Mass. Car Insurance Ranked No.1 for ‘Affordability’

Graph comparing average expenditures for Mass. and Nat'l averageThe median car coverage premium for the state of Massachusetts is a mere 2.09 percent of the state’s median household income, making Massachusetts auto insurance rates the most affordable relative to income level, according to a recent study released by an online insurance company, InsWeb.

The state that ranked worst in terms of affordability was Louisiana, which consistently ranks as having some of the highest premiums in the nation. According to the report, the percent of household income that goes to pay premiums in that state is three times as high as Massachusetts’. In Louisiana, median coverage costs eat up about 6.76 percent of the median household income.

A number of states dropped considerably when compared to their 2010 rankings. New Hampshire, for instance, went from No.2 to No. 13, and Nebraska dropped from No. 6 down to No. 22.

It should be noted that the report does not only reflect fluctuations in the cost of car insurance but also fluctuations in the median income levels.

The national median income in 2009 — the most recent year for which data is available — was about $50,000, according to the U.S. Census Bureau. Massachusetts had a median income that was about 28 percent higher than the national average. Louisiana, on the other hand, was about 15 percent lower. These facts played a part in where the states ended up in the final ranking.

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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