Car insurance companies look at just about every possible piece of data when determining how much drivers will pay for coverage, even down to the color of the vehicle. One area that drivers may not realize affects their insurance is the state that they live in. Every state has different laws and guidelines for dealing with insurance, and this can affect the premiums that drivers in those states pay - even if they don't know it.
Fox Business recently looked at data from Quadrant Information Services to determine which states were paying the highest rates when it came to car insurance. Topping the list was Michigan, which has a "no-fault" law on the books. This law essentially guarantees that a driver will be covered in an accident, even if it's their fault - which means that insurance companies charge higher rates to cover their increased costs.
Louisiana came in at number two on the list for a different reason - their elected judge system. According to historical data, elected judges are more likely to side with drivers in claim cases, making it more expensive for insurance agencies to do business - resulting in higher premiums for drivers within the state. Other states in the top five include Oklahoma, Washington, D.C. and Montana.
If you're paying higher insurance premiums, you'll have to save money in other ways. One option is to invest in regular auto maintenance, like brake service. Not only does this reduce your risk of an accident and a major car repair, but it also helps keep your vehicle on the road longer.