Tuesday, July 30, 2019

Wallet Hub: Cheap Car Insurance in 2019

Quoted in WalletHub.com analysis of car insurance.

Why do car insurance rates (and even providers) vary so much from state to state?

Mostly due to legal definitions of tort and liability as well as minimum required coverage.

Is it riskier to drive in some cities and states than others? Are the drivers themselves riskier?

Specific age groups and race groups have shown increased rates for one or several types of crashes. Some of these groups are over-represented in some states. Also very busy intersections, substandard freeway merges and high volume rural and mountainous roads have a higher incidence of crashes. The number of these "black spots" also varies by city and state. Weather creates variability in crashes too, i.e., there are more crashes in foggy and icy conditions; there are many states that do not have these conditions.

Is there anything that state and local governments do to promote cheap car insurance rates for their constituents?

Enact properly designed and enforced laws on speed, red light running, helmet usage, intoxication, etc. These vary widely from state to state and sometimes within a state.