Louisiana, Oklahoma Least Affordable States for Car Insurance

Louisiana and Oklahoma enjoy the distinction of having the least affordable auto insurance rates in the country, according to one body of research that considers how much of a family’s income goes to pay for car insurance. Massachusetts, often rapped as a costly state for drivers, is actually the most affordable state for auto insurance.

InsWeb, an online insurance comparison provider, recently released its 2010 Car Insurance Affordability Index – a list of the most and least affordable states in which to insure a vehicle. To develop the list, InsWeb said it ranked all 50 states and Washington, D.C,. according to affordability factor. A state’s affordability factor is determined by dividing its median household car insurance rate by its median household income. The lower the factor, the less a typical family in that state tends to spend on car insurance relative to its budget, says InsWeb.

“To really get a sense of where car insurance is the most and least affordable, you have to consider how much of a typical family’s income goes towards premiums, and that’s what our affordability factor measures,” said Brad Cooper, senior vice president of product, site and marketing at InsWeb.

Most Affordable State

Source: InsWeb

Least Affordable States

Source: InsWeb