Highest and lowest car insurance rates by ZIP code for 2022

Eager to know why car insurance rates tend to increase from year to year? wonder why you pay more for car insurance than your friend in another zip code?

The premiums your insurance company charges are based on different criteria, such as your driving record, the year, make and model of the vehicle, and your age. The city you live in can also have an impact on what you’ll pay for car insurance.

Reading: Which zip code is cheaper for car insurance

what drivers across the country pay based on the city or area in which they reside is a fascinating study. Read on to learn about ZIP code auto insurance rates and find out how you can save the most money on a policy.

average auto insurance rates by zip code in 2022

carinsurance.com recently collected auto insurance premium data from every state and major ZIP code in the country. Armed with these numbers, we can now assess how much you can expect to pay for vehicle insurance, on average, in most cities across the country.

Our analysis below reports which cities/zip codes have the most expensive car insurance rates, on average, as well as the cheapest car insurance rates.

The methodology we follow assumes you are a 40-year-old male with a clean driving record (no recent traffic violations/tickets) that requires full coverage, drives approximately 12 miles to work, and has a good insurance score.

Some of our findings were surprising, while others were somewhat expected. As you might anticipate, living in a more rural zip code area can lead to cheaper auto insurance premiums than residing in a major metropolitan zip code.

Keep reading for more detailed details on which cities charge the most and least for auto insurance coverage.

Most Expensive Zip Codes for Auto Insurance by State

According to our research, here is the list of cities (based on zip codes) where car insurance rates are the highest in 2022.

Other zip codes with expensive auto insurance rates include Chicago ($2919), Baltimore ($2918) Lookout, Ky. ($2,890), Newark, NJ ($2,807) and Providence, RI ($2,726).

Please note that these are average rates in these zip codes within these states.

however, a closer look reveals the actual higher premium prices that policyholders in many zip codes may end up paying in 2022 (in a low-to-high range, not averaging) , although they will pay less on average for a policy in these cities:

  • detroit: $16,397
  • new york: $13,850
  • st. Louis: $10,332
  • chicago: $10,121
  • wilmington: $7,679
  • geoff cudd, a philadelphia-based consumer advocate and owner of findthebestcarprice.com, says there are many factors that go into why auto insurance rates vary so much from place to place.

    mark friedlander, director of corporate communications for the institute of insurance information in st. Johns, Florida explains that the ZIP code you live in can make a big difference in your out-of-pocket costs for your insurance.

    motor city madness: why auto insurance rates are so high in detroit

    detroit may be known as the “motor city” and home to many famous automakers, but it’s also the city with the dubious distinction of having the most expensive car insurance premiums, on average, in 2022.

    See also: Questions Insurance Companies May Ask After a Car Accident | Graham Scofield Injury Lawyers

    why? consider michigan to be a no-fault state. That means drivers should have personal injury protection coverage that protects them from financial loss no matter who causes a car accident.

    The state also requires drivers to carry property protection insurance and at least a 20/40/10 liability coverage rating. These mandatory coverages result in significantly higher premiums for drivers in Detroit and throughout Michigan.

    Among other reasons motorists in Detroit and their home state pay more for auto insurance is that Michigan has an extremely high rate of uninsured drivers (25.5%, second highest in the country) which makes the insurers change to the insured the extra expenses they have to pay for accidents with uninsured drivers.

    learn more about which states are not guilty and what they mean?

    Which zip codes have the cheapest car insurance?

    on the other hand, there are many areas in the us. uu. where you’ll likely spend much less on car insurance.

    Five additional ZIP codes that have lower rates are Ketchikan, Ala. ($1,150); walnut back, pa. ($1,150); Anahola, Hawaii ($1,158); howard, wisdom ($1,159); and Swanzey, New Hampshire ($1,161).

    Want to know where you can get the cheapest auto insurance policies (cheapest in a range, not averaging, though on average you’ll pay more for a policy in these zip codes)?

    look at these incredible rates:

    • corning, new york: $488
    • northfield, massachusetts: $495
    • post in bay, ohio: $523
    • Lebanon, India: $583
    • city of boise, idaho: $642
    • average car insurance rates decline since 2019

      Based on carinsurance.com data from 2022 vs. 2019, we can track how auto insurance premiums have increased or decreased over the last three years.

      Surprisingly, the average annual premium has decreased for three common sets of coverage:

      • minimum state coverage: $211 (2022 average premium), less than $68 (12%) since 2019
      • 50/100/50 liability only coverage: $637, less $11 (2%)
      • full coverage 100/300/100: $1682, less $22 (1%).
      • how your location affects your auto insurance rate

        friedlander again points out a simple fact: the city you live in often has a significant effect on car insurance premiums.

        “Metro area drivers pay much more for auto insurance than drivers in rural areas of the same state,” he says. “for example, drivers in the chicago area pay much more for auto insurance compared to cities in southern illinois.”

        In addition, ZIP codes with single-digit uninsured motorist rates “have lower average rates compared to ZIP codes with uninsured motorist rates greater than 20%,” Friedlander says.

        It stands to reason that drivers in zip codes with lower populations and lower accident rates would be charged less than motorists in cities with higher traffic volumes, accident frequency and severity, vandalism, theft, and accident rates. crime and insurance payments.

        why do auto insurance rates vary so much between insurance companies?

        Auto insurance companies look at many factors when setting rates, and your location is the biggest one. Based on the number and severity, or cost, of auto insurance claims within the area, insurers assign zip codes to different levels of risk.

        See also: How often are you eligible for new CPAP supplies?

        Insurers take into account the frequency of thefts, collisions, and vandalism to measure the likelihood of such incidents happening to drivers within the zip code. this is used as the base rate from which insurers calculate your premium.

        Other pricing factors, such as your driving history, the type of car you drive, and your age, are added to the calculation.

        To estimate auto insurance costs, you can consider your age, the level of coverage you need, and your location.

        Each auto insurance company uses its own formula and base rate, which is why rates can vary so much and why it’s important to shop around for affordable auto insurance. For example, carinsurance.com’s rate analysis found the following potential savings, or the difference between the highest and lowest price, for the same policy:

        how to save on car insurance regardless of your zip code

        Do you live in a zip code where car insurance premiums are off the charts? Are you having trouble paying for car insurance no matter which city you call home? There are several strategies you can follow to lower the costs of your coverage.

        price of a policy:

        Request quotes from several different insurance companies and compare coverages, limits and deductibles apples to apples.

        ask about discounts:

        “For example, if you have more than one vehicle or related drivers living in your household, insurers will give you discounts for insuring multiple vehicles in the same household.” Other discounts to look for include discounts for having an anti-theft device, taking a defensive driving course, and having no accidents or traffic violations in the past three years.

        check out our detailed guide on the best car insurance discounts

        drive less than expected:

        “Some insurers offer discounts to motorists who drive a below-average number of miles per year, including drivers who carpool to work,” says friedlander.

        group your vehicle and home insurance:

        By buying two or more types of insurance products from the same insurer, you can potentially save a lot of money on each policy.

        increase your deductible:

        “By requesting higher deductibles, you can substantially reduce your costs. For example, increasing your deductible from $200 to $500 could reduce the cost of your comprehensive and collision coverage by 15% to 30%,” Yoshizawa explains. “Moving to a $1,000 deductible can save you 40% or more.”

        read more about why raising deductibles saves you money?

        explore group insurance:

        “Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups, or other associations. ask your employer and check with the groups or clubs you are a member of to see if this is possible,” friedlander suggests.

        resources & methodology

        source:

        insurance information institute. “Facts + Statistics: Uninsured Motorists”. accessed June 2022.

        methodology:

        carinsurance.com commissioned Quadrant Information Services in 2022 for car insurance rates for a 40-year-old male driver with a good insurance score (no violations) and a 12-mile trip with a covered policy total. data includes auto coverage by zip code for 2022, as well as vehicle data for 2019 and 2022.

        – michelle megna contributed to this story.

        See also: Understanding the Power of Dividend Paying Whole Life Insurance

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