So, how much do people in general spend on auto insurance? This is actually quite a difficult question. Contrary to what many people believe, the area in which you live can in fact influence the cost of car insurance more than the make and model of car you own.
If you live in a rural area you will most certainly have lower premiums than someone in the city. There will be a greater chance of an accident if there is more traffic on the road.
Insurers determine the cost of premiums by considering a variety of pertinent factors that include the driver’s age; however, the major concern is assessment of the risk that they will have to pay a claim.
Interestingly enough, the NAIC (National Association of Insurance Commissioners) have stated that the overall cost of auto insurance has dropped by 1%. This figure was reached by looking at the ten most expensive and least expensive states to live in as far as car insurance costs are concerned.
In Washington DC, the average household spends more or less $1,000 every year, while in North Dakota, the yearly average is only $530. As you can see, the difference is significant.
If you want to relocate for a lower insurance rate, you may want to consider moving to Iowa, South Dakota, Idaho, Kansas, Nebraska, Wisconsin or North Carolina. You can obtain a comprehensive car insurance policy at an average annual rate of less than $600 a year in all of these states.
There are many things you need to take into consideration before you relocate, other than car insurance. For example, if you moved to North Carolina, you’d pay less for car insurance, but you’d pay more for home insurance, given that the region often suffers from hurricane damage.
Delaware, New York, Florida, and New Jersey, tend to have the most expensive car insurance rates in America. Generally speaking, the average cost of car insurance in these states is about $1,000 per year.
The state average can of course be driven up because of higher rates in some that state’s cities, bearing in mind that different cities have different rates. Alarmingly enough, Detroit residents were paying as much as $5,000 per year for car insurance, and that was only two years ago.
However, the median amount statewide was under $1000. Michigan is big in size, possessing a lot of rural regions. If you live out in the countryside your premiums will be lower than in a populated area such as Detroit.
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