Compare Monthly Car Insurance: Rates, Discounts, & Requirements [2023]

There are so many factors that affect car insurance rates that it might seem impossible to work out which company will offer you the best price when you compare monthly car insurance rates.

However, the process of finding the best cheap car insurance is relatively simple. The most important part of your search for cheap coverage is to compare rates. Before you enter your information for a personalized quote, you can explore the average cost of car insurance from various companies to get an idea of where to start.

Read on to look at the average rates companies offer for factors like your age, driving history, and credit score. Then, compare monthly car insurance quotes with as many companies as possible to find the lowest price for your policy.

Cost of Car Insurance Per Month

The exact amount you’ll pay for car insurance depends on a variety of factors, but the average American spends about $150 a month for full coverage car insurance or $50 for minimum liability car insurance.

Although it’s helpful to look at insurance averages, keep in mind that the actual prices you’ll see might be very different. When you’re ready to buy insurance, you’ll need to compare rates at as many companies as possible to find the best price.

Minimum Car Insurance Rates

With the exceptions of Virginia and New Hampshire, every state has laws regarding how much insurance you need to carry before you can drive or register your car. You’ll need to meet the minimum car insurance required by your state before you get behind the wheel of your vehicle, and this is your cheapest option for coverage.

Minimum insurance rates depend on your age, driving history, and credit score. One of the most important variables is the state you live in — some states require more insurance than others. You can check how much you might pay for minimum insurance with the top companies below.

Some states have incredibly affordable minimum insurance rates, while others are usually much higher. Typically, states with costlier minimum insurance rates require more coverage. For example, Michigan and Florida have high rates because they require personal injury protection coverage along with liability insurance.

Full Coverage Insurance Rates

Although you’ll never have to buy it as a state requirement, full coverage car insurance offers much better protection than minimum insurance. Full coverage includes liability insurance, collision auto insurance, comprehensive insurance, uninsured/underinsured motorist coverage, and either personal injury protection or medical payments.

Most drivers benefit from full coverage even if they don’t need it, but it does cost more than minimum insurance. You’ll probably need full coverage if you have a car loan or lease.

As you can see, the average monthly car insurance bill for full coverage is often double or even triple what your state’s minimum insurance rates might be. The increased cost is worth it, though, as it can save you thousands of dollars if you ever need to file a claim.

Insurance Rates by Age and Gender

Car insurance companies keep careful track of claims data and have detailed numbers for multiple demographics. Two demographics that play a heavy role in your insurance rates are gender and age.

Age is one of the most important things companies look at, with young drivers paying some of the highest rates. Inexperienced drivers pay more for insurance because they are statistically more likely to engage in reckless behaviors and cause accidents. Check how young drivers car insurance here.

Men pay more than women for the same reason, although the gap between the average car insurance payment per month lessens with age.

Teen car insurance rates are so high that they often struggle to buy their own coverage. Not only are rates expensive, but insurance companies won’t sell a policy to a minor without a parent or guardian’s help. A parent or guardian can help teens get more affordable rates by adding them to an existing policy.

Insurance Rates for Single vs. Married Drivers

Insurance rates are higher for single people compared to married couples, and most major insurance companies give married couples a discount when they’re insured on the same policy.

Why do single people pay more for car insurance than married people? The primary reason behind the discount is that married couples tend to file fewer claims than single people.

State Farm, Geico, and Progressive have some of the lowest average costs of car insurance for married couples.

While most married couples will receive a discount on their insurance, not all states allow companies to offer special prices. Your monthly cost of car insurance will be the same no matter your relationship status in Massachusetts, Montana, Hawaii, and Maine.

Car Insurance for Bad Credit Scores

Your credit score affects several things in your life, including your ability to take out a loan, rent an apartment, and purchase a car. It also impacts your car insurance rates.

Companies look at your credit score for two reasons. First, your credit score gives companies an overall idea of how often you’ll pay your bills on time. Secondly, people with lower scores are more likely to file future claims.

A lower credit score means you might pay up to 60% more for insurance than people with higher scores, as drivers with good credit can earn good credit car insurance discounts. Comparing quotes with as many companies as possible is vital when your credit score is low, as some companies are more forgiving than others.

Although you’ll pay higher rates with a low credit score, you aren’t stuck with those prices forever. If you can raise your score, your rates will drop accordingly.

However, there’s no need to worry about higher rates if you live in Massachusetts, California, or Hawaii. The use of credit scores to determine rates is banned in these three states. While they’re currently the only states prohibiting credit score use, many states are considering it.

Car Insurance Rates by Driving History

Of all the factors car insurance companies look at, one of the most important is your driving history. Your driving record gives a company a meticulous look at how risky you might be to insure.

Due to increased risk, companies charge much more when you have marks on your driving record. Check below to see how much more you might pay based on various infractions.

While your rates will always increase after a traffic incident, some infractions are more damaging than others. However, even minor incidents like speeding tickets will dramatically affect your rates if you have multiple violations.

If you have too many incidents in your driving record, your current company might drop you as a policyholder. If that happens, you’ll need to take the time to compare the best high-risk car insurance companies.

Car Insurance Rates After a DUI

At-fault accidents and speeding tickets increase your rates, but very few incidents affect your car insurance costs the way a DUI does. DUIs also lead to license suspension, heavy fines, and sometimes jail.

Comparing insurance quotes is essential after getting a DUI, even if you already have a policy. Rates for auto insurance after a DUI are always higher, but some companies offer lower rates than others.

Although these are average car insurance payments per month, the actual rates you’ll see depend on your unique circumstances. You’ll also pay more in certain states — Michigan, Rhode Island, and North Carolina often have some of the most expensive DUI rates in the country.

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Cheapest Car Insurance Companies

Although looking at rates for different demographics is helpful, an easier way to decide where to search for car insurance is at the companies themselves. Your monthly insurance rates will differ based on your situation.

Some of the cheapest companies are Geico and Nationwide, which offer low rates for nearly every demographic. You can learn more about Geico at our Geico car insurance review. However, smaller local companies can have very competitive rates.

For example, regional insurers, like Erie Insurance, are only available in certain states but can offer policy prices that rival nationwide companies like Geico or State Farm. This is why it’s vital to compare quotes based on your ZIP code and find how which companies offer the lowest rates near you.

Car Insurance Rates by Vehicle

Some factors that affect your car insurance rates are beyond your control, but one you do have control over is the type of car you drive.

Vehicles with solid ratings for safety and reliability, lower price tags, and low maintenance costs usually have cheaper auto insurance rates. To keep your insurance rates affordable, you should consider how much coverage costs by type of vehicle.

When it comes to locking in low rates, regular-sized pickup trucks, sedans with good safety ratings, and affordable SUVs tend to have the most affordable auto insurance. Learn about how much are pickup truck car insurance rates.

On the other hand, luxury and sports cars come with higher insurance rates. More expensive rates are due to steep repair costs, and drivers tend to engage in riskier behaviors. Here’s more information about sports car insurance.

Average Insurance Rates for Popular Cars

While looking at the average price of car insurance for specific vehicle types is an excellent place to start, you can also compare rates by specific makes and models.

Some of the most expensive cars to insure in the U.S. are luxury cars like the Tesla Model S and BMW 330i. Other popular cars that cost less and have solid safety ratings have more affordable insurance, such as car insurance costs for a Honda Civic.

How Car Insurance Rates are Determined

Car insurance companies use complex formulas to craft your rates, and they use a variety of factors in those formulas. Many factors help determine the cost of your auto insurance policy.

Even though each company has a unique formula, they look at the same elements:

• State requirements
• Driving record
• Car make and model
• Age and gender
• Amount of coverage you want
• ZIP code
• Credit history
• Marital history
• Yearly mileage

These complex formulas are why it’s important to compare quotes. For example, Progressive car insurance is often an affordable option for many demographics, but it has some of the highest rates for people with low credit scores.

Read our Progressive car insurance review for more information about the company.

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How to Find Affordable Car Insurance Rates

With the price of everything rising, finding affordable coverage is more important than ever.

When you need to save money on car insurance, try the following methods:

• Compare rates. One of the best and easiest ways to find the most affordable rates is to compare quotes with as many companies as possible.
• Keep your driving record clean. You’ll pay more for insurance when you have infractions on your record, so avoiding incidents is an easy way to keep your rates low.
• Lower your coverage. If you need to keep your insurance rates as low as possible, you should select the least amount of coverage you need. If you’re considering switching to liability-only car insurance, keep in mind that lowering your coverage will put you at financial risk of paying for your own repairs.
• Raise your deductible. You can lower your monthly rates by raising your car insurance deductible. This also comes with a financial risk, as you’ll need to pay more out-of-pocket before your insurance kicks in after a claim.
• Look for discounts. Insurance companies offer car insurance discounts to their customers to help keep rates low. An insurance representative will help you get every discount you’re eligible for.

Although finding affordable insurance might seem complicated, it doesn’t need to be a challenge. You’ll find the lowest possible rates by taking easy steps like comparing quotes, choosing the right amount of coverage, and finding discounts.

Find the Best Auto Insurance Rates Today

Now that you have an idea of how to compare monthly car insurance, you’ll have an easier time finding the best quotes for your needs. From your age to the make and model of your car, finding the right company to shop with is the most crucial step in getting affordable coverage.

Use our insurance tool below to compare car insurance quotes today, and make sure to look at as many companies as possible to find the best policy.

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