Average Car Insurance Rates By Age And State

Understanding Car Insurance Rates

Car insurance rates are the amount of money you pay to an insurance company for the privilege of being able to drive a car. Insurance companies calculate car insurance rates by taking into account a number of factors, including your age, driving record, and the make and model of your car. Insurance rates can vary significantly from one insurer to another, so it's important to shop around to find the best rate.

In addition to your personal information, insurance companies also consider the average car insurance rates in your state when determining your car insurance premium. This is because insurance companies want to ensure that they are charging a fair rate for their coverage. As such, they look at the average rate for the state and make sure that their rates are competitive.

Average Car Insurance Rates By Age

The age of the driver is one of the most important factors when it comes to determining car insurance rates. Generally speaking, younger drivers are considered higher risk than older drivers, and therefore, they pay higher rates.

For example, according to the Insurance Information Institute, in 2017 the average annual car insurance rate for a 16-year-old driver was $6,878, while the average rate for a driver over the age of 25 was just $1,159.

That's a huge difference, and it's important to remember that these figures are only averages. Insurance companies may charge significantly different rates based on the driver's age, the make and model of the car, and the driver's driving record.

Average Car Insurance Rates By State

Car insurance rates can also vary significantly from one state to another. This is because states have different regulations when it comes to car insurance, and insurance companies take these regulations into account when calculating rates.

For example, according to the Insurance Information Institute, in 2017, the average annual car insurance rate in Michigan was $2,738, while the average rate in Maine was just $853. This is a huge difference, and it's important to remember that these figures are only averages.

It's also important to note that insurance companies take into account the age of the driver, the make and model of the car, and the driver's driving record when calculating rates. So, even if you live in a state with relatively low average car insurance rates, you may still end up paying more or less than the average rate depending on the other factors.

Keep Your Car Insurance Costs Low

There are a few different things you can do to keep your car insurance costs low. First and foremost, it's important to shop around and compare rates from different insurance companies. Different insurers may offer different discounts or have different rates for the same coverage, so it pays to shop around and compare.

It's also a good idea to keep your driving record clean. Insurance companies take your driving record into account when calculating rates, so if you have a few traffic violations or accidents on your record, your rates could be higher.

Finally, if you're a student, you may be eligible for a student discount. Many insurance companies offer discounts to students who maintain good grades, so it pays to ask your insurer about student discounts.

Conclusion

Car insurance rates vary significantly from one person to another, and even from one state to another. In addition to factors like your age, driving record, and the make and model of your car, insurance companies also take into account the average car insurance rates in your state when calculating your rates.

There are a few things you can do to keep your car insurance costs low, such as shopping around for the best rates and keeping your driving record clean. You may also be eligible for a student discount, so it pays to ask your insurance company about any discounts you may qualify for.