Things to Consider When Making Auto Insurance Comparisons
You're ready to begin your auto insurance comparison, but you have a bit of a conundrum knocking on the doors of your brain: How does one actually compare auto insurance? Well, this article is meant to help you answer that question. You can also request a free car insurance quote here, which will allow you to quickly compare your options over the phone with a licensed representative.
Looking at auto insurance costs
According to the National Association of Insurance Commissioners (NAIC), the average automobile insurance premium declined by 1.7% in 2006. In fact, the last few years have seen some positive developments in the world of car insurance, and you'll find that most companies have offered numerous new ways to slash rates In order to remain competitive.
Factors to consider as you make your auto insurance comparisons
Perhaps the #1 factor in your car insurance rate is your driving record. With just a few years of a clean record your car insurer will lower rates.
|
Year |
Average expenditure |
Percent change |
1997 |
$705 |
2.0% |
1998 |
$703 |
-0.3% |
1999 |
$685 |
-2.6% |
2000 |
$690 |
0.7% |
2001 |
$726 |
5.2% |
2002 |
$786 |
8.3% |
2003 |
$830 |
5.6% |
2004 |
$842 |
1.4% |
2005 |
$831 |
-1.3% |
2006 |
$817 |
-1.7% |
Another important factor is location. If you live in an area of high crime and high risk (e.g. Detroit, Michigan is consistently ranked as the most expensive large city for obtaining car insurance), then you should expect to pay higher rates. The NAIC study determined that some of the following factors played a significant role in rates:
- Urban Populations with high crime rates
- An area that includes high likelihood of being sued in the event of an accident
- Traffic Density
- Per Capita Income
For states, according to the 2006 NAIC results, the most expensive state was the District of Columbia (at $1,164 a year), followed by New Jersey (at $1,152), Louisiana, New York, and Florida. If you live in a state that is inexpensive – such as Maine ($634 a year, as of 2006) – then your task of finding low auto insurance rates will be much easier!
|
Rank |
Most expensive states |
Average expenditure |
1 |
D.C. |
$1,164 |
2 |
New Jersey |
1,152 |
3 |
Louisiana |
1,094 |
4 |
New York |
1,083 |
5 |
Florida |
1,069 |
6 |
Massachusetts |
1,042 |
7 |
Rhode Island |
1,038 |
8 |
Delaware |
1,024 |
9 |
Nevada |
1,006 |
10 |
Connecticut |
981 |
|
|
|
Rank |
Least expensive states |
Average expenditure |
1 |
North Dakota |
$530 |
2 |
Iowa |
536 |
3 |
South Dakota |
554 |
4 |
Idaho |
577 |
5 |
Kansas |
579 |
6 |
Nebraska |
584 |
7 |
Wisconsin |
590 |
8 |
North Carolina |
596 |
9 |
Indiana |
631 |
10 |
Maine |
634 |
Start your auto insurance comparison today!
Of course, there are numerous other factors that will come into play as you're comparing your car insurance rates. Some can be altered by changes in your lifestyle or driving habits. Others you can't change, such as gender and age. If you're ready find out where your rates stand, simply request your free quote, so that you can start comparing car insurance today!