All About Auto Insurance Rates
In 2007, the national average auto insurance premium was $1,896—a drop of about one percent over 2006’s national average of $1,916. Actual rates of change varied widely by state, with the highest drops in North Carolina (16.2%) and Arkansas (11.1%) and the highest increases in Nevada (5.7%) and Washington (3.6%).
However, many states that experienced significant drops in insurance rates between 2006 and 2007 continue to rank as expensive places to buy car insurance. For example, the most expensive state for car insurance, Louisiana, saw a 6.1% decrease in 2005-2006 and a 3.4% decrease in 2006-2007, showing that where you live plays a significant role in determining how much you pay.
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The Most Expensive States
- Louisiana—average $2,740 (down $96 since 2006)
- New York—average $2,601 (down $113)
- New Jersey—average $2,568 (down $168)
- Delaware—average $2,507 (down $114)
- Washington, D.C.—average $2,504 (down $249)
The Least Expensive States
- Wisconsin—average $1,335 (down $18 since 2006)
- Ohio—average $1,342 (down $16)
- Iowa—average $1,394 (down $103)
- Maine—average $1,394 (down $103)
- Idaho—average $1,457 (down $91)
Insurance Rate Trends
Other important factors that determine how much you pay include your age and gender, with males paying a little more than females. Premiums tend to drop significantly at 25 years old, with reductions of as much as 20%.
Overall, insurance rates are on a continuing downward trend nationwide due to a variety of factors. Possible influences include:
- Milder winters, meaning safer driving conditions and fewer accidents on the road
- Rising fuel costs mean many drivers are opting to save money and fuel by driving less frequently.
- Many insurance companies have cracked down on insurance fraud, and due to tighter regulations on fraud, premiums are gradually decreasing.
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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.
Last Updated: February 14, 2008
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