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Beating The Average Car Insurance Rates With General Insurance

While car insurance rates may seem high, for people in accidents they save people from having to spend drastically large amounts of money in the aftermath. Auto insurance premiums are determined by a number of factors. Factors that most people are aware of that have a large impact on your auto insurance premiums are your driving record, your personal profile, the type of car you are driving, and the year of the car you're driving. Other factors can include the number of miles your car is driven each year and where your vehicle is garaged. All of these things can make a large difference and what people pay for their car insurance policy.

State Average Car Insurance Rates Vary A Lot

In addition to the factors listed above, the state that you live in can have an impact on your auto insurance premium. States like Louisiana and Michigan tend to be costlier, although Michigan currently has legislation that has been introduced to drastically lower the cost of insurance in the state. The average car insurance rates for each state vary as much as they do because of a number of variables. Here are a few state related variables that have an impact on your car insurance rates:

  • State regulations for Personal Injury Protection: Personal injury protection, or PIP, is insurance that covers the costs of injury treatment that result from an automobile accident. PIP is required by law in some states. In states like Michigan the amount of PIP, in terms of how the coverage is provided, is more than many other states. It guarantees unlimited, lifetime PIP benefits. This raises the cost of insurance premiums in the state. While PIP insurance is often a good thing to have, many states do not require that drivers have it.
  • How accident lawsuits are handled: Insurance premiums can also be affected by how lawsuits are handled in each state. An example of this is the state of Louisiana. In Louisiana, a high number of claims are filed each year for bodily-injury. More importantly, accident lawsuits that seek less than $50,000 in damages go before elected judges. Elected judges tend to side a lot more often with consumers over insurance companies, this increases the cost of insurance in the state.

Other Factors Involved In Determining Rates

  • In addition to variables that affect average car insurance rates due to state regulations and lawsuit procedures, there are many factors that affect car insurance rates on an individual level. Auto insurance companies put together your policy quote based on some factors that you can change, and others that you cannot. Car insurance companies use and impressively large amounts of data to determine what sort of risk you are when it comes to insurance. Factors your car insurance company uses can include:
  • Information in your personal profile: this includes things like your sex, age, and marital status. Often, if you are younger and mail, you will pay more than an older female that is married. This is because older females are statistically less likely to file car insurance claims.
  • Your location demographics: The state you are in, as well as the city, has an impact on your rates. As stated above, Michigan residents (who get unlimited PIP for medical expenses resulting from automobile accidents) pay higher rates than the majority of other states. And other states, like Montana, rates may be high because fatality rates from accidents are higher than average and insurers think the driver safety laws are not sufficient enough. In addition, people in more populated areas have a higher likelihood of being in a car accident. Because of this, states where the majority of people are in more highly populated areas, or cities that are more populated tend to have higher car insurance premiums on average. Another factor that comes into play when it comes to where you live affecting car insurance is natural disasters. States and cities that have a higher likelihood of being hit by natural disasters can have increased risk, which translates into higher average car insurance rates.
  • Your driving record: It makes sense that your driving record would have an impact on your auto insurance premium. People in areas that have a higher likelihood of accidents are more likely to make claims. This increases the average car insurance rates for the area. That said, if you are in any area and have a clean driving record, you are more likely to have large discounts on your auto insurance policy. This also goes for how many claims you have made, the lower the number of claims the lower your car insurance rate is.
  • Discounts: Most auto insurance companies offer discounts, which are a great way for drivers to save money on their car insurance policy. Some states even require that specific discounts are made available by car insurance companies in the state. Make sure to talk with your General Insurance agent to get more information on which discounts you can receive.
  • Your credit score: While this has an impact in a number of states, some states make it illegal for car insurance companies to use your credit score as a reason to give you higher or lower auto insurance policy rates. There is a lot of data to suggest that people with a higher credit score are less likely to file car insurance claims. Some of the states that have made it illegal for car insurance companies to use credit score information when determining your auto insurance policy rate are California, Hawaii, and Massachusetts. While changing your credit score and improving it can be difficult, your credit score affects a lot more than just your car insurance premium. It is a good idea to work to improve it to save money on insurance in general, as well as a lot of other things.
  • The amount of insurance coverage you get: The amount of auto insurance coverage that you get has an impact on your auto insurance premium. This is not only impacted by the amount of insurance you decide to get, but also by your states minimum limits. Each state has minimum amounts that drivers must have in order to drive legally in the state.

In a 2015 study, states like Idaho, South Dakota, and Wisconsin were on the lower end when it came to the average amount spent on automobile insurance coverage. The same study put the District of Columbia, Louisiana, and Florida among the higher end when it came to the average amount spent and car insurance coverage. It is important to keep in mind with the study, that these numbers are what people actually spent on average for car insurance. This means that because people in some states tend to purchase more coverage, the rates could be higher on average. Even taking this into consideration, the states that tend to spend the highest amounts on car insurance tend to have the highest average quotes as well.

Final Notes

Regardless of which state you live in, General Insurance is dedicated to providing the highest quality customer service and car insurance coverage. With our free quotes, you can get better premiums that are much better than the average car insurance rates from other companies. We know that you will be happy with our company and our service, call today. 

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