What Is The Average Car Insurance Payment Per Month?

Understanding What Insurance Covers

When it comes to car insurance, understanding what is covered is essential. According to the Federal Trade Commission, most car insurance policies cover five basic types of coverage: bodily injury, property damage, personal injury, uninsured motorist, and medical payments. Bodily injury coverage helps pay for the cost of hospitalization and other medical expenses for the other driver if you are at fault for an accident. Property damage coverage pays for the damage to the other car, home, and other property caused by you or another driver. Personal injury coverage helps pay for lost wages, medical bills, and other expenses if you or your passengers are injured in an accident. Uninsured motorist coverage pays for medical bills and other expenses if you are hit by an uninsured driver. And finally, medical payments coverage helps pay for medical bills and other related costs if you or your passengers are injured in an accident, regardless of who is at fault.

Average Premiums

The average car insurance premium in the United States is around $1,400 per year, or $117 per month, according to a survey conducted by the Insurance Information Institute. This figure can vary widely depending on the type of car you drive, where you live, and the insurance company you choose. For example, in some states, the average premium for a mid-sized sedan can be as low as $650 per year, or about $54 per month, while in other states, the same policy could cost as much as $2,500 per year, or about $208 per month. Additionally, if you choose to add additional coverage, such as collision or comprehensive, the cost of your policy will also increase.

Factors That Affect Premiums

The type of car you drive is one of the biggest factors that affects the cost of your car insurance. Sports cars and luxury vehicles tend to be much more expensive to insure than sedans and hatchbacks. Your location also plays a role in determining your premium. Insurance companies consider the crime rate and accident rate in your area when determining the cost of your policy. Your age, gender, and driving record also play a role in determining your premium. Generally, younger drivers, male drivers, and drivers with poor driving records will pay higher premiums than older drivers, female drivers, and drivers with clean records.

Discounts & Other Ways To Lower Premiums

There are several ways to save money on car insurance. Many insurance companies offer discounts for good drivers, multi-car policies, and loyalty programs. Additionally, some companies offer discounts for installing safety devices in your vehicle, such as anti-theft systems, airbags, and seatbelts. Finally, you can also save money by shopping around and comparing quotes from different insurance companies to find the best deal.

Conclusion

The average car insurance premium in the United States is about $1,400 per year, or $117 per month. However, the cost of your policy can vary significantly depending on the type of car you drive, where you live, and the insurance company you choose. Additionally, there are several ways to save money on car insurance, such as taking advantage of discounts and shopping around for the best deal. By understanding the factors that affect car insurance premiums and taking advantage of discounts, you can save money on your car insurance.