How Much Does Car Insurance Cost?
Because it is illegal to drive a motor vehicle without insurance, the cost of insurance is something that will eventually affect everyone. This cost varies according to many different factors. One of these factors is your age. Generally, the longer you have been driving, the more experience you will have; therefore the insurance is cheaper as you get older. Another factor that will affect the cost is the type of car you drive. How old it is as well as how it is made will cause the price of insurance to rise and fall. Normally the older the car, the cheaper the insurance will be. The area where you live can also affect the cost of your auto insurance. The cost of your deductible, which is the amount you pay in case of an accident, can greatly affect the yearly cost of insurance. The higher the deductible, the cheaper your price will be. Finally, your driving record, such as number of accidents and tickets, can affect the cost of you car insurance. Safer drivers usually receive cheaper rates.
How much is car insurance?
Before we can discuss the cost, we must understand the different types of coverage available to you. If you drive an older vehicle, your best option is simple liability insurance. This will legally cover you in case of an accident, but will usually not cover the cost to fix or replace the car. If you have a newer car, it is best to have comprehensive coverage, which legally covers you as a driver as well as covering the cost to repair or replace the car in case of an accident.
Simple liability coverage for an older vehicle can cost anywhere from $400 to $900 per year, depending on the combination of factors listed above. Some companies bill you monthly, others bi-monthly, and some every six months.
Comprehensive coverage for a newer car can cost between $1,000-$4,000 per year, and this price is determined by the factors listed above.
Since there are so many factors involved, it’s extremely hard to give an accurate quote. To play it safe, it’s best to budget anywhere from $50 to $350 per month for a policy. $50 would be for a cheaper, basic policy with little to no coverage, while a premium policy that covers everywhere could be near $350. To get an accurate quote for your circumstances, consider using this tool.
According to thezebra.com, the national auto insurance premium in 2016 was $1,323.
Compare car insurance cost:
Listed below are annual averages compiled by many various forum threads and publications on the Internet. The averages below assume the driver is between the ages of 35 to 40, has $300,000 for injuries, $100,000 for injury liability and a $500 deductible for both collision and comprehensive:
| Make | Type | Average Annual Premiums |
|---|---|---|
| Acura | Car | $1,500 to $1,700 |
| Audi | Car | $1,400 to $3,300 |
| BMW | Car | $1,400 to $2,700 |
| Buick | Car | $1,100 to $1,400 |
| Cadillac | Car | $1,350 to $2,000 |
| Chevrolet | Car | $1,300 to $2,000 |
| Chrysler | Car | $1,200 to $1,600 |
| Dodge | Car | $1,200 to $1,500 |
| Fiat | Car | $1,100 to $1,500 |
| Ford | Car | $1,200 to $1,700 |
| Honda | Car | $1,100 to $1,500 |
| Hyundai | Car | $1,200 to $1,700 |
| Infiniti | Car | $1,500 to $2,000 |
| Jaguar | Car | $1,800 to $2,700 |
| Kia | Car | $1,300 to $1,500 |
| Lexus | Car | $1,500 to $2,200 |
| Lincoln | Car | $1,350 to $1,550 |
| Mazda | Car | $1,200 to $1,500 |
| Mercedes | Car | $1,400 to $3,000 |
| Mitsubishi | Car | $1,300 to $1,600 |
| Nissan | Car | $1,400 to $2,000 |
| Porsche | Car | $2,100 to $2,900 |
| Scion | Car | $1,200 to $1,400 |
| Subaru | Car | $1,300 to $1,600 |
| Suzuki | Car | $1,300 to $1,500 |
| Toyota | Car | $1,100 to $1,400 |
| Volkswagen | Car | $1,200 to $1,600 |
| Volvo | Car | $1,400 to $1,600 |
| Chevrolet | Truck | $1,200 to $1,600 |
| Dodge | Truck | $1,400 to $1,700 |
| Ford | Truck | $1,350 to $1,600 |
| GMC | Truck | $1,100 to $1,500 |
| Nissan | Truck | $1,100 to $1,500 |
| Toyota | Truck | $1,200 to $1,400 |
| Chevrolet | Van | $1,200 to $1,400 |
| Chrysler | Van | $1,200 to $1,400 |
| Dodge | Van | $1,100 to $1,300 |
| Ford | Van | $1,100 to $1,400 |
| GMC | Van | $1,200 to $1,400 |
| Honda | Van | $1,100 to $1,400 |
| Kia | Van | $1,100 to $1,300 |
| Toyota | Van | $1,100 to $1,300 |
| Volkswagen | Van | $1,100 to $1,400 |
Factors that affect car insurance quotes:
Coverage
As mentioned above, the type of coverage that you’re seeking is going to play a major factor on the overall quote. The higher your limits are, the higher your price will be. The same can be said about your deductible; the lower this is, the higher your premium will be.
Type of Car
This is another major factor that is going to influence the price. For example, a two-door sports car is going to cost a lot more to insure than a simple mini-van. History has shown that the type of car can often reflect the driving habits of the driver.
Habits
The insurance company will want to know how often you’re going to drive the car. Where will it be parked? How many miles do you plan on driving? Cars parked in a crime-ridden area could cost more to insure.
Age
Another big factor is the driver’s age. Drivers under the age of 22 generally are going to pay more than someone over the age of 26. Again, age isn’t the only factor because the driving history will play a big role as well. Once a driver hits 65, the rates can creep up again.
Gender
Believe it or not but women tend to pay lower premiums than men. Why? Studies have shown that women are safer drivers.
Driving Record
Another big thing that car insurance companies look at is a driving record. The more accidents and violations you have, the higher your premiums can be. Those who have a safe and clean history tend to have the lower rates.
Credit Score
Insurance companies will check your credit score, and if your score is low, they deem you will be a greater risk of filing a claim.
Location
If you live in an area that is known for theft, count on your premium going up. Aside from crime, weather may also play a role if your location is known for natural disasters.
Usage
How is the car going to be used? Is it for personal purposes, or is it going to be used for work? A combination of both? The more you plan on driving it, the higher risk you become.
What are the extra costs?
There are many “fine print” things that are not covered by insurance. For instance, some insurance will cover the cost of you hitting a deer while others may not. Be sure to read all information to avoid having to pay more than you planned.
Tips to know:
Some insurance companies will provide a car for you to drive while your car is being repaired if you add it as an optional to your policy.
Research the appropriate coverage that you’re going to need with your car. Be sure to know the differences between comprehensive and collision coverage.
Always call up at least three different car insurance companies because all of them are going to greatly vary in terms of quotes. Most car insurance companies are more than happy to give a no obligation quote.
If you’re a student, have an anti-theft device installed, or if you already have coverage with the company, most will be more than happy to give a discount.
How can I save money?
There are many discounts given by insurance companies, but most of them are not advertised. You must inquire about them specifically. These can include discounts according to your occupation (teacher, police officer, etc.) or veteran discounts.
Multiple car discounts are usually available if you insure two or more cars through the same insurance provider. This discount can be even greater if you hold your homeowners insurance through the same company as well.
How to compare prices:
Services such as insureME and esurance can help you get an idea of what price range you will fall into.
Although they may not be able to give you an exact amount, most insurance companies can give you a free quote over the phone.
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