Among the many factors that affect your car insurance rates, where you live could be one of the most important. Even in states where zip codes can't be used as a factor in determining rates, your state's average cost of car insurance may be significantly different from that of a neighboring state. Car insurance rates by state can vary greatly, often in the hundreds or even thousands of dollars. The table below shows the average car insurance rates with full coverage for each state and the District of Columbia.
All of the following cost estimates are for a 35-year-old driver with good credit and a clean driving record. Yes, a higher credit score leads to lower car insurance rates in every state except California, Hawaii, Massachusetts and Michigan. Your age, gender, driving history, and where you live also play a key role in determining the cost of car insurance. Car insurance providers consider several factors when calculating your car insurance quote.
Your zip code and the state in which you live can greatly influence how much you pay for the premium. The minimum car insurance limits required by your state can also increase your rates. Finally, if you live in an area where there are more severe weather events, there are more claims, which increases the cost of car insurance for all drivers in your state. The most expensive states for car insurance typically have extensive claim requirements when it comes to payments.
Also, remember to compare car insurance with at least three companies to find out who offers the best rates in your area. Car insurance rates vary widely by state. Learn which states pay the highest and lowest rates on average. West Virginians can spend less on their car insurance because of the state's low crime rate, low cost of living, and low number of licensed drivers.
In addition, the state has a low population density and mild weather patterns, which could contribute to relatively affordable car insurance in the state. New Hampshire drivers typically pay much less for their car insurance than the average American. Another factor affecting the rate of your car insurance is the way your state handles auto insurance in relation to car accidents. Absence of fault refers to the way in which your car insurance or that of the other driver takes effect when there is an accident, specifically in relation to medical expenses.
It makes sense that your provider would want to charge more for an auto insurance policy in those areas. If people listed in your zip code file a lot of auto insurance claims, insurers can designate your neighborhood as high-risk. Instead, property damage caused by a car accident in most no-fault states is managed in a similar way to property damage in at-fault states, where the at-fault driver's insurance is responsible for covering any property damage. New Jersey has the lowest proportion of uninsured motorists of all states, which can help lower average car insurance rates.
While Alabama suffers from its fair share of volatile weather and crime, its low living costs help moderate auto insurance costs.