Why does car insurance cost more in one state but is cheaper in another?

Question

Why does car insurance cost more in one state but is cheaper in another?

Answer 1

that has to do with demand and supply in part, if there is a lot of demand for ins the price will be higher, if nobody needs to buy ins the price will drop, also add competition from other ins companies, add too the drivers record, plus car year, traffic, and state regulation and taxes.

Answer 2

It's based on risk factors and the amount of claims paid. I moved from UT to AZ and my insurance went up a lot. Greater population, closer to the border, higher auto theft rates.  

Answer 3

Number of cars on the road, long commutes, terrain, road conditions, crime rates, etc.  To live and drive in Larger cities almost always causes higher insurance rates

Answer 4

A lot of it could be state traffic laws and coverage requirements. Population and population density has a lot to do with it, as does climate and road conditions.

For example, the chances of you sliding through the snow and hitting a guardrail or colliding with a deer are MUCH higher in Montana than they are in California. Just trust me on this one.

Answer 5

population. if you live in an area like L.A. your chances of having an accident or your car being stolen are a lot greater than some one who lives in cut and shoot texas.