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Which state has the highest auto insurance rates?

It is important to remember that the car insurance rates within a state are going to vary from its neighbor. There are several factors that will affect the amount of premiums you will pay monthly.  For example, citizens of North Dakota enjoy one of the lowest yearly car insurance averages for the year 2009. Most of these folks live in small towns with sparse populations. If you live in a heavily populated city, like New York, there is an increased chance that you will be involved in an accident. Therefore, if you live in this city, you will pay higher premiums. If you have ever fought rush hour traffic in New York City or have conducted your own NASCAR race down the New Jersey Turnpike, you can understandably see why the motorists in the Northeast United States pay some of the highest premiums available today. 

The average insurance rate for the year 2009 is based upon the past ten months' worth of data from the National Association of Insurance Commissioners. Currently, the nationwide average premiums being paid by a policyholder are $1,807.00. The three most expensive areas to maintain car insurance in are New Jersey, New York, and Washington D.C.  Their average rates were $2,523, $2,432, and $2,246 respectively. While the most expensive averages generally belong to states in the Northeast, Louisiana has become the fourth most expensive state in which to maintain car insurance for 2009. The state average for Louisiana this year is currently $2,416.00. Many economists have theorized that the sharp increase in yearly premiums is due to the high amount of claims that were filed after Hurricane Katrina in 2005. As Louisiana's economy struggles to rebuild itself, the insurance providers are raising rates in an attempt to recoup their losses. 

It is hypothesized that states with more economically prosperous climates are more likely to purchase newer vehicles. However, as the American economy has soured due to recession, this theory is being tested as automobile sales continue to decline and car insurance rates continue to rise yearly. It is thought that those who live in a thickly populated city or metropolis or more likely to be victimized by a crime, such as a hit and run accident or vandalism. These motorists' premiums will increase in accordance with how much perceived danger the insurance provider believes that the car may be in.

Factors like your location or the local crime rate are those that you cannot personally control. However, you should go online and use online price comparison techniques to see what the quotes are on policies available to you. Once you find a policy you like or a company you would like to conduct business with, pick up the phone and call an insurance agent. He or she is a trained professional who will be able to answer your questions and, quite possibly, recommend further discounts that are available to you through their company.  You can comply with your state's laws and still be able to work within the confines of your budget.

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