Car Insurance Rates in America

Car insurance rates in America are increasing every day. With the average American policy premiums trumping the average car payment, it's no wonder people are sending in complaints left and right. With nearly 200 million motorists on the road, and over 250 million registered vehicles, insurance companies have their hands full when it comes to sizing up different price points.
One of the largest factors in determining your overall rate is your location. Some locations are at more risk than others. The higher risk locations, such as California, New Jersey or New York send in the most claims and reports, and therefore have the highest amount of risk involved with them. These areas are generally more urban in nature, and have a larger density of people. This usually leads to more accidents, crime, and theft. Also, with more people follows more uninsured or underinsured motorists. This puts a large strain on the system and end up increasing the rates for everyone in the vicinity. Insurance companies are well aware of this and adjust the insurance premiums for people living in these locations.
More rural areas, such as Wyoming or Montana usually enjoy a lower rate because of the population size and minimal amount of claims being reported. Theft and crime is also low in these areas and insurance prices are adjusted accordingly. The average 35 year old man living in a high priced area such as New Jersey would on average pay over $1,100 in insurance premiums. That same man living in a more rural area such as Wyoming would pay less than a third of that price.
Location is not the only factor that can play a role in your insurance price. Other factors such as age, driving record, credit report, and car type can also play a major role. However, many of these factors are long term, and if mistakes are made, one would have to wait as long a few years for corrections to be made. As extreme as it sounds, many Americans cut their insurance rates drastically just by moving to a quieter, more rural area of their state.