Your auto insurance rates are directly impacted by the risks associated with the location you live in. Living in a neighborhood that your insurance company considers “high-risk” can result in higher premiums. A neighborhood’s risk level is determined by population density, number of car accidents, traffic, crime rates, severe weather events, frequency and cost of claims, and more.
Moving to a big city usually results in higher auto insurance premiums due to higher rates of vehicle theft and vandalism and increased traffic. However, moving to a more rural location can translate to increased premiums if there are more deer in the area, frequent tornadoes, or if your daily commute is longer (the more you drive each day, the higher your chances of getting into an accident).
All risks considered, the states with the highest average auto insurance premiums are Louisiana, Michigan, and Florida. The least expensive states for auto insurance are North Dakota, Maine, and Iowa. Disclosure 1 1 Insurance Information Institute, “Top 10 Most Expensive And Least Expensive States For Automobile Insurance, 2017,” https://www.iii.org/table-archive/20997 accessed March 2, 2021. Regardless of where you move, remember to inform your insurance carrier as soon as possible in order to avoid billing issues or denied claims. If you’re moving out of state, you’ll need a whole new policy, so it’s best to give your agent a call ahead of time.
