If you think that auto insurance rates don’t fluctuate, think again. They can vary by up to 48% within the same year; not to mention the variation between states. Let’s take a look at some surprising facts about car insurance rates, and why it pays to shop around.

When’s the last time you checked for a lower car insurance rate? Get a fast, free quote from CARCHEX today.

Time Of Year

Car insurance prices may be higher at the beginning of the year, at least according to one study. This may be because Insurers can file price increases at any time, but they may not go into effect until after the New Year.


The state you live in can affect your insurance premium in more ways than one. For example, the five most expensive states for car insurance are:

  1. Michigan
  2. Montana
  3. Washington, D.C.
  4. Louisiana
  5. Florida  

And the five least expensive states for auto insurance are:

  1. Maine
  2. Ohio
  3. Idaho
  4. Iowa
  5. New Hampshire

States also vary in how much their insurance rates fluctuate each year. For instance, Hawaii leads the pack with up to 50% variance in insurance rates within the same year. Wyoming, the District of Columbia, Maryland, and Pennsylvania also carry high variations. South Dakota, Arkansas, and Utah appear to have more stable prices.

Other Factors

If a state’s population is seeing more very young or very old drivers, this can lead to insurance rate hikes. Sudden changes in state laws can also dramatically affect rates. Even weather disturbances can raise car insurance premiums. Finally, if your car make or model has newly discovered safety issues, this could drive rates up too.

All of these factors (except for law changes) affect the claim rate. And, if more insurance claims are made, then the rates climb.

Shop Around

The bottom line is that it pays to shop around every once in awhile. Many people take out an insurance policy when they buy their vehicle and then with the same plan without ever getting other quotes. The reality is that prices can fluctuate significantly. Taking the time to price shop once or twice a year might land you big savings.

Insurer Networks Help

The fastest way to price shop is through vendor networks, such as CARCHEX. This type of service checks several major insurers for you, saving you a lot of time. You just provide some basic information, and the rest is automated. It’s a fast and easy way to find out if you can lower your monthly car insurance payment.

Are you missing out on a much lower auto insurance rate? Get a free insurance quote from CARCHEX today.

Car insurance data by state source here.

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