The application of car insurance laws varies by state, and so does the price of premiums. While some have strict auto insurance laws, others have more relaxed laws and even allow motorists to drive without insurance.
But even in such states, you will still be liable for damages resulting from an accident where you are at fault. Therefore, before moving your family to a different state, you will want to understand how car insurance can vary across states so that you do not get caught unawares.
But worry not, as this article explores how insurance varies from state to state.
Why Do Car Insurance Rates Vary By State
There are several reasons why insurance rates change with the state. Such factors include:
- Population. Highly populated states will have more cars on the road, meaning the chances of getting into an accident can increase significantly.
- Crime rate. Some states have more car theft cases than others. If you get full coverage for your car, the insurance company will have liability if it is stolen, so they have to factor in the risk of theft based on a state’s crime rates.
- Litigation costs: The cost of litigation will determine how much personal injury lawyers will seek in a lawsuit. As a result, insurance companies may have to pay out more for damages, creating the need to increase premiums to match the amounts demanded in lawsuits.
- Weather conditions. The general weather of a state can significantly impact the cost of car insurance because weather damages are covered under comprehensive car insurance.
- Government policies: Different state government policies, such as statutory minimum coverage, will impact how much the premiums will be.
Some States Are Many Times Much Cheaper For Car Insurance than Others
Michigan has the highest rates, with a minimum coverage of $4,386 and $7,161 for maximum coverage. Florida follows a distant second at $2,072 for minimum coverage and $2,962 for maximum coverage.
Other states that make it to the top five most expensive include Rhode Island, Delaware, and Nevada at $1,197, $1,153, and $1,138, respectively.
Ohio has some of the lowest car insurance rates, with some insurers offering as low as $800 per year for minimum coverage. While this may be more than five times the rates in a state like Florida, getting cheap Ohio car insurance is not straightforward.
An excellent way to spot the best deal is by leveraging online cheap insurance resources to get cheap car insurance quotes from the different local providers with a reputation for quality services.
Your Driving Record In Your Current State Will Affect Your Rates
Moving states does not give you a clean slate on your driving history. Your driving record in your current state will affect your rates in the state you move to.
If you have a significant blemish like a DUI conviction on your license, the cost of insurance will increase significantly, irrespective of state. But some states have a more severe approach to DUI convictions than others. To ensure your rights are respected and that you are treated fairly, it is important to find experienced DUI attorneys who understand the laws in your particular state.
So before you move, you may want to consider what effect your record will have on your insurance cost and make your plans based on facts.
Most states require a driver to get an SR-22 license after a conviction that does not fall off the license until they satisfy their state’s requirements for license reinstatement, which can significantly impact the cost of premiums.
No, You Can’t Retain Your Current Cover
Your current insurance coverage will cover you in all states but only for a limited time, for example, traveling for vacation. If you want to extend your stay or are moving permanently, your coverage will not be valid, and you must update it.
If you are working with a big brand with a presence in all states, you can contact them to revise your policy. If your current insurer doesn’t offer services in the state you want to move to, you may need to arrange with another insurer.