Why is Auto Insurance So Expensive in Oklahoma?

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Drivers in Oklahoma complain about car insurance prices. Many drivers feel they’re paying too much for car insurance in Oklahoma.

Statistically, Oklahoma drivers pay average car insurance premiums compared to the rest of the United States. The average American driver pays approximately $1,400 for full coverage car insurance, while drivers in Oklahoma par around $1,475 per year.

However, certain factors – like living in Oklahoma City or Tulsa – can cause Oklahomans to pay higher rates for car insurance.

Today, we’re explaining why auto insurance is so expensive in Oklahoma – and how you can find the best and cheapest car insurance in Oklahoma.

Oklahoma Car Insurance Premiums Are Close to the National Average

Why is Auto Insurance So Expensive in Oklahoma?Statewide, drivers in Oklahoma pay roughly the same car insurance premiums as drivers in the rest of the United States.

According to 2020 state-by-state insurance rankings, Oklahoma was the 22nd most expensive state in America in which to insure a vehicle, putting it roughly in the middle of the pack compared to other states. The typical Oklahoma driver pays approximately $1,400 to $1,600 per year for car insurance.

In fact, Oklahomans pay significantly less for car insurance than drivers in Texas. Despite the geographic similarities between Texas and Oklahoma, drivers in Texas pay the 4th highest insurance premiums in the country, paying roughly $2,000 per year for car insurance.

Yes, car insurance can seem expensive in Oklahoma – but it’s roughly equal to the prices paid by drivers in other parts of the United States.

However, as with any state, Oklahoma drivers pay significantly different rates based on their location, demographics, and other factors.

Drivers in Oklahoma City and Tulsa Pay Higher Rates for Car Insurance

In virtually every state, drivers in the largest cities pay more for car insurance than drivers in rural areas.

That lesson holds true for Oklahoma, as drivers in Oklahoma City and Tulsa tend to pay the highest rates in Oklahoma for car insurance.

Why do city drivers pay more? It’s mostly related to density. There are more drivers in Oklahoma City, Tulsa, and other urban areas of the state. You might pass 10,000 drivers on a normal commute in Oklahoma City – compared to just 100 drivers if you were living in a smaller city like Woodward, Oklahoma.

More population density means there are more opportunities for an accident. Most cities have higher accident rates than rural areas for that reason. You’re surrounded by more cars. You’re driving on more crowded streets. There are more pedestrians, vehicles, hazards, and distractions. All of that means higher accident rates.

Some city drivers also pay more because of crime rates. Some urban ZIP codes have higher crime rates than rural ZIP codes. Cities tend to have higher rates of break-ins and vehicle theft, for example. Insurers in Oklahoma check crime rates in your ZIP code before assigning rates.

Some ZIP codes have higher insurance premiums because of weather – not crime or accident rates. Some parts of Oklahoma are more prone to tornadoes, floods, hailstorms, and other natural disasters, for example. If you are insuring a car in one of these areas, then you’ll pay more for car insurance. Your insurer needs to cover repair your replacement costs from environmental damages, and that means higher rates for car insurance.

Overall, every insurance company in Oklahoma checks your ZIP code before assigning car insurance premiums. The insurer will charge higher or lower rates based on the risk of your ZIP code.

Oklahoma Has Higher Minimum Car Insurance Requirements than Other States

In some states, drivers pay higher car insurance premiums because the state has higher-than-average car insurance requirements. Oklahoma’s car insurance requirements are among the highest in the United States, with drivers required to have $25,000 of $50,000 of liability coverage to meet the state’s minimum requirements.

Car insurance requirements in Oklahoma include:

  • $25,000 of bodily injury liability coverage per person
  • $50,000 of bodily injury liability coverage per accident
  • $25,000 of property damage liability coverage per accident

When you buy car insurance in Oklahoma, it’s guaranteed to meet the minimum car insurance requirements listed above. This car insurance protects other people from accidents you cause.

In other states, drivers are required to have just $5,000 to $15,000 of coverage, which makes Oklahoma liability insurance requirements seem particularly high.

Oklahoma, like other states, does not require collision or comprehensive coverage, which protects your own vehicle after an accident.

Oklahoma Has High Rates of Uninsured Drivers

Oklahoma consistently ranks among the worst states in America for uninsured drivers. Oklahoma has one of the highest rates of uninsured drivers in the United States.

Roughly one in four drivers in Oklahoma do not have insurance, compared to the national average of approximately one in seven. That means in an accident, you have a 25% chance of colliding with an uninsured motorist.

Uninsured motorists are bad for insurance companies. It’s difficult to obtain compensation after a collision with an uninsured motorist. Insurance companies cover these costs out of pocket without receiving compensation from the uninsured motorist.

In fact, Oklahoma drivers pay for uninsured motorists twice: each year, the Oklahoma Insurance Department pays an estimated $8.8 million to cover the cost of uninsured motorists. And, Oklahoma drivers pay higher premiums.

Uninsured drivers cost insurance companies in Oklahoma millions of dollars each year. Insurers pass these costs onto policyholders, which means higher insurance premiums for drivers in Oklahoma – and higher taxes.

Cheapest Car Insurance in Oklahoma

The best way to get cheap car insurance in Oklahoma is to compare as many rates as possible. Enter your ZIP code into an online car insurance comparison form today to compare rates from top providers in your corner of Oklahoma.

Certain companies regularly appear among the list of the cheapest and best-rated car insurance companies in Oklahoma, including:

  • GEICO
  • American Farmers & Ranchers
  • Allstate
  • Shelter
  • Progressive

However, car insurance prices vary widely based on your demographic data, location, and other factors. GEICO might offer the cheapest car insurance for drivers in Oklahoma City and Tulsa, for example, while drivers in rural areas of the state may be better served by Shelter or American Farmers & Ranchers. By comparing quotes today, you can save hundreds per year on car insurance.

Final Word on Auto Insurance Rates in Oklahoma

Statistically, drivers in Oklahoma pay average rates for car insurance compared to drivers in other parts of America. The average Oklahoman pays approximately $1,475 per year for car insurance, while the average American pays roughly $1,400 per year. In 2020 insurance rankings by state, Oklahoma was the 22nd most expensive state in which to insure a vehicle, placing it squarely in the middle of the pack.

However, certain factors can increase costs for drivers in Oklahoma.

Drivers in Oklahoma City, Tulsa, and other urban areas, for example, often pay much higher-than-average insurance premiums. Urban ZIP codes have a higher risk than rural ZIP codes.

Oklahoma also has one of the highest rates of uninsured drivers in the country, with roughly 25% of Oklahomans driving without insurance.

By comparing quotes online today, you can ensure you pay the cheapest possible rates for car insurance in Oklahoma.

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