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. As one of the cheapest states to have car insurance, Wyoming drivers pay 46% less than the national average. In addition, the District has the second highest cost of living in the United States, which may increase the average cost of auto insurance premiums due to higher auto repair costs. Typical auto insurance policies use statistics about your age, driving history, location, and other factors to determine your premium.
With world-class harbors, beaches and amusement parks, it's no surprise that Florida is the third busiest state in the country. 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. You can save money by insuring multiple vehicles or by combining home and car insurance with most insurance companies. The Ohio Department of Insurance focuses on protecting consumers, while providing market stability and predictability to foster competition and growth, says Robert Denhard of the Ohio Department of Insurance Communications.
After comparing the quotes and understanding which car insurance best fits your requirements, you can make the final decision on buying the car insurance policy. 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, D. In addition, Rhode Island has a high cost of living, which can contribute to the high cost of auto insurance due to the increase in car repair costs. In fact, rates fell in almost every state (up or stayed the same in nine states), illustrating how COVID-19 drastically impacted auto insurance rates.
Drivers in New Hampshire tend to pay significantly less for their car insurance than the average American. This year, Louisiana ranked first, dethroning Michigan as the long-term king of high auto insurance rates. See how the average auto insurance premiums in your state compare to those in other states and to the national average. Changes to no-fault auto insurance laws in Michigan now allow drivers to choose how much Personal Injury Protection (PIP) coverage they want to have.