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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