The new year may bring higher insurance bills for drivers in five states.
Those states are the only places in the nation where typical car insurance rates will rise in 2021, according to ValuePenguin’s “State of Auto Insurance in 2021” report.
The report found that across the nation, the average rate will fall by 1.7% this year. That marks the first time in more than a decade that auto insurance costs have declined.
In some states, the typical fall from 2020 to 2021 is especially significant. The biggest declines are in Arkansas (4.8%), Ohio (4.3%) and Michigan (4.3%).
However, a handful of states will see typical rates rise in 2021, compared with 2020. Those increases are:
- New York: 1.2%
- Indiana: 1.1%
- Florida: 0.5%
- Massachusetts: 0.4%
- Rhode Island: 0.1%
In compiling its findings, ValuePenguin analyzed 15 million quotes from ZIP codes from coast to coast.
ValuePenguin notes that falling car insurance rates are the exception rather than the rule in recent years. Nationwide, premiums have jumped by 106% since 2011.
Other findings from the ValuePenguin research include:
- At a typical annual cost of $7,406, Michigan car 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% higher than the national average, respectively.
- At the other extreme, drivers in Maine ($865), North Carolina ($976) and Indiana ($987) pay the lowest annual rates in the country. These rates are around 40% lower than the national average.
- It pays to drive carefully, the research shows. A traffic violation is likely to result in an average premium increase of 117%, ValuePenguin says.
Cutting your car insurance costs
One way to cut your car insurance costs is to shop around. You can do so by gathering quotes from multiple insurance companies on your own, or by using a service like The Zebra or Gabi. Such services gather quotes for you so you can pick the best rate.
Money Talks News founder Stacy Johnson tried Gabi and found it worth his time. He wrote in “How I Found $546 in Car Insurance Savings in Under 10 Minutes“:
“I’m currently insuring two cars with USAA at a combined cost of about $2,400. Gabi said Progressive could give me the same coverage for 22% less, saving me $546. All I had to do is give Gabi the go-ahead and my driver’s license number. Then, Gabi would confirm the rate and even do the switching for me.”
To learn more about shopping for car insurance, read: