Your auto insurance rates and what you pay can vary depending on how you drive and which state you live in. The National Highway Safety Administration reveals that vehicular accidents happen every 60 seconds. Likewise, being involved in a vehicular accident jeopardizes lives and affects your financial status. Medical expenses and payments for property damages can be costly. However, they can be challenging to handle if you don’t have sufficient savings.
Auto Insurance Protection and Cost Varies Widely
Auto insurance can help you cover these costs. However, rates have risen significantly over the past two years, mainly due to skyrocketing repair costs and an increase in vehicles being counted as a total loss. In some states, car insurance prices increased by 20%, and they might increase even further as inflation and road accidents continue their upward trend.
Factors Affecting Auto Insurance
Many factors could affect the pricing of car insurance, including:
- Age
- Location
- Driving history
- Years of driving experience
- Insurance history
- Annual mileage
- Claims history
- Coverage level
- Vehicle
- Ownership status
- Insurance company
The insurer you choose is arguably the most significant factor affecting your insurance rate.
Types of Auto Insurance
The type of auto insurance you choose also affects how much it costs. Additionally, that’s because each provides different coverages. Here are some kinds of car insurance you might need:
- Liability Insurance (BI/PD). Liability auto insurance covers damages to other people and their property in the event of a crash. It could pay for damages, medical expenses, and legal fees if the other party files a lawsuit against you. Also, it could also cover funeral expenses if a third party dies in a crash, although it won’t cover your damages and injuries.
- Collision Insurance. Collision insurance covers the cost of damages resulting from collisions with other vehicles, guard rails, telephone poles, and other objects. Likewise, it also protects against rollovers and other similar accidents.
- Comprehensive Car Insurance. Comprehensive car insurance covers gaps in collision insurance, which only covers you for damages resulting from car accidents. Similarly, a complete insurance policy also protects you against damage due to theft, vandalism, natural disasters, and civil disturbances, among other risks.
- Medical Payments Insurance. It covers vehicle-related medical costs associated with an accident. This coverage isn’t available in all states.
- Uninsured/Underinsured Motorist Insurance (UM/UIM). Although car insurance is a requirement for motorists in every state, some drivers neglect this basic necessity. Moreover, Underinsured Motorist insurance protects you from damages in an accident involving a driver with insufficient insurance. It also provides coverage against hit-and-run incidents. Additionally, these coverages can help pay your medical bills and repair or replace your vehicle.
Auto Insurance in Wisconsin vs. Other States
Car insurance rates are different in various states depending on road conditions, the number of drivers, the population, and other factors.
According to Bankrate (2022) – Wisconsin’s average rate for full coverage on a car ranks 40 out of 51 states, including Washington, DC. Wisconsin is 29% less than the average state. The most expensive states are New York, Florida, Michigan, and New Jersey; Maine, Iowa, Vermont, and Wyoming are the least costly. Consequently, the most expensive conditions are 4X higher than the least expensive.
About Rodrian Insurance
Rodrian Insurance specializes in giving you insurance solutions that perfectly match your business and personal life. We provide insurance options that offer excellent coverage while remaining within your budget, based on a thorough understanding and assessment of your needs, circumstances, and financial capability. Find out more about how Rodrian Insurance can fulfill your insurance needs. Call or text us at (262) 781-4750 or email us at info@rodrian.com.
