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Insurance Rates and Location


Where you live can make a huge difference on how much you pay to insure your car.  If you've moved around the country, you may have noticed that policy rates vary from state to state.  Interestingly enough, driver safety in different regions of the country is not the only factor on policy premiums. 

The Facts

A recent study conducted for Insure.com determines the breakdown on which states have the highest and lowest premiums. Louisiana tops the list with an average policy premium of $2,510 annually.  The state of Maine boasts the lowest rates in the country, averaging only $903 per year.

Why So High?

With over $1,500 separating the annual premiums of the most and least expensive states to insure, one wonders what makes the difference.  While zip codes are used to determine theft levels, most of the disparity between premiums from state to state is based on legal factors.  State laws have the largest impact on what drivers pay.  In Louisiana, for example, only insurance claims of $50,000 or more are entitled to a trial by jury, resulting in many hefty settlements paid out of court. 

Why So Low?

Population plays a role for the states with the lowest auto insurance premiums. Rural states, like Maine, have less highway use and less traffic, which results in fewer accidents and claims.  However, state laws are probably the most influential, as some more populated states (like Ohio and Massachusetts) do fall into the ten cheapest states.

 

 

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