When researching average car insurance rates, whether you’re trying to get insurance for the first time, or find a better deal, you’ll find that the numbers you’ll see are different depending on many variables.
- Driving History
Perhaps one of the most important factors that auto insurers use when calculating auto insurance rates is the driver’s history behind the wheel. New drivers, especially those that are young and/or under the age of 21, will find their rates much higher than experience drivers.
However, even experienced drivers, should their record be spoiled with accidents or tickets, will find their rates adjusted accordingly. In other words, the best way to keep your rates low is to avoid trouble.
- Type of Car
The type of car you drive will have a big impact on your rates, mostly because it costs more to repair expensive luxury cars, SUV’s, and premium automobiles than it does to repair older, more established and cheaper models. Part of the reason for this is because of parts availability, as new cars often haven’t been on the market long enough to establish an aftermarket parts market, which is where insurers like to buy parts.
To keep your average auto insurance rates low, consider buying a used vehicle – an economy model is even better.
- Location
Some states and cities have higher crime, accident, and fraud rates, which is why you’ll see the average car insurance rates vary tremendously across each part of the country. In Florida, for example, rates are much higher than they are in the midwest. The same is true of California, where driving is much more expensive than in most parts of the United States.
There’s not much you can do to fix this one, other than comparison shop to the best of your abilities. It’s not uncommon to see a single auto insurance provider feature much lower rates than its competition in certain parts of the country. A perfect example of this is once again in Florida, where USAA is nearly twice as expensive as Geico.
- Credit Rating
Oddly enough, your credit rating also has an impact on the price you will pay for auto insurance. Insurers believe that responsible credit management might indicate responsible driving, and furthermore, will indicate a driver that won’t stiff them on insurance payments. To keep your auto insurance rates as low as possible, try to keep your credit score up and make sure to pay your bills on time.
The average price of car insurance will vary by driver, and by insurance company, so there’s no way to predict what you’ll pay outside of getting a few quotes and seeing where you stand. Some drivers pay as little as $50 per month, while others pay ten times that.
One sure way to have high rates is to get a DUI. In fact, many insurance companies cancel policies of drivers that engage in dangerous behavior, so try to avoid these offenses at all costs. To be safe, drive safe.
