Your car insurance rates will vary widely, depending on which U.S. state you reside. For example, the average premium in Wisconsin is $56. Bad news for motorists in New York: your average premiums are $103. The car insurance rates, by state, largely depend on laws passed by their local legislatures.
Personal Injury Protection (PIP)
Some U.S. states are what are known as “no-fault” states. No-fault means that any driver involved in an accident is responsible for any injuries and property damage, up to an amount determined by the motorists’ state of residence. Currently, there are seven U.S. states that have enacted no-fault legislation. In some of these no-fault states, drivers are required to carry Personal Injury Protection (PIP) as part of their car insurance policy. PIP is coverage that protects you in the event that you’re involved in an accident. If you live in a no-fault state and you have adequate health insurance, you may only need to buy the minimum PIP required by your state of residence.
Car Insurance Rates by State: Uninsured Motorist Protection
As a driver, it can be safely assumed that you know that all motorists on the road need to have some type of insurance. You probably also know that not all motorists are able or even desire to subscribe to this basic legal tenet. This is why some states require their drivers to carry what is called Uninsured Motorist Protection. This type of insurance can open up the door to damages in the event that you and/or your passengers are injured by a driver that has little or no coverage. Two of the U.S. states that require their motorists to carry this coverage are Illinois and Maryland.
Liability Insurance
Liability insurance is coverage that protects all those involved in a car accident in which you were a part. The amount of liability coverage varies according to different state laws. For example, Michigan has its drivers carry at least $20,000 worth of liability coverage per person.
How U.S. States Differ in Their Liability Insurance Requirements
U.S. States vary as to the liability insurance requirements they have for their driver/residents. The way that this requirement is denoted in Michigan is 20/40/10. The numbers, in thousands, tells you the maximum amount a claim will pay in medical expenses for each person, the maximum per accident and the most a claim will pay for damaged property, respectively. 20/40/10 in Michigan means that an insurance company will pay up to $20,000 per person for medical expenses, $40,000 for total medical expenses and $10,000 for any property damage. California’s liability insurance requirements are 15/30/5.
Car insurance rates, by state, can vary widely according to laws that were passed by local legislatures. Since Wisconsin is one of the few states that doesn’t require its drivers to carry liability insurance, its average premiums are the 4th lowest in the nation. States that has its drivers buy a lot of coverage will result in higher than average premiums. Doing your research and getting quotes from both national and local insurance companies is the best way to find an affordable car insurance policy, whether you live in Wisconsin or New York.