Get FREE Car Insurance Estimates
in just 2 minutes

Average Car Insurance Rates – Carinsuranceestimate

average car insurance ratesIt’s smart to get an idea of the national average car insurance rates before you go out and buy a policy. It will give you sort of a compass as to whether you are paying too much or too little for your insurance. It’s even smarter to focus in on the average rates in your state, which are more cost applicable to you personally.

Over the past few years, car insurance rates have increased every year, in large part to increasing claim costs that result from roughly 12 million annual accidents. Today, the average monthly premium for automobile insurance is about $1,500. That equals about $125 a month and could vary based on a number of factors including the state you live in and the car you drive, which are two of the biggest insurance pricing components.

States with the highest average auto insurance rates

In general, the more densely populated the area, the more likely people will bang into each other. Large cities thus tend to have higher average car insurance rates. Cities like Chicago and New York will cost more for automobile insurance than a small town in Iowa.

Some cities like Las Vegas have a really high accident rate, not only because of the thousands of cars that throng the streets daily but because so many people in this party city are intoxicated with either alcohol or drugs. Some studies have estimated that after 10 PM, about 40% of drivers in “Sin City” are intoxicated in some manner. Auto Insurance companies use this information to justify charging higher rates.

Five states with the highest insurance rates

So what are the five states that have the highest average car insurance rates? Lets take a look at research published by Quadrant information and you just might be shocked at who tops the list.

1. Louisiana – the Bayou state. $2,700
Most people, including myself, would never guess that Louisiana tops the nation as having the most expensive average auto insurance premiums. Residents in the Bayou state pay an average of about $2,700 yearly, which equates to $225 a month.

That means you could easily be paying more for your car insurance than your car loan in the pelican state. Louisiana insurance rates have sored in recent years due to increases in serious bodily injury claims.

For any claim under $50,000, a judge can decide the outcome and usually sides with the consumers and not the large insurers. Insurance companies end up paying these claims but also increase their rates. In the long run, everyone in turn has to pay more for auto insurance in Louisiana.

2. Michigan – the motor state. $2,500
Most people are surprised to find out that Michigan residents pay on average more for auto insurance than Californians. In fact, Detroit is the most expensive city in the United States to insure a car in, with rates that are about 165% more than the national average. Michigan has been besieged in recent years with personal injury claims.

There are no imposed limits for personal injury and thus insurers in general pay out more for accidents than in other states. Also, some reports estimate that up to 50% of Michigan drivers carry no auto insurance whatsoever. When these drivers get into accidents, often times the insurers end up paying out huge claims and are forced to pass those costs along to consumers to maintain profitability.

3. Georgia – the peach state. $2,150
Drivers in Atlanta Georgia have some of the longest commutes in the country. With drivers behind the wheel more than most other large urban cities, this equates to more accidents and premium increases.

4. Oklahoma – the Thunder state. $2,080
Despite this states rural area, it has some of the most expensive average car insurance rates due in large part to costly claims for bodily injury.

5. Washington D.C. – the capital $2,000
Just about everything in Washington D.C. seems to be expensive and car insurance is no different. This congested city has its fair share of accidents and yes you guessed it, injury lawyers all over.

If you are thinking of moving and are on a tight budget, then perhaps you should move to an area with lower average auto insurance rates. If you must live in an area that has high automobile insurance costs, make sure you get the cheapest rates possible. With a free car insurance estimator tool, you can calculate your insurance costs in just a few seconds. Also, if you want full auto insurance quotes, check out CarInsuranceEstimate.org and compare the best rates. The service is totally free and many customers report savings of $500 or more.

States with the lowest average car insurance rates

Again, states that have the lowest population density and lowest auto theft crime tend to have the best auto rates. Here are the top five.

1. Maine – the pine tree state. $935
This state has some of the most open roads of any state and far fewer accidents than large urban areas. Some cheap liability rates can be bought in Maine for $35 a month. Now that’s an insurance bargain.

2. Iowa – the corn state. $1,030
This rural state is famous for its corn, state fair and Midwest friendliness. Iowans have some of the lowest rates nationwide because there are fewer accidents and the people seem to just know how to drive better.

3. North Carolina – the home of Michael Jordan. $1,090
North Carolina is one of the best places to live with low housing costs and cheap car insurance.

4. Ohio – the steel state. $1,100
Ohio is home to some of the biggest insurance companies, such as Progressive. For less than $95 a month, you can get great insurance in this Midwest state.

5. New Hampshire – the granite state. $1,110
Like Maine, New Hampshire has open highways and fewer cars on the roads than most other states. Find great rates on car insurance in this beautiful state for about $100 per month.

Cheaper Car Insurance Rates

Now that you have an idea of the national average for car insurance rates, lets check out ways to get your rates lower, so you can beat the averages.

1. Maintain a good driving record and you could qualify for extra discounts.

2. Buy a car that has lower average auto insurance rates like any Volvo model. Some insurers even offer discounts for environmentally friendly eco cars like the Prius.

3. Shop around and compare lots of online auto insurance quotes. Getting the best rate takes a little digging and persistence.
Get at least 5 quotes so you can find both the best price and insurance company you most comfortable with.

With CarInsuranceEstimate.org, we take all the hard work out of car insurance shopping. With one quote, you can compare up to 10 rates from national auto insurance providers. Get going now and see how easy saving money on automobile insurance can be.