See How Much You Can Save by Shopping for Auto Insurance

Perhaps, motorists know they can reduce their premium but they don’t realize that they can save hundreds or even thousands of dollars. You can economize a lot of money by simply shopping for auto insurance. Keep reading to find out how much you can potentially lower cost of your coverage in your state.

One of the main reasons why large numbers of motorists fail to shop around for lower auto insurance quotes is that they think prices are similar across the market. Let’s face it; it is not as fun to look for insurance as buying new shoes. That is why people pay less attention to it and even they may tentatively find excuses not to do it.

The fact of the matter is that every company is different from the others in many ways including price. Knowing only this fact should be enough to convince you that you should always compare rates before buying any insurance product. Insurers vary in size, expertise, underwriting criteria, historical connections, locality and so on that their prices could be substantially different too.

While quite a few companies would quote pretty high rates for someone with a recent accident at least several companies would be more accommodating. Below study might surprise you in the way it demonstrates how widely different each insurer can price their policies.

CarInsurance.com carried out an extensive analysis on how rates differentiate between auto insurers. Their astonishing findings are displayed on the table below. Basically, they got at least 6 different quotes for almost every zip code in a state to come up with the average highest and lowest quotes. The first column shows average cost of a full coverage policy in each state. This comprehensive study clearly indicates the price gap between companies in dollars and percentages.

They got the quotations in this study for a typical car and driver and the figures are for full coverage automobile insurance. You may save more or less than the figures shown depending on your car, zip code, driving history and coverage requirements.

Table: State by State Average Car Insurance Savings Achieved by Comparing Quotes  

State Avg. Annual Premium
Avg. Highest Quote Avg. Lowest Quote Average $ savings Average % savings
Alabama $1,313 $1,895 $771 $1,124 146%
Alaska $1,114 $1,305 $952 $353 37%
Arizona $1,353 $1,834 $918 $916 100%
Arkansas $1,383 $1,849 $964 $885 92%
California $1,527 $2,033 $942 $1,091 116%
Colorado $1,435 $1,958 $863 $1,095 127%
Connecticut $1,775 $2,564 $924 $1,640 177%
DC $1,722 $2,876 $696 $2,180 313%
Delaware $1,655 $2,422 $1,107 $1,315 119%
Florida $1,835 $2,698 $1,179 $1,519 129%
Georgia $1,348 $1,795 $740 $1,055 143%
Hawaii $1,458 $2,376 $857 $1,519 177%
Idaho $946 $1,581 $694 $887 128%
Illinois $1,009 $1,393 $593 $800 135%
Indiana $965 $1,553 $650 $903 139%
Iowa $1,024 $1,625 $630 $995 158%
Kansas $1,245 $1,794 $766 $1,028 134%
Kentucky $1,771 $2,894 $880 $2,014 229%
Louisiana $2,190 $2,984 $1,445 $1,539 107%
Maine $920 $1,203 $503 $700 139%
Maryland $1,396 $2,223 $1,071 $1,152 108%
Massachusetts $1,191 $1,757 $851 $906 106%
Michigan $2,490 $4,025 $1,013 $3,012 297%
Minnesota $1,200 $1,517 $899 $618 69%
Mississippi $1,330 $1,960 $871 $1,089 125%
Missouri $1,158 $1,805 $705 $1,100 156%
Montana $1,224 $1,753 $848 $905 107%
Nebraska $1,117 $1,481 $697 $784 112%
Nevada $1,750 $2,284 $1,279 $1,005 79%
N. Hampshire $1,102 $1,583 $557 $1,026 184%
New Jersey $1,353 $1,887 $745 $1,142 153%
New Mexico $1,257 $1,946 $870 $1,076 124%
New York $1,782 $2,893 $992 $1,901 192%
North Carolina $963 $1,241 $620 $621 100%
North Dakota $1,311 $2,560 $743 $1,817 245%
Ohio $957 $1,312 $626 $686 110%
Oklahoma $1,655 $2,593 $1,006 $1,587 158%
Oregon $1,292 $1,732 $944 $788 83%
Pennsylvania $1,532 $3,183 $686 $2,497 364%
Rhode Island $1,693 $2,362 $1,106 $1,256 114%
South Carolina $1,263 $1,528 $1,030 $498 48%
South Dakota $1,052 $1,548 $685 $863 126%
Tennessee $1,223 $1,838 $744 $1,094 147%
Texas $1,308 $1,947 $889 $1,058 119%
Utah $1,212 $1,591 $653 $938 144%
Vermont $967 $1,269 $472 $797 169%
Virginia $979 $1,192 $742 $450 61%
Washington $1,197 $1,498 $994 $504 51%
West Virginia $1,387 $1,921 $1,110 $811 73%
Wisconsin $1,327 $2,743 $632 $2,111 334%
Wyoming $1,472 $1,830 $1,126 $704 63%

The table shows that the amount you may be able to economize on your vehicle insurance premium depends on which state you live in. While the price gap can be huge in some states you may not be able to save as much dollars in others. There are several factors that explain these disparities.

It appears that you can save more in states where auto insurance prices are higher, in comparison to states with reasonably cheap rates. This is only a logical explanation. When the ticket of an item is higher you can potentially save a few more dollars by haggling on the price or checking a few more suppliers.

Here are the top 5 states where motorists are most likely to save the largest amounts on average per annum simply by getting a few quotes and comparing them side by side.

  • Michigan: $3,012 – 297%
  • Pennsylvania: $2,497 – 364%
  • D.C.: $2,180 – 313%
  • Wisconsin: $2,111 – 334%
  • Kentucky: $2,014 – 229%

And these are the states where drivers are likely to save the least on their yearly premium on average.

  • Alaska: $353 – 37%
  • Virginia: $450 – 61%
  • South Carolina: $498 – 48%
  • Washington: $504 – 51%
  • Minnesota: $618 – 69%

In addition, the higher the competition the more likely policyholders can save larger sums due to wide spectrum of insurers covering different segments of the market. When there are only few insurers in a state like Alaska the choices are clearly limited and this reflects negatively on prices. In other words, 20 or so insurers in Alaska can dictate their prices more easily than it is in Pennsylvania where there are over 200 insurers.

Even in a state where you can save the least (Alaska) you can still save around $350 pa. In other words, you can reduce your premium by 37%. But it is astounding to see that you can save as much as $3,000 or nearly 300% in places like Michigan.

So it is perhaps time to make sure that you are getting the best deal available in your state when it comes to insuring your cars. You can get your quotes by entering your details above pretty quickly and enjoy lower rates.

There are many reasons why you should get alternative insurance quotes at your next renewal no matter what your circumstances are. If you are a good driver you would want to get the best rates possible because everyone would love to insure a driver who never makes a claim. That is why you should get the lowest possible rates.

You would still search for affordable rates even if you are a high risk driver. That is why you probably have more reason to look around harder for deals when you are not a preferred risk. At least your premiums are higher than a typical driver and therefore you can save more in terms of dollars.

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