According to the study carried out by Quadrant Information Services in 2016, average car insurance costs 110$ per month, which is $1330 per year. However, rates vary from state to state, and a lot depends on individual driver factors. The information below will help you to find out whether you can expect higher or lower premiums depending on your location, age, marital status etc.
Average car insurance per month by state
Everyone knows that there are states that are historically more expensive, and it is only natural to expect that insurance premiums are higher there. For instance, average auto insurance in Michigan costs $228 per month (national average high) while for Maine it is only $67 (national average low).
However, we should point out that the list of states with the most costly auto insurance varies from year to year. In March 2016 it included, in addition to Michigan, such states as Montana, New Jersey, Louisiana, Oklahoma, DC, and California. New York is typically on top of this list, however this time it happened to have comparatively low rates. What about states with the cheapest auto insurance? We can mention Vermont, New Hampshire, Idaho, Wisconsin, and Ohio.
The area you live within your state also matters, as your premium could be higher or lower depending on your zip code (densely populated neighborhoods may drive your premiums really high). The average quotes for every state are as follows:
|
Rank
|
State
|
Premium
|
| National average | $1325 | |
| 1 | Michigan | $2738 |
| 2 | Montana | $2297 |
| 3 | New Jersey | $1905 |
| 4 | Louisiana | $1842 |
| 5 | Oklahoma | $1778 |
| 6 | DC | $1773 |
| 7 | California | $1752 |
| 8 | Florida | $1654 |
| 9 | Maryland | $1610 |
| 10 | Rhode Island | $1608 |
| 11 | Delaware | $1607 |
| 12 | Georgia | $1559 |
| 13 | Texas | $1510 |
| 14 | West Virginia | $1456 |
| 15 | Wyoming | $1421 |
| 16 | Colorado | $1393 |
| 17 | Connecticut | $1367 |
| 18 | South Carolina | $1353 |
| 19 | Arkansas | $1345 |
| 20 | Alabama | $1337 |
| 21 | Massachusetts | $1325 |
| 22 | Pennsylvania | $1305 |
| 23 | Kentucky | $1295 |
| 24 | New Mexico | $1277 |
| 25 | Mississippi | $1277 |
| 26 | Oregon | $1267 |
| 27 | Minnesota | $1257 |
| 28 | Nevada | $1221 |
| 29 | North Dakota | $1200 |
| 30 | Nebraska | $1188 |
| 31 | Arizona | $1188 |
| 32 | South Dakota | $1168 |
| 33 | Washington | $1168 |
| 34 | Tennessee | $1145 |
| 35 | Kansas | $1135 |
| 36 | Indiana | $1113 |
| 37 | Alaska | $1078 |
| 38 | Utah | $1061 |
| 39 | Missouri | $1056 |
| 40 | New York | $1050 |
| 41 | Hawaii | $1049 |
| 42 | Illinois | $1035 |
| 43 | Virginia | $1020 |
| 44 | Iowa | $989 |
| 45 | North Carolina | $987 |
| 46 | Vermont | $942 |
| 47 | New Hampshire | $941 |
| 48 | Idaho | $935 |
| 49 | Wisconsin | $912 |
| 50 | Ohio | $900 |
| 51 | Maine | $808 |
How was average insurance cost calculated?
For this research, Quadrant Information Services invented an “average client”. He is a single male in his forties who drives 10-14 miles to work every day. His insurance policy limits are as follows: a maximum of $110,000 for injury liability for one person, a maximum of $310,000 for all injuries, and a maximum of $51,000 for property damage for a single accident. Also, the policy of this average driver includes a $510 deductible on collision and comprehensive coverage. The imaginary client boasts a clean record and good credit.
So, to calculate the cost of the policy you want to purchase, take into consideration any factors that make you different from this imaginary average policy owner.
The quotes mentioned above were calculated according to the data provided by six large, well-known insurance companies, like Allstate, and State Farm. For this study, the company chose several cheapest-to-insure vehicles that are ranked in the list of 20 best-selling cars in the U.S.
Factors that affect insurance rates
Most insurance providers have a base rate approved by their state. It can change drastically due to such individual nuances as age, driving record, type of vehicle etc. So check the following factors to find out whether you can expect higher or lower than average car insurance per month cost.
Your deductible and coverage
If you want to make your monthly payment lower, you need to choose a higher deductible. If you have a lower deductible, your monthly premium goes higher.
What also matters is whether you choose just the bare minimum coverage required by state or want to have additional coverage. Although additional coverage usually means more financial protection, it is not always the case. For instance, you may consider dropping collision insurance if it costs 10% or more from the cost of your car.
Age and sex of the driver
Experienced driver older than 25 can expect much lower premiums than a teenager. Young women statistically have lower risk of accidents and, therefore, often get lower rates.
If you are a student, you may be eligible for discounts, especially if you maintain good grades. One more way to lower your premium if you are a young driver is to enroll on driver safety courses – this may help you get a discount in some states.
Whether you are married
As single people typically have more accidents (especially men), insurers offer them significantly higher rates.
Driving record, previous accidents
If you boast a clean driving record and have never been in an accident, expect your rates to halve. Even a minor accident will typically result in an increase, in spite of the fact that you are not at fault. However, in some cases you may either minimize or avoid it. For instance, there are ways to avoid an increase in auto insurance rates after a single car accident..
Really bad driving record will not only cost much in terms of auto insurance, some companies may just refuse to sell a policy if a person’s driving record is bad enough.
Your occupation
Some jobs, like delivery drivers, require a lot of travelling by car, and therefore involve higher risk of accidents. People of some professions (like police officers, medical personnel, insurance agents) are typically more careful than other drivers.
How old is the car?
A car that is neither new nor old will get the best rates. New vehicles usually cost more to insure, especially if you live in an at risk area for theft or vandalism. Also, new cars get higher collision coverage rates. An older car is also likely to involve increased rates, as it is more likely to be completely destroyed.
Car make and model
How attractive is your car to thieves? Check the top 15 most stolen ranking to find out whether you can expect a higher premium. Some companies offer discounts for car alarm or other reliable anti-theft options.
Safety rating
Does your car have such options as airbags, automatic seat belts, and traction control? If yes, then it may well result in lower premiums. Generally, insurance companies tend to offer good rates to owners of cars with better safety rating.
Car and engine size
Typically larger vehicles get better rates. If your vehicle has a larger engine relative to body (like sports car with a V8 engine), expect higher monthly payment.
Driving activity
Insurer will try to find out how often you are on the road and how far you drive. If you can prove you do not drive much (for example, you do not commute to work), you may expect your company to alter your rate. If you want to cut your premiums, think of ways of reducing annual driving mileage.
Eligibility for discounts
Security devices, driving courses, using a garage, having the same insurance provider for your car and home are some of the reasons that may provide you a discount. Every company has its own rules, so it is a good idea to ask your agent about possible discounts.