Faculty note: Prof. Pangarkar contributes to WalletHub on Best Wis. Car Insurance
UW-Green Bay Associate Professor Aniruddha Pangarkar (Marketing, CSOB) was featured in WalletHub’s piece about Best Car Insurance in Wisconsin:
Why are car insurance prices so different from state to state?
Car insurance prices do indeed differ from state to state. The reason behind this is because car insurance is regulated at the state level, different states within the United States have their own unique requirements for the minimum coverage that drivers must possess. Most states have minimum liability requirements, and this helps determine the rates in each state. Also, consumers need to keep in mind that the cost of living in the United States varies by state. For example, the presence of private equity firms in the San Francisco Bay Area, tech companies in Silicon Valley, or the movie/entertainment industry in Los Angeles, make California an expensive state to live in, and because people earn more there, it thus ends up increasing car insurance. Comparatively, states in the Midwest with lower costs of living could have lower car insurance rates. Thus, if an individual is moving from one state to another, they must factor in these changes and ensure their new policy reflects these revisions/updates for the new state they will be living in.
