According to a study from Insure.com, Iowa ranks 2nd best when it comes to average auto insurance prices.
The study looked at more than 750 insurance rates in each state. The dollar figures taken focused solely on the 2013 model year.
Midwest Sensibilities Mean Affordable Car Insurance
Iowa had an average annual insurance cost of $1,028. Insure.com cited the Hawkeye State’s low accident totals, largely due to a lifestyle that is contrary to the rush-and-go of densely populated areas.
The report also mentioned less road-rage, likely due to fewer congested streets across Iowa.
If people are in less of a rush, with less traffic, there will be fewer accidents. If there are fewer accidents, there will be fewer insurance claims. If there are fewer insurance claims, there will be less expensive auto insurance.
In a rural, small town setting, it’s extremely possible that anyone who gets in an accident knows the other driver.
A neighborly attitude leads to fewer lawsuits and drives down insurance claims.
Only Maine has less expensive auto insurance, with an average payment of $934. They were the only state to average under $1,000 per year. Like Iowa, Maine has less congestion combined with small town sensibilities.
The largely rural state also has tight restrictions on young drivers, including a mandatory driver’s education course before a learner’s permit can be issued, and limits on late-night driving and passengers.
Many experts credit Maine’s driver’s education program with keeping accidents and teen fatalities. They also claim it creates better drivers over a lifetime.
Who’s Got The Most Expensive Insurance?
With a high rate of bodily injury and comprehensive claims, Louisiana sits at the top with an average of $2,699. For whatever reason, people in Louisiana are also more likely to file claims and lawyer-up after an accident, according to the report.
Michigan comes in as the 2nd most expensive, largely due to guaranteed unlimited lifetime personal injury protection for treatment of injuries suffered in an accident. In English: every other state sets limits on how much you can get from insurance companies after a car-accident injury. Michigan has no such limit, driving the price of insurance sky-high.
Insure.com commissioned Quadrant Information Services to provide data from six major insurance carriers. The study gathered the data over 10 different area codes in each state.
McGrath Auto: Proud to Serve the Good People of Iowa
While we may not sell affordable insurance, we do have a great inventory of affordable new and used cars.
Call McGrath Auto today at 877-226-0908 to learn more about our excellent service and affordable vehicles.