If you own a car, you most likely know that car insurance is a necessity. Your vehicle must be insured in order to drive legally, and the cost of car insurance can vary greatly depending on the type of coverage you choose. One of the most important factors when determining the cost of your car insurance is how much you will pay each month for your premiums. In this article, we will explore the average cost of monthly car insurance in the United States and the factors that impact these prices.
Factors That Impact Average Monthly Car Insurance
The average monthly cost of car insurance depends on several factors, including your age, driving history, vehicle type, and coverage type. Insurance companies will calculate the premiums based on the likelihood of you being in an accident, so the more risky you are perceived to be, the higher your premiums will be. Your age also plays a role in car insurance costs, as younger drivers are seen as more likely to be in an accident than older drivers.
The type of vehicle you drive will also be a factor in the cost of your car insurance. Generally, the more expensive the vehicle, the higher the cost of the insurance. This is because more expensive cars tend to be more expensive to repair or replace if they are involved in an accident. Additionally, the coverage type you choose will affect your monthly insurance cost. Comprehensive coverage typically costs more than basic liability coverage, so if you are looking to save money, you may want to consider a lower coverage type.
Finally, your driving history can also have an impact on the cost of your car insurance. If you have been in any accidents or have received any tickets for traffic violations, your monthly car insurance premiums will likely be higher than someone with a clean driving record. Additionally, insurance companies may take into account your credit score when calculating your monthly premiums, as those with lower credit scores may be deemed to be higher risk drivers.
Average Cost of Monthly Car Insurance
According to the Insurance Information Institute, the average cost of monthly car insurance in the United States is approximately $135. This cost can vary significantly depending on the factors mentioned above. For example, drivers who are under the age of 25 may pay up to $150 per month, while drivers over the age of 65 may pay as low as $80 per month. Additionally, drivers with spotless driving records may pay as low as $100 per month, while those with poor driving records may pay up to $200 per month.
How to Save Money on Car Insurance
The good news is that there are several ways to save money on car insurance. One of the easiest ways to save is to shop around and compare rates from different insurance companies. Many insurance companies offer discounts for good drivers, students, and other groups, so be sure to ask if you qualify for any discounts.
Additionally, you may be able to save money by raising your deductible. This means that you will have to pay more out of pocket if you are in an accident, but it can significantly reduce your monthly premiums. Finally, if you are looking for a more comprehensive coverage, you may want to consider bundling your car insurance with other policies such as home or renters insurance. Bundling your policies can often lead to substantial discounts.
The average cost of monthly car insurance in the United States is approximately $135. However, this cost can vary significantly depending on your age, driving history, vehicle type, and coverage type. Fortunately, there are several ways to save money on car insurance, such as shopping around and comparing rates, raising your deductible, and bundling your policies. By taking advantage of these money-saving tips, you can ensure that you are getting the best car insurance coverage at the best possible price.