Why Car Insurance Varies By State

As far as auto insurance goes, there are a whole lot of different policies, different coverage options, and different requirements based on where you live and your individual state’s legal regulations. And the difference is huge, more than several tens of thousands of dollars. Find out why car insurance varies by state and get auto online insurance quotes from our website.

The main difference in insurance coverage from state to state comes in the terms of how much liability insurance you are required to carry in order to be legally driving. This means how much coverage you have to have for yourself, your passengers, and any other drivers you may get into an accident with. One state may require that you hold $20,000 for personal injury, $35,000 for the other driver, and $10,000 for passengers while in another state the requirement may be much higher or even lower. Alaska is the most expensive state, when it comes to minimum liability coverage required by law.

In many cases, having the minimum coverage is going to keep you legal and fairly safe when driving. In some states, the full coverage policies may get you benefits that are not available other states. One example is that in Kentucky, full coverage even covers the replacement of your windshield no matter how it was damaged.

The coverage from state to state is based on the overall statistics from that state like how much an emergency room visit costs, how often people get into wrecks, how severe the wrecks are, the number of uninsured drivers and more. These statistics are periodically evaluated and this is why the minimum coverage level may change.  Keep in mind that this data is also used by insurance companies and helps them determine your car insurance rates.

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