Age also matters. Young drivers are given high rates for auto insurance policies simply because they automatically fall on the risky category. This is justified by science. Well according to studies due to the biological make up and brain level of maturity, young people are highly correlated with risky driving behavior.

Thus insurance companies do not just assign rate randomly or prioritize one group over the other carrying their baggage of biases. No, this is not the case, if so insurance providers are also putting their business at a random chance of success or failure. Businesses do not work like this. Everything must be studied carefully, everything must be justified accordingly and everything must be accurate and with high probability if certainty cannot be a hundred percent.

We said that insurance rate revolves around the concept of risk. Once you have proven yourself to be a low risk then you will get your shot of paying low premiums. Women, as based on several studies, are low risk drivers thus auto insurance companies offer cheaper rates for them. This explains everything’s. Statistics show that women’s involvement with auto accidents are less likely then men’s involvement. In addition to this, women also tend to be more cautious in driving than males.

All of the above-mentioned reasons why women pay less for auto insurance policies lead providers with a special design for auto insurance of women. The additional feature of women’s premium involves no-claim bonuses. This can be obtained if a woman driver filed no claims for a specific period of time. There is also a “handbag cover” which is included in the comprehensive cover. This handbag cover takes care of the situation where the bag of the driver plus all its contents was stolen or damaged while inside the auto.

These are just some of the privileges women enjoy when it comes to auto insurance policies. Remember this is not about gender per se; this is about research findings and trends of who are risky and who are not.

Your Auto Insurance premium is never quite low enough if you think like a typical consumer. Most of us always wish for a lower auto insurance rate, even if it means just to save a few bucks each Month. What we need to understand is how to shop for the best rate, and also where to shop for it. We also need to learn and understand how auto insurance works, and what are some of the most important rating and underwriting factors that affect our Monthly premium for auto insurance. All of us can be better drivers if we know that being a better driver means lower insurance rates. AutoInsurancePremium.org is dedicated to show you and teach you more on how to save money on auto insurance.

Auto insurance premiums are the yearly fee that is paid to the insurance company in order for your car to be covered. The amount of the premium varies depending on the type of coverage you select, the drivers age and driving experience, and the type of car you insure. Many of these factors are variables that you cannot change. There are certain variables that you can change however, as well as certain ways that your auto insurance premium can be lowered. Listed below are the top five things that can lower your premium.

1. Increase Deductible If you have collision or comprehensive coverage on your vehicle, one way to lower your insurance premium is to increase your deductible. Your deductible is the amount of money that you must pay to the insurance company before they will pay you out for a comprehensive or collision claim. For more information on comprehensive and collision coverage visit information on types of auto insurance coverage . The deductible amounts you can choose are usually $250, $500 or $1000.
2. Drop Collision If increasing your deductible amount did not reduce your insurance premium by enough money, you may want to consider dropping your collision coverage altogether. This may be especially wise for drivers who own older vehicles, as the amount the insurance company pays out for your car may not be very much when the deductible amount, and the premium you pay for collision is taken into account.
3. Take Driver’s Education This is the easiest thing that new drivers can do to reduce their insurance rates. It usually consists of around 40 hours of in class session followed by 12 hours of in car lessons. At the end of the course you must pass a written in class test as well as a driving test. This can lower your insurance rates as much as $300 per year.
4. Combine Insurance Policies To lower your auto insurance premium, you can combine your insurance policies with one company. Insurance companies will offer you discounted rates if you insure more then one car with them, or if you combine your car and house insurance policies with them. If you have more then one vehicle or have house insurance it may be wise to buy the insurance from the same company.
5. Install Anti-Theft Device This is another simple and easy method to reduce your premiums, have an anti theft device installed on your car. This will lower the probability of your car being stolen, thus lowering the probability of you making an insurance claim, which should lower your premium. Also it will prevent the hassle of paying the deductible and making a claim with the insurance company if your car is stolen.

Below is a summary of average premiums by official U.S. region. Shown within brackets is the percentage difference compared with the $1,844 national average.

• Midwest region … $1,512 (18% below U.S. national average)
• West region … $1,690 (8% below U.S. national average)
• Northeast region … $1,879 (2% above U.S. national average)
• South region … $1,944 (5% above U.S. national average).

Car insurance rates for America’s Midwest and West regions are both lower than the U.S. national average and represent a discount to typical auto insurance premiums in the South and Northeast.
Average Auto Insurance Rates for Midwest States

Average state rates are listed by region below. For each state, the city capital is also listed.

In the American Midwest, 11 states had average auto insurance premium rate quotes below the $1,844 national average. The lowest average auto insurance premiums belong to Ohio and Iowa. The only Midwest state with an above-average rate was Michigan.

1. Illinois … US$1,488 (19% below average; capital city Springfield)
2. Indiana … $1,503 (18% below average; Indianapolis)
3. Iowa … $1,256 (32% below average; Des Moines)
4. Kansas … $1,606 (13% below average; Topeka)
5. Michigan … $2,033 (10% above average; Lansing)
6. Minnesota … $1,708 (7% below average; Saint Paul)
7. Missouri … $1,537 (17% below average; Jefferson City)
8. Nebraska … $1,569 (15% below average; Lincoln)
9. North Dakota … $1,420 (23% below average; Bismarck)
10. Ohio … $1,193 (35% below average; Columbus)
11. South Dakota … $1,496 (19% below average; Pierre)
12. Wisconsin … $1,339 (27% below average; Madison).

Average Auto Insurance Quotes for West States

In the American West region, drivers in 9 states received average premiums under the national average. The average premium for Washington State was a mere $3 higher than the U.S. average, while drivers in Carson City, Nevada had an average rate that was $176 or 10% above the national average.

1. Arizona … US$1,510 (18% below average; Phoenix)
2. California … $1,793 (3% below average; Sacramento)
3. Colorado … $1,515 (18% below average; Denver)
4. Idaho … $1,381 (25% below average; Boise)
5. Montana … $1,732 (6% below average; Helena)
6. Nevada … $2,020 (10% above average; Carson City)
7. New Mexico … $1,719 (7% below average; Santa Fe)
8. Oregon … $1,557 (16% below average; Salem)
9. Utah … $1,790 (3% below average; Salt Lake City)
10. Washington … $1,847 (average; Olympia)
11. Wyoming … $1,726 (6% below average; Cheyenne).

Average Auto Insurance Rates for Northeast States

Automobile owners in 4 U.S. Northeast states received premium quotes above the national average. Northeast drivers in Vermont, Maine and Rhode Island enjoyed rates that fell below the U.S. average premium by at least 25%.

1. Connecticut … US$2,032 (10% above average; capital city Hartford)
2. Maine … $1,278 (31% below average; Augusta)
3. New Hampshire … $1,484 (20% above average; Concord)
4. New Jersey … $2,702 (47% above average; Trenton)
5. Pennsylvania … $2,093 (14% above average; Harrisburg)
6. Rhode Island … $2,300 (25% below average; Providence)
7. Vermont … $1,263 (32% below average; Montpelier).

Average Auto Insurance Rates for South States

The South’s average auto insurance premium of $1,944 is the highest among all regions, and is 28% higher than the average premium of $1,512 for the Midwest. Among the following 17 states in the South region, 7 received average quotes below the national average.

1. Alabama … US$1,665 (10% below average; capital city Montgomery)
2. Arkansas … $1,890 (2% above average; Little Rock)
3. Delaware … $2,315 (26% above average; Dover)
4. District of Columbia … $2,669 (45% above average)
5. Florida … $2,148 (16% above average; Tallahassee)
6. Georgia … $1,643 (11% below average; Atlanta)
7. Kentucky … $2,097 (14% above average; Frankfort)
8. Louisiana … $2,421 (31% above average; Baton Rouge)
9. Maryland … $2,289 (24% above average; Annapolis)
10. Mississippi … $1,970 (7% above average; Jackson)
11. North Carolina … $1,510 (18% below average; Raleigh)
12. Oklahoma … $1,830 (1% below average; Oklahoma City)
13. South Carolina … $1,655 (10% below average; Columbia)
14. Tennessee … $1,483 (20% below average; Nashville)
15. Texas … $1,874 (2% above average; Austin)
16. Virginia … $1,539 (17% below average; Richmond)
17. West Virginia … $2,057 (12% above average; Charleston).

Individual Insurance Quotes by City of Residence

The above analysis shows general differences in average car insurance rates depending on U.S. region in which drivers reside.

Even then, there are significant percentage differences within each region. For example, the average rate for motorists in Nashville, Tennessee is 37% less expensive than the average quote for drivers in Lansing, Michigan – even though Tennessee is part of the U.S. region with the overall highest average premium.

Consumers are encouraged to use this article as a general benchmark for average rates by region and state. To find the lowest-cost premium for the city in which an individual resides, careful research of a number of quotes from different auto insurance companies is a necessary next step.