How do I find the average cost of car insurance?

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Things to Remember...
  • Each state has a minimum required amount of car insurance
  • There are a variety of factors that affect insurance rates
  • Certain situations require a larger amount of coverage

Figuring the average cost of car insurance is a complicated process because there are so many variables in figuring insurance rates.

Having a basic understanding of insurance will help in considering how much to pay for insurance.

Most purchasers of insurance understand that car insurance is required by law.

The laws that establish the necessity for insurance are established individually by state, so the cost of insurance also varies by state.

Even though an insurance company may provide insurance in several different states, the insurance company must file rate applications in each state based upon statistics and claims data derived from that particular state.

Be sure to always compare auto insurance the quick and easy way: Simply enter your ZIP code into the FREE tool located above to get started!

The Factors that Affect Your Insurance Rates

  • Age – Ordinarily the older you are, the fewer possibilities of accidents you have
  • Gender – Statistically, young, unmarried males have more accidents than young, unmarried females
  • Marital status – Married people are less likely to have accidents than unmarried people
  • Number of years licensed – Experienced drivers are typically better drivers
  • Credit historyYour credit history can indicate the possibilities of property damage claims due to lack of income
  • Home ownership – If you own your own home, you are likely to be more stable and less careless in your driving
  • Occupation – Some occupations are riskier than others
  • Past driving history – Citations for driving under the influence are particularly flagged because these indicate habits that may lead to further accidents
  • Good student discountIf grades are Bs or better, the individual is less likely to have been distracted by extracurricular activities

When you tender an insurance application, it is sent to an underwriter who examines it for areas that may indicate unusual circumstances that might lead to an excess of claims.

If nothing flags the underwriter’s interest, it is sorted into categories of people they insure and rated accordingly.

Routinely insurance companies order a copy of your driving record, your credit record, and, sometimes, they will send investigators out to determine how you live and your reputation in your community.

This type of report is usually only ordered if the underwriter spots discrepancies between your application and the other records that are found.

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Vehicle Year, Make, and Model Can Affect Your Premium

Your application will give the year, make, and model of your automobile, as well as the coverage, desired.

The cost of the vehicle has some influence upon the rates you will be charged within certain parameters.

Purchasing a Lamborghini that has a base price of $400,000 or more can affect your insurance rates because experience with that type of vehicle is statistically rare, and the usual rating provisions are not applicable.

The insurance company’s experience statistically with a brand, model, and year of the automobile has the largest effect upon the cost of insurance.

The Coverage Limits that You Request


Every state has a required minimum amount of bodily injury coverage, property damage coverage, medical payments coverage, and uninsured/underinsured motorists coverage.

  • Bodily Injury Coverage – gives you protection in the event that you are legally liable for bodily injury damage to others
  • Property Damage Coverage – provides protection if you are legally liable for property damage to property owned by others
  • Medical Payments Coverage – pays for the medical expenses suffered by you and your passengers after an accident

Remember, these are the basic liability coverages required by law.

The reason for purchasing insurance is not only because of the law enacted within your state. Insurance protects you and your financial stability.

If each of us had to pay individually for automobile accidents, it could cause extreme financial distress.

Not many of us could produce liquid cash to pay a $150,000 hospital bill incurred because of an accident in which we are liable.

Therefore, as individuals, we cannot afford to accept the minimum protection required by law, even though it may cost less.

Are You Average?


In conclusion, a number of variables affect the cost of your automobile insurance.

Look at the average costs of car insurance in your state to determine if your premiums are reasonable, but you should request at least two insurance quotations using the same data.

Just as families and cars vary, so do insurance rates. It is possible to foresee the effect of statistics upon your insurance premium and carefully plan to reduce your insurance costs.

Pay attention to driving records, credit reports, and the automobiles you purchase.

Compare prices among insurance companies because one company may have a statistical difference in experience within an area from another causing an advantage in insurance rates.

Take the time to be diligent in purchasing insurance, just as you would with other purchases.

Enter your ZIP code into the FREE tool below to start comparing quotes now!

FREE Auto Insurance Comparison

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