Auto Insurance Rates Still High in Detroit, Declined in Texas
Posted in Auto Insurance
November 4th, 2009
Rates for auto insurance are pretty inconsistent around the country, to the glee of some drivers and chagrin of others. In Texas, auto insurance rates have seen a 14.2 percent decline since the beginning of 2009, while rates in Detroit remain the highest in the country. Why are the rates so vastly different?
Rates in Michigan and Texas
Michigan lawmakers have been fighting insurance rates in the state for some time now. Paying the 12th highest in auto insurance in the country, law makers are taking steps to place a ban on higher auto and property insurance rates in certain parts of the state, especially Detroit. Senator Martha G. Scott (D-Highland Park) is urging Congress to pass a bill that would enforce the ban, while Senator Alan Sanborn (R-Richmond) opposes the bill, noting that it would result in higher rates for people who live in non-urban areas.
On the other end of the spectrum, Texas is celebrating an impressive decline in auto insurance rates. According to new data from InsuranceRates.com, the median six-month insurance rate for Texas is $744.00, which represents a 14 percent drop since the beginning of the year. However, this drop in insurance costs doesn’t stop the state from being the 18th most expensive state to insure a vehicle. The ranking has to do with the state’s auto insurance “affordability” factor, which looks at the percentage of a driver’s gross income versus what they pay for auto insurance.
Auto Insurance Rates Vary by State
The reason that you will see major auto insurance fluctuation variations from state to state is because every state governs its own rates. Laws are constantly proposed for statewide minimum requirements and these can affect prices. Additionally, the amount of competition in a particular state increase or decrease rates. This means, depending on where you live, you may pay a vastly different rate than your neighbor right across the state border.
There are ways to ensure that you secure affordable coverage, however. One way is to shop around for rates in your area. Also, you can look for discounts to help reduce the premium even further. By making it your intention to find affordable coverage, you will likely run across the right coverage in no time.