What is The Cheapest Car Insurance State?

Reader question:

Do the cheapest car insurance rates differ by state?

Emily

Yes, they absolutely do.

Car insurance follows the same guidelines as does cost of living, as anywhere you move you will have different expenses. One place you might be able to afford comprehensive and collision coverage, and in another you might have to just stick with your basic liability as required by law. Some states are cheaper than others when it comes to the cheapest car insurance rates. Although car insurance rates do change in the same way cost of living does, though, that doesn’t mean that high cost of living corresponds to high car insurance rates. Living in L.A., for example, costs a lot, but the car insurance premiums aren’t so bad.

And while you can get the amount paid by the average car insurance policy holder in each state, you should also keep in mind that in every state there are significant highs and lows which can throw off the balance. Someone living in a rural area and not needing to driver very much may pay way less than the state average, while a dweller in a sprawled out urban area may pay much more, so that it all evens out.

Car insurance rates are always going up. For the entire country of the U.S., the average car insurance rate per year is about $2,500. That’s almost seven percent more than it was last year, and was gotten from a random sample of car insurance quotes.

On the subject of increases, there are certain sates that have more than others. Louisiana car insurance rates have gone up by 22%, probably because of all of the Katrina car insurance claims. State like South Carolina and Nevada are also seeing bigger rising rates. New Hampshire does the best with a decrease of almost fourteen percent, with North Carolina and Rhode Island close with it.

If you want to know who has to pay the most for car insurance, it’s the New Yorkers. This is the only state that you have to pay more than three thousand a year on average, although New Jersey is close. I would say it’s because of the billions of dollars gained by fraud in the state every year, about 70% of which is from car insurance fraud.

Cheers,

Fashun Guadarrama.