Getting a good car insurance rate could depend on the state where you live and drive
Several major factors determine how much your car insurance rate will be, so it's a good idea to understand these factors in order to keep the cost down as low as possible. The area where you live is one thing that will raise the cost of your car insurance. For example, people who live in heavily populated areas tend to experience higher rates of crime and are at a greater risk for car accidents, which will increase the amount of insurance premiums in that area. While there may not be much you can do about this factor, seeing a car insurance rate comparison by state may help you understand why you're being charged what you are.
Location, location, location
According to sources as diverse as the Insurance Research Council (IRC) and Kiplinger News, the neighborhood where you live will have a higher impact on your car insurance rate than the kind of car your drive. In fact, when looking at car insurance rate comparisons by state, where you live can have as much as an 82 percent impact on your monthly premiums.
In California, the same insurance coverage can vary from $990 to $2,400, depending on the zip code. With a huge difference in premium cost, it's also important to shop around to find the best state car insurance rates before committing to any one company. If you're curious how your zip code stacks up in comparison with other cities, several online services (including Reply!) allow you to search rates within your state and in surrounding areas.
Low & high rates by state
The most expensive cities for car insuracne are located in New York, Texas and Michigan. Louisiana tops the list as the most expensive state to receive a car insurance rate, while Maine and Iowa are the least expensive states.
See your car insurance rate with free quotes here
In Louisiana, the court system is one factor that drives the cost of insurance up. Only cases that involve damage of at least $50,000 receive a jury trial in Louisiana. (Not surprising since the minimum required levels of liablity are 15/30/25). Many Louisiana cases are settled for around $49,000 as a result. When an insurance company enters the Louisiana marketplace knowing it might have to go out of pocket for that amount of money, insurance rates will rise.
According to surveys from the IRC, the National Association of Insurance Commisioners (NAIC), Forbes and U.S. News & World Report, these are the most expenseive and least expensive states for car insurace rate comparisons in 2013. These surveys averaged rates between 100-150 popular makes and models of cars and averaged in required coverage levels for individual states, setting them at slightly higher levels than legally required. The number listed represents the average annual premium a single driver will pay:
10 states with highest car insurannce rates - 2013
- Louisiana - $2,699
- Michigan - $2,520
- Georgia - $2,155
- Oklahoma - $2,074
- Washington, DC - $2,006
- Montana - $1,914
- California - $1,819
- West Virginia - $1,816
- Rhode Island - $1,735
- Kentucky - $1,725
10 states with lowest car insurance rates - 2013
- Maine - $934
- Iowa - $1,028
- North Carolina - $1,085
- Ohio - $1,106
- New Hampshire - $1,112
- Idaho - $1,133
- Vermont - $1,176
- Indiana - $1,183
- Washington - $1,266
- Arizona - $1,227
Factors beside location
Aside from location, other factors will determine your car insurance rate. Most states require a minimum amount of liability insurance. If liability insurance is the only type of insurance you carry, your insurance will be lower than someone who also carries other options like comprehensive or collision coverage and personal injury protection.
While you may not be able to move to a state or city with a lower base car insurance rate, there are factors that go into calculating your individual rate that you can have some control over, including:
- Your driving record
- The number of miles you drive
- Your credit record
- The car you drive
- Safety or anti-theft devices added to your car
Controlling your costs
Using the above list of states that start out high or low for a car insurance rate, you can then factor in how important it is to take additional steps to control your car insurance costs. For instance, if you live and drive in Louisiana, you may want to be even more aware of the safety devices in your car or the number of miles you drive.
You should also check with your insurance company to discover the types of discounts they offer. For example, most companies offer discounts for families with students who get good grades or students who complete a driver's education program. Other discounts may include multiple-policy discounts and discounts for individuals who've been insured with the same company for a minimum number of years.
When you begin shopping around for the best car insurance rate, it's important to remember several things determine your base cost. Armed with some of this knowledge, it might serve you well to spend some time with a local, licensed car insuracne agent who can anwer any quetsion you might have about rates and coverage. An agent will also be abel to show you comparable packages with different options added and set for any budget you might have to work with. Reply! can help with this by putting you in touch with local car insurance agents who can help you find ways to lower your car insurance rate without compromising on coverage.