Creating A Budget For Living Out Of Your Home State? Do Not Forget About Car Insurance

Moving within the same neighborhood or around the same area might lead to a noticeable change in rent or home prices, but it is not going to have a substantial impact on your other expenses. This is the exact opposite of the kind of experience you will have when relocating to another state. Each state has different costs for electricity, gas, home insurance, health insurance, and taxes. It is important to create a budget before moving to feel confident about your ability to afford living in a new state. This list should also include car insurance, which will naturally change in the average premiums wherever you go.

Look at the Average Difference by State

The cheapest state for car insurance is Ohio at $77 per month, while Michigan sits at $213. This amounts to a $1,625 difference for a whole year of vehicle insurance, which is a considerable difference. If you have multiple states on your radar, you may want to think twice about a certain state if you are not going there with a job lined up or you know that you are interested in maximizing your overall savings.

Analyze Rates by Make and Model

Another factor that plays a role in how much you pay for car insurance is the vehicle you drive. In certain climates, you might want a car with all-wheel drive because it has better traction in the rain and snow. A tropical climate like Florida or a snowy climate such as Minnesota are some perfect examples.

Consider Buying a Certain Car

In 2016, the least expensive car to insure was the Honda Odyssey LX at just $1,113 for the year.  If you think you want to purchase a different car than what you have, you may want to consider rates by vehicle. A low-cost state combined with a Honda Odyssey LX might lead to a drastic drop in premiums. The great thing about the Internet is that you can look up quotes online in a matter of minutes. So, even if you have not moved to a new state, you should have no problem finding out how much you would have to pay. This can give you accurate information on how much you can expect your premiums to be.

Although it is not possible to get the exact number until you are ready to purchase a car insurance policy, you can greatly benefit from analyzing your out-of-state options before making such a big move. For more information, contact an insurance agency like House-Chilson & Associates.