Car Insurance Rates

How Much Does Car Insurance Cost?

Curious about how much your car insurance is going to cost you? While the question doesn’t have an easy answer, there may be a better way to getting cheap rates and good coverage. For starters, instead of asking how much does car insurance cost, drivers should really be asking themselves how much should my car insurance cost. Because prices depend on many factors, and different companies assign different levels of importance to each, if you’re a safe driver with a clean driving record, you should be getting quoted the lowest premiums available. If a company isn’t offering you the cheapest prices on the market, then it’s time to complete an insurance comparison to find an insurer who will reward your low-risk profile.

While only auto insurance quotes can help you find out exactly how much you’ll pay in monthly premiums, you can still compare average insurance rates to get an idea of what to expect. Below, we’ll show the best ways to comparison shop to lower your car insurance costs and get affordable prices.

How Much Is Car Insurance

How Much Is Car Insurance?

So, how much is car insurance per month? The table below can help you find the average cost of auto insurance in your state. Because different states have specific insurance requirements, laws, and regulations, it’s important to compare rates within your state to understand how much it would cost to insure your car. This data can be very useful in determining whether you are overpaying for your coverage or if there is an opportunity to get lower rates by comparing quotes.

However, it is critical to remember that not everyone buys the same amount of coverage. The best car insurance is ultimately a balance between having cheap rates and excellent coverage from a reputable company with quality customer service and claims processing.

Check out the cost of insurance in your state to see how your policy compares.

State
Monthly Premiums
Annual Premiums
Arizona
$102
$1,222
California
$163
$1,962
Florida
$153
$1,830
Georgia
$183
$2,201
Illinois
$114
$1,370
Indiana
$100
$1,202
Maryland
$151
$1,810
Massachusetts
$134
$1,604
Michigan
$213
$2,551
Missouri
$101
$1,207
New Jersey
$159
$1,905
New York
$98
$1,173
North Carolina
$83
$1,060
Ohio
$77
$926
Pennsylvania
$120
$1,440
Tennessee
$116
$1,397
Texas
$135
$1,620
Virginia
$93
$1,114
Washington
$125
$1,499
Wisconin
$91
$1,087

How Much Car Insurance Do I Need?

The amount of car insurance you need really depends on your specific financial circumstances. There are 2 ways to determine how much car insurance you need to buy.

State Minimum Car Insurance

First, you need enough auto insurance to drive legally. Because each state has minimum car insurance requirements, your company will automatically guarantee that you follow state laws and buy at least the minimum amount. However, buying the minimum amount of liability coverage to satisfy your state’s laws is not adequate for all drivers.

Amount of Car Insurance You Should Have

If you are a young family living on a budget but working hard to secure your financial future, then we recommend a 50/100/50 split. This means you should buy $50,000 in bodily injury liability, $100,000 of total liability protection per accident, and $50,000 as a property damage liability limit. This amount of car insurance coverage should sufficiently protect you and your family’s assets.

If you are a middle-class family with savings, equity in your home, retirement accounts, and a growing net worth, then most insurance experts recommend 100/300/100 coverage. Fortunately for you, the cost of liability car insurance does not increase linearly or exponentially. The cost of 100/300/100 coverage is not twice as much as 50/100/50. With a car insurance quote, you will see that, once you have purchased the basic levels of protection, additional liability coverage costs a few dollars more a month.

In the end, how much auto insurance you need to buy should be a balance between how much you can afford and how much you need to protect yourself from losing everything.

Car Insurance Discounts

One benefit of an auto insurance comparison is that consumers can make sure they are receiving all the discounts for which they qualify. A quick list of car insurance discounts to look for includes:

  • Multiple Policies – bundling car insurance with other policies
  • Multiple Vehicles – insuring more than one vehicle with a company
  • Anti-Theft – systems or devices that prevent auto theft
  • Safe Driver – having a clean driving record
  • Defensive Driver – taking a defensive driving course
  • Military Members – limited to active members of the armed forces
  • Full Payment – paying your 6 or 12-month policy upfront
  • Good Student – student drivers with good grades
  • Customer Loyalty – staying with a company for a certain length of time
  • Low Mileage – driving less per year
  • Affinity – belonging to a certain association, group, occupation, company or university

As you can see, there are a number of discounts that can help keep your costs low.

Factors That Affect The Cost of Car Insurance

Drivers who really want the cheapest car insurance can be proactive and take steps to keep their premiums low. Some of the factors that affect the cost of car insurance include:

  • Gender and Age
  • Marital Status
  • Where You Live
  • Occupation
  • Driving History
  • Type of Vehicle, Make and Model
  • Auto Safety Ratings
  • Amount of Driving Activity

Driving History and Habits

It’s an obvious one, but since your driving history may be one of the biggest factors affecting your car insurance rates, it’s worth discussing. Drivers with clean records get the lowest premiums since auto insurance companies believe history tends to repeat itself. If you have a history of speeding violations or car accidents, it makes sense that an insurance company charges you more.

Other drivers, specifically teenage or young drivers, may simply be considered high risk because of their age and inexperience. However, don’t worry if you’ve been involved in a collision or gotten a speeding ticket recently – all incidents will eventually fall of your driving record.

On the positive side, your driving habits can also benefit you. Drivers with no accidents or traffic tickets in more than 3 years may be eligible for a “Good Driver” discount. Additionally, if you drive less than the average American, you may even qualify for a “Low Mileage” discount.

Choose The Right Car, Make and Model

The type of car you want to insure can have a huge impact on your cost of car insurance. Generally, the most expensive vehicles to insure are sports cars or luxury vehicles.

The lure of sports cars is speed and handling, leading car insurance companies to think that drivers of these vehicles are more likely to drive irresponsibly and be involved in accidents. On the other hand, luxury cars have higher insurance costs because repairs and damages require larger claim payouts.

Meanwhile, the cheapest cars to insure include SUVs, crossovers, minivans, and family sedans from car companies such as Toyota, Honda, Ford, or Chevy (GM). For example, the Ford Escape, Honda Odyssey, Honda CR-V, Jeep Wrangler, Toyota Sienna, and Honda Accord made our list of cheapest cars to buy insurance for.

If you’re in the market to buy a new car, you may want to consider the cost of car insurance in addition to your monthly car loan payment.

Safety Options

Although the specific safety options may vary between insurers, safer cars have always helped drivers save money on car insurance prices by preventing accidents and auto theft. If your vehicle comes with air bags, anti-lock brakes, a traction control system, passive restraints, a collision avoidance system, an alarm system or anti-theft device, you may be entitled to a discount.

Credit Scores

Everyone knows that banks and credit card companies offer the best interest rates to individuals with good credit scores; however, fewer consumers know that insurance companies have also started checking credit scores. The idea is that, since a high credit score indicates that a person is responsible with money and responsible behavior tends to carry over into other areas like driving, consumers with good credit histories are lower risk.

Location – Where You Live and Park Your Car

Where you live and park your car can make a big difference when it comes to your insurance premiums. Areas of high crime, especially vehicle theft, are higher risk and can increase your costs. Additionally, the weather in your city can affect the way insurance companies calculate rates.

Comprehensive car insurance covers damage due to theft, vandalism, fire, arson, floods, hurricanes, and other weather-related damages. To get the best car insurance rates, park your car in a secure garage instead of on the street.

How Gender Affects Car Insurance

Statistically, women drivers have fewer traffic violations and accidents than men of the same age. This is believed to be, in part, because females typically drive fewer miles per year than males. Families can use this information to their advantage by insuring the most expensive family car under the wife or woman’s name and making her the primary driver. You can test which combination will yield the most affordable rates when you are completing your car insurance quotes online.

Defensive Driving Classes

You may be able to save up to 10% on your premiums for 3 years just by taking a defensive driving course. The courses are available online and at driving schools, take about 8 hours to complete and cost between $30 and $50. Considering you may be able to save hundreds of dollars, driver’s education classes are a great investment to get you cheaper monthly premiums. However, before taking the course, drivers should check with their insurer and state’s DMV office to see if the school of their choice is accredited.

Find Cheap Car Insurance Quotes

Since car insurance is an ongoing, mandatory expense in the United States, drivers should take the time once a year to review auto insurance policies, compare rates, get discounts and make certain their premiums are the cheapest possible. MyCarInsurance123.com can help you complete a car insurance comparison. Just enter your zip code, pick a company, and get quotes from different carriers.

Best Car Insurance Quotes - How To Get Lower Rates

Best Car Insurance Quotes – How To Get The Lowest Rates in 2019

Want to get the best car insurance quotes in 2019? Drivers who really want the lowest car insurance rates can be proactive and take steps to keep their rates and premiums as low as possible. There are many factors that are considered when calculating auto insurance premiums, including age, gender, type of vehicle, make and model, driving records, credit scores and the area where the driver lives.

By getting free, instant quotes online to compare policies, coverage, companies, and premiums, drivers can find the cheapest prices for the best policies. Here are a few things to keep in mind as you complete a comparison of carriers.

Best Car Insurance Quotes - How To Get Lower Rates

Keep A Clean Driving Record

Obeying traffic laws and driving defensively helps drivers avoid tickets and accidents that can raise their rates. Drivers with clean driving records get the cheapest policies since companies believe these drivers are less likely to have accidents which result in claims and payouts. In addition to getting lower quotes, drivers with no accidents or traffic tickets in more than 3 years may be eligible for a good driver discount. Driving responsibly is an easy way to save money on your coverage.

On the other hand, some drivers may be considered high risk, due to recent tickets, citations, or car accidents. Other drivers, specifically teenage drivers or young drivers may simply be considered high risk drivers because of their age and inexperience. These consumers will eventually find affordable premiums, but will need to maintain a clean driving record, compare policies, and find companies that offer them cheaper rates than other carriers. Over time, all driving records are wiped clean if new accidents or tickets do not occur.

Choose The Right Car, Make and Model

The type of car a driver owns has an impact on his or her car insurance rates. The most expensive vehicles to insure are those that are considered sports cars or luxury vehicles. The primary lure of sports cars is speed and handling and companies think that drivers of these vehicles are more likely to drive irresponsibly and be involved in accidents.

Luxury cars also get higher quotes, but for a different reason. Luxury cars cost more to insure because repairs and damages require larger payouts by providers when claims are received, resulting in rates that will cover the carrier’s liability.

The least expensive vehicles to insure are family cars which include SUVs, crossovers, minivans, sedans, and compact cars, usually from Toyota, Honda, Ford, or Chevy (GM). Drivers who are buying a new car should compare insurance quotes online for specific information on cars with the best rates.

Safety Options Lower Rates

Although the specific safety options that lower the rates of auto insurance may vary between carriers, car safety options can garner discounts to help drivers get the best coverage. Air bags, anti-lock brakes, traction control systems, passive restraints, collision avoidance systems, alarm systems and anti-theft devices and rear view cameras may allow potential policyholders to get discounts on quotes, since these devices and safety features help in preventing car accidents and auto theft. The right car with the right safety options can help consumers find the lowest quotes available.

A Good Credit Score Can Lower Your Rates

Everyone knows that banks and credit card companies offer the best interest rates to individuals with the highest credit scores. Insurance companies also check credit scores when giving out quotes since a high credit score indicates that a person is responsible with money, and responsible behavior tends to carry over into other areas like driving. Drivers who have a clean driving record and a good credit score will get the lowest prices. Drivers can also save money by paying the policy in full for a year at the beginning of the term instead of paying in monthly or quarterly installments.

Location – Where You Park Your Car

The type of car insurance that is most affected by where a driver lives is comprehensive coverage. Comprehensive insurance covers damage due to theft, vandalism, fire, arson, floods, collisions with wildlife and other weather-related damages. Drivers who live in urban areas and areas prone to natural disasters (floods, tornadoes, wildfires, hurricanes) pay higher rates since they are more likely to present a claim. Urban drivers can save with lower premiums if their car is usually parked in a secure garage instead of on the street.

Women Get Lower Prices

Statistically, women drivers have fewer moving violations and accidents than men of the same age. This is believed to be, in part, because females typically drive fewer miles per year than males. Families may be able to get lower premiums by putting the most expensive family car in the wife’s or woman’s name and making her the primary driver. It is best to compare the rates for a man and a woman to see which primary driver gets the lower quote. Married drivers usually pay less than single drivers for their auto coverage, too.

Age vs Premiums

Young drivers, under the age of 25 and particularly teenage drivers, have the most expensive rates, especially if they are single. Drivers over 65 may be able to get discounts and the lowest auto insurance since drivers who no longer work every day drive fewer miles annually. Young drivers who drive less than 15,000 miles per year may be eligible for better prices due to a “Low-Mileage” discount. It is important to give accurate information about the average number of miles driven each day. Young drivers may also be eligible for discounts by passing driver education courses.

Defensive Driving Classes

Drivers may be able to save up to 10% for up to 3 years just by taking a defensive driving course. The courses are available at driving schools and online, take about 8 hours to complete and cost between $30 and $50, making driver’s education classes a great investment. Before taking the course, drivers should check with their state DMV or insurance provider to see if the school is accredited. Drivers should consider taking a defensive driving class every three years, making sure to mention these defensive driving classes to your car insurance company.

Material Misrepresentations

A material misrepresentation is a lie or an omission on a car insurance application. If the company finds a material misrepresentation after a claim has been filed, the carrier may be able to void the policy and deny the claim. The most common misrepresentation involves lying about where the car is garaged. Lying on the application or committing fraud is not a good, long-term strategy to save money and it may cost a driver a lot more in the long run.

Comparisons and Discounts

Drivers who want to be proactive about getting cheap car insurance should compare instant quotes online from several companies. Consumers and potential policyholders should complete a basic comparison of policies, coverage options, and rates annually to make sure they are getting the best deal.

Another benefit of asking for a free quote is that consumers can make sure they are receiving all the discounts for which they qualify. A few basic discounts to keep in mind include multi-policy, multi-car, good driver, good student, low-mileage and customer loyalty discounts.

Some car insurance companies may offer additional discounts like the new snapshot discount that is available from several carriers and can lower rates as much as 25%. The Snapshot discount, a type of usage-based coverage, uses a device to analyze your driving habits for 6 months, and will allow you to pay as you go.

Getting The Best Quotes

Getting the cheapest auto insurance only requires that a driver actually compare quotes to find the best rates and coverage. Since coverage is an ongoing, mandatory expense in the United States, drivers should take the time once a year to review their policy, payments and discounts.

If you’re curious about what other companies are charging drivers like yourself, MyCarInsurance123 can help you. Just enter your zip code, pick a carrier in your area, and compare rates.