Roanoke Has Best Auto Insurance Rates in Virginia

From Chesapeake Bay and the Hampton Roads on its eastern coast to the Shenandoah Valley, the Blue Ridge Mountains, and the Heart of Appalachia on its westernmost reaches, Virginia measures more than 42,700 square miles in size. Crisscrossing the Old Dominion are 58,000 miles of interstate highways, local connector, and county roads, as well as some 17,000 miles of urban streets and local roads. Driving here is a both a way of life and a means of transportation, as the state’s 5.7 million licensed drivers know.

ValuePenguin.com analyzed sample car insurance premiums in the state to give consumers an idea of the best auto insurance rates in Virginia. The company studied car insurance rates by company, city, and profile, and found the overall average to be $2,737 for a standard liability protection. While this was the mean blended premium, they also found that rates could vary quite widely. In fact, for the same driver profile the difference between the minimum and maximum car insurance costs was as much as 7 times.

The areas sampled in the study represent a blend of the state capital, large cities, and smaller rural areas. In general, across cities, there was not much variation in the cost of insurance across the 25 underwriters and three driver profiles in the study. Roanoke, with a population of 97,000 was the cheapest place to insure a car at $2,364 a year. Alexandria, the most expensive city in the sample, was 23% more expensive.

The annual premiums below are based on auto insurance coverage that adds uninsured / underinsured motorist coverage, medical payments, and some comprehensive and collision protection in addition to the minimum insurance liability limits in the state of Virginia.

Based on the sample rates below, prospective policyholders can see how researching and comparing rates result in a more informed decision. The difference between the most expensive and cheapest rates is $4,206, which could have almost paid for four more years of car insurance at USAA. For non-military drivers, that delta is $3,714 between Progressive Direct Insurance Company and Travelers Home and Marine Company.

Based on survey data, the three companies with the cheapest auto insurance rates were USAA, Garrison Property and Casualty Insurance Company, and Traveler’s Home & Marine Company. Since the first two are specialty auto insurers (USAA and Garrison are affiliated companies that provide financial services for members of the military forces), we’ll add two more to the list: GEICO Casualty and Mid Century Insurance (a subsidiary of Farmers Insurance). Annual auto insurance rates for GEICO, Travelers, and Mid Century averaged out to $1,729, which was about 37% cheaper than the average in the state.

At the other end of the spectrum, the three most expensive insurers in the survey were: Progressive Direct Insurance Company, Nationwide Mutual Insurance Company, and Liberty Mutual Insurance Corp. The average of these three companies is $5,294, which is almost twice the overall state average (93% higher). This helps to illustrate that underwriting criteria and methodologies can differ widely for the same profile across multiple insurers, and that consumers should compare rates at a few insurers to understand what a fair market rate for their policy would cost.

In Virginia, the minimum liability requirements for auto insurance are 25/50/20: $25,000 for bodily injury for one person, $50,000 for bodily injury for the accident, and property damage of $20,000. In addition to the above statutory minimums, the policy coverage contemplated by the sample premiums include underinsured and uninsured motorist coverage for the same limits, medical expense benefits of $2,000 per person, and comprehensive and collision protection with $100 and $200 deductibles, respectively.

Together, the cities and counties sampled represent a selection of neighborhoods in Virginia. They range from the state capital of Richmond and the largest city of Virginia Beach down to Charlotte County, which is representative of the rural areas in the Old Dominion.

Data for three representative profiles was used in this study: a 20 year old single male, a 20 year old single female, and a married 45 year old adult. Each driver has had a clean driving record for the past three years – no accidents or traffic violations or point additions. They drive a 2013 car in the $25,000 range to and from work 12,000 miles a year.

These sample premiums are for illustrative guide purposes only. Actual auto insurance rates will differ based on the policy limits, vehicle driven, place of residence, driving record, and other factors in the underwriting guidelines of the car insurance company.

Information current as of January 2014

Source: Virginia Bureau of Insurance, DMV, and DOT

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