Car Insurance Rates Within States

The National Association of Insurance Commissioners' 2003 data show that individual car insurance rates from 1999 to 2003 are at the highest in Michigan, where average auto premiums have reached $5,162 on the average. The state is followed not far by Philadelphia, New Jersey, California and New York.

What is the common denominator between these states? For one, they are thickly populated with traffic congestions that become terrible for certain occasions. Crime rates, specifically car theft, are also high. Thus, expenditures by insurance firms in these states are high, affecting the rates imposed to car insurances.

On the other hand, the same agency data also reveals that the top 5 states with the cheapest car insurance premiums are, in order, Virginia, Ohio, Tennessee, Wisconsin and North Carolina. Average car insurance premium is $758 in the period for Virginia and $949 for North Carolina. What a contrast!

Different states, different rates

Ofcourse, taking in the economic, socio-demographic and geographic factors, car insurance rates in different states vary. Companies in different states cannot compete with those from other states, but usually, a car insurance firm has localized units in different states. Now rates from one company can also vary from one state to another.

Because the US environment is free for competition, you can find the cheapest and best-deal car insurance rates in your state if you have the patience and skill to crack them down. You will be amazed at how rates are adjusted regularly to address competition concerns and how low premiums can get just fir companies to sign you up.

Different coverages

There are several car insurance coverages offered throughout different states. The Personal Injury Protection (PIP) insurance will cover costs in the event the driver meets an accident. The Bodily Injury Liability coverage will cover personal damages to people damaged by your car during accidents.

The Property Damage Liability (PDL) insurance will cover your car or automobile in case of accidents. Damages you have done to properties of other people will also covered by this insurance coverage.

Some states are very particular in implementing regulations involving these insurance coverages. Some will require two of the car insurance coverage as prerequisite for car registration, while several are more stringent in requiring drivers to take all three to register or renew registration of an automobile.

Most expensive and least expensive states

An independent car insurance industry organization has released a 2005 study that indicates which states have the highest and lowest average premium rates for car insurances.

Let us take the findings of the study as a guide, so we can determine if our car insurance rates are practical and appropriate in our state.

The study found that the top 10 states with the most expensive car insurance rates are, in order from highest: New York, Louisiana, Rhode Island, Maryland, District of Columbia, Arizona, Michigan, Kentucky, Nevada and West Virginia.

On the contrary, the top 10 US states with the cheapest car insurance rates on the average are, in order: Maine, Iowa, Vermont, Idaho, Wisconsin, Ohio, South Dakota, Indiana, Virginia and Utah.

Three factors affecting car insurance rates

The independent 2005 Auto Insurance Pricing Report has recognized the inevitability of car insurance differences within states. However, the study has reiterated that three factors usually influence the rates imposed to car insurance premiums. These include: the number of assets or accessories within the car; how the car is driven and the locality; and the model, manufacturing year and total makeover of the car.

Thus, you can still have the chance to get cheap car insurance rates even if you live in New York. So don't stop shopping around for low car insurance rates.

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