Why Do Drivers in D.C. Pay More for Car Insurance Than Those in Neighboring States?

Alex Healey
· 3 min read
During the pandemic, many states saw
car insurance rates decrease
, as people stayed home and the roads were empty.
However, as our daily routines have begun to return to normal,
premiums have been creeping up again
, and in some places, they have already surpassed the pre-Covid average.
One such place is Washington, D.C., where the average car insurance policy is now an eye-watering $3,275.73 per year. This puts D.C. on a par with the most expensive states for car insurance.
It is higher than the average rate seen in neighbouring Maryland and Virginia, and over $1,000 more than the national average.
So why is car insurance so expensive in D.C.? Read on to find out, and learn a few tips to help keep your rate as low as possible.
Drivers in Washington D.C. pay much more than many other states for car insurance.

Why is car insurance so expensive in Washington, D.C.?

Ultimately, insurance is a game of risk analysis. If the insurer believes there is a good chance of you having to make a claim, they will charge a high premium to compensate.
This risk analysis extends to your zip code. Factors like population density, traffic congestion, and the local crime rate all influence your premium. And if the data says you live in a high risk area, you will have to pay more for coverage, even if you have never personally made a claim.
This is the problem facing residents of D.C. Our nation’s capital is home to some of the busiest and most congested roads in the whole country. More cars equals more accidents, so just by living and driving there, you will face higher insurance rates.
Additionally—while the overall crime rate is lower now than it was 10 years ago—the number of car thefts is going up. Earlier this year, in response to a 70% increase in the number of carjackings, D.C. Police announced they were starting a task force to try and fix the problem.
On top of this, Washington, D.C. has a high rate of insurance fraud, with false claims and staged accidents costing insurance companies a lot of money each year.
All of these issues make insuring D.C. drivers a risky business, and costly rates reflect that. Of course, the vast majority of residents are law abiding and not at all to blame, but they end up paying for the criminals’ misdeeds through inflated premiums.
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How to find cheap D.C. car insurance

There are several ways you can save money on car insurance in Washington D.C.
Firstly, you could raise your deductible. The deductible is the amount you pay for a claim before insurance kicks in, and by committing to a higher number, insurers will reward you with a lower premium.
A standard deductible is $500. By increasing it to $1,000 you can expect some upfront savings. However, make sure you can actually afford to pay the specified amount in the event of an accident.
Another good practice is to review and reduce your insurance coverage. Of course, you still have to meet the minimum required amount, but there may be coverages on there you can live without.
For example, some drivers opt to remove comprehensive and collision insurance in exchange for a lower insurance rate, but this is risky, as your vehicle won’t be covered if you get into an at-fault accident.
By far the easiest way to find
cheap car insurance
in D.C., without having to increase your deductible or compromise on coverage, is to compare quotes with
Jerry
. Our app makes switching providers really easy, and the average user saves $879 a year!

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