Average Car Insurance Rates: State by State

Who Cares About Average Car Insurance Rates, Anyway?

Average rates: State by State

Average rates: State by State

According to a recent survey conducted in 2014, the national average rate for full coverage car insurance is about $1,500. Why does anybody care if average car insurance rates in Michigan are the highest in the nation and Ohio comes in at #51? By the way, there are 51 entries because DC is included. Note that in this case, coming in last is a good thing for driver’s pocketbooks.  Auto insurance companies use a number of different factors to calculate any family’s actual premium. These include, of course, driving history, age, type of car, the way the car gets driven, and credit history.

However, if you have, for example, a very good driving history, you might wonder why you can’t find cheap Dallas car insurance while your buddy in Cleveland has had two wrecks in the last two years, and he still has cheaper rates than you do. This is really just more for information and to help consumers understand how laws and the local environment influence car insurance rates.

Average Car Insurance Rates in States: Highs and Lows

One thing that drives up prices in Michigan is the state law that requires generous PIP, or personal injury protection. PIP is no-fault coverage for bodily injuries, and it isn’t required by minimum liability insurance laws in every state, and it might not be as generous in some states where it is mandatory. For example, the Michigan plan allows lifetime limits, but New York caps benefits at $40,000.

The top most expensive average auto policy prices:

1 Michigan  $   2,551
2 West Virginia  $   2,518
3 Georgia  $   2,201
4 Washington, D.C.  $   2,127
5 Rhode Island  $   2,020
6 Montana  $   2,013
7 Louisiana  $   1,971
8 California  $   1,962
9 New Jersey  $   1,905
10 Florida  $   1,830


Other things that can drive up the price of auto insurance include the average cost of repairing cars, the rate of thefts, and the risk of claims. Even within a state, prices are usually higher in densely populated cities and metropolitan areas than they are in small towns and rural areas. It is likely that Detroit residents pay more than residents of small towns or out in the country.

That might make you wonder how W. Virginia made it to 2nd. It is a combination of natural factors, like the likelihood of hitting a deer or construction debris damaging windshields, and a high number of uninsured drivers. Bad weather is another factor, and the likelihood of disasters like hail or severe flooding that damage vehicles can drive up a state’s overall rates too.

 

By the way, these figures come from a study of average car insurance rates by state published by Insure.com. They commissioned Quadrant Information Service to survey the largest insurers to come up with the figures.  They used Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm, and they only did the study in 10 ZIP codes for each state, so these figures are open to interpretation.

 

Lowest Average Car Insurance Rates by State

41 Utah  $   1,192
42 New York  $   1,173
43 Vermont  $   1,149
44 Virginia  $   1,114
45 Wisconin  $   1,087
46 North Carolina  $   1,060
47 Iowa  $   1,058
48 Idaho  $   1,053
49 New Hampshire  $      983
50 Maine  $      964
51 Ohio  $      926

Main has the luxury of being one state with a lot of sparsely populated areas that can be traveled without resorting to crowded freeways.Additionally, juries in Maine are not likely to award huge verdicts in personal injury cases involving cars. Finally, the crime rate in the state of Maine is low, and that means cars are not likely to be stolen or vandalized. Maine does get some winter storms, but they don’t tend to suffer a great number of calamities that damage cars in other states. Maine seems like a great place to live and drive!

Ohio does contain some large cities, but experts believe that the sheer number of different car insurance companies in the state help breed an atmosphere of competition that help keep prices low for consumers. Local insurance professionals also say that the way the state regulates companies and policies helps keep rates modest.

 

 

How Were Average Rates Calculated?

You already know that the premiums for any one person can vary a lot depending upon different factors.

For this study, rates are based upon buying full coverage for an unmarried male who is 40, commuted 12 miles a day, and has policy limits of 100/300/50. Note that these may not reflect mandatory liability insurance in each state. The policies had a $500 deductible for the collision and comprehensive part of the policy. This example driver also enjoys decent credit and a good driving record. Rates also include uninsured motorist.

 

Hidden Car Insurance Discounts

Are There Auto Insurance Discounts Your Insurance Company Doesn’t Want You To Know About?

Save money on your auto insurance with discounts.

Save money on your auto insurance with discounts.

Of course, your insurance company and agent want you to know about car insurance discounts. These days, the insurance business is very competitive. It has also had to become more competitive because it is so easy for consumers to access online car insurance rates on their PC or smart phone.  However, if you have not compared insurance or even talked to your agent for awhile, neither of you may be aware that you can qualify for discounts that will save you a lot of money on your monthly premium.

Car Insurance Discounts

These are some of the discounts that you and your agent might overlook.

Low Mileage: If you only pull your vehicle out of the garage twice a week for a grocery trip, you may qualify for a low mileage discount. This might also benefit a teen driver who only uses his car to travel a couple of miles to school every day. If you have your teen driver as a driver on your own car, and he or she rarely drives, be sure and let your insurer know. If he or she can qualify as an occasional driver, it can take the bite out of your rates.

Auto and home insurance discounts: Some so-called discount car insurance companies cannot offer the best deal because they only insure cars. Larger companies that offer both home and auto policies are likely to offer a price break because they want all of your family’s personal insurance business.  You can also look for multiple policy discounts if you need to insure a motorcycle, boat, or other property, or if you need renters insurance instead of home owners insurance.

Safer cars: Some people assume that cheaper and older cars must be cheaper to insure because they do not cost as much as newer and more luxurious vehicles. However, the truth is that moderately priced vehicles usually have the lowest insurance rates, and new cars may actually cost less to cover than older ones.

That is because auto insurance companies also consider the safety and track record of certain vehicles as much as the cost to replace them. If vehicle owners are less likely to make claims, that reduces the risk to the insurer.  The cost of repairs in a local area also factor into the complicated formulas that insurers use.

Safety features: Besides purchasing cars that have been demonstrated to be safer, you may also be able to add some safety features to enjoy a better auto insurance rate. One example is an anti-theft system, but newer cars probably already come with that.

Take defense driving: This article does not include advice like drive safety and avoid accidents because that seems like something everybody already knows. However, if you do get a ticket, you may be able to take a defense driving class to prevent a rate increase.

Multiple policies: Larger insurers tend to offer discounts for bundling multiple policies with them. That is why you may get a better insurance rate from a larger company than a so-called discount auto insurance company. Some examples are multiple cars and drivers, home or rental insurance, business policies, etc.

Which Insurance Company Offers the Right Discounts for You?

Even major insurers do not all offer the same types and amounts of discounts. That is why it is important to shop around for insurance rates every year or so. You might contact a local agent or use a convenient online insurance rate comparison system.

 

 

 

 

Auto Liabilty Insurance Explained

Buy Auto Liability Insurance or Face the Consequences

Did you get caught without liability insurance?

Did you get caught without liability insurance?

Every U.S. state has financial responsibility laws on the books, and these require almost all vehicle owners to purchase liability insurance in order to drive legally. These laws have been on the books for awhile, but some states are stepping up enforcement measures.

For example, Texas has the TexasSure program to make sure that drivers have proper car insurance even if they are not caught driving without it. This is a computerized system that matches vehicle owners to policies. In Texas, the usual punishment for driving without insurance consists of fines, but Dallas takes car insurance enforcement it a step further, and Dallas impounds uninsured cars when the local police find them operating without required minimum Texas liability insurance.

Penalties For Driving Without Insurance

These penalties also vary for each state. Typically, they include fines. Some states even impose jail time, suspended licenses and registrations, and required hours of community service. Most of the time, penalties get worse for subsequent infractions than they are for first timers.

State by State Minimum Liability Insurance Rules

Minimum required liability laws differ in every state. They always include coverage for property damage and bodily injury. But remember that liability insurance covers the “other guy,” and it is not purchased to protect your car. You need comprehensive and collision coverage for that. Some states also require other coverage like PIP (personal injury protection) and uninsured/underinsured motorist coverage.

Here’s how to understand liability coverage:

  • Here is an example of Alaska’s rule: 50/100/25.
  • This means that the policy has to include at least $100,000 or total injury coverage per accident, $50,000 for injury for each person, and $25,000 of property damage.
  • Disclaimer: These laws are subject to change, so you need to contact your state insurance department or a locally license agents for the right numbers. This is for informational use only.

Also note that some required policies do not come with very high limits. For example, this is California: 15/30/5. It is certainly easy to imagine an accident doing more than $5,000 worth of damages to a fairly new car. It is also easy to imagine hospital bills exceeding $15,000 or $30K for the entire accident. People with assets to protect may want to consider purchasing a policy with higher limits or buying umbrella insurance to protect assets.

State by State Limits

  • Alaska 50/100/25
  • Alabama 25/50/25
  • Arkansas 25/50/25
  • Arizona 15/30/10
  • California 15/30/5
  • Colorado 25/50/15
  • Connecticut 20/40/10
  • Delaware 15/30/10
  • Florida 10/20/10
  • Georgia 25/50/25
  • Hawaii 20/40/10
  • Idaho 20/50/15
  • Illinois 20/40/15
  • Indiana 25/50/10
  • Iowa 20/40/15
  • Kansas 25/50/10
  • Kentucky 25/50/10
  • Louisiana 15/30/25
  • Maine 50/100/25
  • Maryland 30/60/15
  • Massachusetts 20/40/5
  • Michigan 20/40/10
  • Minnesota 30/60/10
  • Mississippi 25/50/25
  • Missouri 25/50/10
  • Montana 25/50/10
  • Nebraska 25/50/25
  • New Hampshire 25/50/25
  • New Jersey 15/30/5
  • New Mexico 25/50/10
  • Nevada 15/30/10
  • New York 25/50/10
  • North Carolina 30/60/25
  • North Dakota 25/50/25
  • Ohio 12.5/25/7.5
  • Oklahoma 25/50/25
  • Oregon 25/50/20
  • Pennsylvania 15/30/5
  • Rhode Island 25/50/25
  • South Carolina 25/50/25
  • South Dakota 25/50/25
  • Tennessee 25/50/15
  • Texas 30/60/25
  • Utah 25/65/15
  • Virginia 25/50/20
  • Vermont 25/50/10
  • Washington 25/50/10
  • Wisconsin 50/100/55
  • West Virginia 20/40/10
  • Wyoming 25/100/15

List of State Penalties for Driving Without Insurance

Again, state laws may change, and this is just for information and comparison purposes.

Alabama

First offense: 45-day license suspension and/or up to a $500 fine; subsequent offense: up to $1,000 and/or suspension of license up to six months.

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Alaska

First offense: 90-day driver’s license suspension; second offense: one-year driver’s license suspension.

Arizona

First offense: $250 fine, suspension of license up to three months; second offense within 36 months: mandatory fine of at least $500 and up to six-month suspension of license and registration; third offense within 36 months: mandatory fine of at least $750 and mandatory one-year suspension of license and registration.

Arkansas

First offense: $50 to $250 fine; second offense: $250 to $500 fine; subsequent offense: $500 to $1,000 fine and/or one year in jail.

California

First offense: $100 to $200 fine; subsequent offense within three years: $200 to $500 fine. Judge must impose greater fines if defendant fails to provide proof of insurance in court.

Colorado

First offense: $500 fine; subsequent offenses: $1,000 fine; sentence of up to 40 hours of community service also possible.

Connecticut

First offense: $35 fine; subsequent offenses: $50 fine.

Delaware

First offense: mandatory fine of $1,500 to $2,000 and license suspension for six months; subsequent offenses: $3,000 to $4,000 fine and six-month suspension of license and registration.

District of Columbia

First offense: $300 to $500 fine; subsequent offenses: $500 to $2,000 fine and/or up to 90 days in jail.

Florida

Suspension of registration and driver’s license if you fail to provide proof of insurance in court.

Georgia

$200 to $1,000 fine and/or up to one year in jail; suspension of registration until proof of insurance is provided and fees are paid.

Hawaii

First offense: $500 fine; subsequent offense: $2,500 fine; judge may suspend first offense fine and order community service at request of defendant.

Idaho

First offense: $75 fine; subsequent offenses: up to $1,000 fine and/or up to six months in jail.

Illinois

$500 to $1,000 fine and three-month driver’s license suspension.

Indiana

First offense: Court may suspend driver’s license or vehicle registration for one year; subsequent offenses within five years: suspension of driver’s license for one year.

Iowa

Citation and removal of license plates and registration receipt, possible impoundment of vehicle.

Kansas

First offense: $300 to $1,000 fine and/or up to six months in jail; subsequent convictions within three years: $800 to $2,500 fine; penalties may include driver’s license suspension and revocation of vehicle registration.

Kentucky

First offense: $500 to $1,000 fine and/or 90 days in jail; subsequent offenses within five years: $1,000 to $2,500 fine and/or 180 days in jail.

Louisiana

First offense: license plate impoundment and $50 reinstatement fee; second offense: $150 fine; subsequent convictions: $500 fine.

Maine

$100 to $500 fine and 30-day license and registration suspension.

Maryland

Registration suspension and $150 fine per vehicle without insurance for one to 30 days; after that, fine increases by $7 per day; maximum penalty of $2,500 for 12-month period.

Massachusetts

Up to $500 fine if no previous conviction or finding; otherwise $500 to $5,000 fine and/or up to one year in jail.

Michigan

$200 to $500 fine and/or up to one year in jail.

Minnesota

First offense: $200 to $1,000 fine and/or up to 90 days in jail; subsequent conviction within 10 years: $200 to $3,000 fine and/or up to one year in jail.

Mississippi

$500 fine and up to one-year license suspension.

Missouri

Suspension of driver’s license or assessment of four points on driver’s license.

Montana

First offense: $250 to $500 fine and/or 10 days in jail; second offense in five years: $350 fine and/or 10 days in jail, surrender and suspension of registration and license plates until proof of compliance is furnished; third or subsequent offense within five years: $500 fine and/or up to six months in jail, surrender and suspension of registration of license plates until proof is furnished; fourth offense: surrender and suspension of driver’s license.

Nebraska

Driver’s license suspension.

Nevada

Up to $1,000 fine; civil penalties of $600 to $1,000, suspension of license and registration.

New Jersey

First offense: $300 to $1,000 fine, community service and forfeiture of the right to operate a motor vehicle for one year; subsequent convictions: 14 days in jail and forfeiture to operator motor vehicle for two years, up to $5,000 fine and 30 days community service.

New Mexico

Up to $300 fine and registration suspension.

New York

$150 to $1,500 fine and/or up to 15 days in jail, plus $750 civil penalty.

North Carolina

First offense: $50 fine and revocation of vehicle registration of 30 days; second offense within three years: $100; third offense: $150.

North Dakota

First offense: minimum $150 fine and revocation or suspension of registration until proof of insurance is provided; subsequent offense within 18 months: minimum $300 fine.

Ohio

First offense: revocation of registration, $75 fine and three-month driver license suspension; second offense in five years: one-year license suspension; subsequent violations: two-year license suspension.

Oklahoma

Up to $250 fine and/or up to 30 days in jail; suspension of driving privileges until reinstatement fee is paid and proof of insurance furnished.

Oregon

License suspension or registration revocation.

Pennsylvania

$300 fine, three-month suspension of driver’s license and registration.

Rhode Island

First offense: $100 to $500 fine and up to three-month license and registration suspension; second offense: $500 fine and up to six-month suspension; third and subsequent offense: $1,000 fine and up to one year suspension.

South Carolina

First offense: $100 to $200 fine or up to 30 days in jail; second offense within five years: $200 fine and/or 30 days in jail; third or subsequent offense within five years: 45 days to six months in jail.

South Dakota

30-day to one-year driver’s license suspension.

Tennessee

Up to $100 fine.

Texas

First offense: $175 to $350 fine; subsequent offenses: $350 to $2,000 fine.

Utah

First offense: $400 fine; subsequent offense within three years: $1,000 fine and driver’s license suspension until proof of insurance furnished.

Vermont

$100 fine and driver’s license suspension until supplying proof of insurance.

Virginia

Driver license and vehicle registration suspension.

Washington

Up to $250 fine or community restitution.

West Virginia

First offense: $200 to $5,000 fine, 30-day driver’s license suspension, revocation of vehicle registration until proof of insurance provided; subsequent offense: $200 to $5,000 fine and/or 15 days to one year in jail.

Wisconsin

Up to $5,000 fine.