States With The Lowest Auto Insurance Requirements
States with the lowest car insurance requirements in the industry can be found across the United States. Insurance companies can offer the lowest auto insurance rates in many states and cities because the risk of owning and driving a car in some states is considerably less than the risk in driving and owning a car in other states.
Insurance companies take a hard look at statistics before arriving at auto insurance rates and premiums for a particular state. Actuaries know what the exact odds are that someone will get into an accident or have a car stolen within a state. If the odds that a driver will get into an accident or have a car stolen are low, the insurance premiums will be low as well. The statistics that actuaries rely on are based on numerous factors such as where the owner resides and where the car will be kept.
In states where there is a higher incidence of car accidents and car theft, car insurance companies have to charge higher rates because there is an increased likelihood that people who own and drive cars will be in an accident or have their vehicle stolen. When deciding how much to charge in states with a higher incidence of car accidents and thefts, actuaries compare the figures in states that do not have too many accidents and car thefts to the statistics in states where there are more accidents and thefts to arrive at premiums. Clearly, insurance companies offering insurance in states with higher incidents of car accidents and car theft will charge more than states with very few car accidents or thefts.
Typically, individuals in search of states that offer the lowest auto insurance will find the lowest car insurance premiums in states with low population density. Heavily populated states have the highest car insurance rates. Insured customers living in metropolitan states and cities such as New York and Miami can always count on higher car insurance rates in comparison to individuals living in Midwestern states such as Oklahoma, Kansas, Wyoming and Montana. Most Midwestern states have lower insurance premiums because these states are not heavily populated. Actuaries who evaluate the statistics know that the risk of driving and owning a car increases as the population increases. People who drive and own a car in densely populated areas pose less of a threat to insurance companies.
In summary, individuals in search of the cheapest car insurance will find that there are many states that offer the lowest car insurance requirements in the country. After doing some research, individuals will find that states that are densely populated and located in the Midwest offer the lowest car insurance rates around.