Even while maintaining a perfect driving record with the ownership of a safe, family-oriented vehicle, you might still find yourself with a car insurance premium that is well above the average rate. This is due to the fact that in addition to factors like gender, age, credit history, marital status and the car being covered, one’s address is surprisingly important determinant of a motorist’s premium.
The 2019 State of Auto Insurance Report, presented by citizensinsurance.net (a personal finance website) states that Michigan residents suffer the highest car insurance rates in the country, averaging at a staggering $2,693 per annum. At the opposite end of the spectrum, residents of rural Maine have the lowest premium average, with a coveted $896 per annum. The nation’s average yearly premium is $1,470. The accompanying report considers the website’s average rates for the top 10 best-selling vehicles in the U.S.
According to autoinsurance.org, car insurance premiums have increased by over 23% since 2011. Furthermore, it appears that there is little consistency among the states as it regards to the yearly increases. 15 states have seen rates increased by at least 40% over the last 8 years, with some seeing increases as high as 80%. At the same time, some states enjoyed decreases in premiums by up to 20%.
The average premiums vary widely from state to state, depending on a variety of factors. Some of these factors are: population density, frequency of weather-related disasters, number of uninsured motorists, and state regulations regarding insurance policies. An example of this where Michigan citizens have to pay overly high insurance premiums because of the “no-fault” auto insurance system. These “no-fault” states mandate that auto-owners carry PIP (personal injury protection) coverage, which pays the medical bills of the policyholder in the event that they are injured in a collision. The difference between Michigan and the other states which similar policies is that Michigan has no set limits on PIP coverage.
Insurance rates vary not just across states, but also within them; rates can differ up to 265% between ZIP codes within the same state. The more densely populated and more urban an area is, the more policyholders are liable to pay for insurance. Furthermore, the more densely populated areas endure greater traffic congestion, a hirer ratio of uninsured drivers, and a higher crime rate. This means that it is more likely for a policyholder in a more urbanized area to be involved in an accident in which the driver at fault is uninsured. And seeing the higher crime rate in these areas, there is an increased chance for one to have their vehicle broken into or stolen, which further drives the premiums up.
Detroit—ironically called the “Motor City”—is known for having the highest rates of all metro areas in the U.S. Their average is an astonishing $5,464 per year. A vast contrast is Winston-Salem, NC, whose residence enjoy the lowest rates, an average of $846 per year. The difference here, just based on ZIP code, is an astounding $4,618.
Below are lists of the cities and states where residents pay the highest average yearly rates for car insurance. The data was provided by thezebra.com.
States:
- Michigan: $2,693
- Louisiana: $2,339
- Rhode Island: $2,110
- Florida: $2,059
- Nevada: $1,915
Cities:
- Detroit, MI: $5,464
- New Orleans, LA: $3,686
- Hialeah, FL: $2,913
- Miami, FL: $2,913
- New York, NY: $2,814
These lists below are of the cities and states where residents pay the lowest yearly rates.
States:
- Maine: $896
- Virginia: $918
- North Carolina: $947
- Iowa: $988
- Idaho: $1,018
Cities:
- Winston-Salem, NC: $846
- Boise, ID: $913
- Greensboro, NC: $936
- Raleigh, NC: $948
- Durham, NC: $951
When shopping for $20 down payment car insurance, regardless of where you live, it is important to shop around, analyse deals, and decided prudently which one is the best fit for your needs. Be thorough enough to take advantage of all of the discounts and deals that may be of advantage to you. Also, be careful to read all of the fine prints and be sure of what you are getting into.