Delaware ended up with the state’s 11th highest vehicle insurance rates, according to the annual survey by Insure.com.
Delaware’s $1,607 rate was within a few dollars of Maryland, which came in at No. 9 at $1,610 and No. 10 Rhode Island at $1,608. New Jersey, which has struggled with high insurance rates over the years, came in at No. 3 at $1,905. The rates, while not comparable with consumer figures, also affect commercial fleets in Delaware.
The Delaware rate was well above the national average of $1,325. The state appeared to fit the profile of high rate states that have high population densities.
The most expensive state is Michigan, which has an average rate of more than $2,700 a year. The state’s no-fault insurance system is believed to be responsible for the high rates.
Maine had the lowest rates with an average of $800.
The least expensive states don’t have as large metropolitan areas as the most expensive group.
With less congestion comes fewer accidents and less risk for insurers.
“It’s one of the most straight-forward aspects lowering car insurance premiums in those states,” says Penny Gusner, consumer analyst for Insure.com. “Ohio has an extremely competitive insurance industry. There are more than 650 issuers competing for business within the state.”
One exception to the rule is Montana. High accident rates and a high rate of fatalities led to the Big Sky State ranking second.
Gusner noted that high rates have another bad side-effect by resulting in a higher percentage of drivers who cannot afford to be insured and raising rates for those with coverage. “It’s a dangerous cycle,” Gusner stated.
Delaware has not been an exception to the problem of a sizable percentage of motorists being uninsured. The state has worked to tighten up practices that include a motorist getting an insurance card and quickly dropping coverage.
Rates were based on full coverage for a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident, and a $500 deductible on collision and comprehensive coverage. The driver has a clean record and good credit.
