Analysts: States where Motorists Live Affect Insurance


Auto insurance specialists are reminding Americans about the roles the states they live in play when it comes to insurance rates. Based on data collected from several years of research, the geographical locations of car owners play a crucial role in their insurance rates. Most insurance providers base premiums on different factors present in many states. High incidence of car crimes can drive premiums higher while states that are relatively safe for cars can mean lower rates for policyholders.

Analysts: States where Motorists Live Affect InsuranceThe different weather patterns and climates in a particular region or states can also affect how premiums are determined. For example, drivers who live in states that experience substantial amount of hail or heavy snow can expect their insurance rates to be more expensive. Exposure to hail or heavy snow, especially when cars are left on the side of the road, can mean a greater possibility of the vehicles getting damaged. This would then result to higher rates.

Also, states that have more congested urban centers can mean a higher chance of cars getting stolen, broken into, or damaged in accidents. Policyholders who regularly take their cars into congested city roads can expect their insurance costs to skyrocket. For motorists who stick to suburban streets and country roads, insurance premiums can be considerably low.

State governments also have different laws when it comes to insurance coverage and minimum liability coverage. Some states require car owners to have substantial amounts of liability coverage while others have relatively low amounts. Wisconsin, for instance, has only recently decided to increase its minimum liability coverage amounts after more than two decades. The states of Tennessee and New Hampshire also have considerably low minimum amounts compare to other states. In these regions, policyholders need not worry about costly insurance due to the liability coverage.

The car owners’ exact location also plays an important factor when coming up with insurance. A policyholder whose home is far from medical facilities can expect his or her medical coverage aspect of car insurance to pose a problem. Drivers who live in areas where there are considerably fewer doctors or medical professionals can also expect their premiums to go up.

Some of the highest insurance premiums can be found in the states of New York, Maryland D.C., Louisiana, and Rhode Island. On the other end of the price spectrum, the states of Iowa, Maine, Idaho, Vermont, and Wisconsin offer the cheapest insurance premiums out of all 50 states.