Why do insurance rates oscillate so much between states?
Sometimes states that are right next to each other enjoy totally different insurance rates from the same company for the same saloon and driver. It's not like driving magically becomes more risky when you cross the state line, so why does this happen?
Answers:
The answer above nailed it, only just to add to that, each state have a set minimum of liability coverage required, some states have 100/300/100 as the lowest you can have by decree, others 30/60/30, combine that with statistics as the above mentioned and you have your policy premium.
Most insurance is regulated by the State. For example: within PA insurance companies have to meet the standards for the Commonwealth of PA's Insurance Industry which is controlled by the Insurance Commissioner.
Each state have different requirements or standards for insurance .. example- some states have medical (M) coverage and some states have personal injury protection (PIP or PI)
Do you remember research about State and Federal Government? Flood Insurance is controlled by the Federal Government but Property and Casualty (auto, ho, renters, motorcycle, atv...) are controlled by the State.
Crime, driving and road conditions oscillate from state to state, city to city, even neighbourhood to neighbourhood. Loss statistics are used to establish the actual average cost to insure different vehicle for different uses in different places. I pay smaller amount for pleasure coverages, living a few miles outside Winnipeg, than someone with the same saloon, same driving record, within city restrictions, because statistics show my exposure to risk is less. If they gave you a book to read, the statistics would be hundreds of page for each state. And somewhere in those page would be proof that driving becomes more or maybe smaller number, dangerous when you cross that state line.
Laws rise and fall from state to state, and the companies charge as much as they can get away with contained by each state.
Related Questions:
Answers:
The answer above nailed it, only just to add to that, each state have a set minimum of liability coverage required, some states have 100/300/100 as the lowest you can have by decree, others 30/60/30, combine that with statistics as the above mentioned and you have your policy premium.
Most insurance is regulated by the State. For example: within PA insurance companies have to meet the standards for the Commonwealth of PA's Insurance Industry which is controlled by the Insurance Commissioner.
Each state have different requirements or standards for insurance .. example- some states have medical (M) coverage and some states have personal injury protection (PIP or PI)
Do you remember research about State and Federal Government? Flood Insurance is controlled by the Federal Government but Property and Casualty (auto, ho, renters, motorcycle, atv...) are controlled by the State.
Crime, driving and road conditions oscillate from state to state, city to city, even neighbourhood to neighbourhood. Loss statistics are used to establish the actual average cost to insure different vehicle for different uses in different places. I pay smaller amount for pleasure coverages, living a few miles outside Winnipeg, than someone with the same saloon, same driving record, within city restrictions, because statistics show my exposure to risk is less. If they gave you a book to read, the statistics would be hundreds of page for each state. And somewhere in those page would be proof that driving becomes more or maybe smaller number, dangerous when you cross that state line.
Laws rise and fall from state to state, and the companies charge as much as they can get away with contained by each state.
Related Questions:
- Will it effect my motorcycle insurances rate if i bring a after open market exhaust?
- Could I quash a vehicle insurance claim if I cant pay cheque my deductible and if my rate could turn better?
- What FAST coupé can i bring for lower than 20k and have a low insurance rate?
- Why do individuals next to no credit history return with penalize by insurance companies on their rates?
- What's the best vehicle insurance company 2 capture the lowest price rates on a 74 caprice classic?