5 States Where Auto Insurance Rates Rise in 2021


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The new year could result in higher insurance bills for drivers in five states.

These states are the only places in the country where typical auto insurance rates will increase in 2021, according to ValuePenguin “State of auto insurance in 2021” report.

The report found that across the country, the average rate will drop 1.7% this year. This is the first time in more than a decade that auto insurance costs have fallen.

In some states, the typical drop from 2020 to 2021 is particularly large. The largest decreases were recorded in Arkansas (4.8%), Ohio (4.3%) and Michigan (4.3%).

However, a handful of states will see typical rates increase in 2021, compared to 2020. These increases are:

  1. new York: 1.2%
  2. Indiana: 1.1%
  3. Florida: 0.5%
  4. Massachusetts: 0.4%
  5. Rhode Island: 0.1%

In compiling its findings, ValuePenguin analyzed 15 million postcode citations from coast to coast.

ValuePenguin notes that falling auto insurance rates have been the exception rather than the rule in recent years. Nationally, premiums have jumped 106% since 2011.

Other ValuePenguin research results include:

  • At a typical annual cost of $ 7,406, Michigan auto insurance rates are 353% higher than the national average. Florida’s rate of $ 2,795 and Rhode Island’s rate of $ 2,482 are 71% and 52%, respectively, higher than the national average.
  • At the other extreme, drivers in Maine ($ 865), North Carolina ($ 976) and Indiana ($ 987) pay the lowest annual fares in the country. These rates are about 40% lower than the national average.
  • Better to drive safely, according to research. A traffic violation is likely to result in an average premium increase of 117%, according to ValuePenguin.

Reduce your auto insurance costs

One way to lower your auto insurance costs is to shop around. You can do this by gathering quotes from multiple insurance companies yourself or by using a service like The Zebra or Gabi. These services collect quotes for you so that you can choose the best rate.

Money Talks News founder Stacy Johnson gave Gabi a try and found it to be worth it. He wrote in “How I Found $ 546 in Auto Insurance Savings in Under 10 Minutes”:

“I currently insure two cars with the USAA at a combined cost of approximately $ 2,400. Gabi said Progressive could offer me the same coverage for 22% less, which saved me $ 546. All I had to do was give Gabi the green light and my driver’s license number. Then Gabi would confirm the rate and even make the change for me.

To learn more about buying auto insurance, read:

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