N.H. is No. 2 in car insurance affordability



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An industry group says New Hampshire has the second most affordable auto insurance costs in the country.InsWeb, an online insurance comparison provider based in Sacramento, Calif., compared the median household car insurance rate and median household income of each of the 50 states and Washington, D.C., to determine what it calls an “affordability factor,” with a low factor indicating less of a family’s budget is spent on car insurance.New Hampshire’s affordability factor was 2.23 percent, slightly higher than top-ranked Massachusetts, which had an affordability factor of 1.84 percent.Vermont was just behind the Granite State at 2.39 percent, placing third.Lousiana had the nation’s highest affordability factor, 6.93 percent."Comparing median car insurance rates by state gives us a good sense of where drivers are paying higher and lower premiums, but it doesn't necessarily tell us where states rank in terms of affordability," said Brad Cooper, senior vice president of product, site and marketing at InsWeb. "To really get a sense of where car insurance is the most and least affordable, you have to consider how much of a typical family's income goes towards premiums, and that's what our affordability factor measures." InsWeb uses a proprietary system that tracks the rating algorithms of multiple insurance carriers in each state. Rates are based on actual customer profiles that can include multiple drivers, multiple vehicles and other variables. Income data is provided by Zip-Codes.com. Affordability factors are calculated as of May 31. – CINDY KIBBE/NEW HAMPSHIRE BUSINESS REVIEW

 

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