When it comes to auto insurance rates, where you live matters.
The difference between the highest and lowest average annual premiums in the U.S. is $2,120, according to a recent Bankrate study that ranks states based>10. Wisconsin
- Average percentage of income spent: 1.87%
- Average annual cost: $1,249
9. Utah
- Average percentage of income spent: 1.85%
- Average annual cost: $1,449
8. Idaho
- Average percentage of income spent: 1.68%
- Average annual cost $1,065
7. Washington
- Average percentage of income spent: 1.60%
- Average annual cost: $1,313
6. Vermont
- Average percentage of income spent: 1.48%
- Average annual cost: $1,000
5. New Hampshire
- Average percentage of income spent: 1.47%
- Average annual cost: $1,182
4. Virginia
- Average percentage of income spent: 1.46%
- Average annual cost: $1,340
3. Massachusetts
- Average percentage of income spent: 1.45%
- Average annual cost: $1,296
2. Maine
- Average percentage of income spent: 1.44%
- Average annual cost: $876
1. Hawaii
- Average percentage of income spent: 1.41%
- Average annual cost: $1,206
The ranking also reflects the many factors that contribute to auto insurance rates in each state, including your age, the car you drive, your driving record, your credit score (in most states), the length of your commute and even local weather conditions.
Drivers in Louisiana and Florida spend the highest share of their income>What you can do to keep rates down
"If you're a driver in Louisiana, you're living there, you're probably working there — it'd be pretty hard to just uproot and move to Hawaii, where it's the cheapest," says Sarah Foster, a Bankrate analyst who worked on the study.
Since some of the cost is out of your control, the best way to keep rates down is by maintaining good driving habits and keeping your credit score as high as possible, especially in the majority of states where it's used to determine your auto insurance rate, Foster says.
It's also worth considering a new policy every now and then. Drivers often forget to periodically shop around for new rates, especially if their credit score has improved, Foster says. But insurance companies aren't necessarily going to adjust their rates before the renewal date, so it's up to drivers to stay on top of their own policy.
"Even if a credit score is absent of any kind of change, it's always a good idea to shop around and make sure you're not paying extra for insurance you could be getting for hundreds of dollars less elsewhere," Foster says. "No one likes to overpay on anything when inflation is at a 40-year high."
