Is Car Insurance Cheaper Depending on Which State You’re In?
Car insurance is one of those obligations you need, but also something you do not want to pay for. So, when finding a new policy, you want one that offers good protection but at a low price. Indeed, this means learning all of the latest tricks and tips to keep your bills down.
A common question people want to know about when it comes to car insurance is; will a policy be cheaper in some states than others? For example, will purchasing car insurance in Georgia be cheaper than in Michigan? Let’s take a closer look at the answer to this question.
How are Car Insurance Premiums Calculated?
We all know that everybody will be offered different prices when it comes to car insurance. Some people can have an affordable policy, while others will struggle to pay the price of theirs every month. So, how are premiums calculated? Well, the quote you receive is mostly down to personal factors. This will include how long you have been driving, your age, gender, and driving record. But, there is also one other factor that car insurance companies will look at. That is where you live.
Indeed, car insurance can vary depending on the location of your car. For example, if you live somewhere that is urban and busy, you will have to pay more. This is because there is assumed to be a bigger risk of an accident. Alternatively, if you live in a rural location, you are more likely to have a lower premium to pay.
But there is another factor here. Namely, your premium will also vary depending on the state you live in. This is due to every state having different rates and statistics. For example, some states have high crash and crime rates, while others are lower. This will change the premium you pay since the insurance company wants to protect itself.
What States Have the Highest Car Insurance Premiums?
So, do you live in a state with high car insurance premiums? Well, there are quite a few that boast expensive premiums and this is going to be bad news if you are a driver there. For example, we are going to give you a few examples.
Let’s start with looking at Florida. This is a state that is one of the highest in the country. The reason for this is that they have a huge number of uninsured drivers. The weather is also a factor, as they can get more natural disasters than other states. You will also find that some of the states with the highest premiums in the country are no-fault states. For example, we have mentioned Florida. But some other states include Michigan and Hawaii.
When we are talking about some of the cheapest states for car insurance, we should talk about Ohio. Despite being next to Michigan, a very expensive state, Ohio is one of the cheapest you will find in the country. There are many reasons for this. But one of the main reasons is that there are so many companies here that offer car insurance. So, with this competition, providers must keep their prices down to attract customers.
How Can You Get the Best Price on Car Insurance?
Nobody wants to have to pay more than they have to for car insurance. So, how can you keep your premium down? Well, first of all, you want to keep a clean driving record. This is something that is within your control, and that will help make sure that the costs stay down.
But, something else you do not want to do is rush. Yes, you want to have coverage as soon as possible. However, do not jump at the first offer you find. You want to shop around and make sure you explore your options. Get different quotes from various companies and compare them. Look at the coverage they are offering you, as well as the price you are paying. You want to get the best deal for your budget and situation.
Something else to note is that the model and make of your car can make a difference when it comes to insurance. Namely, if you drive a powerful and luxurious car, you will have more expensive premiums. This is because they will also be expensive to repair in the case of an accident. So, this is something to remember if you are watching your expenses.
Even factors like a lapse in coverage will affect how much you can pay on insurance. So, make sure that you take note of when your coverage ends and ensure there are no lapses. Otherwise, you will notice an increase even if you are changing companies. This is something that you do not want, and you can easily avoid it happening. Try to be organized and shop around in advance.