Average Car Insurance Rates By Zip Code In 2022
Recently, CarInsurance.com collected automobile insurance premium data from every state and major ZIP code in the country. Armed with these numbers, we can now assess how much you can anticipate paying for vehicle insurance, on average, in most cities across the nation.
Our analysis below reports on which cities/ZIP codes have the costliest car insurance rates, on average, as well as the least expensive automobile insurance rates.
The methodology we followed assumes you are a 40-year-old male with a clean driving record who requires full coverage, drives approximately 12 miles to work, and possesses a good insurance score.
Some of our findings were surprising, while others were somewhat expected. As you might anticipate, living in a more rural ZIP code area can yield cheaper car insurance premiums as opposed to residing in a major metropolitan ZIP code.
Keep reading for more granular detail on which cities charge more versus less for automobile insurance coverage.
- State Minimum: $511
- Full Coverage 100/300/100: $1,682
Look At State Minimums
Nearly every state will require you to have some liability coverage. Liability insurance will only cover the damage you cause to another persons car. To get your own car fixed, youll need to pay out of pocket.
That is exactly why Id recommend you get at least enough coverage to protect yourself as well.
Read more: Minimum Auto Insurance Coverage Requirements by State
Least And Most Expensive States For Full Coverage Car Insurance
Our analysis of average car insurance rates by state finds that Vermont is the cheapest state for full coverage. The top five cheapest states for full coverage car insurance are:
- Vermont: $1,066
| $295 | 25/50/20 |
| Source: Quadrant Information Services. Full coverage rates are based on liability coverage of 100/300/100, uninsured motorist coverage and collision and comprehensive insurance with $500 deductible. Minimum state rates are based on the minimum amount of auto insurance required in each state. |
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What If You Can’t Get Car Insurance
Although most states require vehicle owners to carry insurance, not everyone can get it, at least not through the regular channels. Because of their past driving records, some people may be unable to obtain insurance from a private company. Others may simply not be able to afford it. In these cases, there may be state programs available to help.
What Are The Best Auto Insurance Companies By State
The state in which you live has a huge influence on your rate. Every state is different, and it usually has a lot to do with the laws.
For example, one dividing factor between 11 states and the remaining 39 is whether their laws are at-fault-based or no-fault-based.
In no-fault states, the law requires that policyholders turn to their own insurance company for claims, regardless of who is at fault in an accident. In at-fault states, the claim goes through the auto insurance company of the driver who is responsible for causing the accident.
Typically, no-fault states require drivers to purchase a certain amount of personal injury protection , which is elective in most at-fault states. Some no-fault states, such as Michigan, New Jersey, and Florida, have outrageous rates.
Florida provides some options for its residents but still requires a minimum of $10,000 in PIP. New Jersey also provides options in PIP coverage up to $250,000. Until July of 2020, Michigan required drivers to pay for an unlimited amount of PIP coverage.
The table below compares Michigan, New Jersey, and Florida.
Michigan, Florida, and New Jersey: Total Cost of Incurred Losses and Claims
| State |
|---|
In 2015, Michigan auto insurance companies had only 12 percent of the total PIP claims that Florida did, yet insurance companies were forced to pay out $1 billion more in losses than Florida insurance companies. This makes clear why Michigans laws recently changed.
Auto Insurance Overview by State
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What Are The Key Takeaways About The Best Auto Insurance
Youve made it this far, so what company is the best company for auto insurance? In our last few sections, we will define what we mean by the top or best companies and provide you with your final tips and tricks for choosing the right company for you.
We will also provide you with summaries about each of the major companies that lead the industry.
According to most consumer guides put out by the government and industry professionals, the following are the USAs top 10 auto insurance companies.
They provide the required coverage with competitive prices, are financially sound, and have a reputation for being available when required.
If you are in the market for auto insurance, then you know that there are dozens of auto insurance companies from which you can choose.
The numerous options lead to a myriad of different questions, such as which is the best company, which company has the lowest rates, and which has the best policy for your needs.
The good news is that there are quite a few reputable and successful auto insurance companies that sell products that you can afford.
As you keep reading, we will discuss some of the more reputable auto insurance companies, what makes them successful, and how to choose among several companies when their rates are relatively the same.
What Documents Do I Need For Car Insurance In Canada
In order to secure auto insurance in Canada, drivers need to produce a number of documents, including a valid drivers license, proof of drivers education training , vehicle registration, license plate number, your driving history, current auto insurance policy information, details of all drivers who will use the vehicle, and payment information .
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What To Know About The Hartford
If youre an AARP member, The Hartford offers lifetime car repair assurance designed to help you find a trusted repair service following a claim. The company also offers AARP members new car replacement if your car is totaled in an accident, guaranteeing that the replacement will be the same make and model of the original vehicle with no deduction or depreciation. And your AARP membership gets you The Hartfords RecoverCare, which provides up to $2,500 to cover transportation, cooking and cleaning costs if youre injured in an accident.
The Hartford is available in most states and offers standard car insurance coverage as well as extras like car towing, personal umbrella insurance and gap insurance. Eligibility for key benefits requires AARP membership, which costs $12 to $16 per year for those who are eligible.
Compare Quotes From The Best Companies To Get Value For Your Money
Once youve narrowed down the companies with strong customer service reputations, you should compare quotes among them. Insurance companies use a variety of factors to calculate your rate. As a result, you could find that two companies have very similar customer service reputations but quote you at vastly different rates.
You should also make sure that your quotes incorporate all available discounts, as these can have a sizable effect on what you pay. For instance, one insurance company may offer more discounts for car safety features, so drivers with a lot of safety technology may get a comparably cheaper quote. Discounts usually come in four forms: driving record discounts, driver profile discounts, policy discounts and car safety discounts.
- Driving record: Discounts for having a clean driving record, driving infrequently or taking driver safety courses.
- Driver profile: Discounts for achievements outside of driving, such as students who get good grades, or for membership of professional or government organizations.
- Policy: Discounts for bundling with other insurance policies or for how you pay for your policy, such as paying for the full six months ahead of time.
- Vehicle: Discounts for safety devices on your car, such as anti-theft technology or anti-lock brakes.
When you are confident youre only getting quotes from quality insurers, you can save money by buying a policy from the company that offers you the best cheap quotes.
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Which Car Insurance Company Has The Cheapest Rates
Of the companies on our list, USAA and Geico have the lowest average full coverage premiums. While these carriers may offer low average rates, they still might not be the cheapest for you. Your premium will depend on your individual rating factors, which include your driving history, the type of car you drive and the state you live in. Getting and comparing quotes from several insurers, taking advantage of discounts and maintaining a clean driving record might help you find the cheapest car insurance company for your situation.
Erie Auto Insurance Discounts
Erie offers several auto insurance discounts, especially for safe drivers. If you have a driver under age 21on your policy, look for Eries discount for young drivers. If you dont use your car for an extended amount of time, you could benefit from the reduced usage discount. Other discounts include:
- Safe driving discount: This is for safe drivers with a clean driving record.
- Car safety equipment discount: You can get a discount if your car has safety features like factory-installed airbags, passive restraint, or anti-theft devices.
- Multi-car discount: Drivers who insure two or more vehicles under the same policy may be eligible for this discount.
- Multi-policy discount: Look for this if you bundle other insurance types with your Erie auto insurance.
- Reduced usage discount: If you dont use your car for at least 90 consecutive days during your policy period, you could be eligible for this discount.
- Young driver discount: Do you have a driver who is under age 21, unmarried and lives with you? If so, you could save on your auto insurance policy.
- Annual payment plan: Look for savings if you pay your annual auto premium in one lump sum.
- College credit: If your college driver is away at school without access to your car, you may be eligible for a discount.
| What type of car insurance pays if your car is damaged by a flood? | Comprehensive coverage | 56% got it wrong |
Many drivers also think they have car insurance coverage that isnt actually available. For example:
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Faqs About Car Insurance For Older Drivers
Does car insurance cost more for senior drivers?
Certain factors may lead to higher insurance costs as you age. First, older drivers may have a higher risk of being involved in a car accident than younger adult drivers. And drivers 70 and up may be more likely to suffer significant injuries in an accident. These injuries could generate costly hospital bills, creating hefty expenses for insurance companies. As a result, car insurance carriers may charge higher premiums to cover this potential cost. That said, you should shop around and compare rates for the best car insurance to make sure youre not being charged overly exorbitant monthly premiums as an older driver.
What can senior drivers do to reduce their insurance rates?
One thing that any driver, regardless of age, can do to keep rates low is to avoid accidents and moving violations. Also, enrolling in a usage-based insurance program may help you qualify for a lower rate.
How Your Location Affects Your Car Insurance Rate
Friedlander again points to a simple fact: The town you live in often has a significant effect on car insurance premiums.
Metro area drivers pay much more for auto insurance than drivers in rural locations in the same state, he says. For example, drivers in the Chicago area pay much more for auto insurance compared to downstate Illinois cities.
Additionally, ZIP codes with single-digit uninsured motorist rates have lower average rates compared to ZIP codes with uninsured motorist rates above 20%, Friedlander says.
It stands to reason that drivers in ZIP codes with lower populations and lower accident rates will be charged less than motorists in cities with higher traffic volumes, accident frequencies and severity, vandalism, theft, and crime rates and insurance payouts.
Inflation is also contributing to higher auto premiums, Friedlander says. According to an analysis from the Insurance Information Institute, what we are now seeing are double-digit year-over-year increases in repair costs, driven by supply chain shortages of replacement parts and higher labor costs. Parts and equipment are up 12.6% year-over-year.
Whats more, the cost of vehicles plays a huge role in the pricing equation for insurance. Year-over-year, new vehicle prices are up 12.2%, Friedlander says, while used vehicle prices have increased a whopping 40.5%.
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What Types Of Car Insurance Are Required
Here are types of car insurance that are generally required by states.
Liability insurance: Required in most states.Car liability insurance pays for injuries and property damage you cause to others. A good rule of thumb is to buy enough liability insurance to cover what can be taken from you in a lawsuit.
Uninsured motorist coverage : Mandatory in some states and optional in others. Uninsured motorist insurance pays for you and your passengers medical bills and other expenses if someone crashes into you and they dont have any liability insurance. A related coverage, underinsured motorist coverage, helps with you and your passengers medical bills when a driver with insufficient coverage causes an accident resulting in injuries.
Collision and comprehensive insurance: Required if you have a car loan or lease. These are two separate coverage types often sold together. Collision and comprehensive insurance pay for your vehicle repair bills due to problems such as car accidents, car theft, fires, floods, severe weather, falling objects, vandalism and collisions with animals.
Personal injury protection: Required in some states. Some states use a no-fault car insurance system. In these states youll make smaller injury claims on your own auto insurance no matter who was to blame. These claims fall under personal injury protection, which is required in no-fault states and available in some others.
Most Expensive Zip Codes For Car Insurance By State
Per our research, heres the listing of cities where car insurance rates are the highest in 2022.
| State |
|---|
- Chicago: $10,121
- Wilmington: $7,679
Geoff Cudd, a Philadelphia-based consumer advocate and owner of FindTheBestCarPrice.com, says many factors play into the reason why car insurance rates vary so greatly from location to location.
Among them are social factors like population density, how many people are on the road, how high the theft rate is, and how many accidents occur in that state. There are also environmental factors like what road conditions are like in that state and how bad the weather is, Cudd says.
| State | |
|---|---|
| $717 | $2,416 |
You could reside in a large city like Chicago or Los Angeles and pay significantly different rates based on what ZIP code you live in within that city, he says.
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What Are The Best Auto Insurance Companies And Rates Based On Driver Demographics
Its not just the laws that affect your rates many companies offer better and more affordable coverage depending on a multitude of other factors, as we mentioned previously.
The following sections will discuss national average annual rates for the top 10 auto insurance companies based on various demographics. If you are looking for the best coverage for drivers over 50 or the best coverage for younger drivers, we have that information below.
All of these insurers will provide auto insurance quotes for free, so make sure to enter your ZIP code in our quotes boxes to start comparing.
Now, lets take a look at some of the best-ranked auto insurance companies.
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Choosing The Best Car Insurance Company
Comparing insurance quotes, and the companies offering them, is one of the cheapest ways to get car insurance. Not all insurance policies are alike. Every company typically has something unique it offers to customers. Websites such as Investopedia and Nerd Wallet have comprehensive guides on selecting the best car insurance company. Examples of companies featured include:
- Geico. If you’re looking for impressive discounts, stellar customer services, and low premiums, Geico should be one of your top choices.
- State Farm. Aside from being a national name for insurance, State Farm has employees all across the country and local agents who can answer questions rather than transferring you to an outsourced person.
- Progressive. Progressive is a good choice for higher-risk drivers, as the company can help drivers get affordable insurance without the higher premiums you would expect elsewhere due to a less-than-perfect driving record.
Before you purchase car insurance, make a thorough comparison involving each site. According to Insurify, your rates for a policy can vary considerably when checking with different insurance companies, even if each policy provides the same coverage. As a consumer, you should consider shopping around with four or five different insurance companies to ensure you’re getting the best deal possible.
Farmers Is One Of The Worst Auto Insurance Companies For Paying Claims
Customers are somewhat satisfied with the claims process at Farmers. The company also earned an A- rating from the Better Business Bureau and it received an NAIC index rating of 0.43, which means its complaint levels are rather low. Despite receiving great ratings from other organizations, it is the customers at Farmers that have been the loudest in expressing their frustrations with Farmers agents customer service. While Farmers does a decent job handling its auto insurance claims, it is the lack of good customer service that sticks with consumers. When customers were asked if they would recommend Farmers insurance to a friend, most said no.
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