LOS ANGELES, CA / ACCESSWIRE / November 27 2020 / Compare-autoinsurance.org (https://compare-autoinsurance.org) has launched a new blog post that presents the reasons why in some states is more expensive to insure a car.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/why-do-car-insurance-rates-vary-from-state-to-state-and-which-states-are-the-most-expensive
Before people move to a new state, they consider the cost of living in their new location. Among the house prices, property taxes, and sales taxes, people also consider the price of car insurance. In the US car insurance prices can vary wildly from state to state.
The reasons why car insurance rates differ between states are the following:
- Rating factors and rules. States decide which methodology insurance companies can use to set their rates. Some states don't factor in age, gender, or credit history. Furthermore, there are 13 states that require state approval before rates can increase.
- Personal injury protection. PIP, also called no-fault insurance, covers the medical expenses for the driver and its passengers after an accident, regardless of who caused it. PIP can also pay for lost wages, rehabilitation, or funeral expenses. However, drivers are still required to buy bodily injury liability and property damage liability. For this reason, no-fault states have higher insurance costs than at-fault states.
- Uninsured Motorist (UM) and Underinsured Motorist (UIM) insurance. UM bodily insurance coverage pays the medical expenses of a driver injured by a hit-and-run driver or by a driver who has no insurance. UIM bodily injury covers a driver who got hit by someone who doesn't have enough coverage. 19 states and the District of Columbia require UM alone or both UM and UIM coverage.
- The number of uninsured drivers. Uninsured drivers are more likely to commit hit-and-run accidents. Insurance companies are required to pay claims when uninsured drivers cause accidents. However, these payments are spread among insured drivers. For this reason, insurance rates are more expensive in states with more uninsured drivers.
- Population density. Accidents are more likely to happen in crowded urban areas. Also, dense areas have a higher incidence of crimes such as car theft, break-ins, and vandalism. Car insurance rates increase with population density.
- Age of drivers. States with the highest percentages of drivers either under 25 or over 65 are more likely to charge more for car insurance. Teenagers, young adults, and senior drivers are considered to be high-risk drivers for various reasons.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org
Compare-autoinsurance.org 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.
"There are many reasons why car insurance rates vary from one state to another. Although drivers can't control many factors that make car insurance more expensive, drivers can still get cheaper rates if they are good drivers, cause no accidents and if they drive their cars less frequently.", said Russell Rabichev, Marketing Director of Internet Marketing Company.
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SOURCE: Internet Marketing Company