LOS ANGELES, July 5, 2019 /PRNewswire-PRWeb/ -- Carinsurancehints.com has launched a new blog post that explains why car insurnce costs more in some states of the US.
For more info and free quotes, please visit https://www.carinsurancehints.com/car-insurance-expensive-states/
Car insurance is determined after the insurers have analyzed multiple factors. Some of these factors are related to the area where a policyholder lives. Policyholders that live in certain states will pay higher insurance prices, even though they are good and safe drivers.
The state-related factors that can increase the price of car insurance are the following:
- State legislation. The state of Michigan is the most expensive state for car insurance. On average, the price of insurance in Michigan is $ 2,239. The reason for this high price is Michigan's unique no-fault system. In this system, the victim can ask for unlimited compensation. In most states, PIP limits are regulated by law, but in Michigan, there are no limits on medical benefits.
- How many uninsured and underinsured drivers are in a state. In states with a high number of uninsured or underinsured drivers, insurers will have difficulties into recovering reimbursements from at-fault drivers. For example, in Florida more than 25% of drivers are uninsured, and for this reason, the premiums are $2,050 on average, which is 50 percent higher than the national average.
- Population density. For insurers, a higher density means they are more cars on the roads that are exposed to traffic accidents. Although Rhode Island is the smallest US state, it has a population that exceeds 1 million people. For this reason, the traffic is highly congested and having lots of drivers packed in a small area significantly increases the chances for a car accident to happen. Drivers living in Rhode Island will have to pay an average premium if $1,852, which is 36 percent above the national average.
- Criminality. The number of car-related criminal acts (car thefts, vandalism, riots) that happen in a state can significantly influence the price of car insurance. In states like Alaska, New Mexico, or Nevada, policyholders will have to pay more on car insurance as a result of a high number of car-related criminal acts.
For additional info, money-saving tips and free car insurance quotes, visit https://www.carinsurancehints.com/
Carinsurancehints.com is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.
SOURCE Carinsurancehints.com
Share this article