Average Car Insurance Rates by State – Your Location Matters

With more than 250 million registered vehicles spread across the United States and close to 200 million motorists paying auto insurance every year, the insurance industry is truly booming business. However, with this high number of customers, insurers also have to work extra hard to determine the average car insurance rates by state. Granted, the factors affecting rate of insurance vary from state to state and so what a resident in one state pays will be pegged on the average rates charged in that state.

From the above statement, it is evident that location counts a lot in determining the range within which insurance rates fall. Some states pose a higher risk for drivers than others making it only fair for insurance companies to set the average car insurance rates by state. Ultra urbane areas that are densely populated such as New York, California and New Jersey tend to have a higher crime rate, which pushes insurance rates higher. Also the more populated a state is, the more motorists it has; which increases chances of getting involved in road accidents. It also means that the number of underinsured and uninsured motorists is high. This will generally push the cost upwards, affecting all drivers in the region.

Average Car Insurance Rates by State

In contrast, rural areas enjoy lower auto insurance rates because there are less people using the roads, fewer accidents and fewer claims made. Crime, including car theft is also low. As the average auto insurance rates by state are set, these regions get the lowest rates. A 35 year old man, driver with a clean driving record in New York would pay more than $1,100 in auto insurance premiums every year. If he were living in Montana or Wyoming, which are rural in setting, he would pay only a third of that or less!

Even though data from the National Association of Insurance Commissioners (NAIC) shows that the average cost of auto insurance in 2007 was $795, a look at the average car insurance rates by states paints a different picture. Below are the figures of the average car insurance rates by state per year:

  • California – $800
  • Texas – $810
  • Pennsylvania – $820
  • Florida – $1,045
  • New York – $1,050

Other factors will influence the actual amount you pay, but this will not be very different from the average car insurance rates by state quoted.  They include age, type of car, credit report and driving record.