Quality of life and low car insurance rates are reasons to love these cities
There are a lot of different, somewhat complex, formulae that are used to determine how much you will be charged for car insurance coverage at any given time. Each insurance company has its own particular way of determining policy costs, and few are forthcoming with the particular algorithm used. Nonetheless, where you live plays a big part in how much you will pay for coverage and if you want a bargain, you'll want to live on one of the ten least espensive cities for car insurance.
Essentially, your ZIP code determines your base auto insurance rate. Cities with a higher number of auto accidents and proportionately larger accident claims usually have higher rates. No matter what your age, driving history or type of car you drive, most insurance companies begin determining how much you will pay for insurance by using this little five-digit code.
The total number of claims in your ZIP code and the severity of those claims are used to create a category based on risk levels. This practice has an official name in the insurance industry: territorial rating. It gives the insurance company a basic rate that is used as a jumping off point for your costs before other factors are taken into consideration.
Some states put a limit on the use of territorial rating practices. For instance, some states require that an insurer first looks at the driving history of the person to be insured, as well as the miles that the person ordinarily drives before looking at the person's residential ZIP code.
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Car insurance rates in the least-expensive cities can be as little as half those of cities nearby. When it comes to auto insurance rates, cities that have a high rate of auto theft or a lot of traffic tend to be cities where folks pay more because they have a higher average number of claims.
Each year, surveys are compiled by organizations such as the National Association of Insurace Commissioners (NAIC), the Insurance Research Council (IRC) and consumer survey groups such as Consumer Reports and J.D. Power & Associates to track costs for car insurance. Compiling information from these groups, here are the ten least expensive cities for car insurance.
The proifle of coverage used for the annual premium reported was:40-yer old male driivng a 2012 Toyota Camry
with low miles and standard equipment. This male is single and has a clean driving record. The coverage quoted
was for liability with 100/300/50 limits, collision and comprehensive each with a $500 deductible and any minimum add-ons required for the state quoted. Based on that profile, here's what he would pay in these cities:
- Roanoke, VA - $937
- Green Bay, WI - $999
- Wapakoneta, OH - $1,008
- Portland, ME - $1,053
- Boise, ID - $1,065
- Richmond, VA - $1,109
- Fairield, OH - $1,111
- Charlotte, NC - $1,134
- Lafayette, IN - $1,140
- Pocatello, ID - $1,143
If you don't live in or near one of these cities, there are still many steps you can take to reduce your car insurance coverage costs. Speaking with an experienced car insurance agent will help you get a full array of quotes on coverage options and cost packages. Reply! can help by putting you in contact with insurance professionals from your area who will be more than happy to show you ways you can reduce your car insurance costs.