Louisiana and Oklahoma enjoy the distinction of having the least affordable auto insurance rates in the country, according to one body of research that considers how much of a family’s income goes to pay for car insurance. Massachusetts, often rapped as a costly state for drivers, is actually the most affordable state for auto insurance.
InsWeb, an online insurance comparison provider, recently released its 2010 Car Insurance Affordability Index – a list of the most and least affordable states in which to insure a vehicle. To develop the list, InsWeb said it ranked all 50 states and Washington, D.C,. according to affordability factor. A state’s affordability factor is determined by dividing its median household car insurance rate by its median household income. The lower the factor, the less a typical family in that state tends to spend on car insurance relative to its budget, says InsWeb.
“To really get a sense of where car insurance is the most and least affordable, you have to consider how much of a typical family’s income goes towards premiums, and that’s what our affordability factor measures,” said Brad Cooper, senior vice president of product, site and marketing at InsWeb.
Most Affordable State
States | Affordability Factor | |
---|---|---|
1 | Massachusetts | 1.84% |
2 | New Hampshire | 2.23% |
3 | Vermont | 2.39% |
4 | Minnesota | 2.39% |
5 | Utah | 2.43% |
6 | Nebraska | 2.43% |
7 | Hawaii | 2.44% |
8 | Indiana | 2.45% |
9 | North Carolina | 2.52% |
10 | Virginia | 2.53% |
Source: InsWeb
Least Affordable States
States | Affordability Factor | |
---|---|---|
1 | Louisiana | 6.93% |
2 | Oklahoma | 4.94% |
3 | Mississippi | 4.86% |
4 | Washington D.C. | 4.77% |
5 | New York | 4.54% |
6 | West Virginia | 4.51% |
7 | New Mexico | 4.37% |
8 | Kentucky | 4.27% |
9 | Arizona | 4.14% |
10 | Florida | 4.10% |
Source: InsWeb
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