how much does car insurance cost

how much does car insurance cost

How Much Does Car Insurance Cost

How Uninsured and Underinsured Drivers Impact Car Insurance Prices Motorists with little or no auto insurance are a leading cause of increased premiums. Although minimum liability insurance is required in each state, some drivers buy the insurance only to meet the requirement and then cancel or default on the policy. Areas that have a higher rate of uninsured and underinsured drivers typically have higher rates. In a car accident, the driver responsible must pay for the damages. For example, if a driver rear-ends you at an intersection, that driver must cover the costs of damages and any injuries. If the driver has liability insurance, the driver’s insurance company pays for the damage. If the driver responsible for causing the accident does not have insurance, or it is a “hit and run” situation, your insurance company pays for your medical treatment and the repairs to your vehicle, with some dependence on whether and how much uninsured/underinsured motorist insurance you carry. Since your insurance company is more likely to pay unnecessary costs in areas where motorists tend to go uninsured, the monthly auto insurance premium in these areas is typically higher. Car Insurance Rates by Age and Experience Age equals experience in the eyes of insurers. Younger motorists are considered a high-risk demographic. According to the Centers for Disease Control, drivers between the ages of 15 and 19 are four times more likely to crash. Sadly, fatal accidents account for one-third of all teenage deaths. While these statistics can have a dramatic effect on how insurance companies determine rates by age of the driver, there are a number of measures teen drivers can take to reduce their cost of car insurance. Car Insurance Cost Reduction Tips for Teens Get your license as early as possible, even if you won’t be driving yet Maintain an excellent driving record Maintain good grades in school The more time that passes from the day your license was issued, the better for your monthly auto insurance costs. Even if you do not plan to drive alone until you are out of the high risk zone, it is a good idea to get your license as soon as you can to get distance from that “just licensed” period. How Experience and Driving Record Impact Car Insurance Cost When estimating your car insurance, a provider will look into your history as a motorist. If you have a history of traffic accidents and citations, your rate will be higher. Insurance companies view drivers with more traffic violations as statistically more likely to be in an accident. Maintaining a violation-free driving record can dramatically enhance your driver profile and result in lower auto insurance premiums. The time frame to remain free of violations will vary by insurance company, but is typically three to five years. Different Insurance Rates for Different Cars The type of car you drive is a key factor in your estimated car insurance rate. Whether you drive a muscle car with a lot of horsepower or a low-profile car that is cheap to repair and rarely stolen will make a significant difference in your car insurance rates. And compared to a used minivan, a new Italian sports car will need more expensive repairs in the event of an accident. Theft is a big factor in insurance rates as well. Each year the National Insurance Crime Bureau looks at auto theft reports from across the country to determine the most frequently stolen vehicles. The results are published in an annual report, which providers take into consideration when they create car insurance estimates. To find out more about how these factors affect your car insurance price, talk to an independent agent in the Trusted Choice network. These agents live and work in your neighborhood, so they know what risks you face on the road. Your local member agent will help you find the best car insurance for your needs and budget.
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How Much Does Car Insurance Cost

Data from various states’ Departments of Insurance show that annual car insurance premiums are on the rise in the majority of states across the nation. The average cost of insurance for car owners of insuring their vehicles from accidents and other events has generally increased, with the exceptions of Arkansas, Georgia, North Carolina, and Virginia, who all saw their car insurance premiums drop between 1% and 5% in the last year. These quotes for automobile insurance in select states across the country should give you a ballpark estimate for average annual car insurance.
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How Much Does Car Insurance Cost

How much does car insurance cost? The price of car insurance depends on many factors, including your age and experience as a driver, your credit record and whether you are married and own a home. However, you can still get an idea of the average car insurance rates you can expect to pay. To get a free auto insurance quote, simply find an agent in the Trusted Choice® network. Your agent can help you get accurate, no-obligation quotes and find any discounts for which you may qualify.
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How Much Does Car Insurance Cost

Home insurance is designed to cover homeowners in the event of any unforeseen catastrophe that damages their home. The average cost of home insurance will be influenced primarily by the location of your residential property and the extent of your insurance coverage. Several types of home insurance are common or typical to specific regions or locales, such as damage to floodwaters, hurricanes, earthquakes, etc. As a general rule, the Federal Reserve Bureau says you can estimate the expense of homeowners insurance by dividing the value of your home by 1,000 and then multiplying that number by $3.50. Using average home price data from AARP, here are some typical annual homeowners insurance prices from around the country, ValuePenguin has constructed a table for your reference.
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How Much Does Car Insurance Cost

Insurance companies providing pet health coverage factor in the geographical region your pet lives in when determining quotes for your premium. In a 2014 survey of the market, ValuePenguin found that on average, medical insurance prices for pooches in urban households could be 20 – 40% higher than quotes for the same dog living in a smaller town or different geography. The above table has estimated monthly cost of veterinary insurance for a two-year old Yorkshire Terrier, averaged across the expected monthly premiums of the different plans at several major pet insurance providers. To compare across different insurance policies for your pet, use ValuePenguin’s pet insurance comparison tool here.
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How Much Does Car Insurance Cost

As stated earlier, when you use average car insurance rates to help with your car insurance shopping, you should keep in mind that several factors go into your specific rate. Your car insurance policy may not reflect the national or your state’s average car insurance rates.
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How much does car insurance cost? The price of car insurance depends on many factors, including your age and experience as a driver, your credit record and whether you are married and own a home. However, you can still get an idea of the average car insurance rates you can expect to pay.
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Determining how much your auto insurance will, or should, cost is complicated. Insurance companies use your driving history, age, gender, location, how much you drive and other factors when setting car insurance rates, and quotes can swing wildly from one provider to the next. Your rate also hinges on how much coverage you buy.
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If you own a car, the chances are extremely high that you need car insurance not only to provide you with financial protection, but also to comply with your state’s laws.With so many options to choose from for your car insurance, it can help you choose your provider and policy to know what other drivers are paying for their policies. We’ll review some typical auto insurance rates for several different areas across the country.
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Location also has a huge impact on your car insurance rates. State laws that regulate car insurance can have a big effect. Michigan, the most expensive state for car insurance premiums according to Insure.com, tops the list because residents get unlimited lifetime personal injury protection for medical expenses resulting from crashes. Montana comes in second, in part because crash fatality rates are very high, and insurers think driver safety laws are too lax.
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Car insurance is pricey but unavoidable. What you pay depends on your age, your gender, your car, and even your job. Learn more about the factors affecting the cost of car insurance.
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How much is car insurance going to cost you? It’s not an easy question to answer. The quote you receive could be painfully high or comfortably low based on a number of different factors. But for what it’s worth, the average amount spent to insure a car in the U.S. was $815 a year in 2012, according to the National Association of Insurance Commissioners.
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When you start shopping for car insurance, the cost can be shocking. Those premiums can put a major dent in your monthly budget, especially if you have factors that raise your car insurance costs above average.
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If you’re one of the millions of Americans who have forgone buying a house in exchange for renting a place, you may want to consider renters insurance as a way to protect your personal belongings. Renters insurance protects your studio, walk-up apartment, or elevator apartment against events such as destruction of property from fire, vandalism, and theft. Looking at some of the average costs of renters insurance in our four representative states, ValuePenguin thinks the monthly premium is cheap enough and worth the peace of mind knowing you can at least recover the cost of any lost or damaged items.

Published on May 17, 2017 | Under Car | By michael ellis
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