A recent review of national auto insurance rates has seen road users in Louisiana being more heavily penalized than anywhere else within the United States. Michigan has the second-highest auto insurance rates while the cheapest policies can be found in Maine, Vermont and Ohio.
One of the overwhelming factors being expensive auto insurance rates in Louisiana is the cost of court settlements. Only claims in excess of $50,000 are subject to a jury trial and there are a huge number of settlements that fall just under this particular figure. Ultimately, it is auto insurance companies that end up picking up the bill and these increasing costs are eventually passed on to customers whenever auto insurance quotes or renewals are applied for.
Auto insurance rates in Michigan are excessive because it is the only US state that offers unlimited medical benefits for the full lifespan of accident victims. This leaves the auto insurance companies picking up bills for the first $460,000 of treatment and care. Once again, the excessive expenses incurred by carriers are passed on to consumers in the shape of expensive auto insurance rates.
States such as Maine, Vermont and Ohio are much less densely populated than other areas and this makes auto insurance rates much cheaper. Because there are less people living in sparse areas, there are naturally fewer vehicles on the road and residents of these states are frequently rewarded with lower auto insurance rates and cheap auto insurance quotes.