On the topic of average car insurance costs, the results can be extremely convoluted. Because so many different factors go into determining the premium for each individual, it’s almost impossible to determine what the average rate is. Nationwide, the average monthly car insurance cost is around $145, but depending on your factors, you could end up paying much more or less than what the national average has factored out to be. The only real way to determine what your individual rate will be is to look at the elements that are considered when companies draw up a policy, and keeping in mind reasons why insurance may be raised. Here are some factors that help determine the average cost of car insurance:
Gender – On average, women pay less for car insurance than men. For some reason, men are statically more likely to be involved in an accident, and therefore insurance companies will put their monthly premiums at a higher rate.
Age – Those will less experience driving are considered high risk cases for insurance companies. Those under the age of 25 fall into this category and will find themselves paying more for car insurance than older individuals. A wise decision for younger drivers is to be added under their parent’s policy until they’ve reached the age where the insurance drops.
Vehicle Type – More expensive forms of transportation are billed at a higher monthly rate. Those looking to save money on car insurance should consider driving a more fuel-efficient car and avoid high risk vehicles such as sports cars and SUVs. Especially relevant for younger drivers, elements that compound average insurance costs should be avoided at all costs.
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Type of Insurance – Not surprising, the more coverage that is offered on your vehicle, the more you will be paying. Because full-coverage is a type of insurance that isn’t held by the majority of individuals, it can greatly skew the average costs of insurance. Many individuals will carry only the minimum or just above the minimum amount, so keep in mind that the type of insurance makes a great deal of difference when it comes to the average overall cost.