What are the differences in car insurance premiums in the US?
Florida has a rough time when it comes to insurances in general.
After the homeowners insurance had risen to extreme heights and insurers even stopped offering them, car insurances are now at the highest in the country.
If you however, compare Florida to the Ohio, you are paying less than half. From $2.5K per year, to $1K per year. And that has nothing to do with its geographical location.
If you look at Michigan, next to Ohio, it also reaches top 5 at $2.1K per year. So the question rises how this is possible.
How are the prices of car insurance premiums affected?
Insurers are giving various different explanations for the rise in car insurance premiums.
They are saying the last couple of years have seen a huge increase in cost for repairs and materials, but also litigation has tightened around them.
Another reason is larger medical bills and more accidents in general on the road that make an increased in premiums a necessity.
Between states there is a huge difference as we mentioned and according to the insurers, this has to do with the safety of the roads and amount of uninsured drivers.
This is the reason Florida is so ridiculously high, as about 20% of drivers are uninsured here. If they get into an accident, it is hard to get the money back.
Uninsured drivers are making it hard for insured drivers to get the repairs needed and create a bubble of payments for the insured.
This is the same reason Louisiana hits the top 2 spot.
What can you do to affect your car insurance premium?
Because of these rising prices, it is important to keep your insurance premiums in check.
So, what can you do to affect your insurance premium, besides living in a different state?
First off, you should always look around in your state to see which insurance companies offer car insurances and compare their premiums and their coverages.
After this, it is important to drive safely. Though many drivers might be uninsured, the main reason for insurance companies to keep lower premiums, is to not have to pay for damages.
If you drive safely and do not get into accidents (and everyone else tries to do the same), premiums will come down eventually.
This is why proactive safe driving is crucial, no matter where you live.
If you get into accidents often, with insured or uninsured drivers, your premium will also rise, so it is important to seek out things that you can control, before trying to play with things you cannot control in your car insurance.