California Insurance Rates: Seventh Highest in Country recently released data showing the highest rates for car insurance in the country. California is seventh on the list, with the average annual auto insurance premium cost at $1,819. Compare that to Louisiana — $2,699 — and it seems okay. Compare it to Maine, however, where the average premiums are $934, and you may ask: Are Californians paying too much in auto insurance?

Some insurance experts point to car accident litigation is the reason car insurance rates are higher in some states than others. They go so far as to claim that injured parties in Louisiana bring personal injury lawsuits more often than injured parties in other states.

Even if this is true, should people be forced to pay more for car insurance because they sought out fair compensation for their injuries? Remember: Insurance companies, protecting their bottom line, often low-ball settlements and refuse to pay for a victim’s full injury, even if that injury is covered by an insurance policy.

Whether you live in Louisiana, California or Maine, the cost of insurance may seem immense. Yet, driving without it can lead to much more than a criminal record; If you are involved in a car accident, you may face bankruptcy. The cost of the average injury-causing car accident is still much greater than the premiums you pay.

Source: Los Angeles Times, “California Auto Insurance Premiums Among Most Expensive In The U.S.,” Ronald White, Mar. 19, 2013
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