Is one of them your home state?
Key Points Auto insurance companies consider location information when setting premiums. Some areas are more prone to natural disasters or accidents, and drivers who live in those locations often pay more. Looking around can help drivers in all states find the best deal on car insurance.
Most people know that auto insurance premiums are based on their driving history and the vehicle they own. But these are not the only factors affecting prices. The location is also important. This may affect a driver’s likelihood of having an accident due to wildlife, inclement weather or encounters with uninsured drivers, among other things.
Unfortunately for residents of the five states listed below, their locations work against them as they have some of the highest average auto insurance premiums in the country.
The five states with the highest average annual auto insurance premiums
The following five states have the highest average annual auto insurance premiums in the country for 2023, according to our analysis of standardized personas:
Michigan ($5,766) New Jersey ($4,316) Louisiana ($4,280) Kentucky ($4,200) New York ($4,200)
That’s not to say that all drivers in these states pay that much. There are some that pay more while others pay a lot less. Younger drivers, for example, typically see above-average rates due to a lack of traffic experience and an increased risk of accidents. Older drivers tend to pay some of the lowest rates provided they have a clean record.
The location within the state also plays a major role. Those living in areas with high traffic congestion or high auto theft rates typically pay more than those living in quieter, more rural parts of the state.
How to get the best car insurance deal
The only way for a driver to know what they will pay for auto insurance is to get quotes. Here are a few tips to help you find the best possible deal.
More: Check out our picks for the best car insurance companies
Compare offers from multiple companies
While all auto insurers consider similar factors when calculating insurance premiums, each weighs these factors differently. For example, some penalize drivers more heavily for an accident, while others may pay more attention to the driver’s zip code.
Comparing fares from a handful of companies is the best way for a driver to ensure they are not missing out on much. Many auto insurance companies have online quoting tools and allow applicants to save their quotes if they want to come back to them later.
Take every opportunity to save
Insurers automatically apply most auto insurance discounts to a driver’s rate if they qualify. More discounts are not always a guarantee of a lower price. But drivers who have special circumstances, such as Individuals, such as military personnel or hybrid or electric vehicle owners, may benefit from looking for insurers that offer discounts tailored to these groups.
Additionally, auto insurance companies are increasingly offering driver monitoring programs that policyholders can participate in to earn an even lower premium if they so choose. Most of the time, there’s an upfront discount just for signing up, and drivers can make additional savings by being safe behind the wheel.
Increase your deductible
Deductibles are the prime costs drivers pay before their insurance company pays anything for their claim. Most companies let policyholders choose how much they want to pay. For those trying to keep their premiums low, a higher deductible is better. Just make sure you keep at least enough to cover the deductible in an emergency fund so you don’t have to borrow when you make a car insurance claim.
Even if you do all of the above, it may not be possible to reduce auto insurance premiums well below the state or national average. This is often the case for people with a history of accidents. However, check for new listings once or twice a year and notify the insurer immediately if you move to a different city or state. This could make a big difference to a driver’s premium cost.
Our best car insurance for 2022
Ready to buy car insurance? Whether you’re focused on price, claims processing, or customer service, we’ve researched insurers across the country to bring you our top tips for auto insurance coverage. Read our free expert report today to get started.
