The cheapest car insurance in Missouri or elsewhere will be more accessible to consumers who are willing to do a little research before they start talking to insurance agents.
This guide is designed to help you start the research process and learn the value of comparison shopping.
You should gain a deeper understanding of which insurance companies offer car insurance to Missouri residents while learning about the factors those insurers use to determine individual rates.
You may have the same insurance policy as your next door neighbor, but they may pay more or less than you.
It all comes down to a variety of factors like how old you are, what car you drive, and what discounts you qualify to receive.
Once you learn more about these factors plus many others, you can start the process of comparing policies and rates to secure the best prices on car insurance in Missouri.
How Much Is Car Insurance in Missouri?
Data compiled by the National Association of Insurance Commissioners shows that car insurance premiums in Missouri are more than $100 below the national average.
The state’s average premium increased by more than $80 from 2011 to 2015, but it remained comparable to premiums recorded for many surrounding states.
Iowa does offer premiums much lower than Missouri, but premiums reported for Illinois are slightly higher than the Missouri average.
This comparison chart places Missouri in a mid-range for the region.
|Average Cost of Car Insurance in Missouri||$872.43|
|Average Cost of Car Insurance in Kansas||$862.93|
|Average Cost of Car Insurance in Iowa||$702.46|
|Average Cost of Car Insurance in Illinois||$884.56|
|Countrywide Average Cost of Car Insurance||$1009.38|
Your state of residence is one of the main elements determining your auto insurance rates.
Four factors related to your location can affect what you pay for car insurance, including local traffic conditions, car theft rates, population density, and average disposable income.
Returning to the NAIC data, you can see that the national average for fatal accidents in 2014 was 0.13 per 1,000 registered vehicles.
The 2014 average fatality rate for Missouri was slightly higher at 0.15.
Combine that with the fact that Missouri drivers traveled close to 14,000 miles in the same year, and you see why insurance companies may consider drivers from this state to be a slightly higher risk.
The national average was just over 12,000 miles per registered vehicle.
Vehicle Theft Rates
The more car thefts reported annually in a state, the higher car insurance rates are likely to climb for drivers who reside there.
This outcome has nothing to do with your personal driving record or history of reporting car theft.
Insurers are simply trying to compensate for the number of car theft claims they’re likely to receive in the upcoming year in your area.
One of the best ways to determine the car theft rate for Missouri is to look at the 2016 Crimes in the United States report, which is released yearly by the FBI.
There were more than 18,000 car thefts reported in Missouri for 2016.
The report also specifies that there were approximately 300 vehicle thefts per 100,000 inhabitants.
Since the national vehicle theft rate for the same year was approximately 227 thefts per 100,000 inhabitants, it’s clear that Missouri’s rate is above-average and that may have a negative impact on the state’s car insurance rates.
You can try to keep rates down by not purchasing one of the following cars, which represent the top stolen vehicles in Missouri for 2017:
- 2004 Ford pickup
- 2005 Chevrolet pickup
- 2001 Dodge pickup
- 2008 Chevrolet Impala
- 1997 Honda Accord
In 2016 alone, police reported thefts of 1,069 Ford pickups and 815 Chevrolet pickups.
The population density of a state estimates the number of people living there per square mile.
Vehicles tend to go home with their owners, which means that densely populated areas of the country may have higher accident rates.
You know what higher accident rates mean for your car insurance company, so there’s no question why a company may want to charge customers more for coverage if they live in an area that’s densely populated.
The NAIC report shows that there were about 90 people per square mile in the United States in 2014.
Missouri’s national average for the same year was 88 people per square mile, so this unlikely to increase insurance premiums for Missouri residents.
Average Disposable Income
We can look at the NAIC report one more time to determine how much disposable income the average Missouri resident may spend each year.
This isn’t a factor that has a major influence on car insurance rates charged by most carriers, but it is something to keep in mind.
Higher disposable income averages often translate to more expensive vehicles on the road, and more expensive vehicles cost more to insure.
While the average Missouri resident had close to $37,000 in disposable income in 2014, the national average was close to $41,000.
We can safely assume that this particular factor isn’t going to interfere with your goal of securing the cheapest car insurance in Missouri.
Companies with the Cheapest Car Insurance in Missouri
The first step to getting the cheapest car insurance in Missouri is to identify leading insurance companies with the ability to reliably pay out claims.
You can do this by reading online reviews and securing at least three car insurance quotes before making a decision.
Make sure all of your quotes are from reputable companies licensed to provide insurance policies in Missouri, and then use those quotes to negotiate with insurance agents.
To help you get started, we’ve provided short introductions to four of the top insurance carriers in Missouri:
Progressive is one of the most well-known car insurance companies in the country, largely due to clever marketing strategies.
If you look beyond the fun advertisements, however, you’ll find a company that has provided quality customer service and a variety of discount programs for more than 80 years.
The first Liberty Mutual office in Missouri was established nearly 100 years ago.
The company is well known for offering discounts to college students, and this includes a special discount for members of the University of Missouri Alumni Association.
Allstate was founded more than 80 years ago and has grown into one of the most respected car insurance companies in the nation.
It’s easy to bundle insurance services with this company because it offers everything from renter’s and homeowner’s insurance to life and business insurance.
MetLife has one of the more competitive low-risk driver discount programs.
For each year that a customer pays for car insurance without filing a claim, MetLife awards an additional discount that makes the insurance policy cheaper.
The company also makes it easy to manage your account online, so you don’t need to waste time calling customer service.
What Is Mandatory for Car Insurance in Missouri?
You can’t register a vehicle in your name or renew your registration in Missouri without providing proof of insurance coverage.
This law is designed to stop drivers from getting behind the wheel without at least the minimum liability insurance required by law.
When uninsured drivers cause accidents, they’re unable to pay for the damages caused, which places a strain on the insurance company for the party who is not at fault.
The growing trend of uninsured drivers is partially responsible for rising car insurance premiums in Missouri and most other states.
The minimum liability insurance required by the Missouri Department of Revenue includes:
- $10,000 property damage per incident
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
If you drive while uninsured or under-insured and you’re involved in an accident or are pulled over for a traffic violation, the police officer will be required to report your lack of liability insurance to the Department of Revenue.
This infraction may likely result in the revocation of your vehicle’s registration and financial penalties.
If you have insurance but cannot provide proof when asked for it by a police officer, you may receive a ticket.
How to Reduce the Cost of Car Insurance in Missouri
There is no way to completely eliminate your car insurance expenses in Missouri.
If you don’t want to risk having your vehicle registration revoked and you don’t have hundreds of dollars to pay in fines, now is the time to purchase insurance and consider the following tips for minimizing your premium.
Rethink that low deductible.
Low deductibles are comforting because they mean that you won’t have to pay thousands of dollars out of pocket if you ever need to file a car insurance claim.
The problem is that low deductibles increase your annual premium, and that results in more money flowing out of your pocket each month.
If you increase the deductible, you may lower your premiums instantly.
Just make sure that it’s not so high that you may face a financial crisis if you’re ever in an accident.
Improve your credit score.
If you haven’t checked your credit report in a long time, now is the time to order a copy.
Car insurance companies often give the lowest premiums to those with good to excellent credit because they feel confident in the ability of those customers to pay their premiums on time.
If you have no credit or your score has seen better days, consider improving your financial standing before switching to a new car insurance policy.
Shop around for discount programs.
Even if you’ve never qualified for your current insurance company’s discount programs in the past, you never know what new programs are now available.
You can also shop other insurance companies to see what discount programs they offer.
Something as simple as signing up for a college class or joining a professional organization for networking may qualify you for a discount with some car insurance companies.
Now that you understand the best strategies to lower your car insurance premium, it’s time to discuss what you might need to apply for a new policy.
Start by obtaining personal information for every driver you want to insure, including social security numbers and the number of auto insurance claims they’ve filed in the past.
Next, write down the makes, models, VINs, and current mileage for every vehicle that you need to cover.
You may also want to collect proof of organization memberships and other items that may help you qualify for discount programs.
What Can Increase the Cost of Your Car Insurance in Missouri?
At this point, you know a lot about the factors that can help lower your car insurance premium.
If you’re still wondering what factors may work against you, this short list may give you some good ideas:
Prior traffic violations, accidents, and frequent insurance claims count against you when trying to secure the cheapest car insurance in Missouri.
If the blemishes on your record were more than four or five years in the past, you may have a better chance of negotiating your way to a lower premium.
No Credit/Bad Credit:
Research studies have shown that people with low credit scores tend to file more insurance claims, and that’s enough for most insurance carriers to give your rate at least a modest hike.
If you can put off applying for a new policy or switching insurance companies long enough, it may pay off to improve your credit score first.
The more time you spend out on the road, the more likely you are to be involved in an accident.
Even if it isn’t your fault, your insurance company runs the risk of suffering losses if you file a claim.
This increased risk is why most insurance companies ask questions regarding your driving patterns before locking in your rate.
You now have all the information needed to secure a cheap car insurance premium in Missouri.
It’s time to get your first three online quotes and start negotiating with agents.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.