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States with the Highest Increase in Auto Insurance Premiums

Each year, Insure.com puts out a national survey report listing the national average of auto insurance rates as well as the average rate among each of the 50 states and the District of Columbia. The 2011 report just recently came out and listed Michigan as the priciest state for auto insurance premiums at $2,541, with Vermont having the cheapest in insurance rates at $995. The national average for 2011 is $1,561, whereas a year ago in 2010, it was $1,429.26.

The reason for higher auto insurance premiums for 2011 varies from state to state, but one of the biggest factors remains uninsured motorists. The number of uninsured motorists is on the rise and one factor for this is the high unemployment rate. Without a job to pay for auto insurance, drivers simply aren’t carrying insurance despite liability insurance being a requirement in all states except for New Hampshire.

Michigan topped the list for 2011 insurance rates with Louisiana coming in at second with rates being on average $2,453, but it was Louisiana that was at the top of the list in 2010 with rates being approximately $2,510. This actually shows a decrease for Louisiana, but there were plenty of states that saw a higher rate from 2010 to 2011.

In fact, in 2010, Michigan was second on the list at about $2,098, which means that auto insurance rates rose dramatically for the state of Michigan for 2011 - $355 approximately. The third state on the survey by Insure.com for both 2010 and 2011 saw an increase between the two years from approximately $1,869 to $2,197, which is an increase of $328.

Montana was the fourth highest state with auto insurance rates at an average of approximately $1,857 and California was next in fifth with average approximate rates of $1,774. In 2011, Montana remained the fourth state with the highest insurance rates with an increase to $2,190 – an increase of $333. However, California dropped down to sixth although there was still an increase in rates – $217 more for 2011. Climbing from seventh in 2010 with an approximate average rate of $1,753 to fifth in 2011 with an average premium of $2,146 was Washington D.C.

Three states increased more than $400 from 2010 to 2011 including Hawaii, with an increase of approximately $401. Mississippi was one of the biggest movers from 2010 with an average approximate rate of $1,474 to $1,896, which is a $422 increase over the course of a year. But, with an even larger increase in premiums from 2010 at approximately $1,365 to $1,794 in 2011 was North Dakota with a total $429 increase.