What is average car insurance?

Buzz & List 6/10/2017, 19:03

What is the average car insurance: Do you need auto insurance and you wonder how much you should expect to pay? According to the most recent report by the National Association of Insurance Commissioners (NAICS) on auto insurance (source), the average amount spent on auto insurance in the United States was $ 866. However, this average can fluctuate considerably depending on several factors such as where you live and your driving record.

Here’s a glimpse of what will influence the auto insurance rate you can get and tips on how you can find the best deal.

Factors That Influence Your Auto Insurance Rate

1. Where do you live?

While the national average is $ 866, you may find that your average is significantly higher or lower than the average, as you can see in the average the Institute of Insurance Information (III).

Why do the rates vary? One reason is that the required coverage differs depending on the state. You will find that most states require:

Personal Injury Insurance (BI) that provides coverage when you are legally responsible for an accident and that people get injured. He pays the costs associated with the injuries and a legal defense if necessary.

Liability Insurance (PD Liab) provides coverage when you are legally liable for an accident and the property of the other person is damaged. It covers the cost of repair or replacement.

Minimum cover combos

However, there are some variables in which one or both of the above coverage types are not required and one or more of the following are:

Injury Protection (PIP) provides coverage for medical expenses if you are injured in an accident.

Uninsured motorist (UM) provides you with coverage if you are in an accident caused by a driver who does not have insurance.

The Underfinanced Motorist (UIM) provides coverage if you are in an accident caused by a driver who has insurance but not enough to pay the damage.

The financial liability coverage (FR) requires you to prove that you have the money available to pay for the damage if you cause a car accident.

In addition to coverage requirements, the minimum liability limits also vary by state. For example, according to the Insurance Information Institute, both Alabama and Arkansas require liability insurance for bodily injury and property damage. However, Alabama requires a minimum of $ 25,000 for per person coverage, $ 50,000 per accident and $ 25,000 for property damage, while Arkansas requires a minimum coverage of $ 50,000 per person, $ 100,000 per accident coverage and $ 25,000 property damage liability.

In addition, your auto insurance rate can change simply by transferring the postal codes. Factors in an area such as accident rate and property crime, presence of wildlife and weather can increase the risk, resulting in higher rates, according to insurance provider Esurance. As a general rule, when you apply, auto insurance providers will ask you to be able to present the rates and requirements that apply to you.

2. Coverage you choose

If you want to get more insurance than your state, such as comprehensive insurance and collision (also known as full coverage), your costs will increase.

Often, full coverage is required if you rent or finance your vehicle. It covers your property (vehicle) and medical expenses in the event that an accident is your fault, as well as if your vehicle is damaged due to a cause that is not your fault; like a fire or a branch of a falling tree.

In addition to the type of coverage you choose, the limits you choose will also affect your rate. The higher the limits, the more expensive your premium will be.

3. Your deductible

Another factor that plays in the cost of your insurance rate is the deductible you select. Many insurance providers have different levels of deductibles that you can choose from. The higher your deductible, the lower your premium. However, before you sign up for a deductible of $ 1,000 instead of $ 200, determine if you can afford it if the time has come to file a claim.

It is good to consider the franchise / premium options and weigh the advantages and disadvantages. See if the higher deductible will likely save you money in the long run. Maybe you make sure you are, and you are a good driver. In this case, it would not be too risky to choose the higher deductible and reserve money in an emergency fund. On the other hand, if you assure your teenager who turned 16, the lower deductible will probably make more sense.

4. Demographics

Your gender and age will affect the rate you pay, according to the Insurance Information Institute (III). The more drivers there are, the less experience there is and the more likely it is that there will be an accident. It was also found that men had more accidents than women.

5. Your credit

Second, credit is considered a statistically significant factor in the extent to which a person can file an application for automobile insurance, according to the Institute of Insurance Information. As a result, companies often draw your credit report and take into account their decision as to the distribution of your rate. This is yet another reason to work towards building your credit.

6. Your car

Your car will be a factor, of course. There are many considerations that auto insurers need to consider, including how much will cost your car repair, safety, amount of damage inflicted on another car and the likelihood of being stolen. Allstate, for example, offers discounts if your car has airbags, anti-lock brakes, engine shutdown system and anti-theft system. You can sometimes get discounts for hybrid vehicles, those that work with alternative fuel and new cars.

7. How much you drive

The more you drive, the more likely you are to present to an insurer and the higher your cost will be. Therefore, if you work from home and use your car for shopping, you will pay less than the person who spends three hours each day.

8. Driving History

Your driving record will also be considered because it is among the best predictors of how you will drive in the future. If you have a clear driving record, you will surely save more on your rate than someone who has accidents and tickets because you have less risk.

9. Linking Your Insurance

It is worth looking at the other types of insurance you have because you may qualify for a discount if you get more than one type of insurance through the same provider. Beyond that, you can get a discount to put multiple vehicles on one policy.

Other discounts

With discounts to bundle your insurance and have a car with safety features, many insurance providers offer other discounts as well. The most frequent among these are discounts for teenagers taking safety courses for drivers or students who have good grades (which usually means Bs or better). Other examples include discounts for membership in certain occupational groups, membership in a car club or low-risk activity.

10. The company you choose

Finally, the rate of auto insurance that you can get will vary from one supplier to another, so it is very important to make your purchases. Here is a comprehensive guide to getting the best auto insurance rates that can help you in the process.
You will want to look for a company that gives you the highest value for the lowest cost. You also want to examine past customer satisfaction of a company, how long it has been in business, how much it has in assets and its car insurance quotes, discount programs and loyalty programs.
SuperMoney has reviewed dozens of insurance providers and these three are highly recommended.


Allstate is a leading insurance provider in the industry with good reviews, a variety of insurance products and high levels of customer satisfaction. It offers discounts for retirees, students, pilots with clean records and clients with multiple policies.

Liberty Mutual

Liberty Mutual is a well respected company with a wide range of insurance offers, competitive rates and a variety of discounts.


Esurance is a company backed by Allstate which was one of the first to sell car insurance online. It offers a range of insurance products in addition to auto insurance and is a trusted brand with a good reputation.

What is the average car insurance? Find Your Best Auto Insurance Rates.

Average car insurance: Ready to buy the best auto insurance rates? Go to our Car Insurance Evaluation page for a list of suppliers, their offers and their customer ratings on their service. Get quotes, compare offers and find the best price.

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