Average Annual Car Insurance Cost in America

The average annual cost of car insurance is just over $1,300 in the United States, according to a study commissioned by Quadrant Information Services. But knowing this number on its own isn’t a great indicator of how much you’ll pay. Rates vary significantly. Michigan leads the country with over $2,000. Maine, Ohio, and Idaho average under $950 per year.

Calculation of Average Annual Car Insurance Cost

There are many factors that determine your car insurance rate, both variable and changeable. Here are some key factors that affect the average cost of car insurance in America:

Gender

Sorry guys. If you’re a man, you’re universally viewed as a riskier driver and your insurance rates will be slightly higher as a result.

Your age

If you are very young (under 25) or very old, you are considered a riskier driver. This can make your premiums more expensive.

Your marital status

Marriage means thinking for two and shows insurance companies that you’re less risky than on your single days.

your location

If you’re traveling around Manhattan, often returning to rural Kentucky, you’re much more likely to have an accident.

But there’s something less obvious: If your state requires certain standards for car insurance that are more stringent than others, you’re likely to pay more. For example, Michigan requires residents to have unlimited lifetime personal injury protection (PIP) for accident-related medical expenses as part of their car insurance. It makes premiums in Michigan more expensive than other states.

If you live in an area where natural disasters are common, this may also increase your rates.

your job

If you are driving your car as a real taxi or driving for a rideshare service, you may have to pay more for insurance and pay for a different type of insurance. About your company and insurance agent how your business can affect your rate.

If you’re determined to pay less for car insurance, there are a few things you can work on. These things are not easy to change in the short term, but they are not impossible achievements with hard work and persistence.

credit rating

If you improve your credit score, your terms for almost all financial transactions will be greatly improved. A higher credit score means you’re at less financial risk, but it also gives insurers confidence that you’re more responsible overall.

To improve your credit score, you need to pay your bills on time every time, avoid too much control over your credit score, and use less than 30 percent of your current revolving credit.

Driving History and Driving Habits

This should be pretty obvious: If you tend to stock up on tickets, risk driver insurance. Of course, something like a ticket 15 mph over the speed limit on the highway will affect your rates much less than something like that while drunk driving—one risky, understandable, the other threatening you to society—and your rates will respond appropriately.

When you get fined for an expedited ticket, you will feel the effect on your premiums. However, if you’re caught driving under the influence, you can expect to pay nearly twice as much as the average person in your area. Getting a defensive driving course or installing monitoring software on your vehicle can help lower your premiums; talk to your insurance agent.

Lightening the length affects your premiums for how often and for what purpose you use your vehicle and where you park it. If you commute longer, you’re exposed to longer and more frequent road risks, so your premiums will be higher. Driving, telecommuting, and taking the train can save you premiums.

How to Save on Average Car Insurance Costs

Fortunately, there are easier ways to save premiums:

Choose a Cheaper Policy

Comprehensive coverage with all the extra benefits will cost more at premiums than a simple minimum liability coverage intent. However, remember that you often get what you pay for; If you’re in an accident, you’ll probably be glad you didn’t choose this as a space to scare and save.

Choose a Less Sexy Vehicle

Super stylish sports car? Not only does it cost up front and at the pump, driving a hot rod makes you riskier to insure. If you want to save on insurance, buy a minivan, sensible sedan or SUV. You should also consider purchasing a used car and installing anti-theft devices.

That said, sexy versus criminals can mean different things to you, and both will affect your bonuses.It is important to specify. The humble Honda Accord is super desirable for criminals and one of the most frequently stolen vehicles out there.

walking around the shops

It is a golden rule that you should never go with the first offer. Not when you negotiate your salary, not when you negotiate the price of your car, certainly not when you shop for car insurance.

Not all coverage levels are created equal, but you already know until you go out and see what’s available, you never know if you’re getting the best deal for the amount you’re covering.

Get Information About Discounts

Are you a straight A student? Active duty in the military? Are you a member of AAA? You can get a discount on your insurance premiums. But the trick is: different companies offer different types of incentives, so you’ll want to shop around and ask insurance agents about these discounts.

Consider packaging

You usually get a discount if you use the same insurance provider for auto and different types of insurance.