With the economy suffering, people are buying fewer new cars. Besides having an impact on the auto industry, it also affects the insurance industry because insurance companies charge higher premiums for new cars.
A report by the National Association of Insurance Commissioners found that the cost of insuring a car decreased an average of 1.7% in 2006, the year the study covered. In 2006, Washington DC had the highest average insurance premiums with an average cost of $1164 for insuring a car. Washington DC is followed by New Jersey ($1,152) and Louisiana ($1,094).
Where does Washington State fall in the list of car insurance expenditures? Washington State ranks 17 with an average expenditure for car insurance of $817 in 2006.
There are many factors that affect auto insurance expenditures by state. In states where there is a healthy economy, people tend to buy newer cars and have higher insurance rates. States with a higher urban population, traffic density and per capita income higher than the average also pay more in premiums.
The least expensive states for purchasing car insurance are North Dakota, Iowa, South Dakota and Idaho, all who have average expenditures for car insurance of between $530-580 annually.
This information is provided by Washington Injury Attorney blog, a service of The Farber Law Group. We represent people who have been seriously injured in car accidents and the families of those killed.
Contact The Farber Law Group at 1-800-244-9087 or e-mail firstname.lastname@example.org. We have offices in Seattle and Bellevue to assist you.