Four out of five US drivers have seen their car insurance rise in the past year, car insurance search engine The Zebra said in its annual report.
Zebra revealed a 23% increase in rates across the country since 2011, with an average yearly cost of $1,470. Michigan, Rhode Island, and Louisiana had the highest premiums, averaging more than $2,000.
The State of Michigan has the highest auto insurance rates in the country while Detroit has the highest in any city.
Rates in different states vary, with abrupt increases over time. Even insurance holders within a single state can witness a vast disparity. Changes in rates between states can be brought about by changes in weather and state laws.
The Zebra’s annual report studies the behaviour of auto insurance rates of more than 61 million people in around 34,000 U.S. zip codes to give insight into a wide range of factors insurance companies use to set the price of their products — and how their pricing method is unique to every individual.
There are many factors why car insurance can vary from one person to another. Aside from differences in weather, driving habits, gender, marital status, or credit score can affect the price of an individual, Director of Market Insights of The Zebra Alyssa Connolly said.
Meanwhile, State Farm, the largest auto insurer in Louisiana, recently announced it would slash car insurance rates by an average of 3.2% starting April.
In Colorado, car insurance costs shot up by 80% since 2011, but Oklahoma experienced a 20% drop within the same period. Moreover, rate changes differ from year to year and even between individual zip codes.
