Rural Areas Have the Lowest Car Insurance Rates

If transferring to another state is not that of a big deal to you, then we suggest you do that to earn a lower car insurance rate. If you must know, premiums attached to car insurance policies significantly vary from one state to another. As a matter of fact, the least expensive state for car insurance is less than half the cost of the most expensive state.

The amount of insurance paid by the residents of a state is hugely based on how many insurance claims are filed in that state. That being said, we can conclude that the population density of the place where you live in somehow draws a parallel to the number of claims filed since obviously, the more crowded a state is, the more chances there are to get into an accident.

So if you desperately want to obtain a lower premium, abandon the city and live in a country. According to National Association of Insurance Commissioners, the state with the lowest car insurance rates in the country is rural Iowa.  Iowans pay an average combined auto insurance premium (that includes liability, collision and comprehensive coverages) of just $664.20 per year while the national average is $949 (all facts as of 2005). Other states in the top ten for the lowest auto insurance premiums include other rural areas such as Idaho, Wisconsin, North Dakota, and South Dakota.

On the other hand, urban areas such as the District of Columbia, New York, and New Jersey are the most expensive places in the country to get car insurance.  The average premium comes at a massive amount of $1342.80.