EloThere is no doubt that Rhode Island car insurance is one of the most expensive in the United States. It is about 20% higher than the national average rate and the reason for this has been largely oblivious to many.
What seems especially considerable here is that the price wasn’t always this high until quite recently after the pandemic. The car insurance company seems to have been affected by the COVID pandemic, as some sources have reported.
While this has been proven true, it is not exactly the reason for the expense of car insurance in Rhode Island. The major reasons, along with those that seem quite innocuous, shall be considered in this piece after we examine the average monthly and yearly premium car insurance costs in Rhodes.
Car Insurance Rates in Rhode Island
This piece would not be complete if we did not look into the rates charged in Rhode Island by car insurers, perhaps compared to what the majority of other states will averagely charge instead. This comparison will allow us to have a better understanding of the subject matter.
On average, the monthly minimum coverage rate in Rhode Island is about $50, while the full coverage reaches around $157. The yearly rate is generally higher, with the monthly rate being about $550 at minimum and averaging $1,886 for full coverage.
For some more insightful information, the car insurance rate in Rhode Island City varies from region to region, depending a great deal on the area’s accident rate, theft rate, weather patterns, and local repair costs, among other factors.
By and large, the average monthly full coverage premium rate in Rhode Island is anywhere from $149 to $182 at East Greenwich and Cranston, respectively.
Woonsocket, Cumberland’s, Smithfield’s, and Greenville’s average $152 per month, while East Providence, Pawtucket, Warwick, and West Warwick’s are anywhere from $158 to $174.
As for the average annual full coverage premium, Smithfield, Woonsocket, Cumberland, Greenville, and West Warwick cost $1,801, $1,803, $1,826, $1,828, and $1,899, respectively.
Cranston’s costs $2,180; East Greenwich—the cheapest on the list—costs $1,783; East Providence costs $2,056; Warwick costs $1,919; and Pawtucket costs $2,088.
The rates covered here are for certain geographical areas in Rhode Island and they’re quite an estimate and general overview of the other rate determiners we should have examined as well.
For instance, the rate for women is usually slightly different from men’s and those of younger drivers are not as cheap as what adult drivers are charged. More on this in the next heading.
You should nonetheless note that these rates are subject to change over time.
ALSO READ: Can I Add My Parents to My USAA Car Insurance?
Why is Rhode Island Car Insurance so Expensive?
There are at least four major reasons why car insurance is especially expensive in Rhode Island. They include:
1. Dense Population
Rhode Island is known as one of the most populated cities in the United States—it has been ranked the second most populated in the country. This, in a way, amounts to competition in the world of car drivers—our area of focus.
The higher the number of car users in a place, the higher the chances of being involved in an accident. Its tendency to experience more accidents than is perceived as usual in several other states is another convincing reason Rhode Island’s dense population causes a spike in car insurance.
Further, Gardner claims that they have always noticed more negligent driving behaviors resulting in severe accidents on the roads of Rhode Island for some years now.
Similarly, it is not uncommon to hear insiders nag about the overwhelming phenomenon of non-citizens with driver’s licenses contributing to the cost of Rhode’s car insurance rate. This, again, is in large part due to the high population of the city.
2. Expensive Car Repairs
The price for car repairs in Rhode Island is, on average, considered higher than those charged in some other places in the U.S. Research has shown that it is the third most expensive state in the U.S. when it comes to car fixing rates.
It is only logical to understand this as another big factor your insurer may want to consider since they wouldn’t want to close up in loss either.
3. Traditional Car Insurance
Drivers who opt for usage-based car insurance as opposed to traditional car insurance will receive a discount on the rate. Not choosing usage-based may be just another reason we need to look into.
The number of drivers going for usage-based insurance has been on the rise for the last few years, and one reason for this is that it helps save on insurance and gives a reflection of driver’s driving behaviours.
4. Zip Code
Do not be too surprised that the zip code you’ve not always counted as a crucial thing made it to this list. It is one essential factor insurers in Rhode Island consider to determine the rate a driver is charged.
This factor comes into play in the sense that areas that are prone to high car theft or accident rates will cost insurers more and, as such, are usually charged more. Needless to say, the population of your area is also a thing here.
Aside from these, some other minor but considerable factors that may make a car insurance rate in Rhode Island expensive for you are gender and age, infractions (including how many times a driver has been involved in accidents and all that), the product, model, and year of your car.
To clarify the point of age and gender being factors that could also determine the cost, reports have shown that male drivers are predisposed to having more violent and negligent driving behaviors that ultimately cause accidents than their female counterparts. Therefore, female drivers are charged less than male drivers.
In the same vein, younger drivers, especially those below 25, are charged more than older ones since they have a greater tendency to drive carelessly.
ALSO READ: Does Tunercult Giveaway Cars?
Final Thought
Insurers have increased the rates of car insurance in Rhode Island to make up for the losses the record has held for them. Their rates match the risks in what seems like a shoulder-to-shoulder manner. So, Rhode Island car insurance isn’t too expensive for its worth.
Elo