Auto insurance premiums are part of the lives of nearly 230 million US drivers. The cost of car premiums can vary widely, not only from person to person, but also much broader, such as the state in which you drive. Six of the 10 most expensive states for auto insurance premiums were also among the 10 highest states in population density. Only Louisiana was a state with a premium cost above 10 and a population density in the lower half of the Census Bureau's density ranking.
We also found that the opposite applies to most of the cheaper states for auto insurance. As defined by the Census Bureau, 81% of Americans live in urban areas. Average disposable income was not such an obvious factor, at least at the state level. Only four of the 10 most expensive states for auto insurance premiums across the Northeast Corridor were states with average incomes higher than the national average.
States with the lowest average income, such as Georgia, Louisiana, Michigan, and South Carolina, also have some of the highest premium costs. Michigan, Florida, Rhode Island, Delaware and Nevada have the most expensive car insurance rates. Drivers in these states have some of the highest auto insurance premiums in the country, although the reasons for these rates vary by state. Auto insurance rates also vary by region and state, the report revealed.
Louisiana experienced the largest average increases in auto insurance rates at 42%, making it the most expensive state for auto insurance. On the other hand, Maryland has seen the most significant decreases in average auto insurance rates, from 9%. Michigan has the most expensive insurance for multiple reasons, but the main cause is the state's no-fault insurance laws. If you live in a state that is particularly vulnerable to natural disasters, be it hurricanes, floods or fires, your car insurance rates are likely to increase in the coming years.
See how the average auto insurance premiums in your state compare to those in other states and to the national average. You may qualify for special discounts, such as multi-policy, student or safe driving offers, to help lower your car insurance premium. Therefore, it is important to know which states have the cheapest and most expensive insurance rates before deciding on the car insurance policy. The largest state is known for its large accident settlements, but reforms that were carried out recently are trying to reduce it to reduce auto insurance costs.
Although insurance rates vary from state to state, there are several ways you can save money on car insurance rates in any state. The true cost of car insurance is reflected in the percentage of income drivers allocate to car coverage each year, rather than how much they spend on premiums, according to financial services firm Bankrate. 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. If living in a state with affordable car insurance premiums is important to you, these states are some of the cheapest places or car insurance.
MoneyGeek analyzed auto insurance quotes in all 50 states to determine the car insurance companies with the cheapest rates. In December, NAMIC released a report analyzing the cost factors influencing rising rates for auto insurance. .
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