Find the Average State Auto Insurance Premium for the Most Populated States

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Things to Remember...
  • According to the Census Bureau, the top five states are California, Florida, New York, Texas, and Illinois
  • Anyone with a registered vehicle looking for an insurance quote is expected to pay at least $1,057 per year
  • This means, some auto insurance companies may be looking at patterns and risk factors and this determines the rates for the entire state
  • The best way to ensure that your premiums remain comparable, regardless of where you live is to obey all traffic laws, follow the rules of the road, and remain courteous behind the wheel

To find the average state premium for auto insurance for the most populated states you must first determine which states have the highest number of residents. This is actually not as difficult as it seems.

Once you determine the states with the highest population, you can then match these states with their reported annual insurance rates.

There are several resources to help you, but if you are looking for accuracy, try to find the one that is the most reliable.

Start with the United States Census Bureau. They have calculated the total number of American citizens born in each state as of 2010.

This is an excellent way to gather your data. You can access each state in alphabetical order and find out how many people reside there.

From there, you can compare the population totals and this will help you figure out which states have the largest number of people and create your list.

According to the Census Bureau, the top five states are California, Florida, New York, Texas, and Illinois.

Today you can find the best auto insurance rates available, just place your ZIP code in the FREE insurance tool on this page!

Average State Auto Insurance Premiums

Penalities for Driving Without Insurance

California has approximately 37,691,912 people that call this state home. They are the largest and most densely populated state in the United States.

According to the Rocky Mountain Insurance Information Association (RMIIA), the average cost to insure a vehicle is currently $754 per year.

Ironically, while this state has the most people and more than likely, the most number of cars per owner, the people who live there and own cars, are not paying the most for car insurance.

In Texas, there are approximately 25,674,681 people and while this state actually has fewer residents, they actually pay more each year for their car insurance premiums.

The average annual rate for a Texan is $860. This is very strange when considering the number of cities that are rural.

New York follows as the third highest populated state in the U.S., with approximately 19,465,197 people. However, New York has one of the highest average rates for car insurance.

Anyone with a registered vehicle looking for an insurance quote is expected to pay at least $1,057 per year.

Florida follows closely behind New York, with approximately 19,057,542 residents.

Now, there are over 18 million less Floridians than Californians, according to the Census Bureau, yet their average car insurance premium is over $250 more per year.

Coming in at $1006, Florida is one of the states with the highest annual car insurance rates.

Finally, the state of Illinois has 12,869,257 people and the cost of auto insurance there totals $728 annually. Out of the top five, this state rates the lowest, although, Chicago is a major metropolitan area.

How Car Insurance is Calculated

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The National Association of Insurance Commissioners, or NAIC, has a consumer website called InsureU and it explains how car insurance is calculated, according to four factors, location, type of vehicle, employment status and number of miles driven annually.

Of course, the car insurance industry adds a few more. They include age, driving history and most recent credit history.

In reflecting on these factors, it is important to understand that each car insurance company can use all or some of this information to calculate your individual policy.

It begins to make a little more sense that someone under 25 living in Florida may pay more for a car insurance premium versus someone who is over 35 and residing in Illinois.

Nevertheless, why is the average rate so different?

Many experts believe the location of the driver may not be as important as the driving history and economic position. This means, some auto insurance companies may be looking at patterns and risk factors and this determines the rates for the entire state.

Therefore, if a state is more prosperous than another is the chances of their residents becoming unemployed drops, this means they will not default on their payments and their policies remain intact.

It also implies that older, more stable drivers are less likely to engage in reckless activities behind the wheel, therefore they will not be involved in as many collisions or moving violations.

If this is the case, the number of tickets will be lower and fewer insurance claims filed. Since risk weighs heavily in the mind of an auto insurance company, the rates will be lower if the risk is lower. This seems to make more sense, however; there are a few other issues to address.

This seems to make more sense, however; there are a few other issues to address.

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Motor Vehicle Statistics

When comparing the number of states with high car insurance rates, versus the number of residents, it is also important to reflect on the statistics.

In other words, how many car accidents are reported in these states and what are the contributing factors.

The National Highway Traffic Safety Administration (NHTSA) shows the number of fatal accidents reported and after reviewing this data, things start to a little clearer.

According to the information they gathered, the top states reporting the highest number of fatal collisions were similar to the states with the highest population and the highest annual insurance premiums.

Additionally, since the type of vehicle you drive has a direct impact on car insurance premiums, it is prudent to examine the statistics from this point of view.

If your vehicle has multiple safety features and a high rating, the insurance companies may place you at a lower rate, at least initially.

A good way to determine the safety of your vehicle is to check with the Insurance Institute for Highway Safety.

Their database is vast and filled with useful information. Just look for your vehicle and click on the link. From there, you are provided with a wealth of knowledge that will increase your awareness on the safety of your car.

You can also see how many claims were made by people who own the same vehicle you do; this is what the auto insurance providers use to base their calculations upon.

Once you begin to complete your own research, you are in a much better position to understand why your rates are high or low, at least according to your vehicle type.

Driver Age and Experience

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It may not be as obvious to many, but the age of the driver generally tells how experienced they are behind the wheel. This is because most American’s obtain their driver’s license at the ages of 16-20.

As they grow older, it is assumed that their experience will increase and this contributes to lower car insurance premiums. However, this is not always the case.

This is one of the reasons why the car insurance companies do not base their calculations on age and experience only.

It is part of the formula and an important factor, but not the only one. Luckily, age and experience can begin to decrease the way your rates are calculated and over time as you grow older, the amount you pay becomes less and less.

This is why older drivers pay much less than teens.It is very important to respect the driving privilege from an early age so you can take advantage of low auto insurance premiums.

Your driving history is a culmination of all of your infractions, including tickets and insurance claims and much like your credit history, takes time to repair once damaged.

The best way to ensure that your premiums remain comparable, regardless of where you live is to obey all traffic laws, follow the rules of the road, and remain courteous behind the wheel.

Once you descend into poor driving habits, it can take a great deal of time to reverse the damage and you will ultimately pay the price out of your own pocket, year after year.

Credit History

Because you cannot change your location, at least not right away, there are other ways to help keep your car insurance premiums on the low side of the scale.

In recent years, the auto insurance industry has started looking at individual credit reports.

While legislation has repeatedly tried to deny this information and prevent those in the industry from utilizing this data, the majority of their efforts have failed.

Your credit history can now affect how much you pay for car insurance because those in the business of issuing premiums are using your spending habits to determine your risk level.

It is assumed that if you have a poor credit history, you have a higher instance of default, which makes you a poor risk.

If you cannot pay your debts, you may default on your car insurance payments or worse, cancel your policy because of financial strife.

If this happens, you leave yourself open for all types of problems and may contribute to the uninsured motorist’s claims that are increasing each year.

You Have Power to Control How Your Rates Affect You

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Now that you understand how much is entailed in the calculation of auto insurance premiums, you must take back control over your rates.

You can make sure that you do not fall into the high-risk category by making a few simple changes to your lifestyle.

Make sure you purchase a vehicle with a high safety rating and forego any extreme modifications.

If, while you are shopping for a new car notice extra safety features that are not standard, ask questions and find out how much more they cost to obtain.

Not only will you ensure that your friends and family will be safe while the car is in motion, but your rates will also reflect this wise decision.

Find out which vehicles have the highest theft record and refrain from purchasing any of them, you will be much better off in the end.

Unlike safety features, a car that is loved by thieves is much more difficult to make appealing to a car insurance company. Remember, they have all of the same information and do not look upon these types of choices as prudent.

If you are interested in great car insurance rates, click here to  use the FREE ZIP code tool right now!

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