Secured with SHA-256 Encryption
Auto Insurance Costs
Nearly every state requires some sort of minimum liability coverage on all automobiles, but that is just the base amount for auto insurance costs. These rates may vary by state as does the total cost of insurance.
There are steps a person can take to lower their insurance premiums such as being a good driver and having a clean criminal record. In addition young drivers can get discounted rates if they get good grades.
Save on auto insurance costs today by simply entering your zip code above to receive free auto insurance quotes!
States with the Highest Insurance Premiums
In 2010 Louisiana had the highest insurance premiums with an average cost of over $2,000. The reason for this outrageous insurance cost is because of the law in Louisiana that only allows a tort lawsuit to go to a jury trial if the monetary value is over $50,000. For this reason there are many $49,000 lawsuits and insurance companies pay out on many of these suits.
Michigan was the next highest state for automotive insurance costs. Many people would tend to think this is because of the declining economy and loss of what made Michigan known – Detroit and Motor City. This is not the case. Detroit has a health coverage clause which is the only of its kind in any state in the United States. This clause requires a person to pay for medical costs relating to an accident for a person’s lifetime. The maximum amount an insurance company is required to pay is $460,000. After the maximum coverage amount is reached the coverage does not stop but goes to a state pool. This affects everyone living in the state as it drives the cost of car insurance to over $2,000 per year just for the cheapest state minimum coverage.
In the first six months of 2011 Michigan surpassed Louisiana as the most expensive state to obtain car insurance. Many legislators in Michigan claim that the cost of insurance is only going to continue at an upward pace until something is done to change the law regarding medical coverage.
Most Stolen Automobiles
Another factor in the cost of an individual insurance premium is the type of vehicle a person drives. SUV’s tend to have the highest theft rate with the Cadillac Escalade being the most frequent SUV that is stolen.
Thieves today are driven by horsepower. Trucks, especially trucks used for work, have the next highest theft rate. This is because to a thief stealing a truck is like a two for one bonus. Many work trucks contain tools a person uses for his or her work. Thieves get the vehicle and the tools.
Ways to Lower Automobile Insurance Premiums
There are several different ways to lower insurance premiums for your automobile. Depending on the insurance company you may qualify for more than one discount.
– Multiple Policies
When you insure your vehicle and home or other recreational item on the same policy you are eligible for a multi-policy discount. These discounts are common for the homeowner and will usually give you a 5% or 10% discount per year.
– Good Driver
Companies like Allstate will give you a refund twice per year if you are accident and ticket free. Driving cautiously and defensively will get you lower rates. If you get insurance from a company that doesn’t give refunds you will still have lower insurance rates if you have a clean driving record. Most insurance companies look at the previous three years to determine how good of a driver a person is.
– Low Mileage
For people who don’t drive much there is a discount for it. This discount applies to people who drive less than 12,000 miles per year and to drivers who use a carpool for work.
– Pay-in-Full
Some insurers offer a discount if you pay for the entire term of your policy at one time.
– E-Sign
Several different insurance companies are encouraging their customers to go green. Because of this way of thinking the insurance companies are offering a discount if a person signs up online and opts for electronic billing rather than receiving paper notifications.
– Good Student
For the younger drivers there is a discount on auto insurance that encourages them to do well in school. The good student discount applies to students who receive good grades. Insurance policies are normally more costly with younger drivers and this is one way to lower that cost by approximately 10%.
Ways to Get the Lowest Insurance Rates
Before deciding on an insurer it’s a good idea to shop around and find a company that offers the services you need at the right price. Ask friends and relatives who they are insured with and ask if they are happy with the services that particular company provides.
When you are preparing to purchase a new vehicle make sure you research insurance costs for that vehicle. It’s a good idea to know about how much you are going to pay for insurance on a vehicle before you buy it so you aren’t surprised. Make a list of three or four different cars you are interested in and compare the insurance costs on them all.
If you wouldn’t have a problem coming up with money, you can ask the insurance company for higher deductibles. The higher the deductible, the lower the insurance rates.
Cars that are older don’t need full coverage, especially if the blue book value of the car is less than 10 times your insurance premium. Considering dropping full coverage on older vehicles may save a bundle on insurance.
Make sure your credit record is clean. Make your monthly payments on time and try to avoid having items go to collections. Check your credit report free each year to make sure there aren’t any items on it that shouldn’t be. Many insurers look at your credit and can charge higher premiums for those with poor credit.
Save Money on an Auto Policy Today
By following the recommendations listed above getting car insurance at a reasonable price shouldn’t be too difficult. Remember insurance is mandatory in every state. It’s against the law to drive without auto insurance and the punishments can be severe. Don’t overpay for auto insurance. Save today by entering your zip code below to receive side by side comparisons of the top auto insurance quotes in the country.