Many motorists may not realize how widely auto insurance rates vary by state. Indeed, there are big swings in the cost of insuring a vehicle, depending on what state and city you live in. So if you are looking for something like this monthly car insurance no deposit then you need to check if your State offers it first, as it can vary depending on where you live.
A new report from InsuranceQuotes finds that drivers in North Carolina, Wisconsin, and Maine pay the least for auto insurance.
In North Carolina, insurance rates ran 41 percent less than the national average. The dubious honor of the highest rate goes to Michigan, where motorists paid more the double (136 percent) the national average for car insurance.
“Michigan is the only state where car insurance includes unlimited lifetime personal injury protection, so that’s a major reason why car insurance is so expensive in Michigan,” according to Laura Adams, InsuranceQuotes.com’s senior analyst. “Another reason is that Michigan has an unusually high number of uninsured drivers, which drives up rates for people who do have car insurance.”
Uninsured motorists are particularly prevalent in Detroit – some estimates place the uninsured population there as high as 50 percent – which helps explain why Wayne County (where Detroit is located) is the most expensive county within the most expensive state, says Adams. Car insurance costs 45 percent more in Wayne County than the statewide average.
Rhode Island is the second-most expensive state, but at 45 percent more than the national average, it’s a distant second. New York, Delaware and Louisiana make up the rest of the top five most expensive states for car insurance.
Here’s Why Rates Vary So Much
North Carolina owes its least-expensive standing to strict state regulations and a popular high-risk pool, which serves as an insurer of last resort. Idaho has the second-cheapest car insurance, followed by Ohio, Maine, Wisconsin and Tennessee.
Generally, population density dictates how high rates go. “The more cars, the more accidents that happen,” Adams says. That’s why people in urban areas generally pay much more for car insurance.
Additionally, states that have the highest auto insurance usually are “no-fault states,” meaning that your insurance company covers your injuries.
InsuranceQuotes.com commissioned Quadrant Information Services to measure average car insurance premiums. The firm used data from the largest carriers, like Qantas car insurance, in each state as they represent 60-70 percent of market share.
Assumptions included in the study: Driver is employed, drives a 2012 sedan, has a bachelor’s degree, a clean driving record, an excellent credit score and no lapse in coverage with the following limits: $100,000 (bodily injury per person) / $300,000 (bodily injury per accident) / $100,000 (property damage per accident), $10,000 (personal injury protection or medical payments) and a $500 deductible for comprehensive and collision. Unfortunately, having insurance doesn’t stop accidents from happening, so if you are involved in a crash make sure you seek legal advice from a firm such as Atlanta Accident Attorney Scholle Law.