Car crash in Rhode IslandIn Rhode Island, the average resident pays nearly $2,000 per year for car insurance. That’s about 40% higher than the national average. For teenage drivers in Rhode Island, the situation is even worse. The average 16-year-old driver in Rhode Island pays about $9,500 annually for car insurance. With one of the highest rates in the country, many Rhode Islanders are asking “Why is my car insurance so expensive?”

In many states, your credit score, age, driving record, and zip code are factors in how much your insurance premiums will be. For example, drivers in Providence pay the highest rates while Woonsocket drivers pay the cheapest rates in Rhode Island.

Costly Car Repair Shops and High Population Density

The Ocean State has some of the most expensive repair shops in the nation. Insurance companies are forced to pay more for car repairs in Rhode Island. Rhode Island lawmakers are mulling over a change in the existing Unfair Claims Settlement Practices Act. The revised bill would require insurers to pay “markup” and “sublet services” fees to autobody shops tasked with repairing insured vehicles.

Rhode Island’s population density creates another reason for insurance companies to charge a higher premium in Rhode Island. Also, in Rhode Island nearly 20% of drivers in the state are operating their motor vehicles without any form of insurance. That is why it is so important to have uninsured motorist insurance.  If you do get in a Rhode Island car accident, uninsured motorist will cover any damages and medical expenses you incur due to your injuries.

Some other factors include:

  • Commute frequency (how long it takes you to get to work every day)
  • Financial history
  • Demographic
  • Vehicle make and model

Contact Dana and Dana

With such expensive insurance in the state of Rhode Island, it is important to remember that it is possible to recover the money you need after a Rhode Island car accident. Contact Dana and Dana, a Rhode Island car accident law firm in Providence, Rhode Island to see if you have grounds for a lawsuit.