What Is The Average Cost Of Auto Insurance? PDF Print E-mail
Written by Ricardo D Argence   
Sunday, 03 October 2010 18:44
So, how much do people in general spend on auto insurance? This is actually quite a difficult question. Contrary to what many people believe, the area in which you live can in fact influence the cost of car insurance more than the make and model of car you own.
by RicardoDArgence


So, how much do people in general spend on auto insurance? This is actually quite a difficult question. Contrary to what many people believe, the area in which you live can in fact influence the cost of car insurance more than the make and model of car you own.

For example, if you live out in the country you'll almost certainly end up paying less for cover then if you were to live right in the heart of a city. This is simply because if you were living in a city, there's more chance that your car would be involved in an accident.

Insurers determine the cost of premiums by considering a variety of pertinent factors that include the driver's age; however, the major concern is assessment of the risk that they will have to pay a claim.

Interestingly enough, the NAIC (National Association of Insurance Commissioners) have stated that the overall cost of auto insurance has dropped by 1%. This figure was reached by looking at the ten most expensive and least expensive states to live in as far as car insurance costs are concerned.

In Washington DC, the average household spends more or less $1,000 every year, while in North Dakota, the yearly average is only $530. As you can see, the difference is significant.

If you ever decide you want to move from where you're staying at the moment so that you can also take advantage of cheaper car insurance, then you should ideally consider places such as North Carolina, Wisconsin, Kansas, Nebraska, and South Dakota. In all of these states, the average cost of comprehensive car insurance is less than $600 per year.

However, interestingly enough, the median price for homeowners in North Carolina is more elevated since their coastal region suffers a lot of hurricane damage. There are many factors to think about when you are picking a new place to live.

Delaware, New York, Florida, and New Jersey, tend to have the most expensive car insurance rates in America. Generally speaking, the average cost of car insurance in these states is about $1,000 per year.

Different cities also have different rates. The state average rate is driven up by cities with higher rates. Just two years ago, people residing in Detroit could expect to pay over five thousand dollars a year for auto insurance.

Even though car insurance is so expensive in Detroit, that doesn't mean the entire state pays that much. In fact, the average is actually under $1,000. Also, Michigan is fortunate enough to have numerous rural regions, and if you choose to live in one of the rural areas you will most certainly pay even less for your insurance.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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