The average cost of auto insurance per month is a major consideration for all drivers. It's important to find the right coverage for an affordable price to avoid paying more than necessary for your insurance. In this article, you'll learn how the average cost for car insurance is calculated. We will also discuss what factors influence this number and how you can get the best deal.
Where You Live: State-by-state pricing can vary widely, with some states requiring minimums that are hundreds of dollars more than others. The local risk factors of each state such as climate, population, and crime rates also influence the rate.
Your Vehicle. The type of car that you drive is a factor in your car insurance rates. Sports cars and trucks, for example, can cost more to insure due to higher repair costs, maximum speeds and statistically greater accident likelihood.
Driving History: Having a clean driving record can help you secure lower car insurance rates. You may see your rates increase dramatically if you have an unclean driving history. According to statistics, rates for drivers who have a history with traffic violations or accidents increase up to 70%.
Credit Scores: Drivers with better credit scores are less likely than those with lower credit scores to file a claim, which could lead to a cheaper rate for car insurance. Some states do not allow credit scores to be used when determining car insurance premiums.
How Much You Will Pay: The cost of car insurance is affected by a number of factors including your age and driving record. Compare quotes from multiple companies to get the best possible coverage at a reasonable price.
The most expensive cars to insure are:
No matter if you're shopping for a brand-new or used vehicle, the type you drive can affect your insurance costs. Because of their safety ratings and accident rates, SUVs and vans tend to have lower car insurance premiums.
What You Can do: Avoiding traffic violations and preventing accidents is the most effective way to lower your auto insurance costs. To reduce the risk of an accident and lower your insurance rates, you can attend a driver education class or take a defensive-driving course.
Ask about a lower mileage discount. A low-mileage reduction is an excellent way to save on car insurance. Many insurance providers give these discounts to drivers who don’t drive often or for long distances.
A Better Score: A high credit score shows that you're responsible and reliable with your financial obligations, such as loans. It can also lead to cheaper car insurance prices, especially if you're in good health and don't have a history of high medical bills or expensive repairs.