How much is car insurance per month?
Car insurance quotes can change vastly from one car insurance company to another so how do you understand how much car insurance is per month before buying a car? Sadly, this question is more commonly asked after drivers purchase a vehicle than before.
Car insurance rates depend on a number of factors. Some of these variables are tied to your personal profile (such as your credit score and driving record), others are based on the type of vehicle insured while others are outside of your control (such as where you live). The cost of car insurance will depend on which car insurance company is providing the quote, how much car insurance you need and the cumulative risk associated with your overall profile.
How much is car insurance per month on average?
Before looking at average car insurance rates its important to define a few things. The 4 most important variables which have the biggest influence on your car insurance rates are where you live, the type of vehicle insured, your driving record and the type of car insurance purchased.
Where you live is very important as each state has their own set of car insurance requirements and laws which help car insurance companies assess risk. If you live in a state where laws are unfavorable to car insurance companies (such as Louisiana or Michigan) you will certainly pay more. Even if you live in an area with a high risk of auto theft there will also be a higher risk value assessed. While most states fall within a reasonable range of the national average car insurance rates some can exceed 20% higher or lower simply due to factors having nothing to do with you or the type of vehicle insured.
The type of vehicle insured plays a significant role in car insurance rates since the more expensive a car is the higher the replacement cost. Car insurance companies also pay a lot of attention to vehicle safety records, vehicle safety features and anti-theft devices. Any kind of factory installed equipment or top ratings from respected vehicle safety testing agencies will often lower your car insurance rates.
Your driving record is also very important since the car insurance company is insuring not just the vehicle but also you. Drivers who have a prior accident history or convictions of failing to comply with traffic laws obviously pose a higher risk. Even young drivers can often find themselves with very expensive car insurance rates due to the risk associated with inexperience behind the wheel of a car.
How much car insurance you need is a critical component of pricing car insurance. Drivers who choose less coverage are obviously exposing a car insurance company to lower risk and drivers who opt for full coverage car insurance pay more for the additional coverage. This part of car insurance is no different than almost any purchase.
How much does car insurance cost per month?
Even with understanding the variables above its impossible to define car insurance quotes for any individual driver without assessing their complete profile and this is why car insurance comparison is so important. Every car insurance company has a different formula for assessing risk and the only way to find the best car insurance rates is to speak with multiple providers. However, there are average car insurance rates posted by a number of sources which can help you get a ballpark figure of what to expect to pay for car insurance. Drivers in Louisiana for example pay an average of $2,510 a year in car insurance while drivers in Florida, New York and Jersey pay around $1,450 in car insurance premiums annually. You can view a chart of average car insurance rates by state here as it’s important to understand the average cost of car insurance as a backdrop to compare quotes by.
What is the National Average Cost of Car Insurance?
The national average cost of cost car insurance is estimated to be around $1,430 however this statistic has almost no relevancy to you because your car insurance is based on the average cost of auto insurance in the state you live. Unless you plan on moving the only purpose of a national average to most drivers is to gauge whether or not you live in a cheap or expensive state for car insurance. Spending much time dwelling on the cheaper cost of car insurance in another state is almost like living in Los Angeles and wishing tickets for the Lakers were priced the same as for the Denver Nuggets. Wishing will not get you anywhere but a good car insurance comparison search can certainly help you find cheaper car insurance rates.
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