Virtually every state requires motorists to secure auto insurance to operate a vehicle on the road. The annual insurance premium that you can expect to pay varies. For example, it’s $1,405 in Kentucky and $803 in Ohio. According to NerdWallet, the national average in 2021 is $1,592 annually.
The variances in rates among states may tell you a lot about your risk of becoming involved in an automobile accident there. However, there are other factors.
What contributes to variances in auto insurance prices?
Motorists often wonder why there isn’t a set price for auto insurance. It has to do with many factors, such as:
- Gender, marital status and age: Insurance statistics show that certain motorists are more apt to become involved in crashes and incur more costly medical bills than others. These people typically have to pay higher insurance premiums.
- Car choice: Insurers believe that motorists with certain vehicles are more likely to drive more recklessly than others and therefore assess a higher premium to account for this.
- Past driving violations or claim history: Many insurers are aware that there’s a strong likelihood that a motorist convicted of a serious violation, such as drunk driving, might commit the same offense again. They also realize that motorists who have caused accidents before might be apt to do so again. Insurers may assess a higher premium that correlates with the risk they assume in insuring them.
- Zip code: Weather and traffic patterns, road design and conditions and the area (rural or urban) can vary. These may make motorists more likely to become involved in a crash, which is why there may be some variance between insurance rates by area.
An additional factor that can impact insurance rates that you’re assessed are state coverage limits. Some states subscribe to the at-fault or no-fault doctrine when it comes to accidents. These, in part, impact who you can file a claim for crash-related injuries with.
Each state generally has its own minimum insurance coverage limits. Drivers can generally purchase higher level and add-on coverage and choose which deductible best works for them, all of which can impact premium costs. Your ability to make sense of it all is key to getting the compensation that you deserve if you’ve been injured in a crash.