Owning a Car Gets Expensive Due to High Insurance Costs

Nov 28, 2023 03:23 AM EST

INSURANCE CAR — (Photo : PIXABAY/ Tumisu)

On top of the car's price another thing to think about is the insurance. Costs of insurance must be added to the budget when deciding to purchase a unit.

Top 5 US States with Highest Insurance Costs

Insider Monkey revealed the top 5 U.S. States with Highest Insurance Costs. D.C., Michigan, Louisiana, New York, and New Jersey were listed.

Meanwhile, according to U.S News, a car insurance policy costs $ 1,547 annually. This is the average insurance cost.

# 1 New Jersey

New Jersey claims the top spot in our ranking of the 15 states with the highest car insurance costs in the United States. In 2021, the approximate expense for auto insurance in New Jersey stood at $1,266.

# 2 New York

New York comes in second place for having high car insurance rates in the United States. In 2021, the typical cost of car insurance in New York was around $1,235.

# 3 Louisiana

Louisiana takes the third spot in our list of the 15 states with the priciest car insurance in the United States. It's the 20th biggest state in terms of land area and 25th in population. In 2021, the typical car insurance expense in Louisiana was about $1,232.

# 4 Michigan Michigan, nicknamed the 'Great Lakes State,' is the 10th most populous state and the 11th largest in terms of size in the United States. It ranks second on the list. In 2021, the typical car insurance price in Michigan was $1,231.

# 5 Washington D.C.

Last on the list is Washington, D.C., In 2021, the typical car insurance price in D.C. was $1,190.

Reason Why Insurance Matters

The growing presence of vehicles on the streets and the increasing recognition of the advantages of auto insurance have led to a rise in the popularity of car insurance. Yahoo Finance stated that the insurance market in the U.S shows significant growth.

Car insurance serves as a valuable means of offering financial security to car owners in cases of accidents, theft, or vehicle damage. Utilizing contemporary technologies and approaches, insurance companies in the auto industry design personalized and usage-dependent insurance policies.

These policies are tailored to meet the unique requirements of each individual client. Nearly all states mandate that drivers must have car insurance and keep evidence of it in their vehicles.

In case of accidents, theft, or vehicle damage, car insurance provides financial security. Modern technology and methods allow auto insurance companies to create individualized and usage-dependent policies for each client. Most states require drivers to obtain automobile insurance and carry proof.

Having a car insurance comes with a lot of benefits. It may sound as another set of expenses. But car owners are actually saving themselves from a lot of trouble if they have it.

If one was in a car accident that they caused, they could end up paying for things like legal fees, medical bills, and lost wages. Without specific types of insurance, they'd have to use their own money for these expenses. Worst scenario they might end up losing all their savings.

Additionally, if a car gets damaged, the insurance will pay to either fix it or get a new one.

You're all set! Car and Driver emphasized stressed car insurance. First, car value is preserved. Accident repairs or replacement extend car life and value under some insurance policies.

Peace of mind comes from insurance. Families feel secure knowing insurance covers accidents and unexpected events. Lawsuits are covered by car insurance. You are protected from lawsuits even if you cause major property damage or injuries. Car insurance, claims, and legal fees are its specialties.