MONEY Insurance

Why Even a Fair Insurance Claim Will Send Customers Packing

The insurance claims process is so painful and outdated that about half of customers who confront it bolt no matter what.

The financial services industry has been among the slowest to embrace the mobile and other technologies that many consumers crave. Within the industry, insurers probably have been slowest—and their old-fashioned ways are stirring a high level of churn.

Insurance customers are generally pleased with their provider. Only 14% of those who submitted a claim in the past two years are unhappy with how it was handled, according to a report from Accenture. As you might expect, a high rate of those—83%—plan to switch providers. But even among the vast majority who filed a claim and were satisfied, 41% say they are likely to switch insurers in the next 12 months, the report found.

Why would satisfied customers switch? In general, their claims experience, while satisfactory, left them feeling it should have been better. “The bar has been raised and insurers now need to handle claims in a way that not only satisfies policyholders but also differentiates them from other insurers,” says Michael Costonis, global head of claims services at Accenture, a research and consulting firm.

Technology exists that would greatly streamline the claims process, he says. Consumers understand that, and when they file a claim and confront the old way of doing things they resolve to look for something better. For example, Costonis says, in the case of an auto accident, sensors could summon assistance automatically, notify a garage, and get a tow truck on the scene—all without a phone call. Your car could be fixed and delivered to your door, and if any money was due to you it might be put in your account without the tedious paperwork.

Customers expect quick claims and fair pricing. But they also want transparency and this is where technology can make a big difference. “More and more, especially with younger customers, this takes the form of providing anywhere, anytime access online or through mobile apps,” Costonis says. In the study, 44% said they would switch providers to be able to use digital channels to monitor the claims process.

Broader use of technology could help in other ways too. Three in four customers are willing to share more personal information in order to get better rates, the study found. Insurers could easily gather information about the condition of cars and customer driving habits. They could also gather information collected by smoke, carbon monoxide, humidity, and motion detectors. Such data could help them help their customers manage risks and wind up filing fewer claims—and that is the Holy Grail because customers hate the process and insurers lose a high percentage of those who file a claim no matter what.

Related: How to make sure you have enough insurance coverage

TIME Innovation

Five Best Ideas of the Day: October 15

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. Americans are often oblivious to the role of farming in their lives. To get the smart policies needed to feed our nation and the world, we must reconnect people to agriculture.

By Ian Pigott in the Des Moines Register

2. Even employer-paid health insurance can worsen poverty and increase inequality.

By David Blumenthal in Commonwealth Fund

3. Is “feminist marketing” an oxymoron?

By Chandra Johnson in the Deseret News

4. Helsinki has a plan cities everywhere could try: Combine the sharing economy, transit and mobile technology to eliminate cars.

By Randy Rieland in Smithsonian

5. America’s best bet in Africa is a strong relationship with Nigeria.

By Daniel Donovan in Foreign Policy Blogs

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Walmart

Why Walmart Workers Losing Healthcare Might Not Be Bad

Getty Images

Ironies abound

Talk about irony. In the same week that Walmart announced employees who work less than 30 hours will be losing their health care coverage, the company also announced that it’d be getting deeper into the business of selling insurance, making it easier for customers to price shop for insurance in stores. In some ways, this mirrors Walmart’s overall business model—keep prices down for consumers, but keep wages and benefits for employees low too.

Ironically, under the rules of Obamacare, it’s possible that those part time employees will get a better deal on health care exchanges, thanks to subsidies that help lower income workers buy insurance. It’s all part of the new landscape created by the Affordable Care Act. As Obamacare turns one year old, Joe Nocera and I discussed how it’s changed healthcare, business, and the economy, on WNYC’s Money Talking.

TIME How-To

Choosing the Best Insurance for Your Phone

broken phone
Getty Images

Phone insurance and extended protection plans aren’t cheap, but the investment can save you big down the line should your phone get lost, stolen or damaged.

Take the iPhone 6. While you may be able to get it for $0 down, a replacement will cost you $650 out of pocket and even a small drop can leave you with a cracked display that can cost hundreds to fix.

Fortunately, protection plan options are plentiful, but picking the right one can be complicated. Extended warranty plans only cover repairs when there’s a mechanical failure, not loss, theft or accidental damage. Other plans will cover accidental and mechanical failures but not loss or theft. And, different types of coverage come at varying price points.

So which is the right plan for you? If you, or your child, is forgetful or accident prone, a full coverage plan may be best. Or, you may have enough coverage from your credit card company or home owner’s insurance. Check out the following plans to see what’s right for you.

Retailers

Many large electronics retailers offer phone insurance. Best Buy, for example, will insure an iPhone 5S or 6 for two years for the lump sum of $199.98 or for $9.99 a month. That covers malfunctions as well as accidental damage to the phone, but not loss or theft. There’s a $149.99 deductible for claims that are not covered under the manufacturer’s warranty and you have to buy the Geek Squad protection with the product online or within 15 days of buying your phone in-store. There’s a limit of three claim submissions.

SquareTrade

For two years of coverage for mechanical and electrical failures as well as accidental damage—but not loss or theft—SquareTrade offers a warranty for the iPhone 5S or 6 for $99 for two years or $5 per month. That’s a better deal compared with Best Buy, even though they nail you with a $75 deductible for every smartphone claim.

You can buy a SquareTrade warranty on a retail item within 30 days of buying it or if the phone is currently insured by AT&T, Verizon, Sprint or T-Mobile. For one you bought on eBay, coverage starts after the existing manufacturer’s warranty expires or on the 46th day after purchase, if there is no warranty.

Worth Ave. Group

An insurance policy from Worth Ave. Group covers a cell phone for accidental damage such as drops and spills as well as theft, fire, flood, natural disasters and lightning strikes. For an iPhone 5S (16GB model with $649 coverage), you’ll spend $130 for two years with a $50 deductible (iPhone 6 pricing isn’t available yet). For smartphones other than iPhones, a phone costing $649 will run $138 for two years with a $50 deductible. Loss and malfunction are not covered. You can buy insurance from Worth Ave. Group anytime, even on older devices.

Carriers

For $7 per month, AT&T offers coverage for loss, theft and out-of-warranty malfunction of your phone. When making a claim, you’ll need to pay a $50-$199 deductible (iPhones have a $199 deductible). You can make two claims per year for a total of $1,500.

For $8-$11 per month, Sprint offers full coverage–loss, theft, accidental damage and mechanical or electrical breakdown. You’ll also pay a deductible of $50-$200 (see the full list of fees and deductibles) for each claim. You can make two claims per year for a total of $1,500. New York residents can also purchase just insurance (loss, theft and accidental damage) for $5-$9 per month (iPhones would be $9 per month).

T-Mobile offers a few options for those looking for coverage. For $8 per month, you can get full coverage–loss, theft, accidental damage and mechanical or electrical breakdown–or you can choose to pay for an extended warranty for $5 per month or just insurance for $6 per month. A non-refundable deductible of $20 to $175 (iPhones have a $175 deductible), depending on your device, is applied for each claim. You can make two claims each year with a limit of $1,500 for each loss.

Verizon tacks $10 for the iPhone and $8 for other smartphones to cover loss, theft, accidental damage and electrical or mechanical failure after the manufacturer’s warranty expires. There’s a deductible of $99 for non-iPhone models and $99-$199, depending on which model iPhone you have. You can make two claims per year for a total of $1,500.

Major Credit Cards

There are two ways that credit cards can provide coverage for your phone. First, many major credit cards extended the manufacturer’s warranty by a year or longer, though it varies depending on the card. Check out Credit.com’s tutorial on the subject. Many also cover loss from theft or damage within the first 90 days after purchase.

You can also get theft and damage coverage from select cards if you use them pay for your cell phone service, including Wells Fargo and First Citizens Bank. MagnifyMoney.com has a list of more than 25 banks and credit unions offering the feature.

Homeowners/Renters Insurance

For larger purchases, such as premium smartphones, some insurance companies will let you attach a rider to your homeowners or renters insurance, which will specifically cover that purchase. Smartphones are usually covered in general by homeowners and renters insurance under the same conditions of your general insurance policy. You’ll want to check with your provider to find out your options. You’ll also want to find out how filing claims for your smartphone, if you don’t have a rider, may impact the fees you pay for your overall homeowners or renters insurance and whether repeat claims could lead your insurance company to drop your coverage.

Pricing by Provider for an iPhone 5S

Best Buy Carriers Worth Ave. Group SquareTrade Major Credit Cards Homeowners Insurance AppleCare
Loss (first 90 days) Varies
Theft (first 90 days) Varies
Damage Varies
Mechanical / Electrical Defect
When you can purchase Within 15 days of purchase Varies Anytime Within 30 days of purchase or if the phone is currently insured by AT&T, Sprint, T-Mobile or Verizon Automatic at time of purchase Within 60 days of purchase
Deductible $150 $200 $50 $75 $0 Varies $79
Cost for 2 years
$200 (lump sum) or $240 (paid monthly) $168-$264 $130 $99 (lump sum) or ($120 paid monthly) $0 Varies, but starts around $40 $99
Pricing by Carrier for an iPhone 5S

AT&T Sprint T-Mobile Verizon
Deductible $199 $0 (for first 2 claims if it can be repaired in-store), $200 $175 $199.00
Cost for 2 years
$168 (full coverage) $264 (full coverage) $120 (extended warranty only), $144 (insurance only), $192 (full coverage) $240 (full coverage)
Claims & coverage
2 claims per year, total $1,500 2 claims per year, total $1,500 2 claims per year, total $1,500 per claim 2 claims per year, total $1,500

All pricing and plan data as of 9/15/2014

This article was written by Suzanne Kantra and originally appeared on Techlicious.

More from Techlicious:

TIME Health Care

Survey: Number of Americans Without Health Insurance Falls

Health Insurance Doctor Patient
Getty Images

Federal survey found an 8% decline in uninsured Americans over the year to April 2014

The number of uninsured Americans dropped in the wake of the Affordable Care Act, according to the first government survey conducted since the law’s major insurance expansion programs went into effect.

In the National Health Interview Survey, a widely respected measure of the rate of insurance nationwide, researchers from the Centers for Disease Control and Prevention interviewed 27,000 people in the first quarter of 2014, and found that the number of Americans without health coverage had fallen by 8% since the same period in 2013. That was a decline of 3.8 million, resulting in a new total of 41 million uninsured.

Before the health law was implemented, many predicted it would bring new health coverage to millions more than that, but the CDC survey did not capture the surge of insurance sign ups in the final days of the first ACA open enrollment period, experts said.

Larry Levitt, a director at the Program for the Study of Health Reform and Private Insurance at the Kaiser Family Foundation, told the New York Times, “Regardless of what you think of the [Affordable Care Act], there should be no doubt at this point that the law is increasing the number of people insured.” He added that this survey’s findings “dramatically understate the effect” of the law.

 

MONEY Insurance

Why Millennials Resist Any Kind of Insurance

Young adults are the most underinsured generation of our time, which makes sense—up to a point.

Millennials are the most underinsured generation alive today—which makes a certain amount of sense. They have relatively few assets or dependents to protect. Still, the gaps in coverage are striking and offer further evidence that this generation has been unusually slow to launch.

Roughly one in four adults aged 18 to 29 do not have health insurance, twice the rate of all other adults, according to a survey from InsuranceQuotes.com, a financial website. (Other surveys have found lower uninsured rates, but this age group is still the most likely to go without.) Millennials are also far less likely to have auto, life, homeowners, renters, and disability coverage.

Young adults have always been slow to buy insurance. They often feel invincible when it comes to potential health or financial setbacks. But something additional appears to be at work here. This generation has famously overprotective parents who awarded them trophies just for showing up. Millennials may view moving back home or calling Mom and Dad for a bailout as their personal no-cost, all-purpose insurance plan.

Millions of young adults routinely boomerang home after college or get other family financial support. The trend is so broad that psychologists have given this new life phase a name: emerging adulthood, a period that lasts to age 28 or 30. MONEY explores this trend, and its costs, in the September issue reaching homes this week. Remarkably, the parents of boomerang kids don’t seem to mind providing the extended support.

A quarter of parents supporting an adult child say they have taken on additional debt; 13% have delayed a life event, such as taking a dream vacation; and 7% have delayed retirement, the National Endowment for Financial Education found. Yet 80% of such parents in a Bank of America Merrill Lynch survey say helping is “the right thing to do,” and 60% are willing to work longer, 40% to go back to work, and 36% to live with less if that’s what it takes to help their adult kids.

“Millennials have had very supportive parents throughout their life,” says Laura Adams, senior insurance analyst at InsuranceQuotes.com. “When you don’t have a fear of the unknown, a fear of life’s what-ifs, you are not likely to think about insurance.”

Yet young people overlook certain types of insurance at their peril—even though these policies may be relatively inexpensive. Most striking is how many skip health insurance, even though the Affordable Care Act mandates coverage and allows children up to age 26 to remain on a parent’s plan. Millions more young people now have health coverage as a result, recent studies have found, and their uninsured rate has dropped. But, still, as many as one in four still go without.

This may be classic pushback against a law young adults see as unfair. They understand that their insurance premiums subsidize the health benefits of older Americans who are far more likely to need care. Yet if Mom and Dad won’t pick up the bill, a visit to the ER can cost $1,000 or more for even a simple ailment. Things get much more expensive for broken bones and other treatments that even the young may need. Among other findings:

  • 64% of millennials have auto insurance, compared to 84% of older generations. Many millennials may have decided to skip car ownership. But if you rent a car or borrow one from your roommate, you have liability. It probably pays to have your own policy, which might cost $30 a month.
  • 10% of millennials have homeowners insurance, compared to more than half of those aged 30 to 49 and 75% of those 65 and older. Fewer millennials own a house, for sure. But this generation isn’t buying renters insurance either: only 12% have it. Renters insurance is cheap: $10 to $15 a month, and it comes in handy not only when someone steals your bike from the storage area but also if Fido bites a neighbor.
  • 13% of millennials have disability insurance, compared with 37% of those 30 to 49. This kind of coverage costs around $30 a month and may seem unnecessary. Yet one in three working adults will miss at least three months of work at least once in their life due to illness, Adams says, adding, “Anyone can throw out their back.”
  • 36% of millennials have life insurance, compared with 60% of those 30 to 49. Again, this coverage is relatively cheap: around $20 a month for $500,000 of term life. If you have no dependents you might skip it. But if you have debt that Mom and Dad co-signed, you should have enough coverage to retire the debt. It’s only fair, given your parents’ years of extended financial support.

 

 

TIME Food & Drink

The California Quake May Cost Wine Country Billions

On the other hand, it could have been much worse

Financial damage from the earthquake that rattled California’s Napa Valley on Sunday may barrel from hundreds of millions of dollars of immediate property damage to billions in total economic losses, Reuters reports.

On top of more than 200 people injured, around 50 buildings in the city of Napa — the famed wine region’s economic hub — were deemed unsafe to enter following the 6.0-magnitude quake. The temblor was the fiercest to hit the state’s Bay Area in 25 years, Reuters says.

Disaster-modeling firm CoreLogic estimated that the total insured economic losses to the region could range from $500 million to $1 billion; but as only 6% of local homes are estimated to have earthquake coverage, according to the Insurance Information Institute in New York City, the total bill is likely to be much higher.

While Napa’s 2014 vintage is still slated for great things, a large amount of stock was destroyed by the quake. “It’s a big mess right now,” Rick Ruiz, operations director for the wine retailer TwentyFour Wines, told Reuters. “It’s a logistical nightmare.”

However, wine buffs need not totally despair, as the timing of the quake was in fact somewhat fortuitous — coming after the 2013 vintage had been dispatched for delivery but before most of the current year’s grape harvest was picked.

[Reuters]

MONEY College

12 Things We Wish We’d Known When We Were 18

Girl moving off to college
Eric Raptosh Photography—Corbis

Suze Orman and other experts share their financial advice for the Class of 2018. Follow these tips to keep your college experience from becoming a major money mistake.

Prepping for freshman year at college typically includes activities like shopping for dorm essentials, reviewing orientation packets, and Googling your new roommate.

Most students don’t spend a lot of time thinking about how they’ll manage their money in this new phase of their lives.

And yet, what you do in those first few years of parental emancipation can affect you for years—or decades—to come. Students graduated last year with an average $35,200 in college-related debt, including federal, state and private loans, as well as debt owed to family and accumulated via credit cards, according to a Fidelity study. Half of those students said they were surprised by just how much debt they’d accumulated.

To make sure the class of 2018 gets off on the right foot, MONEY gathered sage advice from top financial experts about the lessons they wish they, their kids, or their friends had known before starting school.

1. Limit your loans. “Do not take out more in student loans than what you are projected to earn in your first year after college. If you only expect to make $40,000, you better not take out more than $40,000. The chances of you being able to pay it back is close to nil. If you need to take a private loan, you’re going to a college you can’t afford. Remember, going to an expensive school doesn’t guarantee success. The school never makes you, you make the school.” —Suze Orman, host of The Suze Orman Show and author of The Money Book for the Young, Fabulous & Broke

2. Finish in four. “Many kids are finishing school in five or six years. But every extra year is potentially an extra $30,000 to 40,000 in expenses. Map out your coursework and figure out exactly what you’ll need to do each semester. Be vigilant about sticking to your plan. Try to catch up on any credits by taking classes at a community college over the summer.” —Farnoosh Torabi, author of You’re So Money

3. Study money 101. “Sign up for an economics or personal finance course. This way, when you graduate, you’ll be better equipped to manage money for the rest of your life.” —Brittney Castro, CEO of Financially Wise Women

4. Leave the car at home. “Everyone feels like they need a car, but with the combination of sharing services like Uber, Lyft, Zipcar and public transport, that isn’t always the case. If you’re living in a major metropolitan center or on campus, consider leaving your car behind. It’s much cheaper to use one of these car services than it is to pay for insurance, gas, parking, car maintenance and car payments.” —Daniel Solin, author of The Smartest Money Book You’ll Ever Read

5. Lead rather than follow. “Especially in college, you’re going to be surrounded by people doing dumb things financially. You’ll see people financing their lifestyle with student loans or their parents’ money. Don’t feel bad if you can’t afford the same things as others. I knew a student who was financing his whole college experience with debt and he was always asking people to go shopping with him. If I’d tried to keep pace, I’d have ended up in the same debt-ridden place as him.”—Zac Bissonnette, author of Debt-Free U

6. Find free fun. “You can still do fun things at school, without spending a lot of money. You’re paying an activity fee in your tuition, so you ought to make sure you’re taking full advantage of whatever the school offers for free—be it concerts, trips, lectures. The school I went to provided grants to help students travel abroad and offered free plays and trips through different clubs.” —Farnoosh Torabi

7. Be purposeful with plastic. “The idea that you need to build credit in college is wildly overrated. It’s not a bad idea to build credit, but having built up a bad credit history will hurt you more than having no credit history. You don’t need to feel pressure to get a credit card. You can get by just fine with cash and a debit card; no one is expecting you to have a ton of borrowing history when you’re getting your first apartment anyway.” —Zac Bissonnette

8. Put your budget on autopilot. “Keep track of the money you’re getting in from loans and your parents, as well as your expenses. Use an app like Mint.com, which lets you link your debit and credit cards to your online account to track your spending and easily help you keep on budget.” —Daniel Solin

9. Enlist Mom and Dad. “Check in with your parents once a month and review your spending with them. Talking about this will help you to avoid what I call ‘budget creep,’ where all of a sudden you’re spending $30 a day on food and entertainment. All those little extras add up and you could be spending over a hundred a week… on what?”—Neale Godfrey, chairwoman of Children’s Financial Inc.

10. Protect your stuff. “College students may not think they have a lot of valuable possessions. But think about the value of electronic devices alone, not to mention textbooks, clothes, even that ratty futon. The good news is that renters insurance is typically inexpensive and can protect you from fires, theft and other incidents. The even better news is that students’ stuff may be covered by their parents’ homeowners insurance. Check the policy prior to hitting the books.”—Kara McGuire, author of The Teen Money Manual

11. Establish rules with roomies. “If you’re renting an apartment with friends, be sure everyone and their parents sign the lease. Try to have everyone’s name on the utilities bills as well. Kids will take advantage of other kids, and you don’t want to be the one who is stuck being responsible for everything. If you can’t attach everyone’s names to all the bills, have them prepay. Also, make sure everyone chips in for general expenses like cleaning supplies and toilet paper, so you don’t end up paying for all of that as well.” —Neale Godfrey

12. Share with discretion. “Social networks are a public record. Your future employers will look you up on your social sites and judge you based on what they see. So something that you thought was cute in college could keep you from getting the job. Know that every move you make on those sites could have a direct consequence on your ability to land a job.” —Suze Orman

 

MONEY

How to Keep Health Emergencies from Bankrupting You

Celine Dion takes a break from touring to care for her husband, who is battling cancer.
To help care for her ailing husband, Celine Dion has stepped out of the workforce for a while. Ryan Remiorz—AP

Céline Dion cancelled her tour to care for husband René Angélil, who's been fighting cancer. She doesn't have to worry about money, but most people in a similar situation do. Here's how to contain the financial damage.

Earlier today, singer Céline Dion announced that she would be canceling her tour to take care of her husband René Angélil—who has been battling cancer.

“It’s been a very difficult and stressful time for the couple as they deal with the day-to-day challenges of fighting [Angélil’s] disease while trying to juggle a very active show business schedule, and raise their three young children,” a publicist was quoted as saying.

No amount of money can erase the worry and heartache associated with caring for a loved one who’s dealing with a critical illness. And of course Dion, with a net worth estimated at $500 million, doesn’t have to fret about how her family will cope financially at this difficult time. But for the average American, the economic consequences of a tough diagnosis can compound the stress. A study by Sun Life Financial found that even with health insurance, the average cancer patient faced $6,700 in out-of-pocket costs a year. Plus, a family illness can take you away from the office, potentially crimping your earnings.

Should something like this happen to you, a parent or a partner, follow these steps to keep the financial toll to a minimum:

First, maximize your insurance coverage

Dig into your health plan. “Find out if the treatments you need will be covered or if you’ll have to go out of network to see the best specialist,” says Donald Duncan, a Chicago financial planner. Check how much you could be on the hook for; note that your out-of-pocket max when you leave your network can be twice as high as for in-network care.

Appeal to your insurer. If you can successfully argue that no specialists in your network are experts in your care or that none have treated your condition frequently, your insurer may be willing to cover out-of-network care at in-network rates.

Negotiate with your doctor. Another cost-saving option is to see if an out-of-network practitioner will accept in-network rates. Get a sense of what prices doctors and insurers typically agree on at healthcarebluebook.com.

Next, Get Down to Business at Work

Make the most of open enrollment. Use the annual benefits election period to switch to better health coverage, fully fund a flexible spending account ($2,500 max), and see if you can sign up for extra life and disability insurance. For most large group plans, you don’t need a physical for life insurance during this annual event.

Protect your position. If your firm has 50 or more workers and you’ve been there a year, the Family Medical Leave Act lets you take 12 weeks of unpaid leave—for your care or a family member’s.

Work out a lighter load. Your company may very well pay all or part of your salary for a leave under the firm’s short-term disability policy. If all you want is to reduce your hours, most policies will allow for that too.

Last, Guard Against Greater Financial Damage

Get your shoebox in order. Assemble all your financial statements, insurance policies, property records, and estate plans now, not later, says Philadelphia financial planner Stephen Cohn. Add to that list online IDs and passwords.

Raise cash. Prepare for big medical bills and a potential reduction in earnings by deciding which funds you’d tap in a worst-case scenario. If you must raid your assets and you’re under 59½, tap taxable accounts first to avoid the penalties you’ll pay to cash out an IRA or 401(k) (unless you can get a hardship waiver). “Sell before you need cash so you won’t have to liquidate at a bad time,” says Cohn.

Pick a point person. Draft a durable power of attorney and health care proxy. And says Tampa financial planner Keith Amburgey, “identify who will be your trusted person through your illness.”

MONEY Autos

The Least and Most Expensive States to Drive

Car driving into the Tetons, Wyoming
At least the scenery is great in the state where drivers tend to log in the most mileage on the road, Wyoming. Rolf Richardson—Alamy

Curiously, a state with low auto insurance premiums and fairly cheap gas is named the most expensive in the nation for operating a car.

Bankrate.com released the results of a new study about the least and most expensive states to own a vehicle, and a few of the places featured at the pricey end may seem particularly puzzling. Using state-by-state data concerning driver spending on car repairs, insurance, and gas gathered from CarMD.com, GasBuddy.com, the Bureau of Labor Statistics, and the National Association of Insurance Commissioners, Bankrate researchers found:

• The Midwest dominated the least expensive end of the cost spectrum, with Illinois, Ohio, and Iowa named the three cheapest states. All averaged under $2,000 annually for the trio of car operating costs included in the study, with Iowa the cheapest of all—$1,942, 13% below the national average ($2,233).

• Drivers in North Carolina, California, Washington, D.C., and New Jersey spend the most on repairs, all averaging $390 or more annually. New Jersey has the highest average of all at $393, which is 11% higher than the national average. A few hours north in Vermont, meanwhile, drivers average just $270 in annual repairs.

• Average car insurance premiums in Washington, D.C., New Jersey, and Louisiana top $1,200 per year, which is at least $500 more than a half-dozen other states in the country.

• Several of the top five most expensive states to operate a car may come as a surprise: Wyoming is the priciest overall ($2,705), followed by Louisiana ($2,555), Florida ($2,516), Mississipi ($2,487), and New Jersey ($2,421).

The reason that Wyoming is at the top of the list pretty much boils down to how much drivers pay for gasoline. It’s not even that the state’s gas prices are all that high—drivers in Alaska, Hawaii, New York, California, and Connecticut, among other places, routinely pay more per gallon than folks in Wyoming. Instead, Wyoming drivers pay more annually for gasoline because they tend to drive so much—68% more than the average American. The data used by Bankrate indicates that folks in Wyoming spent $1,588 on gasoline last year, and $1,643 the year before that. In the 2014 study, the state where drivers spent the second highest amount on gas was Alabama, with an average of $1,237. The average driver in Washington, D.C., meanwhile, spent an average of only $618 on gasoline in a year’s time.

Drivers in D.C. don’t get off so easily in other areas, however. The average car insurance policy there runs $1,273 annually, vastly more than premiums in Iowa, Ohio, Idaho, Wisconsin, Maine, and both of the Dakotas, which all average under $700.

What’s more, D.C. drivers are subjected to many costs that aren’t factored in to the Bankrate study, and that drivers in, say, Wyoming, rarely have to worry about. Like parking. A 2014 NerdWallet report about the worst 10 U.S. cities for parking featured Washington, D.C., for its typical costs ($19 per day, $270 per month) and the total amount collected in parking fines (around $100 million each year).

For that matter, the Bankrate study, limited as it is to just three data points, leaves out quite a few of the costs involved in owning a car. Like, you know, the actual cost of the car. Once the price of buying or leasing a vehicle is adding in, along with things like depreciation, maintenance, and gas, the average sedan costs $8,876, according to the latest AAA estimates.

And hey, owning a car in Wyoming is not necessarily as expensive as the Bankrate study makes it out to be. The average driver pays more there because he is on the road much more than his counterpart in Washington, D.C., New York, New Jersey, Nevada, and Pennsylvania, where the averages in annual gas expenditures are all under $800. To some extent, Wyoming drivers are victims of their state’s geography and development—stuff there is far away, what are you gonna do? But unlike in other states, where impossible-to-get-around high auto repair and insurance costs inflate overall driving expenses, at least people in Wyoming theoretically have the power to dramatically rein in the price of having a car, provided their work schedules and personal lives allow it. Just drive less.

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