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Average Car Insurance Rates

For the year 2012, the average car insurance rates were rated at $1438. Majority of the US is below the national average which is a good thing since this means the coverage for most states are still friendly to consumers. However, 20 states are above that national average. For 2012, states including Louisiana, Oklahoma and Michigan had to pay extra high premium averages at around $$2000 to $2500. Determining the average auto insurance rates can be a tough task since sampling decisions are different for each company making the survey. Also, the measures will vary depending on which types of coverage should be included and since different states have specific rules on what should be included, we cannot make a really accurate determination on what is the average car insurance.

Nevertheless, the rates can be affected by some important variables. Such variables can either increase the premium or otherwise.

State laws

Michigan, one of the top 3 states with the highest rates has some unique additions to the insurance policy as mandated by the Michigan law. First no fault insurance is being applied so no matter who is at fault, the decision of the insurance company to increase the rate will be most likely higher the following year since you were part of that accident. Speaking of accidents, Personal Injury protection is guaranteed in the state so you can expect that the policy will also rise since insurance companies need to get back their losses for each bodily injury claim. As you can see, insurance rates can be affected by policies enacted in the state where you reside.

Urban vs. rural

People who life in urban settings, like New York might want to take the subway than to drive a car. The average car insurance rates are higher in urban settings. Cities have higher traffic density and when there are more cars coming from all corners of the street, the more likely you will get in trouble with an accident. Also, the prices in cities tend to be higher generally and this means the auto insurance rates will also be higher compared to people who might be living in very peaceful rural areas where cars drivers can take all the time and space they need to drive safely.

Accident occurrence

How often is the traffic in your area? Car insurance rates can also be affected by the occurrence of accidents and crimes in the area. A place where theft, vandalism, drunk driving, carjacking and other kinds of problems happen can expect higher rates. If you drive in an area where crime rates are virtually reduced to a minimum, expect that the rates will be lower. Traffic occurrences can also increase based on the conditions of the roads you take and the distance you cover.

Repair costs

Labor costs per location vary. A rural town with basic repair services may not have the expertise to handle an expensive foreign car. Of course, insurance companies often have their selection of repair centers that are usually cheap, but beyond average car insurance rates, you must look for a repair expert with skills in handling the kind of car damage that your car has.

Are you ready to determine your car insurance rates? Choose your state and receive quotes from top companies in your locale.