How Do Car Insurance Rates Vary by State?
Have you ever spoken to a friend who lives in another state about their car insurance policy and been astonished at how much different their rate is than yours? Of course, there are so many things that affect this number, including your driving records, the vehicles you both drive, your age, and much more.
But you still might be left asking, “how do car insurance rates vary by state?” If that’s you, keep reading for some helpful information!
Car Insurance Rates by State
Some states are significantly cheaper than others to buy car insurance in, even for two drivers of the exact same age, with the same driving record, vehicle, etc. For example, plenty of research shows Maine as the cheapest state for car insurance. On the other hand, Michigan is regarded as the state with the most expensive car insurance.
What Determines the Price of Car Insurance?
There are so many different factors that go into car insurance rates.
When you compare different states, some of the factors that will influence car insurance rates include:
- Crime rates in the area
- Weather conditions
- The accident rate
- How much insurance is required by the state
State-Required Car Insurance
Each state has a different amount of car insurance coverage its drivers must have. For example, in New Jersey, drivers must have:
- $15,000 of liability insurance for bodily injury to one person
- $30,000 of liability insurance for bodily injuries to all persons
- $5,000 in property damage liability coverage for any one accident
- Uninsured/underinsured motorist coverage with the same 15/30/5 limits
- $15,000 in first-party benefits medical payments (personal injury protection)
Some states don’t require first-party benefits or underinsured or uninsured motorist coverage. In that case, New Jersey car insurance might cost more than it would in a state without those requirements.
But one thing’s for sure, no matter where you live, working with the right insurance company is paramount in making sure you get the best rate and the best coverage! If you’re in New Jersey, Delaware, or Pennsylvania, that company is Rueter Insurance! Give us a call today so we can help you find a policy you can afford with the coverage you need.