The average monthly cost of auto Insurance varies based on location, car model and type of coverage.

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The Auto Insurance average for monthly costs swings widely based on factors about you and your chosen vehicle. Expect age, driving record, model type and location to be among the elements that help to determine how much you pay for coverage. These aren’t the only factors that you’ll need to take into account, though.

Learning the average monthly cost for auto insurance is critical in helping you land an adequate policy from a reputable insurance provider. The easiest way to find the best Car Insurance rates is by comparing free quotes from various providers before making a final decision.

What is the Average Monthly Cost for Car Insurance? 

The auto insurance average for monthly costs isn’t the same for all models or drivers. Drivers typically pay around $140 per month if they choose to get full coverage car insurance, while the national average for minimum coverage comes out to around $55 each month.

Expect factors such as your driving record, credit score, age and gender to affect auto insurance rates. The easiest way to find affordable coverage is often by following responsible driving habits and keeping a good credit score. Those with bad credit, speeding tickets, at-fault accidents or DUI violations run the risk of being labeled as high-risk drivers.

Insurers boost average annual premiums for high-risk drivers because there’s a higher chance that they’ll have to pay out for a claim. The more steps you take to prove to car insurers that you’re a responsible driver, the better the chance you have of finding cheap auto insurance.

Factors That Affect Monthly Car Insurance Costs 

The auto insurance average for monthly costs hinges on various aspects about each driver and the specifics of their car. Below, we’ll explain the most important factors used by auto insurers.

Age

A driver’s age is a crucial factor that’s often considered when calculating auto insurance rates. Studies show that young drivers and teen drivers are more likely to get involved in accidents than older motorists. As a result, this age group is considered higher risk and typically pays higher car insurance premiums.

Gender

Female drivers usually pay cheaper rates for comparable coverage than male drivers, especially among younger motorists. Prices tend to level out around the age of 30, however, as the risk factors that boost rates for men have usually decreased.

Credit Score

In most states, your credit score will play a role in determining the average cost of car insurance. A good credit score is often indicative of a responsible individual, so drivers with excellent credit scores tend to receive lower insurance rates. Those with poor credit scores, though, are usually seen as high-risk individuals and therefore get charged higher premiums.

Type of Car

Certain vehicles are more expensive to insure, with luxury and sports cars tending to be on the pricier side. Smaller and more economical models such as the Honda Accord or the Toyota Camry are usually cheaper to insure, as are vehicles equipped with up-to-date safety features. Cars with working air bags, anti-lock brakes and anti-theft systems might also receive discounts from certain auto insurers.

Level of Coverage

Your chosen types and levels of coverage will also affect monthly insurance costs. If you only have minimum coverage car insurance, your premiums will be lower than with full coverage. Keep in mind that motorists will end up paying more out of pocket in the event of an accident if they choose a slimmed-down insurance package.

You’ll typically need property damage liability insurance and bodily injury liability coverage to meet minimum standards. In some states, personal injury protection is also necessary. A full coverage auto insurance policy that includes comprehensive coverage and collision coverage may be smart for some drivers, though.

Marital Status

Whether you’re married or not impacts rates for car coverage, as married drivers are statistically less likely to get involved in accidents. Because of this, single motorists typically pay higher rates for comparable amounts of coverage.

Years of Driving Experience

Another major factor that influences your insurance rate is the number of years that you’ve been licensed. The longer you’ve been driving, the lower your rates could end up being. This is because insurers believe that driver profiles with more experience on them have a lower chance of getting into accidents.

Location

Car insurance companies use data from various sources to assess the risk of insuring drivers in particular areas. Factors that influence rates can include the number of accidents and thefts along with the amount of vehicular traffic in the area. Urban areas tend to be pricier than rural areas, as the risk of an accident is often higher in densely populated zones.

States themselves also have different minimum coverage requirements, meaning that certain ones will be pricier than others. Below, we’ll explain the auto insurance average for monthly costs broken down by each state.

States With the Highest and Lowest Auto Insurance Rates

Car insurance rates vary widely across state lines, with the ones that require extensive minimum coverage costing the most. Since drivers in Montana and Pennsylvania, for instance, have different state minimum requirements, they can also expect to face varying average car insurance rates.

Other reasons for higher rates could be large numbers of uninsured drivers or above-average accident counts. Regardless of your state, expect to get lower auto insurance costs if you have a clean driving record, search for insurance discounts and set lower coverage limits.

States With the Most Expensive Auto Insurance

Some of the most expensive states for auto insurance include populous locations such as California, Florida and New York. Drivers in Michigan, Massachusetts and Louisiana are also accustomed to paying steep rates for car coverage.

The best way to reduce rates on your auto insurance policy in these states is by opting out of a full coverage policy, by bundling renters or homeowners insurance with auto coverage and by using insurance calculators to compare rates from multiple providers.

States With the Least Expensive Auto Insurance

Drivers usually pay reasonable rates for car coverage in New England’s less populous states such as Vermont, New Hampshire and Maine. Other rural states with relatively low prices for auto insurance include Idaho, Hawaii and Wyoming.

Interestingly, certain states with large cities still come with extremely affordable rates for car insurance. These places include Ohio, Wisconsin, North Carolina and Virginia.

What counts as the cheapest car insurance in one state might differ from what’s considered so in another location. The best way to find reasonable monthly average costs in your location is by getting multiple car insurance quotes from various providers before landing on one.

How To Get the Best Car Insurance Rates

There’s no perfect way to get the lowest car insurance rates, but it’s easy enough to find competitive pricing. Read on as we reveal some tips for finding cheaper auto coverage.

Shop Around for Quotes

One of the best ways to find deals on car insurance is by comparing rates from multiple companies. There are a few things you should keep in mind when you’re doing this. First, make sure you’re comparing coverage plans with the same policies and deductible levels.

Second, don’t just focus on the auto insurance premiums you were offered. Look at customer satisfaction scores and financial strength ratings from AM Best to gain a full view of the provider. Finally, remember that the lowest car insurance prices aren’t always the best deal once an accident occurs.

Ask About Discounts

By taking the time to ask insurance agents about discounts, you may be able to unlock the best possible rate on your car policy. Many insurers offer discounts for safe drivers, for those with multiple policies and for completing a defensive driving course. Your specific car insurer may offer additional savings opportunities, so make sure to ask about them to minimize your costs.

Increase Your Deductible

Auto insurance deductibles refer to how much you’ll have to pay out of pocket after an accident before your provider pitches in. A simple way to reduce the auto insurance average for monthly costs is by trimming your deductible down.

Note that this means you’ll need to pay more out of pocket than otherwise once an accident occurs. If you’d like to avoid doing so, look for other ways to reduce your car insurance rates.

Our Recommendations for Auto Insurance

If you’re in the market for auto insurance, it’s smart to get a few instant quotes to find the lowest rates. Make sure to also consider the company’s financial strength rating, customer satisfaction score and coverage levels. We’d recommend that you look at GEICO, USAA and Progressive if you’re searching for excellent and affordable coverage.

GEICO: Best Discounts

GEICO is one of the largest and most popular car insurance companies in the U.S. The provider offers standard insurance types such as liability, collision, comprehensive and uninsured motorist coverage along with plenty of extras. GEICO also has discounts for good drivers, those with new vehicles and those who take driver’s education classes.

USAA: Best Military Provider

USAA specializes in providing high-quality and affordable coverage to military members, veterans and their families. While it ranks well for customer service and gets an A++ score for financial health from AM Best, USAA isn’t available to those without connections to the military. If you’re eligible, you may find an extremely low auto insurance average for monthly costs.

Progressive: Best for High-Risk Drivers

Progressive is a good choice for high-risk drivers such as those with speeding tickets, DUIs and at-fault accidents on their records. While many car insurers are reluctant to cover those with risky driving records, that’s rarely the case with Progressive. To learn more about the company, read our Progressive insurance review.

Frequently Asked Questions (FAQ)

Original article: What is the Auto Insurance Average for Monthly Costs?