From https://www.savemaxauto.com/.
- New York ranks sixth, with car insurance taking 4.75% of the average salary.
- Louisiana, Florida and Nevada occupy the first three positions, with 7.03%, 6.45%, and 5.74%, respectively.
- Across the top 10, average annual premiums range from $2,149 to $4,171.
A new study reveals that New York is the state where car insurance takes the sixth-biggest share of the average salary.
The study, conducted by Save Max Auto, analyzed average annual car insurance premiums against average annual salaries in each state, in order to discover where drivers give up the largest share of their income to stay insured.
New York’s findings
New York follows in sixth position, with car insurance taking 4.75% of the average salary, at $3,916 a year. It has by far the highest average salary anywhere in the ranking at $82,460, but also the third-highest premium, meaning drivers there pay $326.33 a month, more than in any state on the list except Louisiana and Florida.
The 10 US states where car insurance takes the biggest share of the average salary
| Rank | State | Average annual premium | Average monthly premium | Average annual salary | Car insurance as share of average salary |
| 1 | Louisiana | $3,978 | $331.50 | $56,600 | 7.03% |
| 2 | Florida | $4,171 | $347.58 | $64,670 | 6.45% |
| 3 | Nevada | $3,562 | $296.83 | $62,050 | 5.74% |
| 4 | Michigan | $3,131 | $260.92 | $64,920 | 4.82% |
| 5 | Oklahoma | $2,741 | $228.42 | $56,950 | 4.81% |
| 6 | New York | $3,916 | $326.33 | $82,460 | 4.75% |
| 7 | Kentucky | $2,747 | $228.92 | $58,990 | 4.66% |
| 8 | Arkansas | $2,473 | $206.08 | $54,890 | 4.51% |
| 9 | Georgia | $2,939 | $244.92 | $65,920 | 4.46% |
| 10 | Mississippi | $2,149 | $179.08 | $50,810 | 4.23% |
Louisiana leads the ranking, with car insurance accounting for 7.03% of the average salary, at $3,978 a year against an average income of $56,600. That figure means the typical driver pays $331.50 a month for coverage, the equivalent of more than three and a half weeks’ pay a year.
Florida comes in second place, where car insurance takes 6.45% of the average salary, which is $4,171 a year. While Florida registers the highest average premium of any state on the list, the higher average salary of $64,670 insures it not coming in first place.
Nevada is third, with car insurance taking 5.74% of the average salary, at $3,562 a year. Nevada and Florida only have 0.71 percentage points between them. The three states at the top stand apart from the rest of the ranking because they pay an average insurance above $3,500, which only one other state in the top 10 does.
Further down on the list, Michigan takes fourth place, with car insurance taking 4.82% of the average salary, at $3,131 a year. This is the clearest step down in the ranking, sitting 0.92 percentage points below Nevada, the largest gap between any two consecutive states on the list.
The top five closes with Oklahoma, where car insurance takes 4.81% of the average salary, at $2,741 a year. Oklahoma is separated from Michigan by just 0.01 percentage points, despite an average premium $390 lower, because the average salary in Oklahoma is around $8,000 lower too.
Kentucky takes seventh place, with car insurance taking 4.66% of the average salary, at $2,747 a year. Kentucky and Oklahoma pay almost exactly the same premium, $2,747 against $2,741, and land within 0.15 percentage points of each other on salary share.
Arkansas is eighth, with car insurance taking 4.51% of the average salary, at $2,473 a year. It is the second-cheapest state in the ranking by premium, at $206.08 a month, but also has the second-lowest average salary at $54,890.
Georgia comes in ninth, with car insurance taking 4.46% of the average salary, at $2,939 a year, separated from Arkansas by 0.05 percentage points. Georgia pays $466 more a year for coverage than Arkansas, but an average salary around $11,000 higher brings the two states to nearly the same share.
The top 10 closes with Mississippi, where car insurance takes 4.23% of the average salary, at $2,149 a year, a difference of 2.80 percentage points from Louisiana at the top of the list. Mississippi has the lowest average premium anywhere in the ranking, at $179.08 a month, and still appears on it, because it also has the lowest average salary, at $50,810.
Across the top 10 as a whole, the spread is wide at both ends. Average annual premiums range from $2,149 to $4,171, a difference of $2,022, while average salaries range from $50,810 to $82,460, a difference of $31,650. The states are grouped by what coverage costs relative to income, not by what it costs outright.
Aaren James, Senior Analyst at Save Max Auto, commented on the findings: “What stands out from this data is how much more of their income drivers in states like Louisiana and Florida are giving up compared to the national average, and yet a significant share of that cost is within their control.
“The single biggest saving tends to come from not auto-renewing. Rates between providers can vary dramatically for identical cover, and drivers who compare at every renewal each year can save hundreds. 54% of drivers never get a comparison quote at renewal, yet 92% of those who switch save money.”