident.
Average annual premium: $2,394
Michigan’s average premium is 82 percent higher than the national average. Why? Insure.com points to the state's “unique no-fault” car insurance system, which requires car owners to buy personal injury protection, or PIP, coverage, which pays for medical costs if a policyholder or household residents are injured in a car accident.
Other states also require PIP coverage, but Michigan is the only state that has no cap on the coverage, instead guaranteeing unlimited lifetime medical benefits to those injured.
The price of insurance is high as a result. Drivers who cannot afford the cost of insurance often opt to drive anyway, further driving up costs.
See the full ranking.
It includes more details about how and why car insurance rates are higher or lower in certain states.