We all know that our insurance quotes depend on various factors before reaching those rates. One of them is your address or place of residence. This is because your address helps determine the chance of filing an insurance claim in the future. In addition, state laws differ from each state, which subsequently affects how the claims are processed and carried out. If you are planning to transfer to another place, it pays to know how the insurance companies rate the place in order to manage your premium rates effectively.
Each state has its own set of minimum requirements. For example, if you drive in California, you are required to have at least $15,000 coverage for personal injury, which differs in Florida at $10,000. You see, state laws directly affect your insurance coverage. Your state’s insurance commission determines the amounts according to what they perceived as the minimum coverage that every motorist should carry.
Another aspect to consider is between the no fault and tort states. Such settings directly affect the way insurance prices are determined. In general, the more road regulations the state is implementing, the higher the rates become. It’s also important that you be aware how your state differs from the other states to have a better understanding of what you are going through. If your state is implementing the no fault laws, each driver pays for his own damage during road accidents. In the case of tort states, insurance claims can be brought to the court; and for this reason, motorists pay relatively high premiums because their insurers will have to pay for litigation charges.
You may or may not know that some states do have a high incidence of insurance claims ranging from thefts, car accidents and other types of claims that auto insurance companies don’t like at all. For instance, statistics show that warmer regions have a high incidence of auto crimes, and colder regions tend to increase insurance claims during the winter seasons. These figures were not derived from a single study, but year after year of statistical analysis. If your state and zip code have been categorized as high-risk areas, sprouting high incidence of insurance claims, expect to pay more than what is construed as an average fee for your insurance coverage.
As mentioned earlier, doing your homework and digging out how your insurance coverage is getting affected with your state insurance legislations, you can always visit your local insurance commission or speak to your insurance agent to have a better understanding on this matter. Alternatively, you can request insurance quotes using your neighboring states and zip codes, to see how much they differ from your own quotes.
While it’s almost impossible to move to another place just for the sake of lowering down the quotes, but, still, it’s interesting to know how these rates increase or fluctuate from state to state. The good news is that there are ways to keep your rates manageable, and one way to do that is to use comparison-shopping websites to find better quotes, muscled deals and other fringe benefits.
