Average Auto Insurance Rates

No matter what state you live and operate a vehicle you will need auto insurance coverage. If not the traditional coverage you get from an insurance agent or online through sites like Insurantly.com you at least need the equivalent in financial responsibility so that you ensure you are able to cover the cost of damages to people or property in the event of an auto accident.

Average Rates By Lowest and Highest Costs (Yearly Estimates)

 Lowest Car Insurance Rates

  • Maine: $890 – $1000
  • Iowa: $975 – $1,000
  • Wisconsin: $980 – 1000
  • Idaho: $990 – $1100
  • North Carolina: $1,015 – $1120
  • Vermont: $1,050 – $1140
  • Ohio: $1,100 – $1,200
  • South Carolina: $1,105 – $1,210
  • New Hampshire: $1,130 to $1,225
  • Arizona: $1,170 – $1,250

Highest Car Insurance Rates

  • Florida: $1,700 – $2,100
  • Louisiana: $1,700 – $2,500
  • Michigan: $2,000 – $2,600
  • Montana: $990 – $2100
  • Oklahoma: $1,415 – $2,000
  • Washington D.C.: $1,000 – $1,800

Factors that have influenced rates:

  • Michigan. No-fault auto insurance system, PIP coverage requirements, annual assessment fess to the Michigan Catastrophic Claim Association.
  • Montana.  Unusual court system, how population is spread out throughout the state, safety laws and high fatality rates.
  • Washington D.C. High traffic equals more car accident per person by twice the national average, market is considered smaller which leads to less competition from auto insurance companies.

Insurantly gathered data from multiple online sources to calculate these costs of car insurance by state coverage. There are many different factors that can influence the rate of auto insurance you will pay. These are averages and you may pay more or less depending on your car insurance company and how they assess and grade your risk profile.

Car Insurance by make and Model

 

A major factor under the consumer’s control is the type of car your drive. Safety features, accident and ticket histories, and where you actually own and drive the vehicle contribute to the rate you pay by the make and model.

Learn more on our Make and Model page.

Insurantly continues to invest resources to expand its knowledge on car insurance topics that are important to consumers looking for answers. Auto insurance is not the most sexy topic but everyone needs it and everyone likes a great deal on car insurance quotes.

By partnering with the most respected car insurance companies in the industry we are able to offer road-maps to intelligent car insurance comparison.

Sometimes it is important however to look beyond pricing. You need to make sure you are not only making sound financial decisions but also decisions that protect you, your family, and your assets. Some carriers may do that more comprehensive than others. That is why it is important to compare rates and the details that go along with each policy.

selecting car insurance coverage

Selecting the right amount of auto insurance coverage is about covering your property and your liability exposure.  Covering your property is pretty straight forward. Assessing how much liability coverage you need is more difficult.

Selecting the right Amount of Coverage in Your State

Protecting Against Lawsuits

Unless you are a practicing physician your car is your single largest source of liability exposure against injuries, death and property damage. In a serious car accident property damage can be significant. Even in just a two car accident the damage can easily reach $100,000 or more. However, this is nothing compared to the liability exposure if someone is seriously injured or killed in a car accident.

Let’s take a look at a real world example. While adjusting the radio you accidentally run a red light and broadside another car. The other driver sustains injuries that require $70,000 of medical treatment and is out of work for two years. What’s your liability exposure? Well it depends on who you hit and your suability factor.

Why who you hit matters

who hits you in an auto accident matters

There are four primary components to any auto accident liability case: property damage, medical bills, pain and suffering and lost wages.

If he’s a checkout clerk, his car may be worth $7,000, his lost wages for two years might be $40,000, his pain and suffering to be $250,000. His total claim including medical treatment would be $367,000.

If he’s an accountant, his car may be worth $25,000, his lost wages for two years might be $140,000. His pain and suffering calculated to be $340,000. His total claim including the medical treatment would be $575,000.

If she’s a surgeon, her cost might be worth $60,000, her lost wages might be $700,000, her pain and suffering might be $520,000. Her total claim would therefore be $1,350,000.

The difference between the checkout clerk’s claim and the surgeon’s differs by almost $1 million. The most common liability insurance is $100,000 / $300,000. That means you have $100,000 for injuries you cause to a single person and up to $300,000 for injuries if multiple people are injured.

Injuries from a serious car accident can quickly exceed the limits of your insurance policy especially when you add in legal costs which we have ignored in these examples. If your liability exceeds your coverage the injured party may go after both your current as well as future personal assets and income. That is where your suitability becomes a factor.

Your Suability Factor

While it is difficult to plan around who you might hit, it is easier to assess how likely an injured party is to come after your personal assets and income. People with high current incomes or assets are often aware of their suability.

However, people with little current income or assets may overlook their future income or asset potential. For instance, if you have wealthy parents and stand to inherit a large sum or if you’re a dental student or aspiring lawyer, your suability factor is high.

Given the high legal costs to sue someone an injured party is only going to pursue the matter if there is something to gain.

Additional Liability Insurance is Cheap

The good news is that additional liability insurance is cheap especially if you have a good driving record. The annual cost of raising your limit from $100,000 to $500,000 is approximately $150 per year.

If that is too steep consider raising your deductible to $1,000 to offset some of the cost. Coverage beyond $500,000 is sold in $1 million increments under an umbrella policy. A $1.5 million umbrella policy will cost approximately $300 more per year than a $100,000 policy.

Seriously consider spending the extra $12 per month to get at least $500,000 of coverage. The peace of mind alone is worth it.

Don’t Overlook Uninsured and Under Insured Motorist Coverage

Uninsured and Under-insured motorist coverage laws vary state to state. In some states coverage is mandatory and in others it is optional. Uninsured and Under-insured motorist coverage protects you if the economic value of your injuries (property damage, pain and suffering, medical bills, lost wages, etc) exceeds the coverage limits of the other party.

The number of uninsured motorists varies from 4% in Massachusetts to 28% in Mississippi. The national average is 13.8%. According to a recent USA Today article uninsured motorists caused insured motorists $10.7 billion in 2007.

Equally concerning is that the minimum amount of bodily injury coverage required by states averages $24,000 and minimum property coverage averages $16,000.

These minimums only cover minor property damage and very superficial injuries. These limits do not begin to cover the cost of disability or death.

If you are disabled in an accident by an uninsured motorist and can no longer work, how much coverage would you need to provide for yourself and your family? As a rule of thumb you should carry as much uninsured and under-insured motorist coverage as your liability insurance limits.

You have liability insurance to cover the injuries you cause to strangers. It’s only logical that you have the same amount of coverage to protect your family.

You don’t get to pick who hits you so don’t rely on others for protection. Half the drivers on the road are uninsured or drastically under-insured in the event of a life changing accident.

Choosing the Right Deductible

Choosing the right deductible requires a bit of simple math using the below formula and a little guesswork. If the Potential Savings of raising your deductible exceeds the difference between the higher and lower deductible then go with the higher deductible.

Potential Savings = (Annual Cost Difference) x (Number of Years Between Claims)
If Potential Savings > Difference in deductibles then go with higher deductible

For example if the annual cost savings of moving from a $500 deductible to a $1,000 deductible is $60 and you estimate that you file a claim once every five years then the Potential Savings is calculated as: ($60/yr in cost savings) x(5 years) = $300.

However, in this example the $300 in Cost Savings is less than the $500 difference between having a $1,000 and $500 deductible so in this scenario you should stick with your $500 deductible. To know whether or not to adjust your deductible you just need to run the numbers.

If you rarely turn in a claim, it probably makes sense for you to go with higher deductibles. Drivers with bad driving records and as a consequence relatively high insurance premiums can offset their higher costs by increasing their deductible.

Lower your insurance today. Fast and easy quote!

Enter Zip Code:

 

Or call  and compare your payment options.