2012 Study Shows Cheapest Auto Insurance Rates

I don't live in one of the least expensive places in the US. When they're running through studies like these, I often find my state floating somewhere in the middle. That applies to just about anything, really. But I was absolutely thrilled to see that they'd updated the list of the states with the most (and least) expensive auto insurance rates less than a week ago.

The Internet. STILL the best place for cheap insurance. Shhhh...And no, it's not just because I like to call up my brother and gloat. Although I may or may not have done that already too. (Shhhhhhh. It's our little secret.)

All jokes aside, knowing where your state falls on the list of the country's most expensive auto insurance rates is an important first step in making sure you don't get trampled by them. This is doubly true if you're planning to hop state lines in the near future and aren't prepared to be bowled over by the sudden, dramatic and painful hike in your auto insurance.

Hey, it's March. It snowed two days ago. I understand the sudden and unrelenting urge to head south for the winter. Just be prepared. The sun kissing your skin isn't the only change you've got coming your way.

The Reason Auto Insurance Rates Go Up…and Up…and Up

We'll toss the list of states and auto insurance rates up, don't worry. I know that's the real reason you're here. But if you're sitting here wondering why it seems like you're paying 50% more for your auto insurance than the entire rest of the world, it might be a good idea to understand the ins and outs of the insurance industry first.

That way you know that it's not just because your insurance has it in for you. Or because someone, somewhere, decided to be completely arbitrary with their little red pen. There's actually a reason you're paying more than that cousin in the Midwest you only talk to every other Christmas. The sooner you understand it, the easier it is to understand why you're paying more…and why it's actually worth it.

· Number of accidents per year. If I could point to just one thing that influences your auto insurance rates on the state-wide level, it would be the number of accidents that happen out on the roadway every year. If you live anywhere near a major highway, you have some idea of what those numbers look like already. I know when I was living near D.C., it was a rare weekend when there weren't at least 6 cars off the side of the road at any given point in time.

·Anti-Monopoly: Not just for people who hate putting hotels on Boardwalk anymore.
Minimum auto insurance regulations. Every state has different ideas when it comes to the amount of auto insurance they just don't want you to live without. The higher the minimum requirements, the more you're going to pay for insurance.

· State taxes. Yup. There's tax on insurance too. Do I really need to say anything else?

· Population density. I like to lump this in with jokes about “Proximity to I-95”. More people=more cars. More cars=more accidents. More accidents=more insurance claims. More insurance claims=Higher auto insurance rates. You do the math.

· Competition. Yes, capitalism rears its ugly head. The more insurance carriers you have doing business in your state, the less you're going to pay for your insurance. Anti-monopoly and all that.
So Which States are Cheapest?

Now that you understand why certain states have cheaper auto insurance rates than others, let's talk about which states charge like crazy, which states are somewhere in the middle, and which states should inspire you to start shopping for property!

According to a recent study published by Forbes, the most expensive states (auto insurance rates listed are per year) in which to insure your car are.

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