On average there are states that remain among the top of the list of most expensive to maintain coverage year after year. These states include New Jersey, Louisiana, New York, Florida and Massachusetts; also included on the list is the District of Columbia. Recently, the state of Michigan has joined the list due to the fact that the city of Detroit’s motorists are paying some of the highest premiums in the nation.
Individuals should understand that the highest auto insurance by state are based on averages and that the average is usually increased by certain urban areas that cause the cost to be raised. There are many factors that contribute to the reasons why residents of these areas are subject to higher costs such as congestion and crime rate. The states mentioned all have major cities that contain a high amount of automobiles and traffic on their roadways which results in an elevated chance of accidents and in turn will cause premiums to be affected due to the amount of losses having to be paid out by insurers.
Cutting Costs in States with High Car Insurance Rates
There are many ways that individuals can cut the rates that they will pay for coverage. One such way is to compare quotes from various insurers in order to find the best deal possible. When comparing carriers experiment with different amounts of deductibles. The amount chosen as a deductible can directly affect the price of a premium, but keep in mind that this is the money that would have to be paid in the event of a claim, so be sure that the funds are available if the situation arises.
In addition, if insuring an older vehicle, consider dropping coverage for physical damage; the amount of the premium combined with the deductible that would need to be paid may exceed the vehicle’s value and end up costing the policyholder money rather than protecting them. Also, when comparing quotes always be sure to take advantage of any discounts that may be available. There are several that can save a substantial amount of money and according to the New Jersey Department of Banking and Insurance insurers are required to provide a discount to those who have completed a defensive driving course. If consumers take the time to shop around and shop effectively they may be able to find the lowest price available for them specifically.