The average cost of car insurance per month depends on a number of factors. The average rate of premiums for a man in Wisconsin might not be the same as the average rate for a woman in Texas. If you are looking for the national average car insurance rates then you are looking at about $1,796 a year. This amounts to $149.66 in premiums a month. If you compare the averages for 2007, 2008 and 2009, you will see that the price is gradually going up.
There are many reasons for this increase in auto insurance premiums. Inflation, a general increase in youth population, and of course, brand new cars all contribute to the cost of insurance. Illinois is considered the state with the lowest premium averages in the entire United States. On average, motorists are paying $92.08 a month. New York is the most expensive state to drive in. Motorists there are paying an average of $203.66 a month.
Why settle for just having average auto insurance rates? If you want to get better than average car insurance rates then be sure to do a little comparison shopping amongst multiple car insurance companies. Just enter your ZIP code above for a FREE online car insurance comparison now!
Where can I look for the average car insurance rates?
One of the best tools you have at your fingertips in regards to finding statistics for average insurance rates is the Internet. You can find out just about anything these days just by using your computer.
You can put in a general Web search for average car insurance rates by using the search engines such as Google and Bing. You will be rewarded by a number of articles and websites that you can visit that will give you average costs for past and current years.
You can also visit the Insurance Information Institute, which is a website dedicated to informing the public about the insurance industry. If you visit the webpage for the III’s Insurance Fact Book, you will have the option to purchase the guide, which includes a number of figures and facts, including the average premiums for car insurance.
If you are debating between two or three car insurance companies, you may want to just call each of them and ask what their average premium is on a yearly basis. You can also talk with your family members and friends and ask what they pay for their insurance premiums in order to get an average that way.
Factors That Play a Part in Auto Insurance Premiums
There are actually several factors that insurance companies consider when evaluating your insurability. The average is actually what insurance companies base their suggested price on. They consider the average person in your situation and the risks associated with his/her driving. You will have to pay a premium partially calculated on the state average and regional average (such as the city or county).
You will pay a premium partially calculated on your age group average. Other factors that will be compared to the state average include gender and marital status. Based on the statewide performance of your neighbors, you may have to pay a slightly higher cost on your car insurance. No wonder some people are leaving the Big Apple for the Midwest!
Although you are fighting the law of averages to some extent, there are some factors that are controllable. Fewer traffic violations or traffic accidents (ideally zero) will mean a better premium rate. If you were once in an accident, but drive safely for a couple of years, the rates will gradually decrease. You will also save money my choosing older, larger and safer cars instead of new sports cars.
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Circumstances You Can Control
Pursuing a higher education can save on your premiums as, statistically, educated drivers take fewer risks on the road. Similarly, people with good credit score statistically drive safer than people who have poor credit scores. This is an instance in which the “average” factor helps you. The insurance companies figure that you, as an educated or financially cautious individual, will drive safely like all the others.
Your occupation and the driving distance to your job are two important and controllable factors. The insurance company does consider the total number of miles driven each year. This is certainly a circumstance you can change if you are hoping to decrease your insurance premiums. You could start taking the bus or carpooling to work, or stop frequently driving your work vehicle. The insurance provider will also consider your years of driving experience. Lastly, you can install theft protection devices for a slight discount.
Though you certainly contend with the average premium rate for your state and city, there are measures you can take to pay a below average rate. You can look into multiple car or multiple-policy discounts. You can drop comprehensive or collision damage and simply pay for liability insurance.
Remember, the averages compiled for each state were based on full coverage contracts—liability, comprehensive and collision. This is the policy most car dealerships (or banks) require for their own protection.
Battling the “Average”
The majority of insured drivers overestimate the averages and underestimate the importance of their own lifestyle. They believe that because everyone seems to pay high premiums for their car insurance, that it must mean that everyone is required to pay expensive premiums. Not necessarily! If you take definite steps to decrease your personal risk, and the insurance company’s risk, you can enjoy a much greater discount than the “average” person.
In the meantime, you can search for comparable insurance quotes online and get a rough estimate of what you might be paying for car insurance based on your basic demographics. Remember that the quotes you receive online (usually within a half hour) are not final prices. These are estimates based on your regional and demographical averages. The only way you can get an accurate price is if you fill out an application detailing your history and talk to an agent.
Why not get started comparing car insurance rates today using our FREE car insurance comparison tool now?
