If you own a car, you know that auto insurance is a must-have. Not only is it required by law in most states, but it also protects you financially in case of an accident. But how much does auto insurance cost? The answer is not straightforward, as it varies according to country, state, provider, and many factors that affect your premium. In this blog post, we will look at every aspect of auto insurance costs. We will break down the different factors that impact your auto insurance costs and give you a better understanding of how to find the right coverage for your needs.
What is the Average Cost of Car Insurance?
The average cost of car insurance in the US is $2,014 yearly. The minimum coverage cost is lower, averaging $622 yearly. It is important to note that car insurance is unique to each individual and rates may differ from the national average due to age and driving record. However, knowing the average cost helps ensure you receive a competitive rate. Comparing auto insurance quotes is important to help you get the best deal for your budget. Using Beem to find the best insurance quotes can help you make the right choice.
Critical Insights on Car Insurance Rates Analysis
- Car insurance rates vary widely depending on age, gender, driving record, and location.
- Younger drivers typically pay higher insurance rates because of their lack of driving experience and higher risk of accidents.
- Men typically pay more for car insurance than women, as statistics show that men are more likely to be involved in accidents.
- Drivers with a history of accidents or traffic violations will likely pay higher insurance rates due to their higher risk of future accidents.
- The driver’s location also significantly affects car insurance rates, as drivers in urban areas with higher traffic congestion and crime rates may pay more for insurance.
- The type of car being insured also affects the insurance rate, with more expensive or high-performance vehicles costing more to insure.
- Bundling insurance policies such as home and auto insurance can often result in discounts on insurance rates.
What is the Cost of Car Insurance By State?
Drivers witnessed the lowest average annual full-coverage car insurance rates in Vermont, New Hampshire, and Massachusetts. This is likely due to the lower cost of living in these states, lower chances of accidents and claims, and reduced traffic congestion. On the other hand, in states like Florida, New York, and Louisiana, drivers have the highest average annual coverage of car insurance costs. Here are some of the average annual car insurance rates by state:
- Michigan: $2,691
- Louisiana: $2,909
- Florida: $3,183
- Texas: $2,019
- California: $2,291
- New York: $3,139
- Pennsylvania: $2,040
- Ohio: $1,266
- North Carolina: $1,446
- Maine: $941
It’s important to note that these rates are just averages and your rate may vary depending on factors like your driving history, age, and type of car.
Average Car Insurance Cost Per Company
Car insurance companies use different criteria to determine the cost of coverage, including the driver’s age, driving record, and location. Insurance companies also offer discounts based on safe driving, good credit, and certain types of vehicles. It’s essential to compare rates from multiple companies to get the best deal.
When shopping for car insurance, it’s essential to consider the type of coverage needed and the cost. Some companies offer low prices but also provide limited coverage. Other companies may offer more comprehensive coverage at a higher cost. It’s important to compare coverage and prices to get the best value.
Exploring Key Factors Affecting Auto Insurance Cost
Here are some prominent factors that impact the cost of auto insurance in different states:
Car Insurance Costs When an At-fault Accident
Being at fault in a car accident can significantly impact your car insurance rates. After an accident, insurance companies may consider you a high-risk driver, which means they will charge you more for coverage. The increase will depend on various factors, including the accident’s severity, your driving record, and the type of car you drive. The average increase in car insurance rates after an at-fault accident is around 30%-60%. In Massachusetts and Texas, rates increase by 88% and 70%, respectively, following an accident; these two states are exceptional. This can amount to an additional $1,668 and $1,224 each year on car insurance premiums in Texas and Massachusetts. Auto insurance with Beem covers damage to your vehicle, damage to other vehicles or property, and injuries to yourself or others.
Credit Score
Your credit score can also impact your car insurance rates. Insurance companies use credit scores when determining how much to charge for coverage. Generally, people with good credit scores are considered less of a risk to insure, while individuals with low credit scores are regarded as a higher risk. People with poor credit scores pay, on average, 61% more for car insurance than those with good credit scores. The annual cost of full coverage car insurance for a driver with poor credit is $3,455, while minimum coverage is estimated at $1,118. Improve your chances to lease a car, get a loan and much more with Beem’s credit monitoring tool.
DUI (Driving Under the Influence)
Getting a DUI can severely impact your car insurance rates. In most cases, drivers with a DUI on their record are considered high-risk, which means they will pay more for car insurance coverage. On average, the cost of car insurance after a DUI is around 83% higher than coverage for a driver with a clean record. Additionally, some states may require drivers with a DUI conviction to carry an SR-22, which is a form that verifies you have the minimum liability insurance required by law. For a driver aged 35, the expense of car insurance after a DUI is $3,933 annually for complete coverage and $1,403 annually for the least amount of coverage.
Age of Drivers
Insurance companies consider young drivers high-risk, meaning they will pay more for coverage than older, more experienced drivers. Insurers consider younger drivers a higher risk and charge them more. Our analysis found that those aged 16-25, and sometimes even those under 30, are the most expensive. On average, car insurance costs for a 20-year-old are $2,050 higher than for a 35-year-old. A 20-year-old with a good credit rating and no driving violations may have to pay up to $4,372 average yearly cost for full coverage and $1,491 for minimum required coverage.
Gender
Insurance companies use gender as a factor when determining car insurance rates. On average, women pay slightly less for car insurance than men. This is because women are considered less risky to insure than men. An average comparison of total coverage insurance rates indicate that men at age 20 pay $531 more than women each year. Men at age 30 pay nearly $48 more than women annually, while at age 35, men pay around $25 more than women per year.
Type of Vehicle
The type of car you drive can also impact your car insurance rates. Generally, cars that are more expensive or have higher horsepower are considered a higher risk to insure, meaning they will cost more. Additionally, cars more likely to be stolen or involved in accidents are expensive to insure. The average cost of car insurance for a Honda Civic is around $1,603 per year, while the average cost for a Dodge Ram 1500 is around $ 1,641 per year. However, the cost of car insurance by vehicle can vary mainly depending on your state and the insurance company you are with.
Conclusion
So, how much does car insurance cost? Understanding the factors that influence the cost of auto insurance is vital for all drivers. While it may be tempting to go for the cheapest option available, it’s essential to consider the coverage you need and the risks you face on the road. By comparing quotes from multiple insurance providers and understanding the coverage options available, you can make an informed decision and ensure adequate protection on the road. Remember, the cost of auto insurance can vary widely based on multiple factors, so it’s always a good idea to shop around and compare options to find the best coverage at a price that fits your budget.
