New York drivers face the highest percentage of income spent on car insurance in the United States, according to a study by Bankrate. The study determined the true cost of car insurance in each state, defined as the percentage of average income spent on full coverage car insurance.
Drivers in New York State spend an average of $3,139 on car insurance, accounting for over 5% of their income, making it the state with the highest true cost in the country. Florida comes in second with drivers spending over 4% of their income on car insurance.
Nationally, drivers spend an average of 2.93% of their income on car insurance, which is 2% lower than in New York. Maine has the lowest percentage of income spent on car insurance with an average annual premium of $941 and a percentage of income spent of just over 1%.
The study attributes New York’s higher cost to the high volume of cars on the roads, leading to an increased likelihood of accidents. However, other factors such as driving record, credit score, presence of a teen driver, and type of car also play a role in determining car insurance costs.
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