Maine car insurance cost among lowest in nation, report says

Posted July 31, 2012, at 5:09 a.m.

Maine ranks among the lowest states for auto insurance, with a median annual cost of $1,160, according to a data released Monday by Bankrate’s CarInsuranceQuotes.com.

The average Maine household pays just under 2 percent of its annual income for car insurance, according to the study, ranking Maine 42nd among all states and the District of Columbia. Michigan, at 8 percent of annual median household income, pays the most for car insurance. Louisiana (5.55 percent) is next, followed by Kentucky (4.54 percent) and West Virginia (4.24 percent).

Some of the lowest percentages of annual income devoted to car insurance were in New England, with Massachusetts (1.434) the lowest at No. 51, New Hampshire (1.988) at No. 45 and Maine (1.993).

The Bankrate report said many factors affect rates from state to state, and quoted Bob Passmore, senior director of personal lines at the Property Casualty Insurers Association of America as saying, “variables include the costs of car repair and medical care, the amount of insurance fraud taking place, the number of uninsured drivers on the roads and the number of people living in densely populated areas.”

“When you get more drivers together, they’re going to run into each other more,” Passmore says.

Last month, another study, by CarMD.com, found that Maine has the second-lowest car repair costs in the nation, when it comes to vehicle problems associated with the “check engine” light, with a cost that was 13 percent below the national average.

 

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