Auto insurance average cost in the USA
It depends on your location that how much auto insurance can cost you. On average, auto insurance premium rates are based on each & every state policies, rules & regulation. According to the differences, companies moderate its pricing model.
Let’s drive you thought the details auto insurance policies and companies in the USA & show you the comparison in price models.
Michigan in the United States is the most expensive state for auto insurance. Whoever as wolverine state is different in premium amount. The average legal annual premium that is approx. 250$ higher than Louisiana. Florida state secured third place, Oklahoma the fourth & Washington D.C secured on fifth place.
Here are the auto insurance factors that can cause risk:
The insurance companies evaluate your application matching n number of factors to give you premium quotes. There are some factors which are under your control and there are some on which you don’t have.
Most expensive states for car insurance
Your insurance bills will be costlier than the national average rate in such states. The reason varies according to states. Here are the top five most expensive states for auto insurance:
Michigan: Lifetime unlimited benefits/features
Michigan has topped the list for being the most expensive state to buy auto insurance. It has a new kind of insurance system which other companies don’t have.
The state has a no-fault auto insurance policy, which requires all drivers to carry Personal Injury Protection (PIP) coverage with them whenever they claim it.
PIP helps cover medical expenditure that the policyholder, relatives or even passengers that are harmed in an accident incur.
The difference between Michigan’s policies and other PIP states is the coverage limit. The majority of other states that use a Personal injury protection system put an affordable limit on PIP coverage costs. Michigan state guarantees unlimited benefits like lifetime medical cover & even policy coverage for car accident victims, which dramatically increases an insurer’s risk & premium.
Louisiana: Lots of uninsured drivers & lawsuits
Louisiana is on the second spot. The average premium rate in the Pelican is $2000 which is higher compared to Louisiana. In Louisiana state, there are many uninsured drivers who sue each other for any accidents and that is the main factor that is bumping the premium rates.
Florida: Risk drivers are higher, the highest rate of uninsured drivers
Florida State has more uninsured drivers compared to other states. However, it’s not the only factor affecting car insurance costs but many other aspects to see and study here.
Florida has a larger number of riskier drivers. Also in Florida, there are many universities established therefore, there are a high number of students. And there are many older drivers due to a large number of retirement communities based in the USA. In that case, many car drivers are there who aren’t familiar with the local roads. Mishaps can happen anytime or soon.
Oklahoma: Uninsured drivers & weather claims
The average premium rate in Oklahoma was $1,900 or 35 percent above the national average. The state has a couple of problems that help increase the insurance premium rates. Generally, auto insurance rates are higher mainly because of the unexpected catastrophic storms Oklahoma experiences. The weather also plays an important role in hee.
Oklahoma has been through plenty of severe weather conditions that lead to expensive claims for insurance companies and those costs end up increasing the premium budge of the people.
Washington D.C: Populated & fewer minor claims
The average premium of $1876 in Washington D.C is above the national average.
The big reason that D.C. has a higher population density. The whole state is urbanized, which leads to higher insurance premium rates. More urbanized cities have higher crime rations as well and so as to claim ratios. Even the policy rates become higher, which means insurers have to charge higher rates to cover their expenses.
The main crux of the story is whether you live in an urbanized region or in a less expensive one, you need to see around the best-priced policies and plans. With a healthy competitive market, you get more choices in choosing the best auto insurance companies to compare and get started with it.