How much car insurance costs in all 50 states

  • Car insurance rates can be one of the most important factors shoppers consider when purchasing a new vehicle.

  • Premiums are an amount owners pay for an insurance policy which protects them against accidents, damages, stolen vehicles and other incidents.

  • The insurance information website Insure.com recently published an analysis on which states have the highest and lowest annual car insurance rates.

  • According to the study, the national average for annual premiums is $1,365, but the variance among states is starker than one would assume.

  • Michigan, Louisiana, and Florida had the highest average annual insurance rates in the country while Vermont,Ohio, and Idaho had some of the lowest.

Car insurance rates are among the most important factors buyers consider when purchasing a new vehicle. A premium is the rate motorists pay for a car insurance policy which protects them against accidents, damages, stolen vehicles and other incidents.

But car insurance rates for the same car can vary greatly from state to state.

For example, data from the insurance information website, Insure.com, shows Vermont's average annual premium is $932, while Michigan's is $2,239. A recent Insure.com study found the national average to be $1,365.

Insure.com points out that Michigan uses "no-fault" car insurance that is believed to be the cause of driving up rates. According to the website, "no-fault" insurance un-caps medical benefits for injuries sustained while driving.

There are other factors at play that lower premiums in other states.

Vermont has a small population, so this leads to fewer accidents and fewer claims, both of which help drive down premiums. This is the reason why Idaho and Iowa have some of the least expensive car insurance in the country.

Read More:The 11 new cars people most regularly ditch after just one year of ownership

In a statement to Business Insider, Insure.com's insurance expert Penny Gusner said, "On the flip side, the states with cheaper car insurance tend to be more rural states that have a good competitive car insurance marketplace. Vermont is sparsely populated which helps keep the accident rate down, compared to Michigan that has big cities, such as Detroit."

Ohio and Virginia are each relatively highly-populated states that have low insurance rates, but Insure.com cites the vast number of insurance carriers in each state—almost 250 for Ohio and over 300 for Virginia—and the competition which results as the main reason their insurance premiums are so low.

Variance in state laws account for the changes among auto premiums, but weather differences, crime rates, and the percentage of uninsured drivers in each state all play into the creating price differences.

Insure.com' study notes that there are multiple risk factors at play that affect car insurance no matter what state you live in. These factors include age, gender, location, and the type of vehicle insured, and the driving record of the vehicle owner.

With this information in mind, take a look below at the average annual car insurance premium in all 50 states and the District of Columbia, using data provided by Insure.com.

More from Business Insider:
The 9 best cars you can buy for under $20,000
I drove the $58,000 Tesla Model 3 to see if it lives up to the hype — here's the verdict

I took a Tesla Model S on a road trip and quickly discovered why it's unlike any other car on the market

SEE ALSO: If 2 self-driving cars get into an accident, whose insurance covers the damage?

FOLLOW US: On Facebook for more car and transportation content!

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
Deducting Summer Camps and Daycare with the Child and Dependent Care Credit
If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35 percent of qualifying expenses of $3,000 ($1,050) for one child or dependent, or up to $6,000 ($2,100) for two or more children or dependents for tax year 2020, but under the American Rescue Plan the credit for child care will be increased for tax year 2021 only (the taxes you file in 2022).
Read MoreBrought to you byTurboTax.com
Deducting Mortgage Interest FAQs
If you're a homeowner, you probably qualify for a deduction on your home mortgage interest. The tax deduction also applies if you pay interest on a condominium, cooperative, mobile home, boat or recreational vehicle used as a residence.
Read MoreBrought to you byTurboTax.com
What to Expect Tax-Wise from Your Summer Job
You won't know what to expect tax-wise from your summer job unless you consider factors other than how much you earn.
Read MoreBrought to you byTurboTax.com
Summer Tax Tips
Smart tax planning happens all year round. Here are four things you can do this summer to improve your standing when tax time rolls around again.
Read MoreBrought to you byTurboTax.com