Drivers seeking the best price on their car insurance needs to take into account some factors that can affect the cost of insurance. The type of car you drive, your age, experience and driving record can all alter the quotes you will receive for auto insurance. Not all of these factors are under your control. Your location can be a huge determining factor in the cost of your insurance. Each state has its regulations for auto insurance operators. The 655 different insurance companies operating across the country can use their own rating factors to come up with a huge variety of price ranges between different states. Drivers of the same age and experience with a clean record, driving identical cars can be quoted prices differing by hundreds or even thousands of dollars, depending on the state.
The Zebra, a Texas-based car insurance comparison agency has released an in-depth report on insurance pricing across the country. From their research, we can reveal that on average, the state paying the most for car insurance is Michigan. Drivers in Michigan spend an average of $2,087 annually on their car insurance. In stark contrast, Ohio, the state with the cheapest insurance, where drivers pay an average of just $764 per year. The reason for the huge difference in insurance costs between states is due to various factors such as population fluctuations, weather and crime rates.
Over the past five years, there has been an overall trend of increasing rates, with the national average jumping by almost 11%. For some states, the opposite has occurred, such as Massachusetts where rates have dropped by a whopping 20% since 2011. We have certainly felt the recent changes here in Colorado. Drivers in this state now pay 48% more for their insurance premiums than they did five years ago. This huge change could be the result of legislation changes and updated road accident statistics. As mentioned in this blog before, states with higher incidences of DUIs, reckless driving and road fatalities will have higher insurance costs.
Although this may seem like bad news for Colorado drivers, the state you live in is just one of the many factors used by insurance providers to calculate the cost of your premium. Most of these factors are under your control. By adapting your driving habits, choice in car and shopping around, you can save hundreds of dollars on your insurance without having to move out of state. Getting a DUI can raise your rate by over 100%, and driving a luxury vehicle will add a significant extra charge on your premium.
Whether your state pays the least or the most for car insurance, you can take simple steps to make sure you pay less. To get the lowest premiums available in your state, you should drive an SUV with a high safety rating, show a history of continuous insurance coverage, and maintain a good credit score. Your education level, home-owner status, and marital status can also have an impact on the price you pay for insurance. Most importantly, you should shop around and compare various providers before you make your decision. Let us know at Affordable Insurance, if you require assistance shopping for car insurance.