When it comes to car insurance, it’s important to understand the average cost of coverage. Knowing the average cost can help you make informed decisions when it comes time to purchase coverage. In this article, we’ll look at the factors that influence the average cost of car insurance, as well as the amount you can expect to pay for your policy. We’ll also provide tips on how to save on car insurance.
Factors That Influence the Average Cost of Car Insurance
There are a number of factors that influence the average cost of car insurance, including the type of vehicle you drive, the age and experience of the driver, the driver’s location, and the driver’s driving record. The cost of car insurance also depends on the type of coverage you choose. For example, basic liability coverage is typically the least expensive, while comprehensive coverage is more expensive. Additionally, insurance companies may offer discounts for safe drivers, good students, and other factors.
The Average Cost of Car Insurance
According to the Insurance Information Institute (III), the average cost of car insurance in the United States was $1,555 in 2020. This figure is based on a policy for a 45-year-old married male who drives a 2019 Honda Accord with comprehensive and collision coverage, with a $500 deductible.
Average Cost by State
The average cost of car insurance varies by state, with states like Michigan and Louisiana having the highest average cost, while states like Iowa and Idaho have the lowest average cost. In Michigan, the average cost of car insurance is $2,693, while in Iowa, the average cost is $882.
Average Cost by Age
The age of the driver also plays a role in the average cost of car insurance. Typically, younger drivers pay more for car insurance than older drivers because they are considered to be more of a risk. According to the III, the average cost of car insurance for a 16-year-old driver is $4,989, while for a 45-year-old driver it is $1,555.
Tips for Saving on Car Insurance
There are a few simple ways to save on car insurance. First, consider raising your deductible. A higher deductible means that you will have to pay more out of pocket if you get into an accident, but it also means that you will pay less for your premium. Additionally, you can often get discounts for having multiple policies with the same company, or for taking a defensive driving course. You can also shop around for the best rates.
Understanding the average cost of car insurance can help you make informed decisions when purchasing coverage. The average cost of car insurance in the US is $1,555, though this amount varies by state and age. There are a few simple ways to save on car insurance, such as raising your deductible and shopping around for the best rates.