Iowa Has Lowest Auto Insurance Rates

 

Some states across the country charge a ridiculous amount of money when it comes to their auto insurance. The amount of money paid by the highest auto insurance premium state is more than double that which is paid by the state with the lowest premiums. How is this possible you ask? It is simple – it all has to do with taxes and competition. Those states that have higher taxes and/or fewer auto insurance companies vying for your business are more likely to charge you more for your auto insurance as they know that they can get away with it.
 
A recent report that came out from the National Association of Insurance Commissioners entitled “Auto Insurance Database Report 2006/2007” says that there is a rather large discrepancy among those that charge for auto insurance. The most expensive states are the District of Columbia with an average rate of $1,288.52, Louisiana with $1,262.13, and New Jersey with $1,227.62. Now you have to remember that this is an average which means that although there are people paying less than this for their auto insurance there are also people paying more.
 
The lowest states in the country are Iowa with $620.08, Wisconsin with $642.47, and North Dakota – coming in at $657.63. This is a significant difference for auto insurance rates and you have many people wondering how this is possible. They say that the auto insurance companies are taking advantage of them, but without more competition these are the rates that they are stuck with for now. Obviously the auto insurance companies don’t care all that much, but your legislators should. You would be wise to find out what you can do to reduce your rate if you don’t live in a lower rate state.

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