Most and Least Expensive States for Car Insurance
Many people don't consider the cost of ownership when they think about buying a car. As you can see for Louisiana residents, insurance can add up to more than $200 per month for each driver.
The reason for the large difference in premiums is mostly due to state laws and policies. For example, in Louisiana, claims exceeding $50,000 automatically receive a jury trial. Rather than incur the expense of a trial, many insurance companies simply settle out of court, which leads to higher settlements and thus higher premiums.
The main reason insurance rates are low in Maine is due to low commuter mileage, which makes the roads less crowded and the number of accidents fewer.
Here is the full ranking of states and the average annual premium:
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid