Most States Charge Differently on State Auto Insurance

State Auto InsuranceThe premiums you pay for an insurance coverage has something to do with your traffic records. All these reflect your characteristics as a driver, and can prove to weigh a lot in estimating your insurance. The state where you belong also contributes to the price of the state auto insurance. Do take note that Michigan has the highest rates offered on premiums while Vermont is the cheapest.

State laws and judicial system usually affect high insurance premiums. Michigan alone has an average rate of $2,541/year. Louisiana ranks second highest in terms of auto insurance where motorists pay an average of $2,453. Washington DC, Montana and Oklahoma have average rates of above $2,000. South Carolina, which ranks second to the lowest, has a rate of $1,095 and Vermont has the lowest rate of $995. The high rates on premiums have resulted to the large number of uninsured drivers in these states; hence insurers charge high for safekeeping.

Michigan charge high premiums as it is the only state that offers unlimited personal injury protection payments for individuals injured in an accident. Louisiana has bigger payouts from insurers due to the existing judicial system that provide huge verdicts on injuries. Oklahoma is prone to tornadoes where insurers pay more for damage claims. Vermont is more of a rustic territory that experiences less traffic congestion. Competing state auto insurance companies often flock to these areas to offer their policies.