How Much is Car Insurance?
The average monthly cost of auto insurance in the United States is roughly $137, although the amount you pay will vary depending on where you live, the type of driver you are, and how long you’ve had your license.
Car insurance is required to safeguard you financially while driving. Whether you have basic liability insurance or comprehensive auto coverage, it’s critical to shop around to find the best cost. Are you looking for a way to save money on your vehicle insurance? Here are 15 ways to cut your vehicle insurance prices.
How Much Does Car Insurance Cost?
Every driver’s car insurance costs vary depending on the state they live in, the insurance company they choose, and the type of coverage they have. However, knowing what the average driver pays for auto insurance might help you save money.
According to the most recent data from the National Association of Insurance Commissioners (NAIC), the average person paid $1,190 on vehicle insurance in 2018. According to NAIC data, car insurance rates increased by 30% between 2014 and 2018, despite the fact that the number of covered vehicles only increased by 7%.
According to AAA, the average cost of car insurance for new cars in 2020 will be somewhat higher, at $1,202 per year.
The figures are close enough together to suggest that when budgeting for a new automobile, you should factor in about $100 per month for auto insurance. How to Save Money on Car Insurance
You may save money on auto insurance by employing a variety of tactics. You can use some or all of these strategies once you know how much auto insurance will cost you.
Take Advantage of Multi-Car Discounts
If you ask an auto insurance provider for a quote for a single vehicle, you may receive a higher quote per vehicle than if you asked about insuring many drivers or vehicles with that company. Because they desire your business, insurance firms often offer what amounts to a bulk rate. They may be ready to give you a discount if you promise to bring in more of it in certain circumstances.
Check with your insurance agent to determine whether you are eligible. Multiple drivers must, in general, live in the same house and be related by blood or marriage. Two unrelated people may also be eligible for a discount; however, they must normally own the vehicle together.
You might expect to spend more on insurance if one of your drivers is a teen. If your child has a B average or is in the top 20% of his or her class, you may be able to get a substantial student discount on the coverage, which usually lasts until your child reaches the age of 25. These reductions can range from 1% to 39%, so be careful to show your insurance agent proof that your adolescent is an excellent student.
In addition, some providers may give you a discount on auto insurance if you have other policies with them, such as house insurance. Check to determine if such savings are available and appropriate. For example, Allstate gives a 10% vehicle insurance discount and a 25% house insurance discount when you bundle them together.
Pay Attention on the Road
To put it another way, drive safely. This should go without saying, but in this day and age of increased in-car distractions, it’s worth repeating. The more alert you are, the fewer accidents or moving offenses you will encounter—events that will raise your insurance costs. Depending on your driving record, Travelers offers safe driver discounts ranging from 10% to 23%.4
For those who aren’t aware, a motorist is usually given points for moving offenses, and having more points can result in higher insurance prices (all else being equal).
Take a Defensive Driving Course
When you complete an approved defensive driving course, your insurance company may offer you a discount. By taking a defensive driving, accident prevention, or other course, drivers may be able to lower the number of points on their license.
Before you sign up for a class, make sure to ask your agent or insurance provider about this discount. After all, it’s critical that the time and money spent on the course result in significant insurance savings. It’s also critical that the driver enrolls in an approved course. Every state has its own rules for authorized defensive driving classes, which you can look up on GEICO’s website by state.
Shop Around for Better Car Insurance Rates
If your coverage is due to expire and the annual premium has increased significantly, shop about and get quotes from several firms. Also, every year or two, it’s probably a good idea to get quotations from different firms to see if there’s a better deal out there.
Remember that cheap doesn’t necessarily equal good, and choosing the cheapest firm isn’t always the best option. This is because the creditworthiness of the insurer should also be examined. After all, what good is insurance coverage if the corporation can’t afford to pay an insurance claim?
Consider using a site that analyses the financial strength of insurance firms to perform a background check on a certain insurer. Your insurance company’s financial strength is vital, but you need also make sure you understand what your policy covers. The insurance company ratings on Insure.com are based on data compiled by Standard & Poor.
The most expensive states for car insurance
The states with the most expensive average vehicle insurance premiums are Florida, Louisiana, Michigan, New Jersey, and New York.
Just because you reside in one of the most costly states for auto insurance doesn’t mean you’ll have to pay exorbitant rates – using Policygenius to compare quotes from numerous insurance companies will help you get the coverage that’s right for you.
The cheapest states for car insurance
According to our research, the states with the cheapest average vehicle insurance premiums are North Carolina, Ohio, Wisconsin, Idaho, and Vermont.
Because the cheapest states for vehicle insurance have lower minimum coverage requirements, you can save money by foregoing some types of coverage. Personal injury protection (PIP), which is required in no-fault states and covers your injuries after an accident, and uninsured/underinsured motorist coverage, which covers damage caused by a driver without insurance, are not mandated in Idaho.