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Sunshine state drivers on the hunt for cheap car insurance should head to Ohio, Maine, or even Idaho.
Florida? The state known for low taxes and a lower cost of living has the fifth-highest average annual car insurance premiums in the country at $1,742, according to a new report from Insure.com. Florida is ahead of West Virginia and behind Louisiana, Washington, D.C., Montana and the highest-cost state, Michigan.
The Wolverine state is a constant at the top of the list: It's been one or two for high cost in all five years Insure.com has compiled the survey. The main reason for the expensive premiums in Michigan, says Insure.com, is the state's unusual no fault-auto insurance system, where policies guarantee unlimited medical benefits. The average annual premium in 2014 in Michigan is $2,476.
Michigan's neighbor, Ohio, is on the opposite end of the list, with an average annual premium of $843. Only Maine, at $805, is lower. The reason for Ohio's low rates, say the authors of the survey, is simple insurance economics: lots of competition. There are 671 carries that do business in Ohio, more than any other state outside of Illinois.
The study probed rates from six large insurance carriers in 10 zip codes from every state. Rates were for the same full-coverage policy for the same driver — a 40-year-old man with a clean driving record and good credit. The study then looked at average rates for the 20 best-selling vehicles in the country. Each model was rated on its cheapest-to-insure trim level.
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