The Ultimate Guide for Monthly Car Insurance Costs.
According to WalletHub, the Monthly Car Insurance Costs for drivers with minimum coverage with a clean driving record is $671 annually. Rates may vary depending on factors like driving history, age, vehicle type and credit rating.
What Is the Monthly Car Insurance Costs?
There is no single answer to the question, “What’s the average monthly cost of car insurance?” The average monthly cost of car insurance depends on many factors.
- Driver History.
- Type of vehicle.
- The average number of miles driven per year.
- Limits on coverage.
- Taxable amounts.
The rates charged by insurance companies are unique to each client because they consider these factors differently. Your car insurance premiums will be affected by the amount of coverage you select.
Average cost of car insurance by state
Several factors impact how much you’ll pay for car insurance, including your location:
- Individual states set their own minimum requirements for car insurance policies, which can impact your final cost.
- The cost of living varies dramatically across the country, which can increase or decrease local insurance costs compared to the national average.
- Some states are more densely populated or have more accidents, which can yield higher insurance premiums.
What are the lowest-priced car insurance companies?
In our analysis of car insurance rates, we compared the premiums charged by some of America’s best auto insurers.
Below are the average auto insurance quotes from some of America’s best car insurers. Your individual rate will depend on your driving record.
USAA
USAA has the lowest rates on car insurance, with monthly rates as low as $114 or $683 for six-month policies. USAA, however, is not available to all since it’s designed for military personnel and their families.
National
Nationwide provides the second cheapest coverage at $123 per month ($738 for 6 months).
GEICO
GEICO is another option that offers affordable rates. The average monthly rate for car insurance is $129, or $771 if you purchase a 6-month policy.
Based on our profile, USAA is the cheapest among the companies surveyed. Nationwide was the second cheapest.
You may not see your exact rate in our profile, but you can still use the data to compare rates from different car insurance companies.
The average cost of car insurance by coverage level
The auto policy typically includes $500 deductibles for collision, comprehensive, and bodily injury coverage. You may be required to have gap coverage if you are leasing or financing your car.
We have grouped levels of coverage into categories such as best, good and minimum. Also, we have included the average premiums for a 6-month policy from top insurance companies. See more details per coverage tier:
Best
Full coverage includes liability limits of 100/300/100 and a $500 deductible. Our customers choose the highest level of coverage in 16% of cases.
Good
Full coverage with liability limits of 50/100/50 and a $1,000 deductible. This level of coverage is chosen by 30% of our clients.
Minimum
State minimum only liability coverage, no comprehensive or collision coverage. The Zebra customers choose the minimum coverage level.
USAA is the cheapest car insurer at every level of coverage. However, Nationwide and GEICO can be good alternatives if you do not qualify for USAA insurance.
USAA’s auto insurance is available only to USAA members. You can see the average rates for each coverage level by reading on.
Cost of car insurance after an accident at the fault
Average car insurance rates for a driver at fault after an accident are:
- Full coverage costs $3,164 a year.
- Minimum coverage is $1,044 per annum.
According to NerdWallet, the average car insurance price for someone in an accident is about 50% more than it would be for someone who’s not.
Rate increases are between 30% and 60% in different states. Massachusetts and Texas, however, are notable exceptions.
Rates in these states increase by an average of 88% after an accident. In Texas, this translates into an additional $1,668 per year in premiums for car insurance; in Massachusetts, it’s about $1,224.
The amount of your rate increase will also depend on the severity and whether or not you have accident forgiveness in your policy, as well as any “good-driver” discounts that you may lose.
Our hypothetical accident resulted in only $10,000 in property damage, and there were no injuries. Medical costs from accidents can be high and increase rates.
After an accident, finding the lowest-priced insurer is crucial because every company sets prices differently based on factors such as the crash.
Our analysis showed that American families increased car insurance rates on average by 27% after a crash. In contrast, rates at Geico rose by 60%.
Average Cost of Car Insurance by Age
As you get older, your car insurance rates will start to drop. You are no longer a novice driver. Suppose you maintain a clean driving record without accidents or tickets.
In that case, you should see your insurance rates decrease as you age until you reach your early 60s or late 70s.
Insurance rates for cars decrease from 18 years old up to 60. Generally, drivers aged 30 to 60 pay 64% less on average for auto insurance.
At 60, the cost of coverage is about 13% lower than it was at 30. As you reach your 70s, rates begin to rise again and continue to increase as you approach your 80s.
Car insurance companies believe seniors are more likely to be involved in accidents because they have experience, but their reaction times can also decrease.
The average cost of car insurance for teens
Insuring teen drivers is expensive because they are less experienced and have more accidents. It is important to find the cheapest car insurance for teens.
Average car insurance rates for 16-year-old drivers with their own policy are $8,765 annually. The average rate for 17-year-olds is $6,829 per year. This is about 22% less than what 16-year-olds pay.
Add them to your insurance policy to get the best deal. It can still double the cost of auto insurance for parents.
Our analysis showed that adding a 16-year-old driver to a parent’s policy would increase the rates by 82% on average. The cost of the parent’s policy increased from $2,948 a year to $5,367. This is a $2 419 increase.
Car Insurance Cost by Vehicle Type
Your car’s type is a major factor in determining your insurance rate. How much you pay for car insurance is affected by the cost of repairs and parts, the likelihood of an accident and the vehicle’s safety features. Insuring certain types of cars can be expensive.
- Large SUVs Due to their size and ability to carry more passengers, these vehicles are often more likely to cause damage and injury during an accident.
- Sports Cars: Vehicles designed for speed and performance have a higher accident risk. The cost of replacement parts for sports cars is also higher.
- High-end Luxury Cars: Replacement parts for luxury cars are more expensive than those for everyday vehicles. Insurance premiums are also higher due to the high cost of purchase.
- Electric and hybrid vehicles: The parts and labor costs for these vehicles are high, so you will pay more for policies that cover them.
Standard-sized cars that have modern safety features and are more affordable tend to be the most affordable.
Some insurers will even discount you if your car has anti-lock breaks, anti-theft and passive restraints systems.
Conclusion:
Calculating the Monthly Car Insurance Costs doesn’t need to be difficult. This guide will help you determine the amount of coverage you require and which policy best fits your budget.
The type of car you drive, your age, your driving record, and other factors will all affect the premiums you pay. Compare quotes to find the best rate for your needs. Anyone can find a great car insurance policy with patience and the right research.
