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New Reasons Why Auto Insurance Quotes Vary by State

You may think you know most of the factors that determine how much you pay for insurance. Your age, the type of vehicle you drive, and whether or not you have a clean driving history influence insurance rates. Perhaps you even know that where you live can be a deciding factor. Considering the crime rate in your neighborhood makes sense because vehicles can be damaged or stolen in high-crime areas. But it may not be obvious why the state you live in makes a difference when you get auto insurance quotes.

Geographical Factors

There are specific considerations that insurers include in rate calculations that are determined by your state of residency. These include crime rates and claim rates. Additional factors that vary by state include:

However, new reasons are emerging for higher rates in particular geographical locations. These reasons might surprise you:

Each state is affected by these factors to varying degrees. You can compare the cost of living and income levels in your state to other states using information from the U.S. Census Bureau to see if you are paying higher premiums than if you lived in another state. Consider that information when requesting auto insurance quotes so you know what to expect.

A Case Study: Connecticut Drivers

If you live in Connecticut, you can expect to continue to pay higher rates for auto coverage. Auto insurance quotes reflect the high cost of living in the state. Recent studies have examined why drivers in this state face rates that are considerably higher than in other states. The primary finding of these studies is that insurers are only required to inform the Connecticut Department of Insurance when they increase premiums. The Department does not disapprove rate hikes even though it can and probably should at times.

Connecticut is not the state with the highest premiums, but it is among the top. The average cost of a policy across the country is around $1,430. Drivers in Connecticut pay an average of $1,665. You may be able to find cheaper policies using auto insurance quotes to compare rates of several insurance companies.

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