Car insurance premiums differ based on the driver, the model of car, and the location (state) in which you drive depending on applicable state laws. So which states have the highest car insurance premius?
Depending on those factors, in some states, you'll pay nearly three times as much for the same coverage on the same car, with the same driver. Insurance on a 2011 model tops out at an average of $2,541 in Michigan, the highest rate in the nation. The reason, says the Insurance Research council, is its no-fault system provides what amounts to unlimited medical care, and about 19% of drivers were uninsured in the Insurance Research Council's most recent survey. In addition, a prvision called the "Driver responsibility fee" can add hundreds of dollars to the cost of keeping a driver's license, too.
In Louisiana, elected judges hear cases for accident claims under $50,000. The problem with this process is that they don't get re-elected by being stingy,states Car Insurance.com. This system contributes to an average bill of $2,453 for a 2011 model car, second highest in the nation. About 13% of Louisiana's drivers were uninsured. Louisiana is one of several states with a "no pay, no play" law that limits damages uninsured drivers can receive. The state of Louisiana follows a Tort system, meaning someone must be found to be at fault for causing the accident, and that person and their insurance company is responsible for all the damages.
Wild weather and uninsured drivers forced rates for 2011 models in Oklahoma up to an average of $2,197, third highest in the nation. Hailstorms routinely pummel thousands of cars in a few moments, and their owners face decisions over whether to wait for the next time or file a claim -- if they have coverage, that is. Nearly one in four Oklahoma drivers is uninsured, the second-highest rate in the country, according to Car Insurance.com.
How to Mitigate High Car Insurace Premiums
There are several ways agents can help their clients lower their car insurance premiums. Incorporating a
Combining coverage of a client's home and other insurance coverages (boat, motorcycle, RV, ATV, business, etc) can also help limit premium costs.
The type of car a client drives definitely impacts their insurance premiums. An expensive car, with spare parts that are difficult to find, will increase your insurance premium cost too. Cars which cost less in terms of service and maintenance as well as damage repairs will often get you better insurance premiums. Client's should choose cars which offer multiple air bags and those with navigation systems will also attract lower insurance premium rates.
The amount of miles a client drives and their past history of claims are also two important factors. If they drive in a place known for bad roads, bad weather or a large number of cars, a client's insurance costs will automatically go up as well.
Another means to reduce insurance costs is to obtain a pay-as-you-drive car insurance policy which are new to the market and gaining a following.
