Expect to pay less for car coverage once you move. 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. Michigan, New York, Louisiana, Florida and Maryland currently have the most expensive car insurance rates in the country. 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. If you're looking for auto insurance, knowing the average cost in your state can be a good way to determine how much you expect to spend.
If you've ever purchased car insurance in more than one state, you might have noticed how much rates can vary. And it's not just the state that affects the cost of car insurance. Your specific zip code may also increase or decrease the amount of money you spend on coverage. Why do car insurance rates fluctuate so much? Ultimately, it's because drivers face certain risks depending on where they live.
For example, more densely populated areas have more cars on the road, which means a higher likelihood of accidents, which can lead to higher premiums. And the more expensive it is to live in an area, the higher your premiums are likely to be, as claims will cost more to settle them. Essentially, the riskier the location, the more auto insurance companies charge for insurance. Risks can range from the number of uninsured drivers in a state to the crime rate in a given neighborhood.
In the U.S. This means that car insurance in the 5 cheapest states is significantly more affordable, especially for people with a good driving record. There are a few reasons why these states offer the most affordable car insurance. Some states in Maine and New Hampshire have very few uninsured drivers, according to the Insurance Information Institute (Triple-I).
In addition, many of these states are located in regions that are not prone to inclement weather, which can easily damage a vehicle. Many of these areas are also relatively rural, which could mean fewer cards on the road and a lower risk of collision. So what makes these states so expensive for car insurance? On the one hand, many of these states are located in areas with extreme weather conditions. Louisiana and Florida, in particular, are affected by hurricanes and severe floods that can cause damage to cars.
In addition, Florida and Michigan are among the top four states with the highest number of uninsured drivers. Where you live isn't the only factor that determines your car insurance rate. One of the first things that an insurance company analyzes is the type of vehicle it owns. For example, newer vehicles often have the latest safety features, which can help reduce the likelihood or severity of an accident, but cost more to repair or replace them.
Please note that some states prohibit the use of some rating factors. Insurance companies in Hawaii and Massachusetts, for example, can't use your age to qualify your policy. California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania prohibit the use of gender as a rating factor. Your state may also prohibit the use of your zip code, credit score, or other factors not related to driving.
The best way to know how your state handles insurance ratings is to contact the Department of Insurance or talk to your insurance company about the laws in your state. If you're moving to a new state, you may want to include your auto insurance update on your checklist. Each state has different insurance laws, and once you're established, you'll need to get a new policy in your new state. You can't just change the address of your old policy; you'll have to buy a new policy and cancel your old one.
Car insurance is legally required in almost every state, so it's generally an unavoidable cost. Some drivers are lucky enough to live in a state with cheap car insurance, while others have to pay thousands of dollars a year. Knowing the average cost of car insurance by state is useful for several reasons, but it's especially important if you're planning to move to a new area of the country. Keep in mind that auto insurance laws vary, so you may need to buy more coverage when you move.
Minimum coverage rates were determined using the minimum coverage types and limits required for each state. These rates are samples and should be used for comparison purposes only. Cate Deventer is an insurance expert who has been a & accident and life accident & property health insurance license for over 10 years. As an insurance agent, he quoted and issued various types of insurance policies and helped customers with claims.
She is passionate about helping people understand their insurance needs, choosing the right levels of coverage, and learning how insurance coverage can affect overall financial well-being. Cate also enjoys writing and editing, and has since combined her passions for content and insurance. While earning a bachelor's degree in English with a concentration in professional and technical writing from Indiana University, Cate also studied the insurance industry in all 50 states and in Washington, DC. The Voluntary State ranks seventh for best road performance and has the sixth lowest cost of living, both of which can contribute to the state's relatively low cost of auto insurance.
A very recent change in car insurance laws affects future costs, but some worry that it could cause some rates to increase even more. States that are more rural and have fewer drivers generally have lower car insurance rates, generally because there are fewer accident claims. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a rebuilt title. Other than that, the best way to reduce your car insurance costs is to compare the rates of at least three insurance companies.
Nearly 40% of drivers have absolute minimum coverage levels, according to Louisiana insurance commissioner Jim Donelon. However, many factors affect the rate of your car insurance; one of the most important factors is the state in which you live. A combination of factors around cities such as Las Vegas and Reno, which account for much of the state's population, causes insurers to charge rates 45% higher than the national average. In the past, drivers were required to have PIP coverage that guaranteed unlimited lifetime medical benefits to victims of car accidents.
Check with your insurer or agent to ensure that all available discounts apply to your policy. The reason these states have sky-high premiums varies; everything from one-time insurance plans, high-density populations, tons of uninsured drivers, and expensive lawsuits will always increase premiums. You don't want to fall in love with a car only to find that the cost of insurance will ruin your budget. Drivers with little or no insurance suffer accidents and then sue each other in front of elected judges who are more than happy to side with drivers over insurance companies; the big loser is car insurance rates.
No-fault states require drivers to have PIP insurance that covers their own medical bills in the event of an accident and limits a driver's rights to sue for damages after an accident. . .
