30 cities, 30 prices: Rhode Island’s varying auto insurance premiums

Kelcy Dolan
Posted 1/29/15

Where you live may be bringing up your auto insurance costs.

In a new study conducted by ValuePenguin, an online personal finance and research analysis company, Rhode Island’s auto insurance …

This item is available in full to subscribers.

Please log in to continue

E-mail
Password
Log in

30 cities, 30 prices: Rhode Island’s varying auto insurance premiums

Posted

Where you live may be bringing up your auto insurance costs.

In a new study conducted by ValuePenguin, an online personal finance and research analysis company, Rhode Island’s auto insurance rates vary greatly across the state, by as much as $712 annually. Middletown has the lowest annual rates at an average of $1,545, a 13 percent decrease from the statewide average of $1,785. North Providence’s rates were a whopping 26 percent greater than the average, at $2,257.

ValuePenguin, the New York-based, free comparative site that began in 2013, attempts to provide consumers with unbiased information to help them to make better financial decisions.

For the purpose of the study, ValuePenguin used two sample drivers: two males, one of 30 years of age and the another 65, driving a 2010 Toyota Camry averaging 12,000 miles a year with a good credit history and no accidents or violations in five years. Ting Pen, a graduate from Georgetown University and founder of ValuePenguin, said in an email the two driver profiles were chosen “as sample representations for the general driver population.”

“Males typically make up more of the driver pool, and we chose a 30- and a 65-year-old for the younger and older population,” he said. “We then blended these two rates as a benchmark to compare across locations.”

Using the two sample drivers, ValuePenguin analyzed 30 randomly picked municipalities of different sizes throughout Rhode Island for basic liability protection.

Based on the data collected, Quincy Mutual, Amica and Allstate had offered the best average rates throughout the state.

“I would caution, however, that these three companies will not be the cheapest insurers for everyone,” Pen said. “Companies have different experiences insuring various types of drivers, so the quotes for each driver can differ quite widely. It is best to get at least three quotes so they can compare for themselves what a good rate is.”

Cranston had the third highest rates for auto insurance at $2,167, or 21 percent more than the statewide mean. The ValuePenguin study indicates the reason Cranston and other municipalities have higher rates is because they “are clustered around the Providence metropolitan area within easy driving distance. They tend to be more densely populated cities, which contributes to their higher costs.”

Warwick fares slightly better, as it is positioned further from Providence. Warwick is ranked 24th on the list of best to worst of the participating municipalities. Annually, auto insurance rates for the city are averaged out at $1,985, or 11 percent higher than the average of $1,785.

The municipalities with the lowest annual rates were Middletown, Newport, Little Compton, Tiverton and Jamestown. All of these municipalities were 10 percent or more below the state average.

“Places with lower insurance rates tend to be less populated, which correlates with fewer drivers and cars on the road, which generally translates into lesser probability or risk of accidents and claim for those locations,” Pen said.

For more information on the study or ValuePenguin, visit www.valuepenguin.com/best-cheap-car-insurance-rhode-island.

Comments

No comments on this item Please log in to comment by clicking here