Minnesota Has Low Car Insurance Rates

Who would have thought it? We have No Fault coverage. We have no caps on our verdicts. We have dangerous rural roads and our share of city traffic. I have heard in the past from the Insurance Federation about the need for change. But, the facts again don’t bear them out.

Here are the results from the 2010 Car Insurance Affordability Index*:

The 10 most affordable states are:

State Affordability Factor

1. Massachusetts 1.84%

2. New Hampshire 2.23%

3. Vermont 2.39%

4. Minnesota 2.39%

5. Utah 2.43%

6. Nebraska 2.43%

7. Hawaii 2.44%

8. Indiana 2.45%

9. North Carolina 2.52%

10. Virginia 2.53%

*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.

Makes you wonder how they are going to deal with this? Minnesota: just another great example of a working system.