Owning a car in the USA comes with a lot of extra needs and responsibilities. Yes! You may have to adjust your budget to accommodate the expenses that come with owning a car. Having auto insurance, for example, is one of the key requirements that every car owner needs to meet. In America, the only state that doesn’t require liability insurance is the state of New Hampshire. That means that all other states require you, as a car owner, to have a valid auto insurance cover set in place.
Unfortunately for American car owners, the premiums charged these days can be painfully steep or manageably low, depending on your state of residence. According to the national Insurance Information Institute, there is about a 700 Dollar difference every year between average auto insurance in the most expensive states like New Jersey and the least expensive states like Idaho. That’s quite a stretch don’t you think?
One thing you should know is that the National Association of Insurance Commissioners – NAIC – often (periodically) makes in-depth assessments on what Americans are paying for auto insurance nationwide. That’s why according to them, your geographical location can determine how much more or less you’ll be expected to pay than the national average. NAIC reports also show a slight increase in the average expenditure countrywide. This means that you can expect to pay more for your auto insurance cover in the coming years too.
So, what brings about this great divide in premium rates? Well, it’s quite simple actually. Many factors determine how much you are expected to pay for your car’s insurance. Take location, for instance, urban drivers often find themselves paying more than those who live in rural areas because the risk of accidents, theft, or vandalism tend to be higher in urban settings than in the countryside.
Basically, this means that living in densely populated states like Florida, Louisiana, New York, New Jersey or the District of Columbia is evidently going to cost you more in terms of Auto insurance. But, that doesn’t mean that you should put your Florida house up for sale; No! There are ways to lower your car insurance premiums; it all takes a bit of time and research on the internet.