What is the average price of car insurance? That’s a difficult question to answer. It depends primarily on where you live, not the kind of car that you drive, as some people think.
Urban or city dwellers pay more than those who live in the country. The more traffic there is on the road, the higher the likelihood of an accident.
Insurers determine premiums by considering many things, including a driver’s age, but their major concern is how likely it is that they will have to pay a claim.
According to a report compiled by the National Association of Insurance Commissioners, the average price for auto insurance declined, overall, by 1.7% in 2006. They came up with a list of the ten most expensive states to live in, when it comes to the cost of car insurance, and the ten least expensive states to live in. The difference between the low and the high is quite substantial.
In DC, the average expenditure is $1,164 per year. In North Dakota, the average is $530, less than half. If you are thinking of relocating to keep your insurance rates down, the states that you might want to consider include Iowa, South Dakota, Idaho, Kansas, Nebraska, Wisconsin and North Carolina. In all of these states, the average cost of car insurance is less than $600 per year.
But, just as a point of interest, the average cost of homeowners is higher in North Carolina, because of frequent hurricane damage along the coast. So there are lots of things to consider when you are deciding where to live.
States with the highest rates include Nevada, Delaware, Florida, New York and New Jersey. Expenditures in those states are over $1000 per year. Rates also vary from one city to the next. Cities with higher rates drive up the average for the state.
In 2007, the average annual auto premiums for a person living in Detroit, Michigan was over $5000. But, the average for the whole state was less than $1000. Michigan is a large state, with many rural areas. People that live in the rural towns pay far less than those that live in Detroit.
What companies sell the most auto insurance? You might be interested to know which companies provide the most car insurance in the US. The top three are State Farm, Allstate and Progressive. You can easily compare quotes from these three and others online.
To see how little you could be paying use the form below.
