To say that insurance shoppers aren’t price sensitive in today’s economic turbulence would be a drastic understatement. The introduction of direct-writers into the insurance market has made purchasing car insurance easier and cheaper. Fortunately, for Massachusetts drivers, the state was recently graded as one of the cheapest states to purchase insurance.
Carinsurancequotes.com recently ran a comparison of car insurance rates relative to median household income across all fifty states and found some staggering results. Michigan drivers were paying, on average, 8 percent of their household income for insurance. In Michigan, 2010 median household income was $45,413 meaning drivers were paying, on average, $4,087.18 per year for car insurance. Louisiana was the second most costly state, with drivers paying a rate of 5 percent of median household income. Median household income in 2010 for the state of Louisiana was $42,505 meaning drivers paid $2,125.25 for insurance.
Massachusetts falls on the complete opposite side of the spectrum with a rate of only 1.434% of median household income. Massachusetts median household income for 2012 was $62,072, significantly higher than that of the aforementioned states. As a rate of 1.434%, Massachusetts drivers shelled out, on average, $890.11 for car insurance.