Living in Missouri offers several financial advantages. Firstly, the state boasts a relatively low cost of living, allowing residents to stretch their dollars further. Secondly, Missouri's diverse economy provides numerous job opportunities across various sectors, from agriculture to technology. Thirdly, the state's affordable housing market makes homeownership more accessible for many individuals and families. In terms of geographical benefits, Missouri's central location in the United States provides easy access to major cities and transportation hubs. Additionally, the state's diverse landscape, featuring rolling hills, forests, and rivers, offers residents a wide range of outdoor recreational activities. Lastly, Missouri experiences all four seasons, providing a varied climate that many find appealing.
However, living in Missouri also comes with certain insurance risks that residents should be aware of. One significant concern is the potential for severe weather events, including tornadoes and thunderstorms, which can lead to property damage and the need for comprehensive home insurance coverage. Another insurance risk is flooding, particularly in areas near rivers and streams, necessitating flood insurance for many homeowners. Lastly, Missouri's high rate of uninsured motorists means that residents should consider additional auto insurance coverage to protect themselves in case of accidents involving uninsured drivers. Despite these risks, many people find that the financial and geographical benefits of living in Missouri outweigh the potential drawbacks.
Missouri's homeowners and auto insurance market is diverse and competitive, with numerous providers offering coverage to the state's 6.2 million residents. The state is home to several major insurance companies, including American Family Insurance and Shelter Insurance, which are headquartered in Missouri. As of 2021, there were over 200 licensed property and casualty insurers operating in the state, providing consumers with a wide range of options for both home and auto coverage.
Weather-related risks play a significant role in shaping Missouri's insurance landscape. The state is prone to severe weather events, including tornadoes, hailstorms, and flooding. Missouri lies within "Tornado Alley," experiencing an average of 45 tornadoes annually. In 2011, a devastating EF-5 tornado struck Joplin, causing $2.8 billion in insured losses and prompting insurers to reassess their risk models. Additionally, Missouri faces flood risks along its major rivers, with the Great Flood of 1993 resulting in over $3 billion in damages across the state.
Auto insurance in Missouri is mandatory, with drivers required to carry minimum liability coverage of 25/50/25. In 2020, there were approximately 4.3 million registered vehicles in the state. Missouri has seen a gradual increase in traffic accidents over the past decade, with 881 fatal crashes reported in 2020, according to the Missouri State Highway Patrol. This trend has influenced auto insurance premiums and coverage options offered by insurers in the state.
The Missouri Department of Commerce and Insurance plays a crucial role in regulating the insurance market and protecting consumers. In 2020, the department handled over 3,000 consumer complaints related to homeowners and auto insurance. The state has also implemented various initiatives to improve insurance accessibility and affordability, including the Missouri Property Insurance Placement Facility, which provides coverage for high-risk properties that may otherwise struggle to obtain insurance in the standard market.
| Provider | Annual Insurance Rate | Open Quote Rating | |
|---|---|---|---|
| Armed Forces Insurance | $1666 | rating | |
| AAA | $1994 | rating | |
| USAA | $2190 | rating | |
| American Family | $2987 | rating | |
| State Farm | $3184 | rating | |
| Allstate | $3289 | rating | |
| Nationwide | $4156 | rating | |
| Shelter Insurance | $4500 | rating | |
| Farmers | $6128 | rating |
| Provider | Average Insurance Rate | Open Quote Rating | |
|---|---|---|---|
| Nationwide | $4156 | rating | |
| State Farm | $3184 | rating |
