Cars and Trucks

Car Insurance State Comparison: Everything You Need to Know

Insurance minimums, coverages, and laws vary from state to state, making premiums vary widely across the board. Before purchasing your insurance policy, it is important to understand the state’s requirements so you can make sure you have the coverage you need to register your vehicle and legally drive in the state.

Special State Considerations

Some states are known for their higher-than-average rates, unique policy requirements, and laws involving claims. Below are just some of the states with special considerations and circumstances.

Florida

As stated by Bankrate, Florida is the most expensive state to obtain car insurance. However, the reasons for the expensive rates aren’t the same as other states, which are usually due to traffic. Rates are higher in Florida due to flooding and hurricanes, which leads to significantly more and higher dollar comprehensive claims than in other states. On top of that, the state has more than 26 percent of its population driving without insurance.

New York

According to Coverage.com, the state of New York is a no-fault state. This means that a driver’s insurance will cover their expenses for injuries and property damage in the event of an accident. Unfortunately, fraud is rampant in no-fault states, which can lead to higher than normal premiums.

Louisiana

The Zebra also mentions that Louisiana has higher premium rates due to bouts of extreme weather. This leads to a higher incidence of claims, which translates into higher car insurance costs. They also have a high percentage of uninsured drivers, running around 13 percent.

Michigan

Michigan is another no-fault state. The Personal Injury Protection requirement that comes with their no-fault insurance leads to significantly higher rates. The PIP protection requirement provides for excellent coverage for injuries but comes at a more costly rate.

Rhode Island

Rhode Island is another state with high insurance rates, but the reason for them is not the same as other states. The reason for the higher than normal rates is the fact that auto repairs are so much higher in the state. The average cost for body repairs in the state is over $400, making it the fourth most expensive state for repairs.

States with No-Pay, No-Play Laws

Uninsured drivers can lead to increased rates in many states and financial problems for drivers without the appropriate uninsured driver coverages. Since uninsured drivers can be a problem, some states have implemented a no-pay, no-play policy that will prohibit an uninsured driver from seeking compensation from an insured motorist who was determined to be at fault for the accident. The 10 states that have this policy include:

  • Alaska
  • California
  • Iowa
  • Kansas
  • Louisiana
  • Michigan
  • New Jersey
  • North Dakota
  • Oklahoma
  • Oregon

    Average Annual Rates by State

    When comparing rates by state, it is important to understand that many factors go into determining premium rates. Yet, for the average driver with no violations, the average annual premiums for each state are listed below.

    • Alabama: $1618
    • Alaska: $1536
    • Arizona: $1507
    • Arkansas: $1984
    • California: $1942
    • Colorado: $1936
    • Connecticut: $2073
    • Delaware: $1848
    • Florida: $2463
    • Georgia: $1941
    • Hawaii: $1145
    • Idaho: $1039
    • Illinois: $1515
    • Indiana: $1229
    • Iowa: $1177
    • Kansas: $1650
    • Kentucky: $2443
    • Louisiana: $2915
    • Maine: $1006
    • Maryland: $1993
    • Massachusetts: $1150
    • Michigan: $2337
    • Minnesota: $1403
    • Mississippi: $1707
    • Missouri: $1595
    • Montana: $1895
    • Nebraska: $1381
    • Nevada: $2527
    • New Hampshire: $1216
    • New Jersey: $1983
    • New Mexico: $1474
    • New York: $2384
    • North Carolina: $1192
    • North Dakota: $1295
    • Ohio: $1026
    • Oklahoma: $1821
    • Oregon: $1370
    • Pennsylvania: $1447
    • Rhode Island: $2054
    • South Carolina: $1760
    • South Dakota: $1423
    • Tennessee: $1310
    • Texas: $1783
    • Utah: $1523
    • Vermont: $1203
    • Virginia: $1286
    • Washington: $1227
    • Washington, D.C: $1867
    • West Virginia: $1582
    • Wisconsin: $1157
    • Wyoming: $1369

      How to Prepare for an Insurance Quote

      While you may have little control over the insurance policies of the state you live in, shopping around for rates can help you lower your annual premium, even in states with higher costs. Below are a few simple steps to follow that can better prepare you when it comes time to choose a new policy.

      Gather All the Info You’ll Need

      When quoting car insurance, it is best to have all the information you will need easily accessible to handle any questions. Items to have readily available include:

      • Personal Information: List the names, addresses, birth dates, occupations, marital status, and driver’s license numbers of all those who will be listed on the policy.
      • Vehicle Information: You will need VIN numbers and mileage for each vehicle going on the policy.
      • History: Know all of the dates of claims, citations, or moving violations for those on your policy over the last five years.
      • Current Insurance: Some companies may want to know your current insurance information.

        Consider the Liability You Need

        Insurance is designed to protect you financially after an accident. This includes not only repairs that will need to be made to a car but also money to cover medical bills from injuries sustained. If you are unable to cover the costs and are responsible for an accident in an at-fault state, you could be sued for your assets to cover the damages. This makes choosing your coverage amounts so important.

        When choosing liability coverage, you will notice that there are three main components of your policy. You may notice that they are represented by three numbers, such as 20/50/20 or 100/200/100.

        The first number will give you the amount the insurance company will pay for bodily injuries per person for each accident. The second number will give you the total amount that your insurance company will pay out per accident for bodily injuries when one or more person is injured. The final number represents the total payout from your insurance company for property damage per accident.

        If you live in a state with no-fault insurance, you may also need to determine whether or not you will be required to carry Personal Injury Protection or PIP. This coverage takes care of medical payments for injuries and non-covered expenses related to the injury, such as time off work, adaptive equipment, and rehabilitation due to injuries.

        Finding the right insurance requires careful consideration of price and an understanding of how insurance claims work in your state. By knowing what each state requires, you can better determine what your insurance needs are.

        Check this out if you need additional information, resources, or guidance on car insurance.

        Sources:

        Car Insurance | caranddriver.com

        Car Insurance Rates by State for 2021 | bankrate.com

        Car Insurance Rates by State | thezebra.com

        Car insurance rates by state for 2021 | coverage.com

        Car Insurance: Everything You Need to Know | caranddriver.com

        Liability Car Insurance Quote: Everything You Need to Know | caranddriver.com

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