Why Is Car Insurance so Expensive in Rhode Island?

MoneyGeek analyzed the most significant factors impacting car insurance rates to help those wondering why car insurance is so expensive in Rhode Island. As defined in our methodology, we researched quotes for an average 40-year-old driver with a full coverage policy and a clean driving record.

In Rhode Island, drivers have to pay high rates for car insurance. While individual factors like age, credit score, location and driving history affect premiums, the state's high urban population density, higher-than-average highway density and higher-than-average uninsured motorist rate also play a role.

• Why Is RI Car Insurance Expensive
• Why It Might Be Expensive for You
• How to Save on Car Insurance
• Frequently Asked Questions

Rhode Island is the seventh-most expensive state for car insurance in the U.S. Insurance companies in the state charge high rates due, in part, to the state's urban population density, highway density and uninsured motorist rates.

MoneyGeek’s data shows that 91% of the population in Rhode Island lives in cities. With most people living in urban centers, the likelihood of accidents increases, raising the number of potential claims for insurance companies. In urban neighborhoods, accidents, theft, and vandalism are higher than in non-urban areas, contributing to increased car insurance rates.

There are an estimated 753,143 licensed drivers in Rhode Island. The state also has an elevated highway density compared to other U.S. states, which means reduced distance between cars on the road. This results in more accidents and an increase in the number of claims for insurers, causing them to charge higher rates.

In Rhode Island, about 17% of drivers are uninsured. Due to a high number of uninsured motorists, it would be wise to add uninsured/underinsured motorist coverage to your policy, which raises your costs. Insurers also base their rates on the number of uninsured motorists in a region, which causes base premiums to go up.

While car insurance in Rhode Island is generally more expensive than the national average, other significant factors like your location, age, credit history, driving record, insurance company and car’s make and model also affect your rates.

Your location within the state generally significantly impacts your car insurance rates. In Rhode Island, the average cost of car insurance is higher than the national average; however, the price of a policy may vary slightly depending on where you live. Getting quotes from multiple providers is the best way to find the most affordable rate in your area.

Your car insurance rates can vary depending on your insurer. That’s why it’s smart to shop around and compare quotes from different insurers to find the most affordable option. MoneyGeek identified the best insurance company in Rhode Island that balances excellent service quality and affordability. Our tool can help you find the cheapest company in Rhode Island.

The driver's age is an important factor in car insurance costs. Insurers usually consider it risky to insure drivers younger than 25 due to inexperience. MoneyGeek's research shows that it costs an average of $1,822 per year to insure a 40-year-old driver, while car insurance for a 16-year-old costs an average of $5,056 annually in Rhode Island.

Insurance companies charge lower rates to drivers with clean driving records. Having a violation like a speeding ticket or a DUI can significantly increase your car insurance premiums. MoneyGeek found that drivers with a ticket pay $406 more on average in Rhode Island than someone with a clean driving record.

Poor credit history can indicate risk to car insurance providers — that’s why insurers charge higher rates for such drivers. A driver with an excellent credit score would pay $351 less on average than someone with a good credit score in Rhode Island. For a driver with a bad credit score, insurance costs an average of $1,325 more than it does for someone with a good credit history.

Your car’s make and model affect your car insurance rates. Insurers generally charge less to insure newer models than older ones, as a newer model is less likely to end up at the mechanic. Rhode Island’s auto repair costs are high, affecting insurance rates.

You can use MoneyGeek’s car insurance calculator to get a personalized estimate if you’re thinking of shopping for a particular car make or model.

Car insurance in Rhode Island is costlier than in other U.S. states. However, it’s still possible to save money on a policy. MoneyGeek found ways to help you save, including shopping around for quotes, bundling, using discounts, increasing deductibles, enrolling in a pay-per-mile program and dropping unnecessary coverage.

MoneyGeek researched the following frequently asked questions to help you understand why car insurance is so expensive in Rhode Island.