Car insurance seems to increase every year in the United States. Since 2011, rates have risen 23 percent, and the average insurance premiums have increased every year since 2013. In that time, rates in 15 states have increased by 40 percent or more, while in some, rates have gone up an amazing 80 percent in that time period. Today, the average annual car insurance premium is $1,470.
Car insurance rates increased in 41 states last year, with Colorado experiencing the largest increase at 19 percent. The single largest determining factor of what you pay for car insurance is where you live. Of course, other factors will determine what your final rate may be, but ultimately, your location will be the biggest factor in what you pay.
This is because a number of factors. In some states, insurance companies have the right to consider a person’s credit score when setting a premium, while in others, they cannot. Insurance companies will also take a look at their profit-losses in each state to determine what premiums will be. Finally, some states have requirements in place for what type of coverage motorists must have, which can drive the cost of the insurance up.
Here is a list of cheap states for car insurance, expensive states for car insurance and a breakdown of car insurance rates by state.
