insurance in California in 2005 was $845, while the national average was $829.
The most expensive state to buy car insurance in 2005 was New Jersey, where the average cost was $1,183. The Garden State also was the most expensive state to buy car insurance in 1989, when the average cost was $983. But with just a 20% increase between those years, the state had the second lowest percentage increase.

Basically, experts agree that government intervention impacts car insurance rates. They just can’t agree on how.

On one side, they argue states with a stringent regulatory environment — like California — protect drivers from getting gouged. On the other side, they argue less regulation is better because free markets keep prices down as companies compete with each other for business. Charge too much, and no one will buy, they say.

But there are many other things that affect how much it costs to insurance your car. How much coverage a state requires you to carry? Do you choose to pay for additional coverage? How much driving experience do you have? What kind of car do you drive? And how many miles do you drive every day?
There’s other factors beyond your control, like, do you live in an urban area? A state’s population density — New Jersey is the densest — and the cost of living — California is the most expensive, also play a role.

Are you are wondering where car insurance is the cheapest? The residents of North Dakota enjoyed an average cost of $554 in 2005, less than half the cost of New Jersey residents.

North Dakota drivers, by the way, spend less time in their cars getting to work — just 15 minutes, the shortest commute of any state’s drivers and half the time of New Jersey drivers.

California drivers spend about 27 minutes getting to work each day, the fifth longest average commute. At 31 minutes, New Yorkers have the nation’s longest average commute, followed by Maryland, New Jersey and Illinois.

So, while both those studies might make valid points about California regulation being the best and the worst in the nation, they’re hardly going to inspire anyone to move there.