The cost of car insurance depends on many factors, including age, gender, driving history, and place of residence. However, there are some general rules that can help you in calculating insurance costs.
For example, sports car insurance is usually more expensive than minivan insurance. Likewise, younger drivers can generally expect higher insurance premiums than older drivers. And those who drive drunk or hold tickets often have higher rates than those with clean driving records. But what can the average driver expect to pay for car insurance? This is what we are here to answer.
Average car insurance cost
A 40-year-old female or male driver with a clean driving record and high credit in the United States can expect to pay an average of $1,771 per year, or about $148 per month, for full car insurance reimbursement. The average minimum insurance cost (the bone you need to buy to drive a car legally in the state) is $545 per year.
This is the average for all categories. Depending on the particular situation, it could fall somewhere above or below these numbers. Let’s analyze the various factors.
How much does government car insurance cost?
Insurance companies need to work with each state in setting rates. Insurance costs vary from state to state, as state insurance departments usually require pre-approval of freight charges.
The top five countries with the highest auto insurance rates are:
Here are the 5 cheapest countries for car insurance:
How much does car insurance cost according to age and gender?
Age is one of the biggest determinants of the cost of car insurance. In general, the older you get, the cheaper your car insurance claim will be. Car insurance for young people and drivers is the most expensive.
Insurance premiums for teen drivers can be quite large. The national average cost of adding a 16-year-old driver to a parent is $3,852 per year. From there, costs began to fall. By the time drivers reach 25, the annual premium for full coverage will drop to about $2,000 per year.
Your gender also affects the cost of car insurance – but this difference diminishes with age. In general, the cost of gender insurance also largely depends on the age of the driver.
Teenage boys are the most expensive drivers to insure, especially 16-year-old boys. According to the CDC, teenage boys are more likely to be involved in serious car accidents and take on risky driving behaviors than girls are.
As a result, an 18-year-old man can pay $800 more for car insurance than an 18-year-old woman. However, by the time drivers reach the age of 40, the gender gap will be only $50 and women will be more expensive to insure. By the time you reach 60, the difference will be less than $20 and the cost of the policy for men will be a bit higher.
Other factors that can affect the price you pay for car insurance
Your driving record is a double-edged sword. If you drive well, you get the Safe Driver discount, but if you drive poorly, you may be charged extra on your bill the next time you renew.
Insurance companies, including Geico and Progressive, typically have telematics software that uses a smartphone or car accessory device to analyze driving habits, check speed, brake hard, or use a phone while driving. …by building a good driving history through information technologies, you can qualify for discounts on safe driving.
However, getting a speeding ticket can increase your annual premium by an average of $3.67, while driving under the influence can increase it by $1,650. In the event of an accident, your bill may increase.
Insurance companies can use your credit history when calculating estimates — and your credit score can affect your premiums depending on where you live. Some states, including Massachusetts and California, prohibit insurance companies from taking credit history into account when calculating a quote.
The type of car you drive can have a huge impact on your car insurance bill. Luxury cars and sports cars such as BMW and Mercedes-Benz usually have higher insurance costs than economy cars such as Toyota and Honda. There are several reasons for this, such as differences in price and availability of auto parts for certain manufacturers and models, as well as vehicle safety records and collision prevention capabilities.
Airlines often offer discounts if they have a low annual mileage, that is, if they drive less than the average annual mileage compared to other Americans. If you drive less than 7,500 miles per year, you may be considered a short-distance driver. This can be good news for workers in remote areas. According to Bankrate, the average annual premium for Americans who drive less than 5,000 miles per year is $1,612 (about $150 less than the national average).
You will buy more coverage and lower discounts. This refers to the amount you pay out of pocket before the insurance begins. Monthly or annual premiums may be higher. On the other hand, the less coverage you buy and the higher the discount, the lower your annual premium. However, if you set the deductible too high and the coverage option low, you are more likely to incur significant losses in the event of an accident, which can be costly.
Here’s how to determine the amount of car insurance you need to keep costs low without risking your money.
The longer you are a licensed driver and have a car insurance policy, the lower the price will be. In addition, some carriers offer discounts on long-term continuous car insurance. And it doesn’t have to be with the same insurance company. For example, progressive includes time for ongoing insurance discounts with previous insurers.
Shopping is very important to find the best car insurance premiums. The Insurance Information Association recommends getting at least three quotes from a range of national and regional insurers, said Mark Friedlander, director of corporate communications.
“We want to ask people to compare apples to apples, which means the same level of coverage and the same reduction, said Friedlander. “. “Insurance companies offer different discounts at different prices, and you may be able to get a better price just based on the discount . “
A good time to check the policy and get a new quote is the extension period. This is usually every 6 or 12 months.
Frequently Asked Questions
What is the difference between full coverage and minimum coverage?
If you buy a full coverage policy, that means you are buying collision coverage and comprehensive coverage. Collision compensation compensates for damage to your vehicle in an accident resulting from a collision between your vehicle and another vehicle or object. Comprehensive coverage covers vehicle damage caused by non-collision events such as fire, flooding, vandalism and theft.
On the other hand, minimum coverage often refers to the purchase of the minimum coverage required by a state. This usually means purchasing personal injury liability insurance and property insurance. If possible, we recommend that you purchase above the minimum liability and consider adding full coverage to increase coverage in the event of an accident or natural disaster.
How can I reduce my insurance premium?
There are many ways to lower your premiums, such as shopping for better rates. In addition to comparing car insurance rates, you can also try the following tips:
Will the cost of car insurance go down every year?
Depends on. If you are a young driver, for example, between the ages of 18 and 25, and you drive safely, you can expect your car insurance claim to decline gradually as you get older. Plus, after each year, you can qualify for discounts you weren’t eligible for before. This includes the excellent student discount and the safe driver’s discount that does not require an accident for a certain period of time.
On the other hand, if you recently received a speeding ticket, got into an accident, or were drunk driving, you may incur additional insurance costs during the next renewal period.
Car insurance costs are transferred from Bankrate, a sister site of CNET , also owned by Red Ventures. This website uses Quadruple Information Services to collect data.