Car insurance rates fall for 2021, cheaper in Maine than any other state
File Photo / Maureen Milliken
In Maine, the insurance cost for drivers is estimated to be the lowest in the U.S.
Auto insurance rates in Maine and across the U.S. have fallen for the first time in a decade, a new study shows — and Mainers are now paying less than drivers in any other state.
The cost of insuring a car in 2021 decreased by a national average of 1.7% from last year to $1,636, according to the “State of Auto Insurance” report published last week by insurance website ValuePenguin.
In Maine, the decrease was slightly less, 1%. But the average insurance cost was the smallest in the country, ranking No. 51 in order of expense for all 50 states and the District of Columbia. Based on a sample driver of a 30-year-old man driving a 2015 Honda Civic EX, the average insurance quote in Maine for 2021 was $865.
In Michigan, the most expensive state for car insurance, the same driver would pay $7,406.
To gauge premiums and other insurance expenses, ValuePenguin analyzed 15 million auto insurance quotes for drivers in all available ZIP codes in the U.S. The study attributed the rate decrease to fewer Americans driving in 2020 and to a steep reduction in claims.
In addition to Maine, only two states had average insurance quotes that were less than $1,000: North Carolina, $976, and Indiana, $987.
Among New England states, Vermont had the second-lowest car insurance after Maine, ranking No. 42 nationally with an average quote of $1,135. New Hampshire ranked No. 29, with costs of $1,380; Massachusetts, No. 25, $1,439; Connecticut, No. 11, $1,959; and Rhode Island, No. 3, $2,482.
The average cost of auto insurance has increased every year since 2011, ValuePenguin noted, and is now more than double the cost a decade ago — despite this year's decrease.
And the car insurance bargains may not last. ValuePenguin predicted rates will rebound in 2022, writing: “As Americans get back to normal, auto insurance rates will rise again. The increase in distracted driving, and more expensive claims from smart technology in vehicles, will continue to drive rate increases.”
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