According to Bankrate’s study of average quoted premiums from Quadrant Information Services, drivers in the U.S. pay $1,771 annually, or around $148 per month, for full coverage auto insurance.
The average annual cost of minimum coverage is $545. Finding the best vehicle insurance for you may be facilitated by learning more about the average cost of car insurance and the elements that affect its cost.
The editorial team at Bankrate looked at a number of variables to determine the average cost of car insurance. These included the cost of auto insurance by state, insurer, and vehicle maker, as well as the age, driving history, and gender (where permitted) of the driver.
With the use of this information, you may be able to determine which car insurance companies best suit your needs in terms of price and coverage, as well as estimate the cost of an automobile insurance policy based on your location and personal characteristics.
Is a Car Insured Checker?
The Motor Insurance Database (MID) online is the quickest and most convenient way to verify auto insurance. By entering the car’s license plate and confirming that you are the owner or registered keeper of the vehicle, you can find out if your automobile is insured.
The police utilize the MID to conduct auto insurance checks since it is the only centralized database that has details about every insured vehicle’s motor insurance policy.
Keep in mind that all insurance providers must be members of the Motor Insurance Bureau when determining whether a vehicle is covered (MIB). This implies that they must include all policies in the database. The database is updated every day of the year, but if you just bought an insurance policy, your car might not show up right away. Give it a few hours to catch up.
How Much is a Car Insurance?
According to rate information for 2022, the average cost of cost insurance for full coverage is $1,771 per year. However, because there are more than a dozen different rating elements that go into determining vehicle insurance prices, each driver’s real cost will vary.
Car Insurance Calculator
An online tool known as a car insurance calculator is used to estimate how much a car insurance policy’s premium will cost. It enables you to determine the actual premium that you would have to pay for several auto insurance policies, assisting you in choosing the ideal option inside your means.
All that is required to determine the premium amount is information about your car, such as its age, make, model, fuel type, etc.
You may evaluate various plans to see if they satisfy your coverage needs and your budget with the help of a car insurance premium calculator. All consumers of auto insurance are welcome to utilize this tool because it is free.
How to Use Car Insurance Calculator Online
- Choose the make and model, brand, fuel type, and version of your vehicle.
- Choose your car’s registered location from the list.
- Choose the year the car was purchased.
- You now have two choices: Yes or No.
- Pick Yes if you filed any claims in the prior year; otherwise, select No.
- After completing this process, you will need to input your name and mobile number.
- Your cell phone will receive an OTP, which you must input to obtain the cost estimates for your auto insurance coverage.
Is a Car Insured or the Driver?
Contrary to what many people think, car insurance usually follows the vehicle rather than the driver. Depending on the coverages in your policy, your insurance company might be obligated to pay the claim if you let someone else drive your car and they are involved in an accident.
The claim would appear on your insurance history and potentially have an impact on future auto insurance prices.
However, when deciding whose auto insurance will be used if someone else drives your car and is involved in an accident, a variety of circumstances may be at play.
Average Car Insurance Per Month by Age and State
Average Car Insurance Per Month by Age
When you receive your driver’s license as a teen, your auto insurance costs are high. When you keep up good driving habits, they usually go down as you become older. The average cost of car insurance can increase a little bit once you retire. Rates for elderly drivers in their 80s increase a little bit once more.
The likelihood of an accident is highest among newly licensed drivers. Teenagers are 50% more likely to crash than those between the ages of 18 and 19.
Below is a chart that compares crash data and yearly average car insurance rates by age.
Check out: 15 Cheapest Car Insurance For Young Drivers
| Age group | Crashes per 100 million miles driven | Fatal crashes | Average monthly premium |
|---|---|---|---|
| 16-17 | 1,432 | 3.75 | $508 |
| 18-19 | 730 | 2.47 | $361 |
| 20-24 | 572 | 2.15 | $196 |
| 25-29 | 526 | 1.99 | $134 |
| 30-39 | 328 | 1.20 | $121 |
| 40-49 | 314 | 1.12 | $116 |
| 50-59 | 315 | 1.25 | $108 |
| 60-69 | 241 | 1.04 | $110 |
| 70-79 | 301 | 1.79 | $130 |
| 80+ | 432 | 3.85 | $237 |
The greatest vehicle insurance prices can typically be found for drivers who are in their middle years, between the ages of 30 and 65. Drivers may begin to face eyesight and cognitive issues as they grow older, which is crucial for driving safety.
The National Highway Traffic Safety Administration reports that 85-year-old males had a 40% higher accident risk than men who are 75 years old.
You can see from the table above that the average insurance premium for a certain age group and the crash rate for that age group are directly correlated. Additionally, you can see that the fatal crash rate for drivers over the age of 80 is approximately identical to the rate for drivers between the ages of 16 and 17.
| Car Insurance company | Monthly rate estimate for 24 year olds | Monthly rate estimate for 35 year olds |
|---|---|---|
| USAA | $119 | $84 |
| State Farm | $147 | $112 |
| Geico | $136 | $113 |
| Progressive | $169 | $116 |
| Nationwide | $191 | $128 |
| Travelers | $159 | $135 |
| Farmers | $20 | $169 |
| Allstate | $247 | $203 |
Average car Insurance Cost Per Month by State
The company that provides the lowest vehicle insurance in one state could not provide the cheapest coverage in your state because auto coverage costs vary so much from state to state. You may find the least expensive supplier in each state as well as an estimated annual fee in the table below.
These rates are based on 35-year-old drivers with excellent credit and driving records.
| State | Average Monthly Cost | Cheapest provider | Cheapest provider monthly cost |
|---|---|---|---|
| Alabama | $121 | USAA | $67 |
| Alaska | $108 | USAA | $74 |
| Arizona | $135 | Geico | $92 |
| Arkansas | $121 | USAA | $72 |
| California | $195 | USAA | $119 |
| Colorado | $139 | USAA | $89 |
| Connecticut | $157 | Geico | $81 |
| Delaware | $160 | State Farm | $92 |
| Washington DC. | $149 | USAA | $67 |
| Florida | $241 | Geico | $130 |
| Georgia | $129 | USAA | $92 |
| Hawaii | $103 | Geico | $71 |
| Idaho | $91 | USAA | $55 |
| Illinois | $123 | Country Financial | $87 |
| Indiana | $91 | USAA | $58 |
| Iowa | $91 | State Farm | $62 |
| Kansas | $114 | USAA | $65 |
| Kentucky | $151 | eico | $77 |
| Louisiana | $319 | Farm Beaureu | $124 |
| Maine | $83 | Auto Owners | $45 |
| Maryland | $162 | USAA | $70 |
| Massachusetts | $214 | Geico | $132 |
| Michigan | $366 | Progressive | $140 |
| Minnesota | $124 | USAA | $79 |
| Mississippi | $113 | USAA | $69 |
| Missouri | $145 | USAA | $60 |
| Montana | $185 | USAA | $68 |
| Nebraska | $114 | Nationwide | $77 |
| Nevada | $194 | USAA | $113 |
| New Hemisphere | $84 | Auto Owners | $50 |
| New Jersey | $176 | Progressive | $111 |
| New Mexico | $113 | USAA | $73 |
| New York | $330 | Progressive | $109 |
| North Carolina | $107 | Erie Insurance | $77 |
| North Dakota | $109 | USAA | $56 |
| Ohio | $77 | USAA | $55 |
| Oklahoma | $136 | USAA | $74 |
| Oregon | $107 | State Farm | $80 |
| Pennsylvania | $117 | Geico | $95 |
| Rhode Island | $160 | USAA | $88 |
| South Carolina | $133 | USAA | $85 |
| South Dakota | $111 | Nationwide | $81 |
| Tennessee | $101 | USAA | $63 |
| Texas | $172 | Texas Far Bureau | $84 |
| Utah | $121 | USAA | $73 |
| Vermont | $84 | USAA | $65 |
| Virginia | $90 | USAA | $65 |
| Washington | $106 | USAA | $63 |
| West Virginia | $116 | USAA | $75 |
| Wisconsin | $79 | USAA | $50 |
| Wyoming | $125 | American National | $67 |
The average cost of car insurance varies significantly per state, as you can see. Car insurance is the largest expense for Michigan drivers, while Idaho residents pay the least. Just keep in mind that they are averages.
Average Car Insurance Rates by Age and Gender
Your insurance provider will evaluate your degree of risk and determine your rate when you get a vehicle insurance quote. These include, but are not limited to, age and gender. Your rate may also be impacted by the state in which you reside, your driving history, credit score, claim history, and the types of coverage you select.
In general, young drivers can anticipate paying higher rates than older drivers, and prices for auto insurance begin to rise once more around the age of 70. Men are more expensive to insure than women due to accident trends and data and frequently pay higher rates.
Age as a rating component is prohibited in Hawaii and Massachusetts, and gender as a rating factor is prohibited in California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.
The average annual rates for male and female drivers over a range of ages are shown in the table below:
| Age | Average rates for males | Average rates for females |
|---|---|---|
| 16-year-old | $2,783 | $2,280 |
| 17-year-old | $2,612 | $2,141 |
| 18-year-old | $5,650 | $4,844 |
| 19-year-old | $4,487 | $3,807 |
| 20-year-old | $4,098 | $3,492 |
| 21-year-old | $3,166 | $2,769 |
| 22-year-old | $2,913 | $2,578 |
| 23-year-old | $2,733 | $2,446 |
| 24-year-old | $2,590 | $2,332 |
| 25-year-old | $2,183 | $2,038 |
| 30-year-old | $1,869 | $1,832 |
| 35-year-old | $1,813 | $1,790 |
| 40-year-old | $1,648 | $1,701 |
| 50-year-old | $1,601 | $1,591 |
| 60-year-old | $1,552 | $1,537 |
| 70-year-old | $1,701 | $1,670 |
The increased expense of their parents’ full-coverage care insurance policy is reflected in the 16- and 17-year-old rates.
How Much is Car Insurance for a 16-year-old?
The average cost of car insurance for a 16-year-old is $400 per month, but these expenses can increase significantly based on where you reside and the type of vehicle the adolescent will be driving. The heightened danger that teenage drivers provide to insurance companies is the reason why teen drivers’ auto insurance rates are so high.
How Much is a Car Insurance for a 18-year-old?
Most 18-year-old drivers have two years of driving experience, which starts to pay off in lower auto insurance rates. For full coverage, the typical auto insurance cost for an 18-year-old on their own policy is $5,565 per year, or $464 per month.
This premium is $3,883 more expensive than the $1,682 national average for drivers under 40. However, the rate for 18-year-old drivers is much less expensive than the rates for 16- and 17-year-old drivers ($6,272 year and $523 monthly).
According to Carole Walker, executive director of the Rocky Mountain Insurance Information Association, car insurance premiums are projected to decrease as drivers get more experience and enhance their performance while operating a vehicle.
“While teen drivers will still pay more for auto insurance even if they have a spotless driving record, avoiding accidents and tickets can help them keep their insurance premiums lower,” the author asserts.
According to the Centers for Disease Control & Prevention, teen drivers 16 to 19 are nearly three times more likely to be in a fatal collision per mile traveled than drivers 20 or older, making them the age group with the highest risk of car crashes.
How Much is a Car Insurance for a 21-year-old?
The typical cost of car insurance for a driver under the age of 21 is approximately $1,500, which is nearly $1,000 more than the national average.
The average cost of living will be high for those under the age of 25. In actuality, those under the age of 21 pay a higher rate than nearly everyone in their early 20s. However, the cost of insurance will be significantly higher for those under 21 than for those over 21.
Benefits of Car Insurance
Although third-party insurance is frequently less expensive, comprehensive insurance protects you in a larger variety of circumstances, some of which you’ve probably never ever considered.
There may seem to be a lot to understand when it comes to auto insurance. Here are a few considerations to bear in mind when you choose the level of cover that is best for you.
If your vehicle is registered, you are already covered by third-party mandatory insurance (also known as CTP, or green slip insurance). If you cause an accident and damage someone, it protects you against compensation claims.
However, CTP does not provide coverage for loss or damage to your own or someone else’s vehicle. You might want to think about getting additional insurance before you get on the road to cover any property damage brought on by an accident.
If you purchase third-party property damage insurance, you will be financially shielded if you cause damage to another person’s vehicle and are required to pay the bill. The same coverage as third-party property damage is offered by third-party property, fire, and theft, but with added security against the loss or destruction of your car as a result of fire and theft.
However, comprehensive car insurance is what you need if you want to cover your vehicle against more risks in life. What exactly is covered by it, and why should you give it some thought? These are its five main benefits:
Damage or loss to the insured vehicle
You are covered if your car is damaged in a collision, a fire, or by self-ignition. Additionally, your insurance policy covers losses caused by terrorism, strikes, rioting, burglary, or theft of the vehicle. The fact that car insurance covers loss or damage when being transported by rail, inland waterways, air, road, or lift is an additional perk.
Personal accident cover
A further benefit of auto insurance is that it provides personal accident coverage for a certain sum. Protection against accidental death and permanent complete disability is offered by personal accident insurance.
Additionally, this coverage can be added to the auto insurance policy for nameless passengers (up to the maximum number allowed by the vehicle’s seating capacity).
Large network of garages
Across the nation, HDFC ERGO Car Insurance operates a sizable garage network. This guarantees that should the need arise, you will access cashless services at each of these sites. If your car sustains damage, this feature makes it simple to obtain repair services.
Third-party liabilities
Your vehicle is covered by auto insurance if it is involved in an accident that causes loss or damage to the property of any third parties. Additionally, your auto insurance shields you from any obligations you may incur in the event of a third party’s death or physical injury.
No claim bonus
The no-claim bonus is a significant benefit of having vehicle insurance (NCB). The customer is qualified for this benefit each year without a claim. This might be offered as a discount on the rate, which would further lower the cost of auto insurance.
Conclusion
Keep in mind that the average cost of car insurance prices can vary greatly depending on some variables, including the driver, the vehicle, and more.
References
- https://www.uswitch.com – is a car insured checker
- https://sbaccounting.com.ng – how much is a car insurance
- https://www.policybazaar.com – car insurance calculator
- https://www.allstate.com – is a car insured or the driver?
- https://www.motor1.com
- https://www.bankrate.com – average car insurance rates by age and gender
- https://www.thetruthaboutinsurance.com
- https://www.carinsurance.com – how much is car insurance for an 18-year-old?
- https://www.usinsuranceagents.com
- https://www.hdfcergo.com – benefits of car insurance
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