Average Car Insurance Prices

A Comprehensive Guide To The Average Cost of Car Insurance

Are you curious about the average car insurance prices? You’re not alone! Many people want to know what they can expect to pay for car insurance. After all, it is a significant expense and one that you’ll want to budget for. The good news is that understanding the average cost of car insurance is easier than you think.

Factors That Impact the Average Cost of Car Insurance

Before we dive into the average car insurance prices, let’s first discuss the factors that can affect car insurance costs. After all, there are multiple factors that insurance companies use to calculate your car insurance premium.

The key factors include:

Your age and gender
Your driving record
The make and model of your car
Where you live
Your credit score

These are the main factors that can influence your car insurance premium. Some of these factors, such as your age and gender, you can’t change. But, you can influence other factors, such as your credit score.

The Average Cost of Car Insurance in the United States

Now that you understand the factors that can impact car insurance costs, let’s discuss the average cost of car insurance in the United States.

According to the Insurance Information Institute, the average annual cost of car insurance for the year 2018 was $1,427. This figure is based on the average cost for all drivers, regardless of age, gender, driving record, or other factors.

However, keep in mind that the average cost of car insurance can vary significantly from one state to another. For example, the average cost of car insurance in California was $1,715 in 2018. However, the average cost of car insurance in Maine was just $945.

How to Lower Your Car Insurance Costs

Even though understanding the average cost of car insurance is helpful, you’re probably wondering how you can lower your car insurance costs.

The good news is that there are several steps you can take to help lower your car insurance premiums.

First, you should consider shopping around for car insurance. Different insurance companies may offer different rates. So, you’ll want to compare multiple companies to find the best rate for you.

You should also consider bundling your car insurance with your other insurance policies. Many insurance companies offer a discount if you bundle multiple policies with them.

Finally, you should consider increasing your deductible. A higher deductible can help lower your car insurance premium.

The Bottom Line

The average cost of car insurance in the United States is $1,427. However, this figure can vary significantly from one state to another.

To help reduce your car insurance costs, you should shop around, consider bundling your policies, and increase your deductible. Taking these steps can help you find a car insurance policy that fits your budget.