Michigan Most Expensive For Car Insurance The number of injury claims also factors into the equation. For instance, Louisiana-where a typical household shells out 5.5 percent of its annual income for car insurance-has a fairly large number of injury claims. "This has an effect on everybody's rates no matter what state you live in, and that's one of the things people really need to keep in mind," said Egan. Tomorrow, come back to ABCNews.com for five ways to cut your auto insurance rates. When it comes to car insurance rates, Michigan, Louisiana, Kentucky, West Virginia and Mississippi are at the top of the heap for the amount paid compared to residents' incomes. Whether this is good or bad depends on one's perspective. "If you're an accident victim, that will pretty much save you from going bankrupt," he said. "But opponents of the system say it jacks up the car insurance premiums for everybody.  So you've got two sides of the issue there." "We wanted to warn consumers about how much car insurance costs as a percentage of their income in the state," said John Egan, the managing editor of CarInsuranceQuotes.com. "It also serves as a reminder that people really need to pay attention to how much they're paying and be their own best friend when it comes to getting the best deal they can get." For a comprehensive breakdown of the car insurance costs in all 50 states plus the District of Columbia, go to www.carinsurancequotes.com/car_insurance-costs. You can also enter your zip code and compare quotes at www.CarInsuranceQuotes.com. ABC News Jul 30, 2012 6:55am