If one were to believe the sheer volume of television commercials being broadcast to that end, we are a culture that’s obsessed with our car insurance rates. GEICO alone reportedly spent nearly $2 Billion last year telling a rapt nation it could save money in a manner of minutes by switching carriers.
And while most of us would rather leave money in our pockets than on the proverbial table, other than shopping our business among competing companies, fine-tuning our policies and choosing a vehicle that’s inherently cheaper to insure, there’s little we can usually do to alter the intractable factors that more profoundly affect our annual premiums.
These include one’s age, marital status, address, credit rating and driving record. Among them the one consideration that’s firmly within one’s control is where he or she lives. All else being equal, someone residing in a crowded and crime-ridden urban area can expect to pay considerably more for coverage than will a similar motorist with the same car in a quiet suburb of the same city. “Your driving record and your car are the same no matter where you live,” says Insure.com consumer analyst Penny Gusner. “But change your ZIP code just a couple of towns the wrong way and your rates can double.”
Even if you already live rather remotely, it’s possible to come out considerably ahead by simply moving across one or more state borders. According to Insure.com, those living in Maine, Ohio and Idaho will, on average, pay a third less than the national average to insure a new car, while Michigan motorists face premiums that are 90 percent higher than the norm. The spread between the cheapest (Maine, at $805) and costliest state (Michigan, at $2,662) amounts to a whopping $9,285 over a typical five-year ownership period.
“Laws make a big difference. Each state makes its own rules, and some of them result in bigger or more frequent insurance claims,” Gusner explains, noting that widespread insurance fraud, high theft rates and a higher concentration of drivers in urban areas also contribute to how much residents in a given state will pay for coverage.
Here’s the list of 10 states Insure.com identifies as offering the lowest average auto insurance rates:
Maine: $805
Ohio: $843
Idaho: $877
Iowa: $886
New Hampshire: $905
Wisconsin: $930
Vermont: $957
North Carolina: $986
Virginia: $1,008
New York: $1,013
And here’s the 10 states where motorists tend to endure the costliest car insurance premiums:
Michigan: $2,476
Montana: $1,886
District of Columbia: $1,799
Louisiana: $1,774
Florida: $1,742
West Virginia: $1,716
Connecticut: $1,690
Rhode Island: $1,656
California: $1,653
New Jersey: $1,595
Click here for the complete list of average car insurance rates for all 50 states.
To see the original article go to Forbes.com.
