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.
People living in rural areas almost always pay less for insurance than those who live in cities, simply because there is more traffic in cities, and that means there’s more likely to be accidents.
Insurance providers look at a number of factors as far as their premiums are concerned. The biggest influence however is the amount of risk involved which could see them having 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.
In Washington DC, the average household spends more or less $1,000 every year, while in North Dakota, the yearly average is only $530. As you can see, the difference is significant.
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.
There are many things you need to take into consideration before you relocate, other than car insurance. For example, if you moved to North Carolina, you’d pay less for car insurance, but you’d pay more for home insurance, given that the region often suffers from hurricane damage.
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.
Even within a particular state, different cities have different rates. What this means is that a state’s average rate will inevitably be driven up by the high rates in certain cities. Only two years ago, car owners living in Detroit were paying as much as $5,000 per year for insurance.
Even though car insurance is so expensive in Detroit, that doesn’t mean the entire state pays that much. In fact, the average is actually under $1,000. Also, Michigan is fortunate enough to have numerous rural regions, and if you choose to live in one of the rural areas you will most certainly pay even less for your insurance.
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