Your insurance will skyrocket after crash.
One of the least fun parts of owning a car is paying through the nose for insurance. Sure, it’s technically the responsible thing to do. Besides that, it’s compulsory in nearly every U.S. state. Although though insurance can protect you from enormous bills, even in minor crunches like our old Tesla Model 3, insurance companies can still screw you with skyrocketing premiums, even after your first crash. These are the 10 most expensive states to get in an accident, as your rates will almost certainly hit the ceiling.
Insurance.com put this study together. In the interest of transparency, they did not sponsor TFL to produce this article. That said, their data offers some reference point for drivers who live in expensive states for car insurance.
Most expensive states for accident claims
The study strictly covers how much auto insurance rates jump after an accident, rather than which states are most expensive off the bat. After getting in an accident with $2,000 or more in damage, insurance rates rise 31 percent on average across the country. The worst state, though, sees drivers hit with a 48 percent spike in their premium after one crash.
- 10. District of Columbia ($2,438)
- 9. Minnesota ($2,503)
- 8. Georgia ($2,552)
- 7. Connecticut ($2,589)
- 6. Rhode Island ($2,591)
- 5. Delaware ($2,592)
- 4. Florida ($3,045)
- 3. California ($3,081)
- 2. Louisiana ($3,348)
- 1. Michigan ($3,502)
If you live in Michigan, you already knew where this was heading. You already have the most expensive insurance overall of anywhere in the country. On average, Michigan drivers pay $2,368 per year or $197 per month. Get into a crash, though, and that rate spikes to $3,502 each year.
One thing the Insurance.com study’s release, repair costs contribute to the higher premiums. It states that costs have risen two-thirds between June 2000 and June 2019. One point the release doesn’t specifically mention, either, are that most of the top 10 on this list are “no-fault states”.
No-fault insurance helps pay for you and your passenger’s medical bills in a crash, regardless of who was at-fault. This is also called personal injury protection (PIP). Since no-fault states make insurers pay regardless, the premiums are higher for everyone. As of 2019, PIP is required in sixteen states, and optional in six others. No-fault states on this list include Michigan, Florida, Delaware and Minnesota. It’s optional in the District of Columbia.