WASHINGTON 鈥� It鈥檚 not just the cost of new and used cars that keeps going up: area car insurance rates have also continued to climb.
A new study shows rates have jumped about 3.5 percent since last year, and over 10 percent since 2011. And while that鈥檚 a lot, it鈥檚 still about half as high as the national average premium increase this decade.
I crunched the numbers, and found聽the average premium in D.C. to be nearly $1,500 a year. That鈥檚 just a few bucks more than the national average, but it also found that rates can really fluctuate depending on where you live.
For instance, average premiums in places like Reston, Arlington, and Fredericksburg all sit at under a $1,000 per year, according to the study. In cities like Upper Marlboro and College Park, it鈥檚 over $1,500 per year.
鈥淐ar insurance companies get really granular with the information that they pull,鈥� explained Alyssa Connolly, director of market insights for The Zebra. 鈥淭hey use ZIP code level data, so you could be just a few streets away from somebody, but pay something very different in car insurance. And all of that has to do with the risk in those particular areas.鈥�
Connolly said areas with lots of street parking, traffic volume, and vehicle thefts will see higher premiums than places where that isn鈥檛 as much of a factor.
鈥淐ar insurance companies then raise rates across the board to account for those losses,鈥� said Connolly.
She also pointed out two other factors that have led to the rising cost of premiums here.
鈥淒.C.鈥檚 population is booming,鈥� she noted. 鈥淭hat means people are closer together, traffic is more congested, and they鈥檙e bumping into each other.鈥�
Some of the factors used to determine car insurance rates are difficult to overcome. You鈥檙e not likely to move just to get a better car insurance rate, and while Valentine’s Day can get you in the mood, it鈥檚 probably not advisable to get married just because it tends to lead to lower rates. But that doesn鈥檛 mean you鈥檙e helpless to do anything.
鈥淭he biggest one is to drive safely,鈥� said Connolly. 鈥淎void tickets, avoid accidents, and you鈥檒l see rates drop over time.鈥�
Connolly recommends bundling auto insurance with home or renters insurance, something that can lead to savings of 10 percent or so. And she also advised that it鈥檚 a good idea to shop around for new insurance every 6-12 months. Since companies tend to keep raising rates, being on the constant lookout for the best deal can ultimately save you some money.
Insurance data of note:
Most expensive annual premiums by county:
Virginia – Stafford ($1,138), Fairfax ($1,034) and Prince William ($1,008)
Maryland – Prince George’s ($1,625), Charles ($1,404) and Montgomery ($1,387)
Least and most expensive cars to insure (on average):
Subaru Outback – $1,392
Audi R8 – $4,102
Most expensive cities:
Upper Marlboro, Maryland – $1,596
College Park, Maryland – $1,539
Washington, D.C. – $1,496
