August 28th, 2010
According to Laurent Belsie’s article in The Christian Science Monitor, the five states where you will spend the least amount of your median income on car insurance are not necessarily the states with the cheapest car insurance rates. In “Insurance rates: Top 5 states to insure a car for less,” Belsie lists the five states where companies like Esurance will insure your car for less of your median income than all other states. The national average for car insurance payments is $733 per year or 3.5% of one’s income.
Although insurance rates are relatively high in Massachusetts, the median income is as well so residents of the Bay State pay the least percentage of income towards their car insurance. The average cheap car insurance payment of $509 a year equals out to 2% of the annual income in Massachusetts. Minnesota is the second place state, even though they have very harsh winters filled with loads of snow, ice and sleet. Drivers there spend about 2.4% of their median income on their average car insurance payments of $563 per year. Maybe it is because they spend so much time stuck in their houses in a snowdrift!
Hawaii comes in third place, even though they pay the most insurance of all the top five states at $602 a year. They also make much more on average than Americans in other states. Companies like Allmerica car insurance don’t have to worry about snow and ice since residents are driving in beautiful weather year round. The fourth place state is New Hampshire, partly because there are so many less drivers per square mile than neighbors like New York City. Residents pay $595 a year, which is 2.5% of their median income. Utah rounds out the top five with residents paying 2.4% of their income for car insurance of $573 per year. They have a lot of open space and far fewer residents than many other states.
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