Studies conducted by the National Association of Insurance Commissioners (NAIC) indicated that states such as New Jersey, Columbia, Louisiana, Florida, New York, and Massachusetts seem to have higher insurance rates when compared to other states. Here, the policyholders generally pay more for their insurance coverage than their counterparts. As we move ahead this year, things might not remain the same; there will be changes with regard to the highest premiums. In spite of the annual changes in insurance rates, these states mentioned above, have been consistently on the list. These specific states have always been found to be the most expensive in auto insurance and fluctuating premiums.
There are many factors that contribute to high premiums. The type of auto insurance that is purchased in these states, tend to be the common factor. As an example, if the general economy of the state is good, then the residents will obviously be purchasing new cars and in turn attract higher premiums, as they come with better coverage’s. The demographics of a state also play a major role, as the number of drivers who are covered by insurance also increases. In densely populated areas, there is obviously more traffic flow and hence the risk of more accidents. As the number of insurance claims begins to rise, the premiums will increase subsequently as the insurance companies will need to regain their loss.
A vehicles insured rate will be affected by the drivers address. For instance, if the crime rate in a particular area is high then the premiums will be influenced based on the risk factor. In such matters, people will not have a choice, as to the area they live, and will end up paying higher rates.
Practicing safe driving, and comparing quotes while purchasing a policy, will help save on the premiums. Go online and do a thorough search to obtain quotes and then make an informed decision.
