It may not seem fair, but the state in which you live can determine how high or low your auto insurance rate will be. Certain states have extremely high auto insurance rates due to numerous economic and statistical factors.
Which states have the highest auto insurance rate? Here are the top to:
Louisiana (average $2,536)
Oklahoma (average $2,047)
Michigan (average $2,013)
West Virginia (average $2,002)
Washington D.C. (average $1,866)
Montana (average $1,850)
Rhode Island (average $1,830)
Wyoming (average $1,732)
California (average $1,709)
Georgia (average $1,700)
Why are the rates especially high in these states?
Lower Income Residents
The states that have the lowest average household incomes tend to have the highest insurance rates. The fact that economic privation can cause drivers to forgo insurance coverage and simply drive without it affects the rates for everyone. Also, districts that are extremely high in crime are costlier, due to the risk of car theft or vandalism.
State Insurance Regulations
Some states have made it a legal requirement that drivers carry auto insurance, and also have a minimal level of coverage. You might only need personal liability insurance, but some states require uninsured motorist coverage and personal injury protection. If you live in such a state, you will have to have a certain amount of coverage in order for you to be in compliance.
The Weather
Some states have seasonal weather conditions that make driving hazardous and insurance companies know this. The number of collisions goes way up during the cold, wet seasons. If you live in a state that commonly experiences heavy seasonal snow or rain, you could find that your auto insurance quotes tend to be high.
The Number of Insurance Carriers in a State
Some states have very few insurance carriers from which to choose others have a great many. The amount of competition between insurance companies can dictate the kinds of auto insurance quotes you will receive.
So, which states have the lowest auto insurance quotes? If you live in one of the following states, you will likely receive relatively a low auto insurance quote, depending upon your own personal details (driving record, the number of claims you've filed in the past, etc):
Maine (average $889)
Iowa (average $985)
Wisconsin (average $987)
Idaho (average (average $1,011)
North Carolina (average $1,022)
Vermont (average $1,063)
Ohio (average $1,099)
South Carolina (average $1,108)
New Hampshire (average $1,133)
Arizona (average $1,176)
While it may not be reasonable to move to a different state in order to get a low auto insurance quote, if you live in one of the states where auto insurance rates are high, you can still manage your individual premium by making sure that your driving record is clean, maintaining a high credit score, occasionally taking driver training courses and taking advantage of discounts through your school or professional association.