How Much Does Insurance Cost in My State?

By: Woop Blog Group
Friday, January 6, 2023
How Much Does Insurance Cost in My State

The cost of insurance varies by carrier and state.  Different states have different rates, and those rates vary widely and significantly.

Here are three common factors that may contribute to rate variations in localized, geographic areas:

Increased Frequency or Severity of Claims

If a carrier experiences an increase in the number or cost of claims in a particular state, it may increase rates to cover those costs.

Changes in State Regulations

If a state changes its insurance regulations or requirements, that may affect the cost of insurance for policyholders.

Changes in the Economy

Localized economic factors such as inflation and rising healthcare costs may affect the cost of insurance for policyholders, too.

It’s also worth noting that rates may vary widely and significantly from one location to another, even within the same state.  Factors such as the local economy, crime rates, and number of claims filed all contribute to this.

According to MarketWatch, in general, drivers in Michigan, Connecticut, and Florida pay some of the highest rates in the US, while Vermont and Idaho are two of the cheapest states for both full-coverage policies and minimum-liability insurance.  In fact, Americans pay an average of $1,730 per year or $144 per month for full-coverage auto insurance, and for minimum-liability coverage, the average cost is $635 per year or $53 per month.

How Much Does Insurance Cost in My State

Is your domicile listed on the chart below for being one of the most affordable or least affordable states for car insurance?

How Much Does Insurance Cost in My State

Switching gears (no pun intended), let’s talk about home insurance prices and how they’re rising even faster than inflation.  According to Policygenius, over the past year, rates increased as much as 18.5% in Arkansas, 18.1% in Washington, and 17.5% in Colorado, more than doubling the rise of inflation during that same period.  Rates in Oklahoma increased $257 on average, which was the highest dollar increase of any state.  Check out the images below:

How Much Does Insurance Cost in My State
How Much Does Insurance Cost in My State

Did your jaw drop to the floor?  If so, right now, the best thing you can do is just understand the market and why this is happening.  Woop’s talented sales and servicing team recognizes that the cost of insurance in some states is ridiculously high, and we want to help you secure you the most optimal rates and coverages.  If you want to say goodbye to everything you hate about insurance and are looking for a new way to do insurance, hit is up directly!