Laws are different all across the US, which means car insurance is different in each state. Learn about these differences and what it means for car insurance coverage and rates.
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To get the best deal on car insurance, start by knowing the coverage you need. This article helps, explaining car insurance types in plain English. Easy to understand; easier savings.
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No matter how old or young you are, you can benefit from these great car insurance savings methods. From fantastic discounts to car insurance quotes, your rates will fall, guaranteed.
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Understanding Car Insurance Differences, Rates State-by-State
Car insurance varies significantly from state to state, and moving to a new state means there might be a lot to learn. Understanding how your state works will make navigating insurance offers much easier and save you both time and money.
Tort vs No Fault
There are two ways in which your state will determine how victims of an auto accident are compensated through insurance, and they are very different.
No Fault states (Florida, Michigan, New York, Hawaii, Massachusetts, Kansas, Minnesota, North Dakota, and Utah) require every driver to purchase a car insurance policy that will cover their own expenses in an accident, regardless of who is at fault. So, if you hit another driver, you will simply pay for your own medical expenses, vehicle repairs, etc. and the other party will pay for theirs. Generally, this leads to fewer lawsuits and legal costs, which is the main argument for no fault insurance. Keep in mind though, that your rates will go up from being in an accident, also regardless of who is at fault.
It is possible for someone in a no fault state to file a lawsuit with another driver who also has no fault insurance, if the filer's expenses have exceeded some kind of threshold.Tort states (the majority of US states and the territory of Puerto Rico) on the other hand, place blame and require drivers to pay the portion of expenses for which they are deemed at fault. How this is calculated varies from state to state, but the basic premise is that if you are entirely responsible for an accident, you will likely have to pay all of the costs. If you are found to be 80% responsible, you will pay 80% of the costs.
Some states allow both tort and no fault insurance policies, and how these two individuals resolve an accident between them will depend on which state they're in.
Mandate Levels
Depending on where you live, insurance providers in your state will either base their premium rates on one of two systems. Either they will be based on a rate that is mandated by the government, or based on a calculation that has been derived from statistical information to calculate risk (which is done by an actuary).
Look up the legislation for your specific state to make sure that you are being charged a fair rate.
For quick reference, here is a list of the states with the most and least expensive car insurance rates:
The 10 Most Expensive States
- Michigan
- Oklahoma
- Montana
- California
- South Dakota
- Washington, D.C.
- Georgia
- Illinois
- Connecticut
The 10 Least Expensive States
- Maine
- Vermont
- Ohio
- Wisconsin
- New Hampshire
- Iowa
- Massachusetts
- North Carolina
- Arizona
- Tennessee
The best way to find different rates for car insurance quickly is to look online, which will give you quick comparisons and save you time that you would be on hold over the phone or trying to get a local rep to cut to the chase.