Average Cost of Car Insurance

Average Car Insurance Cost

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Average Car Insurance Price – What to Expect

There are so many details that go into determining what the average car insurance price is that it would be hard to give a true number for that. From age to the type of car you drive even down to your own zip code, these are all things that influence what you can expect to pay. You can, however, get an idea of what types of policies are available, how you can save money and how to get quotes to be sure you get the best rates.

What Exactly Is Available?

One of the major determining factors for the average car insurance price is what type of insurance you may need. If you have an old clunker and health insurance, you may only need liability. If, however, you have a brand new sports car you financed and brought in an upside down trade to purchase, you are going to need full coverage and then some. Here is a basic rundown:

  • The state minimum – Most states require drivers to carry either liability or PIP insurance coverage. Liability covers damage you cause such as property damage and medical expenses for the other driver. This does not cover your own vehicle or medical expenses. PIP stands for personal injury protection and each driver’s insurance covers his or her own damages regardless of who was the at fault driver. This is often also called no fault auto insurance.
  • For cars you do not own – Most commonly, if you will be driving a car that is not in your name, you will still need to insure it on your own. This could be a friend’s car while you decide on one to buy or a rental car you use while your own is being repaired. Either way, non owners or rental car insurance is probably your best bet.
  • For a financed or leased car – The average car insurance price for this scenario can vary a great deal. It depends on the value of the car, the safety of the vehicle and even what your trade in was. In most cases, you will need at least collision and full coverage so you can pay for damages on your end and the other drivers if you cause a wreck. If you want protection against things such as acts of God, theft, storms and collisions with something other than a car, you will probably need comprehensive car insurance. You may also need to have gap insurance coverage if there is a big difference in what the car is valued at and what you owe on the car. When your insurance company pays to replace your financed vehicle, it covers the value not what you owe. That difference is something you will have to pay on your own from out of your own pocket unless you have gap auto insurance.
  • If you have had your license revoked – It happens sometimes. You could have had some issues with DUIs, been caught driving without car insurance or, in some cases, gotten behind in paying child support. If you are deemed a “high risk” driver or have your license revoked for some other reason, you will have to get SR22 insurance. This coverage is quite a bit more, but you can still get cheaper rates by getting quotes from different carriers.

Keep in Mind

Your own average car insurance price could be more if you make the mistake of letting your policy lapse. In other words, if you do not have car insurance for a period of 30 days or more when you try to get a policy your rates will be much higher. It is always a good idea to have some basic amount of insurance such as non owners or liability to meet the state requirements and keep your rates low over time.

Of course there are other things that can impact your rates too. So be aware of certain things when you look for cheap car insurance rates such as:

  • If you can bundle your policies, you can also save money. Those who are paying for car insurance through one company, renters insurance through another and boat coverage somewhere else are probably paying too much. Bundle all those policies together, and watch the rates drop.
  • Get discounts if they are available to you. If you qualify for military insurance rates or student discounts, make sure you take advantage of them. Some companies even give discounts if you are affiliated with certain organizations or do community charity work. Whatever you may be involved with, it never hurts to ask if this could earn you a discount.
  • Be wise when it comes to how you pay. Make your payments every year instead of every month and you can find much better deals on premiums. If you set up your payments to be made automatically instead of getting billed, you can also save a good deal of money.
  • The deductible is another big contributor that determines what you pay. Although drivers like a smaller deductible because they don’t have to come up with much money out of pocket in the event of an accident, this can add a good amount to your premiums. Keep your car insurance rates low by taking a deductible that is not too high or too low.

Be a Savvy Insured Driver

Although it is always better to lean towards having too much insurance as opposed to not enough, don’t get yourself in a situation where you are paying more than you can afford for what you do not need. For instance, if your car value drops enough and it is no longer financed, you may want to drop from full coverage to liability if you have your own health insurance. If you move to a new state, update your policy to increase or decrease to what is required. Your policy provider will not automatically adjust this, so make sure you ask.

Start being informed now by getting your average car insurance price starting with just your zip code.