So, how much do people in general spend on auto insurance? This is actually quite a difficult question. Contrary to what many people believe, the area in which you live can in fact influence the cost of car insurance more than the make and model of car you own.
If you live in a rural area you will most certainly have lower premiums than someone in the city. There will be a greater chance of an accident if there is more traffic on the road.
Insurance companies take several factors into consideration when they set premiums. These would for example include a driver’s age, but of course their biggest concern is whether or not they will be the ones who have to pay a claim.
According to the National Association of Insurance Commissioners, the average cost of car insurance has dropped by 1%. Their statistics were obtained by comparing insurance prices in the ten most expensive and least expensive states.
The difference between the highest and lowest is phenomenal. In Washington the average household spends approximately $1,000 each year, while in North Dakota, the average is only $530.
If you’re considering moving in order to benefit from lower insurance rates, then you’d do well to consider moving to Nebraska, Wisconsin, Kansas, North Carolina, or South Dakota. In these states, one can usually acquire fully comprehensive car insurance for under $600 per year.
On a slightly different note; while car insurance may be quite cheap in North Carolina, home insurance isn’t, but that’s because the region is prone to hurricane damage. What I’m getting at here is that there are several things you need to look at before you decide to relocate.
Among the states that have the most elevated rates are Nevada, Delaware, Florida, New York and New Jersey. Each year, the expenditures in the indicated states top $1000.
The state average can of course be driven up because of higher rates in some that state’s cities, bearing in mind that different cities have different rates. Alarmingly enough, Detroit residents were paying as much as $5,000 per year for car insurance, and that was only two years ago.
However, the median amount statewide was under $1000. Michigan is big in size, possessing a lot of rural regions. If you live out in the countryside your premiums will be lower than in a populated area such as Detroit.
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