Buying insurance is an important component of financial planning. We buy insurance for health care, gadgets, vehicles, etc. Celebrities have gone as far as insuring various parts of their bodies.
Choosing the right insurance policy has to be done with utmost care. The percentage of insurance varies from state to state and company to company. In the case of Chrysler 200, a popular car of American make, the insurance percentage and average insurance is different for each state. There are some states where the insurance percentage is as low as 4 % and states where it is as high as 16 %.
Maine offers the lowest insurance percentage (4%) and insurance average at $807, but the median price stands at $16,999, which is more than states with a much higher insurance percentage. Other states that follow Maine are – Iowa and Vermont at 5% and Indiana, Idaho, New Mexico and North Carolina – all at 6%.
On the other hand, Georgia and Michigan are the states with highest insurance percentage (16%). The insurance average and median price of this car in the state of Georgia stand at $2632 and $15997, respectively. Whereas, in Michigan the insurance average is $2597 and median price is $15995. Louisiana is second with an insurance percentage at 14% and insurance average and median price at $2257 and $15988, respectively.
It is important to remember to factor in the insurance percentage while buying the Chrysler 200, even though the median price constitutes the larger share of your initial investment. Let us consider the example of Maine, where the insurance percentage is the lowest, and Georgia, where it is the highest. The median price in Maine is $16,999 and in Georgia it is $15,997. The difference between these is $1002. This illustrates the importance of considering both the median price and the insurance average while buying a used car.