March 1, 2011

Auto Insurance Quotes And How They Differ By State

One of the first things that a car insurance company will ask for prior to delivering a quote on an auto insurance policy is a driver's address. This is because your address can make a huge difference in the chances that you'll have a car insurance claim, but also because the state where you live can change how car insurance claims are dealt with and processed. Knowing how your state's auto insurance statistics and laws affect your policy can make it much easier to keep your policy costs under control.

The most significant way that your state affects your insurance rates is through state auto insurance law. Everything from the minimum amounts of coverage that you're required to carry to the processes that insurance providers have to go through when paying a claim are determined by your state's insurance commission. As one might expect, the more regulation that a state has, the higher its auto insurance rates tend to be. You should also know how your state's insurance law system compares to that of other states. No fault states have very different laws than tort states for dealing with claims. Insurance claims aren't brought to court in no fault states, and instead, each driver pays for his or her own damages. Auto insurance quotes may be lower in no fault states because of this, as insurance companies pay less in litigation fees.

Another way that your state affects your auto insurance policy is through claims statistics. In certain states, the incidence of car theft, accidents, and other types of claims are higher for various reasons. Warmer states usually have higher auto crime rates, for instance, and colder states may see a spike in the number of insurance claims each winter. Your state and zip code will certainly influence your auto insurance quotes, and if you're living in an area with a high number of claims, you can expect to pay more on average for your auto insurance policy.

To find out more about how auto insurance rates are unique in your state, you can read about state insurance law on your insurance commissioner's website. You can also look online for car insurance quotes and enter in different zip codes from neighboring quotes to see whether you would pay more or less in certain areas. It's unlikely that any driver would move just to get lower auto insurance quotes, of course, but it can be interesting to see how quotes vary from state to state, and by knowing your area's risks and insurance law, you can design your policy for much better coverage overall.