Automobile Insurance Rates - Regulations for Automobile Insurance Rates?
The Truth About Automobile Insurance Rates
Q: Are there national guidelines that regulate automobile insurance rates? I’m wondering because my insurance went up quite a bit when I moved out of state.
A: Automobile insurance rates are regulated by the state in which they do business. The rates are determined, in part, by location.
For instance insurance premiums cost less in South Dakota than they do in Manhattan. The reason for this is because a driver is much more likely to be involved in an accident in Manhattan just because there are so many other drivers on the road.
It is not uncommon for insurance premiums to go up when moving form one state to the next; in fact some companies do not do business at all in certain states because of the difference in state regulations.
Make sure you get the best rate you qualify for in your new state by getting multiple quotes for a policy. This is one way you can lessen the financial impact your move had on your insurance premiums.
Another good way to find a cheaper policy is to see if your workplace or any club you may belong to has negotiated a discounted rate for auto insurance.
We hope this answered your question about why automobile insurance rates vary so much from state to state and that you will take our advice when shopping for your new policy.
It’s strongly recommended that you shop around and obtain auto insurance quotes from several companies. This will ensure that you save money on your premiums and receive the best coverage possible.
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