Which state has the honor of having the highest auto insurance rates? Although the statistics vary year to year on which state has the highest car insurance, the same ones tend to show up in the top six slots each time, although not in any particular order: District of Columbia, Florida, Louisiana, Massachusetts, New Jersey, and New York.
There are several reasons why the same states keep competing for the highest car insurance ranking and the exact opposite reasons are usually why other states tend to fall in the least expensive category each year. Car insurance is mandatory in most states, which means if you live in a high car insurance state you are going to have to pay a lot more for your coverage.
However, there are ways to reduce the premiums and make your rates a little more affordable. Enter your zip above and start the money saving process with a free car insurance comparison now!
High Car Insurance States
According to the National Association of Insurance Commissioners 2009 report, the ten states that ranked highest for car insurance in 2007 are, in rank order starting with the highest: District of Columbia, New Jersey, Louisiana, New York, Florida, Rhode Island, Delaware, Nevada, Massachusetts, and Connecticut. The annual average expenditure for the District of Columbia in 2007 was $1,140, followed by New Jersey’s $1,104. Connecticut closed the top ten ranking with an annual spending of $964 for car insurance.
The reasons some states are always higher than others is based on a variety of factors. Typically, the states that are more affluent tend to have higher car insurance because consumers tend to buy new vehicles more often, increasing their car insurance premiums. Also, congested metropolitan areas have a higher insurance rate because of the simple fact that more traffic means an increased risk for accidents. Anytime there is a statistical citation for increased auto accidents, the car insurance rates will be higher for everyone in the area. The same holds true for areas where there is a high risk for auto theft.
Reducing Car Insurance Premiums
People who live in the District of Columbia or one of the other high car insurance states will automatically be subjected to high car insurance premiums. However, there are ways to reduce your premium through conscious choices and insurance discounts that can help lower your rate. Before you buy a car, call your agent and ask about vehicle models that are less expensive to insure. The type of car you buy can make a huge difference in the cost of your insurance. If your car does not come equipped with safety features, consider installing them aftermarket to reduce your premium.
Always insure your vehicle to meet minimum state requirements, but be sure to add enough coverage to be adequately insured as well. Depending on the age and model of your car, you may or may not need optional comprehensive and collision insurance. You may also be able to reduce your premium by raising your deductible if you can safely afford to do so.
Be sure to take advantage of all discounts offered by your insurance company, such as defensive driving discounts, good student discounts, and multiple policy discounts. Most importantly, compare insurance companies because the rates can be quite different from one another. You can request free quotes with online convenience right now by simply entering your zip code.
Low Car Insurance States
Just as there are states with the highest car insurance rates, some states are also known for being low car insurance states. States that have lower car insurance are usually smaller in population density and also tend to be less wealthy overall.
The ten least expensive states for 2007 car insurance, according to the National Associate of Insurance Commissioners, is North Dakota, Iowa, South Dakota, Nebraska, Idaho, Kansas, Wisconsin, North Carolina, Maine, and Indiana. Indiana ranks number ten with an average annual expenditure of $618 for car insurance, while North Dakota came in first place for the least expensive state with an annual average cost of $512.
Most people do not move to certain states because of car insurance rates, but it helps to know what the average rates are so you can compare your own premium for analysis. If you fall way outside of the norm, you may want to contact your agent and find out why your premiums are high compared to the state average. If this is the case, you may also want to consider shopping for a new insurance carrier with a more reasonable policy.
Find Cheap Car Insurance Rates in any State
If you live in a high car insurance state, talk to your agent about all of your options to reduce your premium as much as possible and then be sure to review it again every six months to a year to ensure you are receiving the best rate for your state. Try comparing rates with a third party rate quote tools like the one on this page to see what your best options are. Get started finding cheap car insurance now!