One cannot have a thumb rule for most of the people for auto insurance. It will vary due to numerous factors. It may not only be determined by the type of automobile one owns but also the locality where one resides. The place where one lives does make an impact on the premiums; if one happens to live in a rural part of the country then the premiums will be comparatively lesser than a city dweller. As it is considered that the risks of having an accident is more when there is more traffic on the roads.
Insurers determine the cost of premiums by considering a variety of pertinent factors that include the driver’s age; however, the major concern is assessment of the risk that they will have to pay a claim.
The major concern for an insurance company is the amount of money they will have to bear in case of claim. So while drawing an insurance policy even such factors like age, area etc make a huge impact on assessing the claim. The National association of insurance commissioners made a survey and came up with a list compromising of the most and least expensive states to reside in with regard to auto insurance premium costs. It was found that there was a drastic difference between the top and bottom dwellers in the listing.
In the state of Washington DC, it will cost you about a thousand dollars a year to maintain an insurance policy. While North Dakota which is one of the least on the list was at $530, which is more than fifty percent lesser than Washington DC. The other bottom dwellers include Idaho, Nebraska, North Carolina and Kansas. It is obvious why Washington DC is one of the costliest. It’s due to the earning power of the inhabitants and also because it is the capital of the USA. But it has to be noted that recently the median price of auto insurance premiums in North Carolina went up because of the hurricane incident over there.
The other states where the median price went above a thousand dollars were New York, New Jersey, Pennsylvania and California. The first three were in the historic Russ belt of the USA in other words, the industrial belt. California and New York have their own multi faceted industries which make them very expensive to reside in, at least in the big cities.
If you do reside in Washington DC, then do not expect to pay less than a thousand dollars a year on insurance premiums. Anyone promising you other wise is just trying to make a fool out of you. It is best not to waste your time on insurance companies which claim to be able to give you the world, at the price of buying a hair pin. In all cases, they will only be trying to scam you or mislead you into investing time and money after which it will be too late to back out of the deal.
There are a few insurance companies that provide governmental incentives and discounts in Washington DC. Even if you work in one of the foreign embassies, you can get such incentives since they trust that government representatives are not high risk individuals. For the most part, such cars are driven by chauffeurs with years of experience who will not want to throw it all away in a moment’s impatience.
