How Much Does Car Insurance Cost Per Month On Average?

Car insurance is an important factor to consider when purchasing a vehicle. Even if you are a safe driver, it is important to have an insurance policy in case of any unfortunate accidents. But how much does car insurance cost per month on average? Depending on the type of coverage, the cost of car insurance can range greatly.

Factors That Influence Car Insurance Rates

The cost of car insurance is determined by a variety of factors, including the type of vehicle, the driver’s age, the amount of coverage, and the state the driver lives in. For example, younger drivers tend to pay more for car insurance because they are seen as riskier drivers. Additionally, drivers in certain states may pay more due to higher rates of crime and accidents. Other factors include the driver’s credit score, driving record, and the type of coverage chosen.

Types of Car Insurance

When it comes to car insurance, there are three main types of coverage: liability, comprehensive, and collision. Liability coverage is the most basic type of insurance and is generally required in most states. It covers bodily injury and property damage caused by the policy holder, meaning it does not cover any damage to the policy holder’s vehicle. Comprehensive coverage is more comprehensive and covers damage to the policy holder’s vehicle, regardless of who is at fault. Collision coverage covers damage to the policy holder’s vehicle caused by a collision with another vehicle or object.

Average Cost of Car Insurance

The average cost of car insurance can vary greatly depending on the type of coverage, the driver’s age, and the state in which they live. According to the Insurance Information Institute, the average cost of car insurance in the United States is $1,555 per year, or $129.58 per month. However, this average can be broken down further to give a better idea of the cost of car insurance in different states and for different age groups. For example, the average cost of car insurance for a 30-year-old driver in California is $1,732 per year, or $144.33 per month.

Saving Money on Car Insurance

There are several ways to save money on car insurance. Many insurance companies offer discounts for drivers who have a good driving record and for drivers who have taken a defensive driving course. Additionally, many companies offer discounts for drivers who have multiple policies with the same company, such as home and auto insurance. Finally, shopping around for car insurance can help you find the best rate. Comparing quotes from multiple companies can help you find the best deal.

Conclusion

The cost of car insurance can vary greatly depending on the type of coverage, the driver’s age, and the state in which they live. The average cost of car insurance in the United States is $1,555 per year, or $129.58 per month. However, there are several ways to save money on car insurance, such as taking a defensive driving course, having multiple policies with the same company, and shopping around for the best rate. Ultimately, it is important to find the right balance between coverage and cost.