Average Car Insurance Rates by State
It does help to shop around for car insurance rates. Some insurers offer better plans for certain types of drivers and families of drivers. But there is one factor that might impact your bill that you cannot do much about. This is the simple matter of where you park your car in the evening.
Insurers set rates by state and even by ZIP code, and most people do not plan to move just to lower their premiums. Factors you can control include:
- The type of car you own or lease and how much you drive
- Your driving history, including accidents, tickets and convictions
- The insurer you choose to do business with
- Your credit history
- Insurers also consider age, but you can control that less than you can control where you live.
Average Highs and Lows for Car Insurance Rates
- The U.S. National average estimate: About $1,500
- Maine auto insurance premium average: About $900
- Louisiana auto insurance premium average: About $2,700
- Update: In 2014, Michigan got the top spot and Ohio got the 51st spot.
You can see more states listed in this updated article for 2014 about the Average Cost of Car Insurance by State on BestRatesUS.com.
You might be interested to note that some people who live in their RVs full-time do sometimes choose their home states because of the cost of covering their vehicles, but they have an unusual situation. Look below for an interesting chart of average car insurance prices by state.
Why does state or ZIP code impact average auto insurance rates?
- Claims, natural hazards, thefts: Obviously, states and cities where drivers tend to make more claims get labeled as risky.
- Costs of vehicle repairs: The cost of living might impact rates.
- Number of Uninsured Drivers: Everybody else pays for uninsured drivers.
- Competition : More insurers operating in an area generally keeps prices lower.
- State regulations governing drivers and vehicle owners : For example, some states have higher minimum liability insurance requirements than others.
How were results comparing high and low average rates accumulated?
Insure.com commissioned a study of car insurance price averages by state. This study considered hundreds of different vehicles in the 2013 model year. You might be interested in the average numbers, but you might not find them that useful when you need to shop for coverage. That is because your own rates will be impacted by a number of unique things. These also include the type of car insurance coverage you need, your own driving record, age, and exact ZIP code. However, if you wonder why your cousin in another city or state pays more or less than you do, the information might resolve the mystery.
Louisiana, Michigan, and Georgia get the top spots. North Carolina, Iowa, and Maine get the bottom, and in this case, the bottom is really the best because they get lower averages.
Typically, states that enjoy lower rates have relatively sparse traffic, plenty of open roads, fewer car thefts, and relatively less natural hazards. However, urban areas within those states may get hit by comparatively higher rates.