Car Insurance costs vary. The average car insurance cost lies in a number of factors. This article lists several issues that influences the average cost of car insurance. Read on to find out more.
What Determines Car Insurance Costs?
Are you planning on taking out a car insurance? For discussion below, here are things that influence the price of insurance premiums:
- Your place of residence
- Your driving record
- Your gender, age, and marital status
- Your choice of vehicle
- Your coverage plan
Where do you live?
In most states around the U.S., car insurance is a legal requirement. The average cost of car insurance from 2017 roughly falls between $1,000 to $1,100. That divides to less than $100 each month. The figures come from National Association of Insurance Commissioners. The breakdown is as follows:
- $540 for liability insurance (bodily injury and property damage)
- $320 for collision cover
- $150 for comprehensive cover
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The average car insurance cost varies by state too. Laws on safety and rate limits are basic factors. The current population, crime rate, weather, and the state of the roads also influence premium prices. In past reports, Louisiana, Michigan, New York, and Washington reflected expensive average car insurance rates, according to National Association of Insurance Commissioners. On the cheaper side, there’s Iowa, Wisconsin, Maine, and Idaho.
What is your driving record?
Car insurance companies normally check driving history when formulating premium rates. So, how’s your reputation for the last 5 years? When they order a Motor Vehicle Report, will results show past accidents and offenses? Has your driver’s license ever been revoked? Clean records mean lower risks. That means lower car insurance rates. Delinquent records mean otherwise in all aspects.
What is your age, gender, and status?
Younger-aged, teenage, or college drivers may have to pay more premiums as opposed to more mature single drivers because of risk factors. On the other hand, policy owners who are married and with families may dictate higher premiums compared with single policy owners. If the company is going with statistics, unmarried males may be asked for higher premiums since statistics show that they are likely to get into accidents. These are variables that come into play.
What is your vehicle type? Average Car Insurance
The kind of vehicle you own and drive in influences the cost of car insurance. Is it new or old? What is the brand and model? On average, small SUVs are cheaper to insure while small sedans are more expensive to insure. This is according to Your Driving Costs’ 2018 study. Read more article 4 Insurance Benefits And Types to Protect the Future
What is your car insurance coverage?
Does it include liability insurance? Most states require this since it protects you from obligations arising from injuring someone or damaging somebody else’s property with your car. Is it a full coverage, meaning comprehensive and collision covered? This type of cover includes car accidents and any type of damage. Some choose this higher premium insurance in order to save up on car repair costs. Those with lower budgets skip some of these features.
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