According to the results of an online study, average auto insurance rates in 2008 are on the rise. At the lowest end of the car insurance rate scale, the average cost rose by just over 1% over the first quarter of the year, which worked out to $1,830 per year. Back in 2007, average rates for automobile insurance either held steady or fell during the year.

The rate that drivers pay for their car insurance varies by state, company and policy. In some parts of the United States, the average increase was quite sharp. For example, the cost of getting insurance coverage in Florida rose an average of 6.6 % in the first quarter of 2008. Ohio drivers also had to dig deeper to pay for coverage; in that state, the average cost to insure a vehicle went up 4.8 %.

States Where Average Car Insurance Rates Increased

1. Pennsylvania drivers can expect to pay 4.2 % more to insure their vehicles over 2007 rates. This price increase occurred in spite of the fact that Pennsylvania is a no-fault insurance state. (No fault car insurance means that if a person is injured in an accident, his or her own insurance company would be responsible for paying damages. If the cost is higher than the levels set by the State, then the motorist considered to be at fault is responsible for the additional damages.)

2. Rates for drivers in Georgia went up by an average of 3.2 % during the same period. This may bring rates in that State more in line with those paid by drivers in other parts of the country. Historically, Georgia drivers have been paying less than the national average for their car insurance coverage. Whereas the national average for auto insurance in the United States was $1,896 in 2007, Georgia residents paid an average of $1,627 for their coverage. (In 2006, drivers in that State paid an average of $1,705 for their insurance coverage.)

3. If you were looking for car insurance in Texas in early 2008, you would have been paying more for the privilege. The average cost of coverage rose 2.8 % but rates had fallen in 2007 compared to what drivers were paying the previous year. The average cost for car insurance in Texas for 2007 was $1695, compared to $1801 back in 2006.

States Where Average Auto Insurance Rates Dropped

1. Kentucky drivers have historically paid higher than average rates for their car insurance, so the fact that rates actually dropped in the early part of 2008 must have been a welcome change. The average cost to insure a vehicle in Kentucky in 2007 came in at $2,239, which was a decrease over the average cost in 2006, which was $2,299.

2. If you live in Maine, you probably saw your car insurance rates drop as well. This is an interesting development, since Maine drivers already enjoyed some of the lowest car insurance rates in the country. The average cost of coverage in 2007 was $1,403, which is an even better rate than the 2006 figure, which was $1,484.

3. North Dakota was another great state to live in if you were looking for car insurance. The average rate in that State for 2007 was $1,773 (compared to $1,991 in 2006). The best rates were given to drivers with clean driving records and good credit.

States With The Highest Rates For Car Insurance

Here's the low down on states with the highest car insurance rates in the country:

1. Louisiana has the dubious honor of having the highest car insurance costs in the United States. Even though rates have dropped over the last couple of years, the average cost of arranging coverage in that State in 2007 was $2,740. Even though this rate is rather high, it is still better than what drivers were paying in 2006; at that point the average cost was $2,833.

2. Car insurance rates in Washington, D.C. took a huge tumble of 9.9 % between 2006 and 2007. Unfortunately for drivers living there, they were still looking at paying an average of $2,504 for their coverage in 2007, compared to the 2006 average rate of $2,753. Perhaps these higher-than-average rates are due to the fact that many people on the roads in the District are from out of state and may not have sufficient insurance coverage to pay for damages caused by an accident where they are at fault.

3. New Jersey is another no-fault state. Drivers there are required to carry a minimum level of coverage on their vehicles and also to have Personal Injury Protection (PIP) coverage in place. PIP pays for the medical expenses of the car's driver and any passengers in the vehicle. This insurance will also reimburse the injured people for lost wages. It will also pay for funeral expenses if there are fatalities. All of this coverage adds up and drivers in New Jersey paid an average of $2,499 for their car insurance in 2007.

Factors That Affect Car Insurance Rates

You may not have a lot of choice about where you live, but there are other factors that affect your car insurance premiums that you do have some control over. You can choose to drive a car that costs less to insure, though. When you are looking for your next vehicle, why don't you contact your insurance company before making your final decision?

You can find out how much it would cost to get coverage for the particular make and model of vehicle you are considering and factor this number into the total cost of ownership. A good rule to keep in mind is that the cost of insurance will work out to approximately 5 % of the total cost of ownership. By choosing a high-end vehicle that will cost a lot to replace, you are also looking at higher premiums for the privilege.

To keep your insurance costs as low as possible, you may want to consider the following money-saving options:

1. Increase your deductible

2. Install an anti-theft device

3. Store your car in an enclosed garage, as opposed to in a driveway

4. Get your car insurance from the same company that provides your house insurance

5. Don't drive your car back and forth to work; lower mileage means lower rates. Look into public transportation or car-pooling.

Shop For Auto Insurance Rates Now!

Now that you know the average auto insurance rates that drivers are paying, you are in a better position to evaluate a quote for your coverage. Use our free car insurance rate finder at the top of the page. There is no need for you to be average – shop around and see how much you can save!