It's worth noting that drivers in no-fault states, such as Florida and Michigan, pay more for car insurance than drivers in other states. Car insurance premiums are part of the lives of nearly 230 million American drivers. The cost of car premiums can vary a lot, not just from person to person, but also much more broadly, such as the state in which you are driving. Six of the 10 most expensive states in terms of auto insurance premiums were also among the 10 most densely populated.
Only Louisiana was a state with a higher premium cost and a population density in the lower half of the Census Bureau's density classification. We also found that the opposite was true with most low-cost states for auto insurance. As defined by the Census Bureau, 81% of Americans live in urban areas. Average disposable income wasn't such an obvious factor, at least at the state level.
Only four of the 10 most expensive states in terms of auto insurance premiums, all in the Northeast Corridor, were states with average incomes above the national average. States with the lowest average incomes, such as Georgia, Louisiana, Michigan and South Carolina, also have some of the highest premium costs. The average cost of car insurance can vary significantly from state to state. Drivers in Michigan, Connecticut and Florida pay some of the highest auto coverage rates in the country.
Vermont and Idaho are two of the cheapest states for both full coverage and minimum liability insurance. Yes, a higher credit score leads to lower car insurance rates in every state except California, Hawaii, Massachusetts and Michigan. Your age, gender, driving history, and where you live also play a key role in determining the cost of car insurance. The use of a credit-based insurance score is prohibited in calculating auto insurance rates in California, Hawaii, Massachusetts, and Michigan.
If your driving record also doesn't contain traffic violations or accidents, you can receive a discount for driving to get even lower car insurance prices. However, the driver's geographical location isn't the only factor that has a major impact on car insurance rates. A driver with accidents or traffic violations on their driving record will pay more for car insurance than a good driver with a clean record. While there are many other variables that affect a person's insurance premium, according to the National Association of Insurance Commissioners (NAIC), there are three that correlate with the state in which they are driving.
When determining car insurance costs, auto insurance companies review the last three to five years of your driving record, depending on your state. Car insurance can still be important for drivers in New Hampshire and Virginia, as they have the financial means to pay for damages after a car accident. As drivers age, mature and gain more experience behind the wheel, car insurance rates are getting cheaper. If your auto insurance company increases rates next year, you'll see the increase in the next renewal period.
Gender can be a qualifying factor for car insurance in every state except California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania. Your driving record is an important qualifying factor for auto insurance companies because it shows them the risk you represent as a driver. For example, Louisiana has a much higher rate of auto insurance claims and lawsuits for bodily injuries than the national average. The climate is mild in most of these states, especially compared to states like Florida and Louisiana, which experience severe weather conditions and are two of the most expensive states for car insurance.