The Average Monthly Car Insurance Cost

The Basics

Car insurance is expensive, but it’s necessary in order to protect you and your vehicle. The average monthly car insurance cost depends on many different factors. Your driving record, the type of vehicle you drive, your age, your credit score, and the coverage you choose all affect your monthly car insurance cost. It’s important to understand the basics of car insurance and what you should look for when shopping for the best rates.

Factors That Affect The Average Monthly Cost

Your driving record is one of the most important factors in determining your monthly car insurance cost. If you have a history of traffic violations or accidents, you can expect to pay more than someone with a clean driving record. Your age is also an important factor. Drivers under the age of 25 typically pay higher premiums than more experienced drivers. Your credit score also affects your monthly car insurance cost. Insurance companies use your credit score as an indication of how likely you are to make a claim.

Types of Coverage

The coverage you choose for your car insurance also affects your monthly cost. The most basic type of coverage is liability coverage, which covers damage to other people and their property if you cause an accident. Collision coverage pays for damages to your own car if it’s involved in an accident. Comprehensive coverage pays for damages caused by something other than a collision, such as theft or vandalism. If you are financing your vehicle, your lender may require you to have certain types of coverage.

Shopping For The Best Rates

Shopping around for the best rates is the best way to save money on car insurance. Compare quotes from several different companies and make sure you understand the coverage you are getting. Look for discounts such as multi-car or multi-policy discounts. Some companies offer discounts for having a good driving record or taking a defensive driving course.

The Average Monthly Cost

The average monthly car insurance cost depends on many different factors. Drivers with a clean driving record and good credit score can expect to pay an average of $50 to $150 per month for basic liability coverage. Drivers with a poor driving record or poor credit score may pay more. The type of vehicle you drive and the coverage you choose also affects your monthly cost.

Conclusion

It’s important to understand the factors that affect the average monthly car insurance cost. Shopping around for the best rates is the best way to save money on car insurance. Compare quotes from several different companies and make sure you understand the coverage you are getting. Look for discounts such as multi-car or multi-policy discounts. By understanding the basics of car insurance and shopping around, you can find the best rates and save money on your car insurance.