Vermont auto insurance rates fall, now 10th lowest

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Vermont auto insurance rates fall, now 10th lowest

Thu, 01/07/2021 - 11:36am -- tim

Vermont Business Magazine Auto insurance rates have fallen for the first time in over a decade — decreasing by 1.7 percent across the US for 2021. Vermont's fell 2.9 percent and ranks 10th lowest in US at $1,135, according to ValuePenguin.com's State of Auto Insurance in 2021 report published today.

The rate decrease in 2021 is an anomaly caused by fewer Americans driving in 2020 due to the COVID-19 pandemic. Less drivers on the road, and a steep reduction in claims, brings the average cost of Auto Insurance in 2021 to $1,636.

Key Findings:

  • Auto insurance rates have fallen for the first time in over a decade — decreasing by 1.7% across the U.S. for 2021. The biggest year-over-year rate decrease in auto insurance rates are in Arkansas (4.8%), Ohio (4.3%) and Michigan (4.3%). Five states will see marginal increases, including New York by 1.2% and Indiana by 1.1%, despite a decrease in the national average.
  • The average cost of car insurance in 2021 is $1,636: Drivers who reside in Maine, North Carolina and Indiana have the lowest auto insurance rates - 40% cheaper than the national average. However, auto insurance rates in Michigan retained its spot as most expensive, and are 353% higher than the national average. Florida and Rhode Island ranked 2nd and 3rd most expensive.
  • A traffic violation will lead to an average premium increase of 117% in 2021: North Carolina drivers will see the biggest increase in premiums (255%) due to a traffic violation. Florida auto insurance companies are the most forgiving, increasing premiums by just 55% on average. Individuals with DUI violations will see their premiums increase by 157% on average in 2021, and minor violations, such as a failure to obey traffic signs, will also see insurance premiums rise 28%.
  • Auto Insurance premiums are 106% more expensive when compared to a decade ago. While 2021 sees its first drop in auto insurance premiums in a decade, rates are significantly higher than what Americans paid a decade ago, and rates have increased every year since 2011.
  • Rates Will Rebound in 2022 and Here's WhyAs Americans get back to normal, auto insurance rates will rise again. The increase in distracted driving, and more expensive claims from smart technology in vehicles will continue to drive rate increases.

According to Sterling Price, Auto Insurance expert at ValuePenguin.com, "Car insurance can be a difficult and time-consuming topic to understand. This report attempts to unmask some of these key issues and uncover ways Americans can save more money." He adds, "Our analysis shows that premiums can vary by 242% between the largest insurance companies, so you can save a lot by comparing quotes. Switching your car insurance from full to minimum coverage could see your premiums reduce 155%, and improving your credit score could decrease your auto insurance premiums by as much as 70%."

ValuePenguin.com analysts analyzed 15 million auto insurance quotes for drivers across the country from the Quadrant Information Services database. These, combined with RateWatch filings, were used to illustrate the current and historical overview of the auto insurance industry. Analysts used a 30-year-old male who drove a 2015 Honda Civic EX, as a sample driver for this analysis, and quotes were drawn from all available ZIP codes across the United States. To view the full report, visit: https://www.valuepenguin.com/state-of-auto-insurance-2021 

How Much Will Auto Insurance Cost Across the US in 2021?

State

% Rate Change -
2020 to 2021

2021 Average
Cost of Auto
Insurance

Michigan

-4.3%

$7,406

Florida

0.5%

$2,795

Rhode Island

0.1%

$2,482

Louisiana

-4.2%

$2,337

Kentucky

-4.1%

$2,228

Arizona

-0.7%

$2,152

New York

1.2%

$2,075

Nevada

-3.1%

$2,047

Delaware

-2.7%

$2,042

Colorado

-1.9%

$1,992

Connecticut

-0.8%

$1,959

District of Columbia

-2.7%

$1,841

New Jersey

-1.6%

$1,811

Texas

-2.9%

$1,790

Maryland

-2.5%

$1,733

Oregon

-3.7%

$1,691

Utah

-2.0%

$1,656

United States Average

-1.74%

$1,636

Missouri

-2.1%

$1,610

Minnesota

-2.7%

$1,576

Illinois

-0.2%

$1,536

Oklahoma

-3.7%

$1,536

Georgia

-2.3%

$1,534

South Carolina

-0.7%

$1,505

Mississippi

-2.9%

$1,451

Massachusetts

0.4%

$1,439

South Dakota

-2.2%

$1,427

North Dakota

-2.4%

$1,399

Montana

-2.1%

$1,381

New Hampshire

-2.5%

$1,380

Alabama

-2.9%

$1,369

Nebraska

-2.0%

$1,367

West Virginia

-3.7%

$1,367

Kansas

-1.6%

$1,313

Arkansas

-4.8%

$1,310

New Mexico

-3.4%

$1,304

Wyoming

0.0%

$1,267

California

-0.9%

$1,216

Hawaii

-3.0%

$1,203

Pennsylvania

-3.4%

$1,194

Tennessee

-2.5%

$1,192

Washington

-2.5%

$1,158

Vermont

-2.9%

$1,135

Idaho

-0.9%

$1,132

Virginia

-1.4%

$1,130

Ohio

-4.3%

$1,043

Wisconsin

-2.9%

$1,037

Alaska

-2.8%

$1,034

Iowa

-2.1%

$1,033

Indiana

1.1%

$987

North Carolina

-1.5%

$976

Maine

-1.0%

$865

About ValuePenguin.com:. ValuePenguin.com and its parent company, LendingTree® (NASDAQ: TREE), have a common mission: to empower consumers with tools, information, and resources to help them make smarter, more informed financial decisions. For more information, visit www.valuepenguin.com.

SOURCE: NEW YORK, Jan. 7, 2021 /PRNewswire/ -- ValuePenguin.com Additional Information: https://www.valuepenguin.com/auto-insurance