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Car insurance in different states

As you may already know, car insurance rates tend to differ a lot from state to state. There are various reasons for this, most of which are associated with local insurance regulations average payouts, medical and repair costs and other things. Because of that the difference in average car insurance quotes may be very pronounced once you cross the state border. Unfortunately, you can only get legal insurance coverage in the state you reside in, otherwise getting cheaper car insurance from a state you've already moved out can be classified as fraud and you may end up paying a substantial fine or getting yourself to jail. That's why it is very important not to mess with your insurance provider and learn the local requirements for car insurance policies.

In most states where car insurance is compulsory the only actual coverage type that a car owner is required to have is third party liability (that is comprised of bodily injury and property damage coverage). Each state has numeric requirements for the minimum limits of this coverage to be carried in order for the policy to be considered as valid. The following are the limits as required by each of the US states as well as the types of coverage made compulsory:

State

Coverage type

Limits

AlabamaBI & PD Liab25/50/25
AlaskaBI & PD Liab50/100/25
ArizonaBI & PD Liab15/30/10
AlabamaBI & PD Liab25/50/25
ArkansasBI & PD Liab, PIP25/50/25
CaliforniaBI & PD Liab15/30/5
ColoradoBI & PD Liab25/50/15
ConnecticutBI & PD Liab, UM, UIM20/40/10
DelawareBI & PD Liab, PIP15/30/10
District of ColumbiaBI & PD Liab, UM25/50/10
FloridaPD Liab, PIP10/20/10
GeorgiaBI & PD Liab25/50/25
HawaiiBI & PD Liab, PIP20/40/10
IdahoBI & PD Liab25/50/15
IllinoisBI & PD Liab, UM20/40/15
IndianaBI & PD Liab, UM25/50/10
IowaBI & PD Liab20/40/15
KansasBI & PD Liab, PIP, UM25/50/10
KentuckyBI & PD Liab, PIP25/50/10
LouisianaBI & PD Liab15/30/25
MaineBI & PD Liab, UM, UIM50/100/25
MarylandBI & PD Liab, PIP, UM, UIM20/40/15
MassachusettsBI & PD Liab, PIP, UM20/40/5
MichiganBI & PD Liab, PIP20/40/10
MinnesotaBI & PD Liab, PIP, UM,UIM30/60/10
MississippiBI & PD Liab25/50/25
MissouriBI & PD Liab, UM25/50/10
MontanaBI & PD Liab25/50/10
NebraskaBI & PD Liab25/50/25
NevadaBI & PD Liab15/30/10
New HampshireFR only, UM25/50/25
New JerseyBI & PD Liab, PIP, UM, UIM15/30/5
New MexicoFR only, UM25/50/10
New YorkBI & PD Liab, PIP, UM25/50/10
North CarolinaBI & PD Liab, UM, UIM30/60/25
North DakotaBI & PD Liab, PIP, UM, UIM25/50/25
OhioBI & PD Liab12.5/25/7.5
OklahomaBI & PD Liab25/50/25
OregonBI & PD Liab, PIP, UM25/50/20
PennsylvaniaBI & PD Liab, PIP15/30/5
Rhode IslandBI & PD Liab, UM25/50/25
South CarolinaBI & PD Liab, UM25/50/25
South DakotaBI & PD Liab, UM25/50/25
TennesseeBI & PD Liab25/50/15
TexasBI & PD Liab25/50/25
UtahBI & PD Liab, PIP25/65/15
VermontBI & PD Liab25/50/10
VirginiaBI & PD Liab, UM, UIM25/50/20
WashingtonBI & PD Liab25/50/10
West VirginiaBI & PD Liab, UM20/40/10
WisconsinBI & PD Liab, UM, UIM50/100/15
WyomingBI & PD Liab25/50/20

BI stands for bodily injury liability coverage; PD stands for property damage liability coverage; PIP stands for personal injury protection; UM stands for uninsured motorist coverage; UIM stands for underinsured motorist coverage. The figures in the third column stand for the minimum amounts of BI per person, BI per accident and PD per accident expressed in tens of thousands of USD ($10,000).

As you see, even the general spread of minimum requirements is very pronounced so it's obvious that the average rates will also differ to a great extent. This is true as you can judge by the following average premiums paid by an average car owner for a 100/300/50 policy with no extra coverage options included in descending order:

State

Average premium paid

Michigan$2,541
Louisiana$2,453
Oklahoma$2,197
Montana$2,190
Washington, D.C.$2,146
Mississippi$1,896
New Mexico$1,896
Arkansas$1,836
Maryland$1,807
North Dakota$1,794
Connecticut$1,786
Rhode Island$1,747
Wyoming$1,714
Hawaii$1,707
South Dakota$1,707
Georgia$1,670
New Jersey$1,663
West Virginia$1,633
Kentucky$1,629
New York$1,627
Minnesota$1,614
Washington$1,584
Missouri$1,563
Indiana$1,518
Colorado$1,508
Texas$1,492
Delaware$1,489
Florida$1,476
Nebraska$1,470
Pennsylvania$1,468
Kansas$1,461
Alaska$1,454
New Hampshire$1,334
Massachusetts$1,328
Idaho$1,325
Alabama$1,306
Oregon$1,306
Nevada$1,306
Illinois$1,290
Arizona$1,280
Utah$1,272
Virginia$1,237
Iowa$1,179
North Carolina$1,154
Ohio$1,152
Tennessee$1,146
Wisconsin$1,128
Maine$1,126
South Carolina$1,095
Vermont$995

The nearly 260% fluctuation in average rates can partially be explained by the minimum requirements imposed by each state. However, there are other demographic and economic factors involved, which results in such a pronounced difference between states.

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