If you are shopping for auto insurance, where you live can make as big a difference as how you drive. No matter how good your driving record, if you live in a high-cost insurance state you will end up paying more than folks living in lower cost states.

Insure.com recently came out with a list of states with the highest and lowest average auto insurance rates in the United States. At the top of the list was Louisiana which clocked in with an average premium of $2,510.87, far higher than any other state. At the bottom of the list is Ohio, Vermont, and Maine, each of which have average car insurance rates of under $1,000 a year.

The study, performed by Quadrant Information Services for Insure.com, looked at costs for insuring more than 2,400 cars from six large insurers across 10 zip codes in each state.

While it’s generally thought that states with the most urban areas have the highest insurance rates – more cars on the road mean more accidents and expensive insurance claims – this is not always the case. A bigger factor is the states’ different insurance laws.

In Louisiana, rates are sky-high because more cases are settled out of court with expensive settlements. This happens because of a state law that limits jury trials to only those cases with claims above $50,000. Similarly, in Michigan, which ranks second in car insurance costs, state law guarantees unlimited medical benefits for accident victims for life. This inevitably increases insurance costs in that state.

Rounding out the 10 most expensive states are: Oklahoma, Montana, California, South Dakota, Washington, D.C., Georgia, Illinois, and Connecticut. In addition to the three states under $1,000 previously mentioned, the other cheapest insurance states include Wisconsin, New Hampshire, Iowa, Massachusetts, North Carolina, Arizona, and Tennessee.

The Bottom Line: due to factors beyond your control, car insurance will cost more in some states than others. No matter which state you live in, you can always get the best possible price by shopping around to instantly compare car insurance rates.

photo credit: Fabio Aro

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In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of who was at fault for the accident. Any other drivers involved will be covered by their own auto insurance policies. Under a pure no fault system, drivers would be completely covered by their own policy, and would be barred from ever suing another driver for damages.

However, no state uses a pure system. Instead, all “no fault” states actually use parts of both the no fault system and the standard liability system. Under a standard liability system you’re financially responsible for the cost of damages you cause.

Currently, only 12 states employ the no fault system. Obviously, it’s a good idea to understand your state’s requirements before you shop for insurance as Florida car insurance is very different from California car insurance which is very different from Texas car insurance and on and on.

No Fault Auto Insurance Policy Basics

The actual no fault part of your auto insurance policy is usually called personal injury protection, or PIP.  Different states’ PIP packages cover different things, but in general benefits will include most injury-related expenses. The most common benefits are medical costs, loss of wages, compensation for loss of services, funeral expenses, and death benefits.

The amount and type of PIP required varies from state to state. In some no fault states drivers can actually choose whether or not they want to purchase PIP and drive under the no fault system. (If not, they operate under the standard liability, or tort, system.) Because no state is pure no fault, drivers can always be held financially responsible for the cost of injuries they cause in certain circumstances.

Some states allow injured parties to sue if their injuries meet certain standard for severity, while others allow it when total costs reach a certain dollar level. That’s why liability insurance is still so important, and why every no fault state requires it.

The Goal of No Fault Auto Insurance

No-fault insurance has the goal of lowering premium costs by avoiding litigation over the cause of the accident, while providing quick payment for injuries. However, critics of no-fault insurance note that it does not punish reckless or negligent drivers in litigation and that it is particularly difficult to sue if a person’s injuries leave them with a handicap. Proponents of no-fault insurance point out that auto accidents are inevitable and that at-fault drivers should therefore not necessarily be punished. Additionally, in regions with high numbers of uninsured motorists, the at fault party often does not have resources to pay their liability, leaving the accident victim with nothing.

Pros and Cons of No Fault Auto Insurance

Under current no-fault laws, motorists may sue for severe injuries and for pain and suffering only if the case meets certain conditions. These conditions, known as a threshold, relate to the severity of injury. They may be expressed in different ways such as verbal terms or in dollar amounts of medical bills.

Some laws also include minimum requirements for the days of disability incurred as a result of the accident. Because high threshold no-fault systems restrict litigation, they tend to reduce costs and delays in paying claims. Some states offer a no fault system (Example: Connecticut auto insurance policies are required to comply with the State of Connecticut’s no fault laws just like Ohio auto insurance policies and policies in the 10 other no fault states) and others offer a combination of no fault and liability.

While there are pros and cons of each system, knowing what your state offers can help if you are ever in an accident.

This is Toyota’s largest recall ever and comes amidst a severe downturn in the U.S. car market which has generated large financial losses for the automaker. The recall includes many of Toyotas most popular models including Camry sedans in the 2007 to 2010 model years, and Prius hybrid cars from 2004 to 2009. The recall also impacts Lexus luxury vehicles as well.

The recall was prompted by a crash on Aug. 28 near San Diego that killed four people. Investigators said the accident could have been caused by an improperly installed floor mat. The car was a 2009 Lexus ES 350.

Here are all the models involved in the recall: 2007 to 2010 Camry; 2005 to 2010 Avalon; 2004 to 2009 Prius; 2005 to 2010 Tacoma; 2007 to 2010 Tundra; 2007 to 2010 ES 350; and 2006 to 2010 IS 250 and 2006 to 2010 IS 350. If you own one of these cars, just remove the driver’s side floor mat – there is no need to come into the dealership at this time.

There have been numerous lists of good cars for students, but one of the best was published by Smart Money Magazine last year. The criteria was the car must be low cost (under $18,000 MSRP), safe, and at least reasonably cool. While the list might be a tad old, the list of cars is still on the mark.

The Mazda 3, with an MSRP of less than $15,000 ranked as the best value. The car got high marks for features and great handling.

The safest car on the list was the Subaru Impreza which offers all-wheel drive and front, side, and rear airbags. It’s also one of the heaviest small cars which might not be great for gas mileage, but does make it a safe ride.

The Ford Focus ranked highest in fuel economy while the Honda Fit was tops in reliability. And you are holding out for a flashy car, the coolest on Smart Money’s list was the Volkswagen Rabbit.

No matter what your future plans are, any of these cars would be wise choices and should last you well beyond college.

In general, the answer is no – buying a car is better than leasing it.

But there are a few cases where leasing could make sense:

• If you are self-employed and can write off leasing as a business expense.
• If you absolutely, positively need a new car every couple of years.
• If you need to defer a purchase decision for a few years.
• If the only way you can get into a new car is via a lease.

But there’s a reason why 80% of consumers buy rather than lease their cars. When buying a car you generally will have a 60 month loan after which you own the car free and clear. So if you can handle five years of car payments, buying a car will leave you in better financial condition.

In contrast, with leasing you have to trade in the car every two to three years. While the idea of having new wheels on a regular basis might sound appealing, realize that if you continue leasing your monthly car payments will never end.

As the name implies, car brokers takes on all the hassle of locating and negotiating for your new car. A car broker knows al the ins and outs of financing, fees, add-ons, and taxes so you don’t have to. Brokers can often get you a better price than the “best price” offer you get from a dealer.

Unlike the average consumer, car brokers have extensive experience with a variety of car dealerships, so they know how long a car has been on the lot and how hard a bargain they can drive.

Beware, however, because not all car brokers are created equal. You want to find a consumer-driven auto broker that works just for you. These folks often work out of a small or home office and charge a flat-fee to provide buying services to any consumer. Make sure your car broker does not receive a commission from a dealership or sells your name as a lead.

The first consideration is car insurance. Cheap car insurance for young drivers is nearly unheard of, as teenagers are among the riskiest drivers and hence the most expensive group to insure. You are most likely looking at a car insurance premium of at least $100 per month. Think about how much you could do with that money if you don’t blow it on car insurance.

The high cost of gas is another consideration. With the stop-and-go driving of college campuses, even fuel efficient cars can rack up high gas bills. Add on the cost of parking passes or meters and you’re looking at another $100 per month in expenses.

These days most college campuses have excellent shuttle systems that can take you around the school easily. So think about all the money you will be saving by foregoing the car when you head off to school. And don’t forget one more benefit: you’ll be doing your part to help the environment. Doesn’t sound too bad, does it?

Only 21 of these Ferraris, with the distinctive Scaglietti-designed pontoon fender, were ever made. It was the fourth Ferrari 250 TR ever built and the second customer car. Add to that a beautiful black and red paint job and pristine restored condition and you’ve hot a hot and very expensive car.

1958 was the 250 Testarossa’s absolute pinnacle in racing. The factory cars won four of the six races to secure Ferrari’s third consecutive World Sports Car Championship for Constructors.

So just how much could you get for the $12.2 million dropped on the 250 TR? How about 43 of Ferrari’s current fastest car, the F430 Scudiera? If you wanted sheer speed, you could buy 19 of the SSC Ultimate Aeros – the world’s fastest production car.

And finally, if you really wanted to, you could buy 1,221 2008 Hyundai Accents. But then you wouldn’t get the cool pontoon fenders and that’s got to be worth 12 mill right there.