When it comes to real estate, taxes and gasoline, California is known as a high-cost state. Auto insurance, not so much.
CarInsuranceQuotes.com divided the median cost of car insurance by the median household income in each state and found — surprise — California was the eighth least-expensive state.
Michigan, the capital of the car industry, was the most expensive by that measure.
California residents pay a median auto insurance premium of $1,304 per household per year, or 2% of median household income. In Michigan, the median insurance cost is $4,490, or 8% of median household income.
"The laws in each state vary widely," said John Egan of CarInsuranceQuotes.com. "Part of the reason why Michigan is so expensive is that it's the only state that guarantees unlimited personal injury protection."
Massachusetts has the lowest cost by this measurement, just 1.4% of median annual household income. The other low-cost states in order after Massachusetts are North Carolina, Hawaii, Alaska and Oregon. The other high-cost regions in order after Michigan are Louisiana, Kentucky, West Virginia and Mississippi.