Why is car insurance rate different in every state?
As others have posted on this question, car insurance rates differ even within zip codes.However, State to State, rates are different for at least three specific reasons:(1) - State Mandated Coverage Parts:Each state has their own list of mandated coverage parts that every policy MUST have. Those coverage parts may include:Bodily Injury LiabilityProperty Damage LiabilityUninsured Motorist CoveragePersonal Injury Protection (sometimes called No-Fault)For example (see picture below):Alaska requires only (i) and (ii)New York requires (i), (ii), (iii), and (iv)(2) - State Mandated Limits of Coverage:Each state sets the limits of coverage required for each coverage part listed above. Discrepancies can be significant (See Image Below):Florida has a minimum required Bodily Injury Liability limit of $10,000 per person, $20,000 per accident.Maine requires minimum Bodily Injury Liability limits of $50,000 per person, $100,000 per accident.(3) - State Specific Coverage Part contractual wording:Though the contractual wording for each coverage part is mostly similar between states, there can be significant differences:Michigan’s Personal Injury Protection coverage is Unlimited, with very few inside limits on payment for services. This unique contractual feature is one of the reasons that Michigan’s auto rates are the highest in the United States.There are specific reasons that insurance rates are different from state to state. However, there are many more variables that play a significant role in one’s auto insurance rate. For more information on those variables see: “What factors influence my auto insurance premium?”Thanks for the A2A
Why are the Car insurance rates so unrealistically different as per postal codes in Canada?
Auto insurance rates are determined by a number of demographic factors. Your gender, age, marital status, geographical location, and credit score all affect your insurance rates in different ways. Young men usually incur higher rates than young women as statistically, more male teenagers have accidents than female teenagers. If you live in an area that experiences more losses than another area, your rates will be higher.
Why does car insurance vary on the same type of car?
im looking to insure a toyota mr2 although the car itself is irrelevant. the question i have is, why do prices vary so much? e.g. using compare the market.com 1 car on a j reg same engine,spec,model,colour everything other than reg costs 750 a year, where as a G reg costs 1400, almost double, just for a car thats a few years younger? how can that justify such a spike? same safety ratings.. same personal details, exactly the same model,spec and trim. any ideas?
Why is auto insurance different for every city in a State as opposed to standardizing rates across entire States?
Cities, towns, and villages enjoy different and unique characteristics across every state in the US.To the extent they differ in the factors that influence the potential for losses for which insurance pays, the rates will be different.Let’s look at just a few examples of those variables which cities should - and - do have different auto insurance rates:Crime:Some cities have much higher rates of vehicle theft and vandalism.To the extent that cities have greater control over criminal activity, expect comprehensive coverage rates to be significantly lower.Animal DensitySome areas have a higher density of animal population which increases the potential for comprehensive losses.Accidents with deer and other types of animals crossing roadways results in more frequent payouts for comprehensive claims and thus higher premiums.Litigious Activity:Certain areas of a state will have a greater concentration of legal representation and therefore litigious activity.Higher incidents of legal activity will result in upward pressure on liability and uninsured motorist coverage premiums.Traffic Congestion:Every city has unique traffic patterns and accident propensity.To the extent that a city’s traffic is congested and prone to accidents, rates for nearly all coverages will increase.Those are a few variables that influence differences in auto insurance rates between cities within the same state.
How much does car insurance vary in price by state? Which states have the cheapest insurance?
According to data collected by the Insurance Information Institute, the cost for auto insurance (2014 last numbers posted) varies significantly by US States.The map below shows average cost of insurance by state, compared to the average cost of insurance in the United States ($866).The states in pink have average auto insurance rates that are 1% to 19% greater and red states have rates 20% or greater than the U.S. average. Light Green states have rates 1% to 19% lower and dark green states have rates more than 20% less than average.Top and Bottom 10 states by average Premium:For a complete list see: Insurance Information Institute - Facts + Statistics: Auto insurance.Why such differences? Reasons vary:Loss ExperienceCoverage Parts RequiredLimits of Coverage RequiredThe Insurance Information Institute also reports that rates WITHIN a state can vary to an even greater extent. For example:Michigan Average Cost for Auto Insurance - $1,227.36Detroit Average Cost for Auto Insurance - $10,723 (yes the comma is in the right place)The state in which one lives, down to the actual zip-code will influence the cost for auto insurance.
Why did my car insurance with geico go up?
There is no ONE insurance company that is right for everyone - everyone is rated individually - and all companies have different "likes and dis-likes", different credit tiers, different business models, and many other factors that can vary your rate - and a QUOTE is ONLY a quote until the policy is issued. Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement. The best thing to do is call a LOCAL independent agent or broker. Don't go across town, or to some other city - look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies. An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can. In my agency, we have companies that do NOT run a credit score and welcome drivers with "less than perfect" driving records and specialize in youthful operators! Most of the replies on this site say "go to this on-line carrier or that on-line carrier or that 1-800 number" but I'm sure that when you do, you will find some impersonal computer user with a script to work from and you won't be able to talk with the same person every time you have a problem! Good luck, drive RESPONSIBLY and I hope this helps!