Average Car Insurance

Average Cost for Car Insurance

Car Insurance is insurance that is purchased in case of an automobile accident. What you pay for car insurance is dependant on who you are, your automotive history, where you live, and what type of car you drive.

Suggested Average Insurance Coverage:

Some insurance pros suggest 100/300/50 - $100,000 bodily injury per person, $300,000 bodily injury per accident and $50,000 property damage per accident.

Cost Factors:

Your Age

Teenagers have the highest average car insurance rates among all drivers. The insurance premiums tend to lower the old one is. Typically once a driver reaches 25 years old, car insurance rates start to decline.

Your Car

Your car says a lot about you. Drivers of sports cars may be more aggressive behind the wheel, and thus more likely to cause accidents, then drivers of station wagons. The more likely you are to cause an accident the higher your insurance premium will be. Also home much your car is worth will also effect your premium, because the more expensive your car is, the more expensive it is to replace.

Accident History and Tickets

The more accidents a driver has had in the past, the more likely they will cause an accident in the future. Also the number of driving infractions, like speeding, can cause an increase in insurance premiums. So if you want a low car insurance premium, make sure to stay out of accidents and don't speed.

Location

Where you park your car also plays into the your car insurance premuims. A safe neighborhood, with few auto thefts will have lower average car insurance cost, then a neighborhood with a high rate of auto thefts.

Gender

Females tend to pay lower average insurance premiums then Male individuals. Statistically males tend to be more aggressive when driving then females, and because of this, then tend to cause more accidents.

Martial Status

Married individuals tend to pay lower average insurance premiums then unmarried individuals. Also married individuals often purchase car insurance together, in which case an added discount is taken off the premium.

Credit Score

Another tool that insurance companies use to calculate driver risk is your Credit Score. An individual with an excellent credit score is someone that always pays credit on time and doesn't often take risks with their money. These types of people usually also don't take many risks when driving their cars. Likewise, individuals with poor credit scores because of risky or poor money skills often take risks behind the wheel.