Personally, I’m never sure how good these studies really are, but InsWeb has put out its 2010 Car Insurance Affordability Index based on the kind of math that makes my numbers-challenged head spin. Basically, they took the median car insurance rate per household and divided it by the median household income to come up with a percentage called the “affordability factor.” The idea is, the lower the number, the less a typical family in the state pays for auto insurance relative to their household budget.
Okey dokey there. If one train leaves Detroit at 2 o’clock and an elephant with a balloon . . . .
At any rate, according to their calculations, the 10 most affordable states for auto insurance are:
– New Hampshire
– North Carolina
The least affordable states are:
– Washington, D.C.
– New York
– West Virginia
– New Mexico
Regardless of your home state, the best thing any driver can do is research, compare, and weigh your personal financial situation against the available offerings. The worst mistake any insurance customer can make is to pay for the first policy offered from the first company consulted. It’s too easy to get good rate quotes online — really, affordable insurance is out there for anyone willing to find it. Don’t just throw your money away when a few mouse clicks can literally save you hundreds of dollars!