There are a number of factors that affect a person’s auto insurance premium. This includes his age, occupation, civil status, how good or how bad his credit rating is, where he lives, and if he abides by traffic rules and violations. While all the other factors are important for insurers, there is one factor that can influence the car insurance rates in one whole state. While many would immediately blame it on the federal government, one should keep in mind that the law is there to protect each citizen. The laws affect how high car insurance obligations should be but they did not put these laws in place without studying the situation. This situation involves the number of motorists that are uninsured or underinsured.
Why should you care about other motorists though?
|it’s not just a state’s laws or the place where you live that can affect how pricey or how affordable your auto insurance quotes will be|
If the state you live in has a big population of uninsured and underinsured drivers, you and the rest of the insured drivers population in your state are most likely paying higher auto insurance rates than other states. The science behind this is fairly easy to understand. If the place is high risk, premiums skyrocket. Although auto insurance obligations vary from one state to the next, most states have minimum car insurance requirements. One has to note though that the minimum might not be enough because these laws have been around for a very long time. This is where studying what types of coverage you need comes in.
Searching for car insurance quotes comes next but if you feel that your car insurance is too expensive, you may want to take a look at why it costs so much. As mentioned before, there are a lot of factors that affect your premium but in terms of the state and the history of vehicle insurance, there is a complex interplay of compulsory laws, financial responsibility, politics, and uninsured motorist coverage that the insured have to shoulder just because tort law in the US deems it fit among other factors.
In Michigan, car insurance costs around $2,000 a year. The reason behind this is a state law that mandates unlimited medical benefits for car crash victims. Another example is D.C. While D.C. technically isn’t a state, it functions like one. What is interesting is that in the year 2012, car insurance costs about $2,000 a year while Detroit residents pay a little over $5, 000 annually for their auto insurance quotes.
While it’s true that some cities are deemed more dangerous and therefore high risk by auto insurers, it’s not just a state’s laws or the place where you live that can affect how pricey or how affordable your auto insurance quotes will be. West Virginia’s auto insurance rates in the year 2009 used to be affordable but the rates went up when the state started getting more snowstorms, tornadoes and other natural disasters.