You should expect to pay more for car insurance in Texas than in Florida. The exact cost will depend on your choice of coverage, insurance history, and your choice of car insurance company. Car insurance costs can vary wildly depending on your location and whether you have full coverage or liability insurance only, so MoneyGeek looked at hundreds of thousands of auto insurance quotes from across the country to determine the average cost of auto insurance by state. After careful review, MoneyGeek has determined that the ten states listed below have the cheapest full coverage insurance in the country.
However, even if you live in one of the states with the cheapest car insurance, you should compare the quotes to find the cheapest coverage in your state. With premium prices varying so much by state, MoneyGeek investigated why prices are so low in the three cheapest states. Like Idaho, Iowa is sparsely populated. This means that Iowa's insurance rates are lower than in other states with higher population densities.
Iowa also has fewer car thefts than the national average, helping to keep its rates among the lowest in the nation. With premium prices varying so much by state, MoneyGeek investigated why prices are so high in the three most expensive states. Michigan has the most expensive insurance for multiple reasons, but the main cause is the state's no-fault insurance laws. Although these laws were initially intended to help reduce insurance costs, states with no-fault insurance laws have seen their rates soar over the years.
More than that, Michigan has a high percentage of uninsured drivers, and its default PIP policy guarantees unlimited coverage. New York City has the highest population density of any U.S. UU. This incredibly dense population is part of what causes high insurance rates in New York.
Other factors, such as vandalism rates and pedestrians injured or killed in a car accident, stem from the incredibly high number of people living in the same area. Louisiana is on the list of the most expensive states for auto insurance because its statute of limitations is only one year, which means people should go to court if they think they are owed compensation in an accident. Some experts have also indicated that there are frequent lawsuits and lawsuits for bodily injuries in the state, increasing the cost to insurers. You may still have some questions about car insurance rates by state.
Here are our answers to some of the most common. Michigan, New York, Louisiana, Florida and Maryland currently have the most expensive car insurance rates in the country. An increase of 36.8% means that Montana has seen the steepest increase in insurance costs for drivers with full coverage. Rachael Brennan is a professional finance writer and licensed insurance agent.
He has worked in the insurance industry for more than a decade, obtaining his P&C license in all 50 states and his life, health and AD&D license in New York and surrounding states. Rachael has worked for well-known companies such as 21st Century Insurance and BlueCross BlueShield and was an insurance plan coordinator for the Unitarian Universalist Association (UUA) for three years. Focusing on Property, Casualty, Health, Life, Accidental Death and Disability Insurance. It also includes comprehensive insurance, which pays up to the cash value of your car to repair or replace it for damage due to fire, flood, hail and animal crashes.
Liability limits under full coverage are higher than state minimums, so provide more financial protection. This is why there is a significant price difference. If you compare the cost of car insurance in Texas with that in California, you'll see that Texas drivers pay 8% more on average for minimum coverage than California drivers. In addition, Iowa drivers spend less time in traffic during their commutes than drivers in 48 other states, which can help reduce insurance costs.
For example, some areas have more insurance claims related to weather, vehicle thefts or collisions, contributing to increased auto insurance premiums. Even in states where zip codes cannot be used as a factor in determining rates, your state's average cost of auto insurance may be significantly different compared to a neighboring state. This road congestion, coupled with a high crime rate and the highest population density of any state, make car insurance premiums higher than average. Look for at least three insurers and always be sure to compare apples to apples when it comes to coverage levels and deductibles.
Comprehensive is the insurance coverage you take when your vehicle is damaged by something other than a collision. Other than that, the best way to reduce your car insurance costs is to compare the rates of at least three insurance companies. In fact, rates fell in almost every state (rose or stayed the same in nine states), illustrating how COVID-19 drastically impacted auto insurance rates. In general, insurance companies rate the risk of vehicle collision based on the location in which you reside, as well as the risk of theft or destruction of the vehicle based on the city in which you reside and decide rates based on the likelihood.
After comparing the quotes and understanding which car insurance best fits your requirements, you can make the final decision on buying the car insurance policy. On average, a non-standard insurer that specializes many drivers to pay after their offer, a good student suggests choosing at least. Among the many factors that affect your car insurance rates, where you live could be one of the most important. It can be confusing to see your insurance costs change from year to year, but there are many reasons why your premium could go up or down over time.
Urban areas tend to be more expensive, as many drivers packed in a small space cause more car accidents, leading to more claims. In addition, some states require you to purchase personal injury protection and uninsured motorist coverage, in addition to liability insurance. . .