- The average cost of car insurance in the US is $ 1,348 a year or $ 112 a month, according to Business Insider data obtained from S&P Global Market Intelligence.
- The state you live in, the level of coverage you would like to receive, gender, age, credit history, and driving history all affect your premium.
- While a California driver can pay between $ 987 and $ 1,815 a year, a New York driver can pay between $ 1,352 and $ 2,752 a year for coverage.
- With that being said, you'll want to shop around and see which insurance company offers the best rate for you. Before you start shopping, use this guide to get an idea of auto insurance rates.
If you are looking for the following insurance policy for your car, it is important that you understand all the factors that can influence the price you will pay for coverage.
Auto insurance policies have many moving parts and your premium, or the cost you will pay for coverage, is just one of them. Insurance is regulated statewide, and laws on required coverage and auto insurance rates vary from state to state. Insurance companies take into account many different factors, including the state and region you live in, as well as your gender, age, driving history, and the level of coverage you want to have.
Business Insider collected data from industry regulators, personal finance publications, and comparison sites to find out which factors most influenced the cost of car insurance and what the typical driver could expect to pay. These are the biggest factors that will affect the price you pay for coverage and what to consider when considering your auto insurance options.
Keep in mind that there have been big changes in auto insurance during the coronavirus pandemic. Now some auto insurance companies are offering discounts because Americans drive fewer cars and they are also helping people affected by the virus delay payments.
Auto insurance cost by state
Each state treats auto insurance differently. Countries regulate their laws and policies regarding auto insurance coverage, including the amount of coverage required, the amount of insurance responsible for the coverage, and the factors that insurance companies can use to set prices.
In some states, like New Hampshire, auto insurance is not even required. In Michigan, auto insurance is expensive due to a no-fault law that requires unlimited personal injury coverage. Regulations like this will be a big factor in how much you pay for coverage.
Business Insider lists the average auto insurance rates for each state. These rates were determined as an average of the rates reported by Nerdwallet, The Zebra, ValuePenguin, Bankrate, and the National Association of Insurance Commissioners.
The cost of auto insurance based on the type of coverage
As a general rule of thumb, the more coverage an auto insurance policy has, the more expensive it will be.
You'll often see quotes listed with numbers and bars - a 50/100/50 insurance policy will cover up to $ 50,000 in injury protection for each person involved in an accident, up to $ 100,000 in accident injuries, and up to $ 50,000 in property. Damage by accident.
The higher these coverage limits, the higher your premium. Each state has different minimum requirements, making auto insurance coverage more expensive in some states than others.
Some policies exceed the country's minimum coverage and offer additional protection. Collision coverage can help repair your car if it is damaged in an accident, and comprehensive policies can protect you in situations like storms and disasters. However, these additional types of coverage will increase your costs. According to Nerdwallet, additional coverage can increase your premium by approximately $ 1,000 per year.
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