Insurance Rates - How Does Your State Measure Up?

Some people are surprised to find that they could pay much less for auto insurance if they lived in another state. It hardly seems fair that the state where you live should determine your rates, does it? However, there are a lot of factors that contribute to higher auto insurance and once you know them perhaps they’ll help you lower your own rates.
Which are the States Where Rates Soar?
There are five states that have the most expensive auto insurance rates. Those are Detroit, Philadelphia, Newark (New Jersey), Los Angeles and New York City. Do you notice anything that these cities have in common? It’s not the area of the country they are in, certainly not the weather factors and definitely not the average median income. Two things stand out in these five cities-the amount of traffic in the cities and the crime statistics!
These five cities have large populations, massive traffic jams and major centers of business that are concentrated in the hearts of the cities. To insurance companies, this translates to more traffic accidents as well as a higher dollar rate to repairs and replacements. The larger the city, the higher the taxes and thus, the more costly the new product (the car) and the repairs. Since insurers typically pay out more claims for more money in larger cities, premiums for those who drive in those areas will be higher.
In these five cities, yearly premiums range from $3,127 to as high as $5,162!
The Cheapest States for Auto Insurance
Where there is a high, there is also a low. The opposites to the highest five states range from $949 to $748 for annual rates. These cities are:
Roanoke, Virginia
Wapakoneta, Ohio
Chattanooga, Tennessee
Green Bay, Wisconsin
Raleigh, North Carolina
Why should insurance be less expensive in these cities? Let’s take little Wapakoneta, Ohio, the birthplace of Neil Armstrong the famous astronaut. Wapa, as the natives call it, is a fairly small city with light traffic. It is surrounded by suburbs and farmland with country roads as well as the interstate freeway. Wapa isn’t exactly the hub of commerce for Ohio, yet it is a bustling little city with a vibrant economy.
Let’s compare Wapa with New York. The population counts are polar opposites as are the traffic numbers. You rarely see a traffic jam in Wapa! Fender benders are rare compared to New York and most of the major businesses are located outside the center of the center as opposed to New York and the island of Manhattan.
Car thefts are quite common in New York as opposed to Wapakoneta, Ohio. Since Wapa is a small city, the population doesn’t justify body shops raising their rates or car dealerships hiking up the prices of their models. It won’t cost an insurer nearly was much to repair or replace a car in Wapakoneta as it will in New York City!

Now that you know, perhaps you can use some of this information to lower your own auto insurance rates.