What is the Average Cost of Auto Insurance in the United States?

What is the Average Cost of Auto Insurance in the United States?

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Drivers in the United States pay on average $ 1,655 per annum cost of auto insurance. That’s about $ 138 per month. Auto insurance costs vary depending on what the driver needs are and where he or she lives. QuoteWizard is a price comparison website that offers auto insurance quotes. Georgia has the lowest auto insurance premiums with an average rate of just $ 845 per year, according to the site. Vermont, however, has the highest auto insurance premiums in America with an average annual premium of $ 2,649 per.

What is Auto Insurance?

Many drivers are still unclear about what auto insurance is. If you are one of these drivers, be aware that your policy includes two components: liability coverage and physical damage coverage. Liability covers damage to other people’s property or bodily injury. Physical damage covers repairs following an accident. Both are required if you wish to drive legally. However, if you have only liability coverage it will not cover any damage your car sustains, such as a fender bender, or other collision-related expenses like medical bills and property damages. Each state has its own minimum liability insurance requirements.

Why do I need auto insurance?

Liability insurance is required to legally drive on public roads. The minimum liability coverage required by most states is $30,000 to $ 100,000 per driver. You will need coverage for more than $ 100,000 if you have multiple vehicles registered under your name. Experts recommend that drivers have at least one million dollars of liability insurance.

State averages

The rates for auto insurance vary from one state to the next. According to ValuePenguin data, drivers in Maine pay less than $700 annually for auto insurance, while DC residents spend more than $2,300. These differences are even starker when you consider liability coverage. This is what most states require. The average Michigan rate is just over $ 600, while Delaware residents pay nearly $ 900. Men with lower credit scores and men who are more likely to be involved in accidents will pay more for auto insurance. Without getting quotes from multiple companies, one cannot estimate how much their policy will cost.

Averages by gender and age

A 30-year-old woman’s average annual rate is $ 963, while a man of the same age pays $ 1,008

These are more averages based on age and gender

Ages 20-24: $ 1,443/year

Ages 25-29 years: $ 1,344/year

Ages 30-34: $ 1,206/year

Ages 35-39: $ 1,140/year

Ages 40-44: $ 1,225/year

Ages 45-49: $ 877/year

Learn more about how premiums are calculated here.

Averages by coverage type

Comprehensive and collision coverage is required in certain states. However, they may be optional in other states or not available (in high-risk pools). We compared quotes for a single, 30-year-old male with clean driving records in each state. We got quotes from eight major insurers for three different tiers of policies that provide increasingly more coverage: liability limits of $50,000/$100,000/$50,000; uninsured motorist bodily injury/property damage of $25,000/$50,000/$25,000; and comprehensive and collision coverage of $500 deductible per accident for each type.

The cheapest state

South Carolina’s auto insurance premiums are the lowest in all 50 states at $ 704 annually. This is approximately $ 50 less than the average annual cost of auto insurance in other states. Alabama, Louisiana, and Mississippi are also cheap. These are some of the places you could be saving money if you are from. NerdWallet allows you to compare auto insurance quotes and get a true picture of the cost in your area. Check out our analysis of each state below to find out how it compares with others.

The most expensive state

Auto insurance costs vary widely from one state to the next. Three of the most expensive states include Michigan (at $1,708), Louisiana (1,657) and Oklahoma (1.629). Mississippi drivers pay an average of $ 958 per calendar year or $ 83 per month. This makes it one of the most affordable states for car insurance. Texas drivers are unfortunately not far behind. They pay an average annual rate of $ 958, which is the third cheapest in the country. Arizona ranks fourth, with an average annual premium of $ 1,017.

Why do prices differ?

The four major factors that will determine the cost of auto insurance are your location, driving record, age, and type. However, your credit score will not impact the cost of auto insurance. This is only true if you choose to insure with non-standard products. Many states require drivers to have some form of liability coverage. This covers injuries that you cause to others. If your car or vehicle is damaged by another motorist or pedestrian, your liability coverage kicks in. Some states require drivers to have minimum liability insurance. Others do not.

What is the cost of an auto insurance loan?

It is important to shop around for car insurance quotes in order to get low rates. Bankrate estimates that nearly 2/3 of drivers spend more on car insurance than they should because they don’t shop around. There are many options available for auto insurance quotes. You can either get your auto insurance quote online at sites like Progressive or Geico or call individual agents or insurers like Allstate or Geico. Or you can visit a local agency. Check with your state’s Department of Motor Vehicles before you compare car insurance prices online or by phone. Not all insurers have access to your driving record.

What is the cost of car insurance?

Rates will vary depending on many factors such as your driving record, whereabouts, and the type of vehicle you drive. Most vehicles require collision and comprehensive coverage. In some states, liability may be optional. Your Liability policy covers bodily injury and property damage caused by your car. Your insurer provides collision and comprehensive coverage to cover damages to your vehicle that are caused by an accident, theft, or other natural events. Glass breakage is covered by comprehensive coverage. However, a deductible applies to both types. Comprehensive and collision coverage is generally not required by state law.
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How can you get the best car insurance rates?

Do not assume you cannot get auto insurance at a great price because of your driving record, age or whereabouts. All of these factors can impact the cost of car insurance. But how much and which factors are most important might surprise you. Compare rates from different providers before you buy a policy. This will ensure that you get the best price and coverage. Discounts can help keep your premiums down. Every state has its own rules regarding discounts offered by car insurance companies. Some common options for discounts include having multiple policies with the insurer, using safety devices like airbags and anti-lock brakes, being married (often couples get a discount), and maintaining good credit scores.

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