Posted: April 21st, 2011 | Author: Joe | Filed under: Insurance | Tags: Auto Insurance, car insurance, cheaper car insurance, Insurance Rates | 3 Comments »
Have you ever wondered which state is the most expensive to insure a car, or which is the least expensive state for auto insurance? Here’s a list of average insurance costs by state that may help answer those questions.
I live in the once great state of New York, and I have to admit I’m quite surprised to find that while NY seems eager to compete with California in the race to bankruptcy, New York is just about in the middle when it comes to auto insurance costs.
Here’s the top 10 most expensive states for auto insurance, and the average cost:
1. Michigan, $2,541
2. Louisiana, $2,453
3. Oklahoma, $2,197
4. Montana, $2,190
5. Washington, D.C., $2,146
6. California, $1,991
7. Mississippi, $1,896
8. New Mexico, $1,896
9. Arkansas, $1,836
10. Maryland, $1,807
I’m not surprised to see that Michigan is #1. After all, they’ve practically been living in a depression for the better part of a decade now, and probably have to tack on hundreds of dollars in fees just to slow the pace of their economic decline. Also, with cities like Detroit that have a reputation for high levels of crime, you’ve got to figure auto theft is going to drive costs up as well.
Also, these costs are a function of the number of uninsured drivers in the state, and Michigan actually guarantees unlimited personal injury protection payments to people injured in auto accidents! That means insurance companies are on the hook for up to $480,000 per case, plus 3 years lost wages and the tax payers foot the bill for the rest. Of course, the insurance companies have to pass those costs on to the insured drivers, causing rates to rise and exacerbating the problem even more. Way to go Michigan.
You see something similar in Louisiana, where courts tend to award larger than average payouts in auto injury cases, driving up the cost of insurance.
Oklahoma blames their high costs on weather related claims.
So where is the cheapest place for auto insurance?
Here are the 10 least expensive states for auto insurance:
41. Arizona, $1,280
42. Utah, $1,272
43. Virginia, $1,237
44. Iowa, $1,179
45. North Carolina, $1,154
46. Ohio, $1,152
47. Tennessee, $1,146
48. Wisconsin, $1,128
49. Maine, $1,126
50. South Carolina, $1,095
51. Vermont, $995
There aren’t 51 states in the union, so obviously this list include the District of Columbia (i.e. Washington D.C.), which incidentally is also a high crime site and comes in at the 5th most expensive place to insure your car.
Vermont is by far the cheapest, and it’s no coincidence that they also have the fewest congested roads, and plenty of rural areas so claims are less and tend to be for smaller amounts as well. Cows just don’t sue as much as pedestrians. 
Check out the complete list here.
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Posted: February 28th, 2010 | Author: Joe | Filed under: Insurance, Saving | Tags: Auto Insurance, car insurance, cheaper car insurance, Insurance, Saving Money, Tips | 1 Comment »
If you’re like most people, once you get your auto insurance you stick with the company until they increase your premium, or give you grief over filing a claim. But you can actually save some money switching your car insurance in some circumstance.
You can save money when you switch insurance providers at the right time.
Here of five of those circumstances where you might find cheaper car insurance if you switch your car insurance provider.
1. Your credit score has changed you first purchased the policy.
If your credit score is significantly lower or higher than when you originally purchased your insurance policy, then you probably should start shopping around when it’s time to renew. The reason is that many national car insurance companies use your credit score as part of their formula for determining your premium. People with higher credit scores tend to get lower insurance premiums. Conversely, those with low credit scores tend to pay more.
So it makes obvious sense to shop for a better rate when your score has improved, but why shop around if your score has gone down? I mean, aren’t you at a disadvantage and probably pay more?
Yes, but not always.
Some insurance companies weigh your credit score less than your driving history. So, if you have a lousy credit score but an accident free history, you may get a lower premium on your auto insurance if you shop around and find a company that weighs the score less heavily.
If you fit the low credit score category, then you should try to improve your credit score, and contact your state department of insurance for help in finding an insurer who favors driving records over credit histories.
2. You just started working from home.
Many insurance companies charge higher premiums for driving more miles. It just makes sense – the more you drive, the greater the chance of being involved in an accident, and the greater the likelihood you will file a claim.
But if you’ve started working from home, or drastically cut your commute distance it may make sense to either notify your insurer or start looking for a company that will give you a discount on your auto insurance for driving less.
The range of what is considered for the low-mileage driving discount depends on the state.
3. You’re in the middle of a long-term car lease or loan.
With car loans reaching the 60 and 72 month range, people can end up owing more than the car is worth and insuring the car for more than it’s worth. Long lease financing favors lower monthly payments, but the car depreciates faster than the principal is paid on the loan, and the can leave you owing money if your car is totaled since the insurance company will only pay for the market value of the car.
One solution to this problem is GAP insurance, which covers the gap in what the insurance company would pay and how much you still owe on the car loan. Many insurers offer a discount on GAP insurance if you switch your auto insurance to them.
Of course, a better solution would be to take out a shorter term loan and not end up upside down in the first place, but not everyone has the income to manage that.
4. You buy a home, or obtain a company car.
Homeowner’s need homeowner’s insurance, and many insurers offer a multi-policy discount if you buy both homeowner’s and auto insurance from them.
If you recently were given a company car as part of a promotion or new job, then you may even be able to get a multiple-car discount.
5. Your children reach driving age.
Once junior is old enough to start driving, and gets his license you’ll need to notify your insurance company. There won’t be any discount for adding junior to your policy, but some companies are more competitive than others when it comes to insuring younger drivers.
Photo by daniel.sound.
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