Insurance companies evaluate several factors when deciding their automobile insurance prices. Of significant importance is the place where the car is based or its function. Other equally vital elements influencing insurance premium rates is the seriousness or volume of car insurance claims within a given geographical area, the frequency of thefts, probability of vandalism and accidents, insurer’s age, type of car, driving record, favorable or unfavorable weather conditions in an area and level of road congestion.
High employment rates and extensive public transport systems are a few of the elements that may radically lower the rates of automobile insurance premiums. Every motor insurance carrier uses its own formula and base speed, but this slightly varies in the same geographical area and same make of vehicle. However, the gap in insurance rates across different cities may change.
Below you will find the 10 least expensive cities for car insurance. This is according to the analysis from financial adviser site, NerdWallet. The assessments are from a 26-year-old man with no crash history and insuring a 2012 Toyota Camry together with a insurance policy extension.
10. Montgomery, Alaska
It cost an average annual premium rate of $1,375.82 to insure a car in Montgomery, Alaska. Montgomery is the home to many governmental agencies in addition to Maxwell Air Force Base. Car insurance rates are comparatively lower here since most insurance companies offer attractive military car insurance discounts. This significantly lowers the average car premium in the city which makes it an attractive city for car owners who wish to save on the insurance premium cost. Because there are a lot of governmental agencies in Montgomery, the city has a lower percentage of unemployment. This translates to quite a number of car owners having the ability to pay their car insurance. A higher rate of car insurance in an area has a reverse effect of reducing the overall rate of the insurance premium.
9. Spokane, Washington
Insurers in Spokane, Washington charges an average annual premium of $1,307.68. Though this isn’t very low, it’s lower compared to other main cities in the United States. High-risk drivers in this city are encouraged and advised to enroll in the Washington Automobile Insurance Plan. This strategy allows auto insurers to share the risk associated with high risk driving. This is without a doubt why Spokane provides such a reduced insurance fee. The speed in Spokane might have been much higher were it not for this strategy.
8. Fayetteville, North Carolina
With an average annual premium rate of $1,294.80, Fayetteville is among those cities with relatively lower car insurance premiums. Fayetteville city is home to a substantial military population – Fort Bragg. Fort Bragg is the city’s primary economic driver. Additionally, many of the Fayetteville city’s residents receive military discounts. The city also benefits from North Carolina’s Safe Driver Incentive Plan. This is an initiative which promotes safe driving where insurance cost for dangerous drivers significantly goes up. The above factors have led to the slightly lower car insurance premiums.
7. Rochester, New York City
The city levy’s an average annual premium rate of $1,249.26. This is relatively small compared with other important cities nationwide and worldwide. The city is the domicile house to big businesses like Lomb and Bausch among other smaller ones. The city’s industrial sector has absorbed a larger local workforce which in turn has helped maintain a low unemployment workforce. Many car owners can therefore afford insurance premiums. A great number of automobile insured drivers may decrease a city’s average car insurance premium. New York City also has the New York Automobile Insurance Plan as an alternative insurance option to high-risk drivers.
6. Boise, Idaho
Insurers in Boise, Idaho charge an average annual premium of $1,221.65. Boise is one of those cities with a record low crime rate and boasts of less traffic jam congestion compared to many other US cities. Both of these factors help keep the city’s car insurance rates quite low. The average commute time is only 20 minutes! This time is significantly lower than the national average as well as other cities in the world. The city also has among the lowest unemployment rates, due to companies like Bodybuilding.com and Albertsons, which have absorbed a huge number of the populace into their workforce. This helps maintain lower car insurance premium rate.
5. Charlotte, North Carolina
Insurers here provide an average annual premium of approximately $1,123.09. Weather is one determinant of insurance premiums, and Charlotte has great weather with an average of about six inches of snow annually. Optimal weather all year round is a significant element in determining a car insurance premium. Bad weather conditions bring higher rates of insurance because there are higher odds of the car suffering a significant mechanical breakdown or a weather induced mishap whose invoice is to be cleared by the insurance business. Very good weather is undoubtedly the principal reason for Charlotte City’s low car insurance prices.
4. Durham, North Carolina
Durham has an average annual premium of about $1,100.50. Again, this isn’t astonishing as it’s a part of North Carolina’s transit triangle. The city is the home of North Carolina Central University and Duke University. Many residents of the city use the commuter bus to go around. Triangle Transit owns these buses and contains exact commuter route covering the whole city. This has significantly helped relieve congestion interchangeable with such cities. There are fewer instances of collisions and injuries in less congested city roads than the ones that are jammed with visitors on better part of their day. Much like Charlotte, the weather in Durham is just as good which also will help reduce premium costs.
3. Raleigh, North Carolina
The city has an average annual premium of $1,098.48. This is significantly lower compared to other cities. But this isn’t astonishing as Raleigh is also the section of the Piedmont Triad. It is an area that’s known to provide some of the cheapest rates of automobile insurance. The city is home to famous North Carolina State University, which is also a significant employer. The North Carolina State University operates its own bus line, moreover; the city has among the very best and most extensive public transport systems in the world. These are the likely reasons why insurers offer lower car insurance rates to Raleigh residents.
2. Greensboro, North Carolina
The city has an average annual premium rate of $1,089.58 and is the next cheapest city in the united states for car insurance rates. Greensboro, a city in the Piedmont Triad, is famous for its significant contributions to education and culture and education. It’s a transport hub with not only a broad and slick street network but also an International Airport – the Triad International Airport, and Amtrak trains linking to other important U.S cities. The city is also a significant beneficiary of the state policies to curtail insurance fraud. It’s no doubt among the few areas with lower car insurance rates.
1. Winston-Salem, North Carolina
With an average annual premium rate of just $969.10, the Piedmont Triad in Winston-Salem, North Carolina is the cheapest city for car insurance. Winston-Salem is a home to many manufacturing firms and has an impressive transport system and network set up. Winston-Salem is the home to some of the honored world brands such as the Reynolds Tobacco Company or the R.J Company. It’s also a home to the renowned Wake Forest University, a world-class institution of higher learning. Reynolds Tobacco Company and Wake Forest University employs many residents. Typically, large numbers of uninsured motorists inversely boost the car insurances in this particular area. North Carolina has the record low rate of uninsured car owners in the nation that stands about just 8%. This is the place with the lowest car insurance rate nationally.