Why Is Car Insurance So Expensive In Rhode Island?
Car insurance costs in Rhode Island are leaving drivers in shock. On average, full coverage auto insurance in the state costs $2,023 per year, which is 20% higher than the national average.
While rising car insurance costs are a nationwide trend, it’s important to understand what factors are driving up rates in Rhode Island and how they affect you.
With over 20 years of experience in the insurance industry, I can provide some extra insight into this issue. Keep reading to learn why car insurance is so expensive in Rhode Island.
Key Takeaways
Drivers in Rhode Island generally pay more for car insurance compared to those in neighboring states like Connecticut and Massachusetts.
The state has a high number of fatalities related to drunk driving, and while efforts have been made to reduce these incidents, DUI convictions still lead to major increases in insurance premiums.
Young male drivers on their own policies face some of the highest car insurance rates in Rhode Island.
One of the best ways to save on your car insurance is by getting quotes from different companies.
Why Is Car Insurance So Expensive In Rhode Island?
There is no single reason for the rise in auto insurance costs in Rhode Island, but a few key factors are contributing. The increasing price of new cars and repairs, as automakers focus more on high-end models, is one of them. Another factor is the growing number of uninsured drivers, which leads to higher premiums.
In addition, ongoing inflation, severe weather events, and car theft are also driving up insurance rates in Rhode Island.
Unique Reasons Why Car Insurance In Rhode Island Is So High
The cost of Rhode Island car insurance can be attributed to the following reasons as noted below.
Increasing Repair Costs
Car repair costs in Rhode Island are among the highest in the U.S., leading to higher vehicle damage insurance premiums. Insurance companies end up paying more for repairs in Rhode Island than in other states, which raises premiums for everyone.
More Accidents
Rhode Island drivers spend 39% more time driving in crowded urban areas compared to the national average, increasing the likelihood of accidents. Poor road conditions and distracted driving also contribute to a rise in accidents, making repairs and insurance claims more frequent and costly.
The state has a high population density, with nearly 1.1 million people living in a small area, causing heavy congestion on the roads. This dense urban environment, especially in cities like Providence, leads to more accidents, both minor and serious.
Higher-Than-Average Highway Density
Rhode Island also has a high density of highways and interstate roads, like I-195, which are frequently congested and prone to accidents. Major highways, especially during rush hours, add to the risk of collisions.
Uninsured Drivers
Nearly 15.6% of drivers in Rhode Island are uninsured, which is above the national average. Uninsured drivers increase the risk for insured drivers, as accidents with them can result in higher costs if the at-fault driver has no insurance. Insurance companies raise premiums for all drivers to account for this increased risk.
Severe Weather
Rhode Island faces severe weather events such as snowstorms, hurricanes, and flooding. These natural disasters can cause significant damage to vehicles, leading to more claims. Winter weather, in particular, causes accidents and vehicle damage, contributing to the high cost of car insurance in the state.
Factors Causing Your Car Insurance To Be So High
There are several factors that can influence the cost of your car insurance. Here are some of the most common ones that can affect your premium.
Location And Driving Habits
Car insurance rates are usually higher in cities with dense populations, as these areas often have more accidents, property crimes, and insurance claims. For example, drivers in Providence tend to pay the highest rates in Rhode Island, while those in Newport enjoy lower rates.
Additionally, your driving habits, like long commutes or frequent driving in high-risk areas, can also increase your premiums.
Claims History
If you’ve recently filed multiple claims, your premiums could rise. Sometimes it might be better to pay for small repairs out of pocket instead of filing a claim, especially if the cost is close to or less than your deductible.
Driving Record
Your driving history plays a significant role in your insurance costs. Accidents you cause, traffic violations, and frequent claims will likely increase your rates. Keeping a clean record can help you earn discounts and lower your premiums.
Vehicle Type
The type of car you drive affects your insurance. High-performance or luxury cars, as well as those with higher theft risks, typically come with higher rates. On the other hand, cars with advanced safety features and lower theft rates are generally cheaper to insure.
Age And Experience
Younger drivers or those with less experience tend to face higher premiums because they’re considered higher risk. In contrast, older drivers with clean driving records usually pay lower rates and may qualify for additional discounts.
Credit Score
In most U.S. states, except for California, Hawaii, Massachusetts, and Michigan, auto insurance companies can use a driver’s credit-based insurance score to help set their rates. Same is the case in Rhode Island.
Insurers believe that people with good or excellent credit are less likely to make claims, while those with poor credit might be more inclined to do so. As a result, drivers with better credit scores usually pay lower car insurance premiums.
How To Get Cheaper Car Insurance
In Rhode Island, you can lower your car insurance costs by using various available discounts. Below are some popular discounts you might be eligible for:
Good Driver Discount
Drivers with a clean record and no history of claims can enjoy savings of between 10% and 30%.
Paid-in-Full Discount
If you pay your policy in full instead of in installments, you could receive a discount. This helps the insurance company save on processing costs, and they pass on these savings to you.
Loyalty Discount
Insurance providers may offer a discount if you’ve been with them for a certain period. This is called a loyalty discount, given as a reward for sticking with the same insurer.
Good Student Credit
If a full-time high school or college student is on your policy and maintains a B average or higher, you could qualify for a Good Student Credit. You may need to provide recent grades to keep this discount.
Defensive Driver Discount
Drivers aged 55 and older who complete an approved accident prevention course may qualify for a Defensive Driver Discount. The insurance company will typically ask for proof of course completion and may require updates every couple of years.
Policy Bundling
Bundling multiple vehicles or combining different types of insurance, like home and auto, with the same company can get you a discount, ranging from 1% to 12%.
Safety Features
Having cars equipped with features like airbags, anti-lock brakes, and daytime running lights can lead to discounts, with savings ranging from 2% to 30%.
FAQs
What should I do if my car insurance is too high?
Shop around for quotes from different insurers, ask about available discounts, or consider adjusting your coverage levels to find more affordable options.
Why did my car insurance rate go up?
Your rate could have increased due to factors like a history of claims, higher repair costs, changes in your driving record, or the rising number of uninsured drivers in Rhode Island.
