Who’s Paying the Most for Car Insurance?

Posted in Auto Insurance

January 13th, 2010

Having a minimum level of auto insurance coverage is the law in nearly every state (except for New Hampshire). Not only is it your legal obligation, it’s also a smart move to make as accidents do occur and can lead to financial ruin. Please note that the laws on coverage vary from state to state as well as the premiums and rates charged due to a number of unpredictable factors. This is why comparison-shopping can be so effective.

National Car Insurance Averages

As of November 2009, the national average for car insurance was $1,735. However, the rates of many states far exceed that number, breaking the two thousand dollar mark. Residents of Alaska ($2,218), Connecticut ($2,136), Delaware ($2,279) District of Columbia ($2,436), Louisiana ($2,310), Maryland ($2,295), Michigan ($2,240), Nevada ($2,028), New Jersey ($2,498), New York ($2,394), Oklahoma ($2,006) and Rhode Island ($2,269) have to contend with the most expensive auto insurance in the nation.

Decreased Rates

Even though these states are paying a small fortune on their car insurance rates, some of them are actually spending a bit less than they did earlier in the year. Recent statistics indicate that in the last quarter of 2009, 33 states either held their rates steady or actually dropped their prices. Nebraskans have the biggest reason to celebrate as they experienced a rate decrease of 12.7%. For the heavy hitting $2000+ states, Alaska, Connecticut, Delaware, District of Columbia and Maryland, all experienced decreases in their auto insurance premiums, but not enough to lower the costs closer to the national average.

Increased Rates

There were a slew of auto insurance rate increases across the nation as well. Alabama, Arkansas, Colorado, Florida, Michigan, Montana, New Jersey, New York, Oklahoma, Pennsylvania, Utah, Virginia, Washington, Wisconsin and Wyoming all showed an increase in the average cost of auto insurance. Colorado is guilty of the highest car insurance rates increase, costing consumers 4.6% more than in previous months for their auto insurance premiums.

2010 Auto Insurance Rates

The auto insurance forecast for 2010 varies depending on where you live. Residents of a few states should brace themselves for higher auto insurance costs since their minimum liability limits for auto insurance are expected to increase and their cost of coverage may do so as well. Wisconsin (average auto insurance total of $1,530) and Louisiana (average auto insurance total of $2,310) are just two states with changing laws, and the average cost of vehicle coverage will surely be impacted.

If you feel that you are paying too much for your policy then comparison-shopping is the best way to save on your auto insurance premium. Those who have switched their car insurance providers have benefited from savings exceeding $525 (on average).

Have you saved money by switching your car insurance? If so, our readers and staff would love to hear how you did it and how large of a savings it was.