TUESDAY, NOVEMBER 27, 2012
Despite losing the presidential election, Mitt Romney can still be proud of the affordable car insurance rates in his home state of of Massachusetts. As of 2011, Massachusetts held first place for the most affordable state when it comes to auto insurance.
 InsWeb ranked all fifty states and Washington D.C. according to an affordability factor. The formula used was very simple, but fairly accurate in terms of determining how affordable local auto insurance is in the area. A state’s affordability factor is determined by dividing its median household car insurance rate by its median household income.
The median car insurance rate is determined by actual customer profiles that can include multiple drivers, multiple vehicles and other variables. The lower the factor, the less a typical family in that state tends to spend on car insurance relative to its budget. Therefore a family who makes $40,000 per year and spends $400 per year is ranked similarly to a family who makes $200,000 per year and spends $2000 per year. This method of ranking is the best determination of affordability in any given area.
Following Massachusetts is Hawaii, which earned the number 2 spot, moving up from number 7 in previous affordability rankings. Other states which earned spots in the top ten include Minnesota, North Carolina, Utah, Wisconsin, Iowa, Idaho, Ohio and Vermont.
While many consumers don’t have the option to move out of state simply to save on insurance, there are a number of things you can do to save money on car insurance, regardless of where you live.
1. If you have young drivers in your family, your bill will inevitably be higher, but those young drivers with good grades may qualify for a Good Student discount for maintaining a 3.0, or being on the honor roll or dean’s list.
2. Another discount offered for high-risk drivers is Driver’s Defensive/Safety Course discount. Typically, students and senior citizens can take a safety driving course which is available at many local government offices.
3. Take measures to keep your car safe which will reduce the chance of theft and vandalism while earning you a 20 to 25% discount off your insurance premiums.
4. Check for Affiliate Membership discount. Members of large groups such as Costco, AARP or AAA may qualify for this discount.
5. If you have been with your insurance company for many years, ask about any available valued customer discount which recognizes your long-term relationship with the company in the form of a lower rate.
Regardless of where you live, safe driving is important for much more than your insurance premiums. Staying accident free and ticket free is the best way to keep insurance rates low and keep your family safe. Bigger cities often carry higher insurance rates because there is more traffic on the roads which increases the likelihood of an accident. Use caution and defensive driving techniques when driving in cities, and stay alert and awake on highways to keep you and those around you safe on the roads. Never drink and drive and always keep cell phones out of reach whenever you’re in the driver’s seat.
By Matt Reynolds - Google+
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