California · The cheapest in Florida compared to Michigan, Rhode Island, Nevada, Florida and New Jersey have the highest auto insurance rates. States that require more types of coverage as part of an auto insurance policy may result in higher auto insurance costs. For example, states that require PIP coverage typically have higher car insurance prices. As for the minimum coverage required, Florida, Michigan, New Jersey, New York and Delaware are the five most expensive states and all require PIP.
It's good that your state has a competitive auto insurance market, that is, several national and regional car insurance companies that sell insurance. Liability insurance is the foundation of all state car insurance policies because states want drivers to be able to pay for the damages they cause to other people in a car accident. In tort states, the driver responsible for the accident (or their car insurance company) compensates the other driver for their losses, including bodily injuries and property damage, and the non-at-fault driver is not required to file a claim for their medical expenses with their own auto insurance company. The use of a credit-based insurance score is prohibited in calculating auto insurance rates in California, Hawaii, Massachusetts and Michigan.
The state also has more stringent auto insurance coverage requirements than many other states and prevents auto insurance companies from using several standard qualifying factors not related to driving, such as credit rating and zip code, when calculating premiums. The reason these states have the cheapest car insurance has a lot to do with the makeup of the state. Unless the only thing you can really afford is minimum state car insurance, you should focus on your coverage needs and then compare with several insurance companies to find the best car insurance price. In fact, Florida has higher auto insurance rates than most states, and it ranks as one of the five most expensive states in this regard.
The climate is mild in most of these states, especially compared to states like Florida and Louisiana, which experience severe weather conditions and are two of the most expensive states for car insurance. Where you live is just one of the factors that auto insurance companies consider when determining the price of car insurance. If you move out of state, you should let your auto insurance company know, even if they offer auto insurance nationwide. But if you have a car accident, you must be able to prove your financial responsibility, and the easiest way is to have an auto insurance policy.
The differences between states affect the cost of car insurance depending on the car insurance required, the amount of repair costs, and more. Another factor affecting the rate of your car insurance is the way your state handles auto insurance in relation to car accidents. For example, auto insurance with only liability will be cheaper than even the cheapest full-coverage car insurance policy, but with a liability only policy, you won't get comprehensive or collision coverage that protects your vehicle.