Get privileged access to our best financial tools and content. June Sham is an insurance writer for Bankrate. Before joining the team, she worked for almost three years as a licensed producer writing auto, property, umbrella and earthquake policies. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on giving consumers a better understanding of insurance.
Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We have maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the following actions. Our insurance team is made up of agents, data analysts and customers just like you. They focus on the points that matter most to consumers: price, customer service, policy features, and savings opportunities, so you can be sure which provider is right for you.
Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly check editorial content to ensure that the information you are reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate editorial team writes on behalf of YOU, the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team does not receive any direct compensation from advertisers, and our content is thoroughly verified to ensure accuracy.
So, whether you are reading an article or a review, you can trust that you will receive credible and reliable information. Our experts have helped you control your money for more than four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed along life's financial journey. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate.
Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial team is objective, objective and not influenced by our advertisers. To find the average cost of car insurance, Bankrate's editorial team evaluated a variety of factors. These include car insurance rates by state, insurance company, and vehicle manufacturer, as well as the driver's age, driving history, gender (where permitted), among other factors.
This data could help you estimate how much your car insurance policy might cost based on your area and personal profile, and identify which auto insurance companies best fit your budget and coverage needs. Save on car insurance with quotes from trusted providers like Are you overpaying for car insurance? When determining, “How much does car insurance cost? , the answer can be complicated, as premiums vary based on multiple factors. In addition to individual qualifying factors, location and the state in which you live are important. Traffic volumes, accident and claim reporting rates, as well as theft and vandalism rates vary by city.
The cost of living can also affect car insurance premiums. When it comes to repairing a vehicle, the expense of labor and parts can cause repair costs to skyrocket, further increasing premiums in some places compared to others. Each car insurance company has its own underwriting rating system, so the cost of car insurance varies from company to company. To find the best car insurance company for your needs, get quotes from several auto insurers to compare rates and features.
The table below shows the average annual and monthly premiums of some of the country's largest auto insurance companies by market share. We also calculated a Bankrate Score on a five-point scale for each insurance company. Scores reflect performance data with respect to average prices, coverage offers, discounts and third-party ratings, including customer satisfaction and financial strength. A higher Bankrate score reflects a better ranking in the grading categories evaluated.
In addition, gender affects your premium in most states. Usually, men cost more than women. This is because men generally engage in riskier driving behaviors than women and have a higher accident severity rate, according to the Insurance Information Institute (Triple-I). However, not all states allow gender to be a factor in rates.
If you live in California, Hawaii, Massachusetts, Michigan, North Carolina, or Pennsylvania, your gender doesn't affect the amount you pay for car insurance because of state regulations prohibiting this rating factor. Statistically, drivers with bad credit file more claims and have a higher severity of claims than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit score, the lower your premium. Your insurance credit level is determined by each car insurance provider and is based on several factors; it probably doesn't exactly match your Experian, TransUnion, or Equifax scores, since it's a credit-based insurance score, not a credit score.
The following table shows how the credit may affect your annual premium for fully covered auto insurance. California, Hawaii, Massachusetts and Michigan regulations prohibit auto insurers from using credit as a factor in setting rates. Washington State continues to assess whether or not credit will be banned as a rating factor, but currently allows its use. The type of vehicle you drive has a significant impact on your car insurance premium.
The price and availability of parts, the cost of labor, the statistical likelihood of accidents, and the vehicle's safety and crash prevention features could influence how much you pay for coverage. The vehicle makes and models in the table below are suitable for a variety of lifestyles and budgets. In addition to state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving history, and gender (in most states), other common qualifying factors will affect your auto insurance premium. By looking at these rating factors, auto insurance companies can get an idea of your risk profile and what it could cost to insure you.
Your auto insurance coverage options have a significant effect on your rate. If you select higher liability limits, choose lower deductible levels, or add optional types of coverage, such as comprehensive and collision coverage, your rates are likely to be higher. If you have had continuous car insurance during the time you were a licensed driver, you may pay lower rates. Lapses in your insurance coverage (unless you didn't own a car during that time) can be an indication of high-risk behavior and may increase your premium.
The more you drive, the more likely you are to have an accident. Policyholders who drive fewer miles per year often qualify for lower fares (typically less than 7,500 miles per year, but may vary by airline). Buying car insurance doesn't have to mean bankrupt—there are ways to save. Discounts are one of the best ways to lower your premium.
Most major auto insurers offer discounts. Here are some of the most common insurance discounts in the U.S. UU. Because each auto insurer offers a different set of discounts, talking to your insurance agent or company representative may be the best way to learn about savings opportunities.
In addition, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost very different amounts with different providers. Comparing quotes can help you find the lowest price for the coverage you need. Every State Has Minimum Coverage Requirements for Auto Insurance.
This usually refers to liability for bodily injury and property damage, but some may also require personal injury protection (PIP) or uninsured motorist coverage. While buying minimum coverage may result in a cheaper premium, it also means that drivers can have minimal financial protection in an accident. For this reason, insurance professionals generally recommend considering car insurance with full coverage. While there is no industry standard for full coverage, it usually involves higher liability limits with collision coverage and comprehensive coverage to insure your vehicle, which may be required by your lender if your vehicle is leased or financed.
You can also add medical payment coverage for you and the passengers in your vehicle, as well as reimbursements for towing and renting each vehicle. These additional types of coverage may have an additional cost, but they offer more financial protection in various claim scenarios. Whether or not your car is financed does not factor into your auto insurance premium. Instead, because your lender may require comprehensive and collision coverage, including these coverage options in your policy will affect your cost.
Once you pay off your loan, you can choose to eliminate full coverage and have a liability only policy, which would likely lower your premium. However, consider consulting your insurance agent first. Full coverage may be a good idea, even if you are the absolute owner of your car, to offer stronger financial protection. Teen drivers have accident rates almost four times higher than more experienced drivers.
To offset this risk, auto insurance companies often charge teen drivers more. In fact, teenagers are one of the most expensive age groups to insure. Car insurance rates, on average, decline steadily as you get older, until around age 70, when they start to slowly rise again. However, your car insurance may not decrease every year, as car insurance rates are based on several factors, including your geographic location, vehicle make and model, and driving history.
If you have been involved in an accident or have been charged with DUI, you may see significant increases in premium when you renew your policy. Even if your personal characteristics and policy details don't change, your premium may fluctuate depending on the frequency of accidents and severity rates in your area, as well as theft and vandalism data. Insurers submit new rates to insurance departments in the states in which they serve from time to time, so your premium may be subject to increases or decreases that reflect these new rates. When buying car insurance, knowing the average cost of car insurance, both nationally and within your state, can be useful for comparing quotes.
Ultimately, your various individual rating factors, such as your driving history, where you live, and the type of vehicle you drive, directly influence what you'll actually pay. Each company has a different method of weighing factors and calculating rates, so by requesting quotes from more than one company, you will be able to assess what a reasonable premium range looks like for you and which company offers you the best price and coverage for your needs. These are sampling rates and should only be used for comparison purposes. Young, inexperienced drivers tend to have more accidents at the wheel, so young drivers have higher car insurance rates.
On the other hand, if you live in upstate New York, your auto insurance policy is likely to cost less than the state average. In general, the faster a car can go or the more expensive it is to repair or replace it, the more your insurance will cost. Average costs increase by more than 159% if you're looking for an auto insurance policy with full coverage. Because car insurance costs are based on the driver's expected level of risk and the likelihood of filing claims, certain drivers pay more than others.
Drivers can also minimize the cost of full-coverage car insurance by comparing rates and checking discounts. This means that male and female drivers in the state will pay the same amount for car insurance in those locations if all other factors affecting rates are the same. It's smart to get greater protection, such as comprehensive collision insurance with higher long-term limits. The exact amount you'll pay for Geico car insurance depends on factors such as your road history, age, condition, and coverage limits.
Insurance companies often charge 30% higher rates, or even higher, to cover high-performance vehicles such as a Corvette or Porsche. You can buy car insurance yourself online, but be sure to keep track of the coverages selected by you and offered by insurers to make a fair comparison. The exact amount your insurance will increase depends on many factors, including where you live, your driving history, and your credit score. WalletHub analysis found that only 22% of the difference in insurance premiums for cars of the same category can be attributed to the cost of the car.
If your car is leased or financed, you'll almost certainly need to get an auto insurance policy that includes comprehensive coverage. It really depends on the driver's history, the vehicle driven, the limits of coverage and the car insured. . .