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Current State of Auto Insurance the US

The US has more than 250 million drivers today and we are curious about how car insurance is impacting them. Are they paying more in the recent years or less and how technology has been able to change (or not) the impacted rates.

Consumers need to be educated and informed about auto insurance. They need to be given all data which determines the rates, especially cheap auto insurance rate. Auto insurance depends on many different factors. The insurance rates keep changing and usually depend on factors on which the risk is assessed.

Additional findings point to how certain factors have caused auto insurance rates in the country to change over time. These include:

The Personal Information of The Driver:

  • Gender
  • Age
  • Occupation
  • Educational qualification
  • Credit score
  • Marital status – single or married
  • Residence – own place or rent

Car Details:

  • Use of telematics in the car
  • The technology used – safety features like anti-theft facility
  • Insurance rates of car sales in the US.

Driving Attributes

  • Annual mileage of the vehicle
  • Purpose of driving – work or pleasure
  • Claims and violations on the driver’s driving record.

Insurance and Buying Coverage:

  • Your levels of liability, comprehensive and collision coverage
  • Behavior during purchasing insurance.
  • Prior coverage of the car owner.

Influenced by all the factors, this is a summary of the Auto Insurance graph of US in 2018

Most and Least Expensive:

  • Car insurance rates were higher than the present times. The average annual premium of the nation was $1427 that year, which was 20% higher than in 2011.
  • Michigan became the most expensive state with the annual car insurance of $2610.
  • Detroit was the most expensive city with the annual $5414 insurance.
  • The least expensive state was North Carolina that had the annual insurance of $865.
  • Winston-Salem, NC became the least expensive state with only $774 annual insurance.

Rapid Changes in Rates:

  • Car insurance of some states has increased over 60% during the last few years, while others have gone as low as 1%.
  • 10 states suffered from a net rate decrease at the same time, and a few of them have lost more than 20%. It is not clear why this happened.

These States Are:

  1. New York
  2. Alaska
  3. New Mexico
  4. West Virginia
  5. Hawaii
  6. North Dakota
  7. Maryland
  8. Connecticut
  9. Massachusetts
  10. Oklahoma

Annual rate changes had a national average of 9%. In some states, it was more than 45%.

Technology Related Impacts:

  • High Impact: Insurance companies treat distracted drivers strictly, and thus act whenever cell phones are related to driving. It is considered as a serious and dangerous traffic violation. If you call or text someone while you are driving, then you will receive a ticket for a penalty that will raise your car insurance rates. In 2011, the increased rate was 0.25%. However, in 2018, it was 16%, it increased a massive 7500 % through these years. On the other hand, the increased rate of the DUI violation through the years is 34 %.
  • Low Impact: If you have anti-theft and safety technology in your vehicle, then it can reduce collisions and theft, but insurance companies do not even offer a 1% discount for having them

If you want cheap insurance rate, then be careful about these auto insurance factors.


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