Where you live absolutely has an effect on how much your car insurance premiums will be. You may be thinking that this has something to do with how safe your neighborhood happens to be. It turns out that the state that you happen to live in also affects how much your car insurance premiums will be.
My best guess is that how safe an area you live in does have some effect on how much you get charged for car insurance premiums. However, the state that you live in also has a big influence on that price. If you live in Michigan, you are paying more for your car insurance than are the drivers who reside in a different state.
In general, car insurance is expensive. How much you pay on your premium depends, largely, on how big a risk the insurance company sees you as. Those with excellent driving records will get a better deal than those who have had several automobile accidents.
If you live in a gated community, with a population of neighbors who all have high incomes, you might not be spending as much on your car insurance premiums as are the people who live in a high crime area are being required to spend. According to Insurance.com, the average American spends $84,388 on car insurance in his or her lifetime.
Insurance.com did a study where they collected car insurance rates from six large carriers of car insurance. This data involved more than 2,400 vehicles, and it was based on 10 of the zip codes from each state. From this, they were able to calculate the average cost of car insurance premiums for each state.
People who live in Michigan are paying the most for their car insurance premiums. The average for that state was $2,541. This is an increase of around $443 since the same survey was taken last year. The increase was enough to bump Louisiana down from the top of the list. Louisiana comes in second, with an average of $2,453.
The third most expensive state for car insurance premiums is Oklahoma, which has an average cost of $2,197. This is followed by Montana, (with an average cost of $2,190), putting that state into the fourth highest ranking. Number five was Washington D.C., where people are paying an average of $2,146. Keep in mind that these numbers are an average, which means that some people would be paying less than that, while others would be paying much more.
Image by Marty Hogan on Flickr