The only downside is that it's usually the most expensive time to buy an auto insurance policy. Are you looking for a financial advisor? Take our 3-minute quiz and contact an advisor today. June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer drafting policies for cars, property, umbrellas, and earthquakes.
Mark Friedlander is director of corporate communications for III, a not-for-profit organization that focuses on giving consumers a better understanding of insurance. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards to ensure that is the case. Our editors and reporters thoroughly verify editorial content data to ensure that the information you are reading is accurate. We maintain a firewall between our advertisers and our editorial team.
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So, whether you're reading an article or a review, you can trust that you'll get credible and reliable information. Our experts have been helping you manage your money for more than four decades. We continuously strive to provide consumers with the expert advice and tools they need to be successful throughout their financial lives. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
The content created by our editorial team is objective, factual and not influenced by our advertisers. With inflation reaching record highs, Bankrate knows that perhaps now more than ever, the cost of your car insurance is in your head. Our editorial team includes four authorized agents, and we've drawn on our combined 47 years of real industry experience to help you better understand the average cost of auto insurance and the science behind calculating rates. To determine the average cost of car insurance, Bankrate's insurance editorial team evaluated dozens of insurance companies based on a variety of factors.
These included car insurance rates by state, insurance company, vehicle manufacturer, driving history, age and gender of the driver (when allowed), among other factors. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the steps they should take next. Our insurance team is comprised of agents, data analysts and customers like you.
They focus on the things that matter most to consumers: price, customer service, policy features and savings opportunities, so you can know for sure which provider is right for you. Drivers in Maine, Vermont, Idaho, New Hampshire and Ohio pay, on average, the lowest annual full-coverage car insurance rates in the country. Factors such as a lower cost of living, a lower likelihood of accidents and claims, and less traffic congestion could be contributing to lower average premiums in these states. According to our research, drivers in New York, Louisiana, Florida, Nevada and Michigan have the highest average annual cost of fully covered car insurance. This could be due in part to the frequent loss claims common in these states, making it riskier to insure drivers in general.
Get a quick quote to make sure you don't overpaying. Answer a few questions to learn about your payment We can't estimate your payment. The table below shows the average annual and monthly total coverage premiums of some of the country's largest auto insurance companies by market share. Auto insurance companies use many different scoring factors to determine your premium, and in most states, your age can significantly affect how much you pay for coverage.
Statistically speaking, younger drivers and older people are more likely to be involved in an accident, so these groups tend to pay the most for car insurance. The table below shows the average cost of car insurance for various age groups. It's important to note that your age won't affect your premium if you live in Hawaii or Massachusetts, as state regulations prohibit auto insurers from using age as a qualifying factor. Gender also affects your cousin in most states. Insurance for men is generally more expensive than for women.
This is because, according to the Insurance Information Institute (Triple-I), men tend to have riskier driving behaviors than women and have a higher rate of accident severity. However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina, or Pennsylvania, your gender doesn't affect how much you pay for car insurance, as state regulations prohibit this qualification factor. The table below shows the difference in premiums that men and women can expect to pay at different ages.
Watch how the price difference between genders shrinks as people age, but starts to increase again once drivers arrive to old age. The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, the cost of labor, the statistical probability of accidents, and the safety and crash prevention features of the vehicle can influence the amount you pay for coverage. The makes and models of vehicles shown in the table below are suitable for a variety of lifestyles and budgets.
In addition to state requirements, vehicle type, age (except Hawaii and Massachusetts), driving history, and gender (in most states), there are other common qualifying factors that will influence your car insurance premium. By looking at these scoring factors, auto insurance companies can get an idea of your risk profile and what it might cost to insure it. Buying car insurance doesn't have to mean going broke; there are ways to save. Discounts are one of the best ways to lower your premium.
Most major auto insurance companies offer discounts. Here are some of the most common insurance discounts in the U.S. UU. Not all auto insurers offer homeowners insurance (or the same discounts). Talking to your insurance agent or company representative may be the best way to learn about savings opportunities.
In addition, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost very different amounts with different providers. Comparing quotes could help you find the lowest price for the coverage you need. All states have minimum coverage requirements for car insurance. This usually refers to liability for bodily injury and property damage, but some may also require personal injury protection (PIP) or coverage for uninsured drivers.
While buying minimum coverage may result in a cheaper premium, it also means that drivers can have minimal financial protection in the event of an accident. For this reason, insurance professionals generally recommend considering car insurance with full coverage. While there is no industry standard for full coverage, this usually involves higher liability limits in the event of a collision and comprehensive coverage to insure your vehicle, which your lender may require if your vehicle is leased or financed. You can also add medical payment coverage for you and the passengers of your vehicle, as well as reimbursement for towing and rental of each vehicle.
These additional types of coverage may come at an additional cost, but they offer more financial protection in several claim scenarios. While the amortization of your car is an exciting milestone, the law itself doesn't affect your car insurance premiums. However, you have more flexibility when it comes to choosing coverage options once you are the sole owner of your vehicle. When you finance a car, you usually have to purchase comprehensive and collision coverage to meet the lien creditor's requirements.
When you own your car, deciding whether to add these types of coverage is solely up to you. While canceling comprehensive and collision coverage may lower your premium, you may want to consider whether this risk is worth it. Without comprehensive and collision coverage, your insurance policy will not cover damage to your vehicle in the event of an accident or if your vehicle needs repairs due to damage caused by inclement weather, impact on an animal, theft or vandalism. If your car is only a few years old, this protection could exceed the additional premium it costs to keep it.
Before deciding to have an exclusive liability policy, you may find it helpful to consult with your agent to review your options. On average, car insurance tends to be higher for new and young drivers, and then declines steadily in each consecutive age group. However, while this is a visible trend as a whole, it doesn't mean that your car insurance is going to decrease every year. On the contrary, since car insurance rates are based on a myriad of factors, you're more likely to see fluctuations in your car insurance premium from year to year.
Your location, vehicle make and model, annual mileage, and more all influence your car insurance premium. In addition, if you were at fault for an accident or received a traffic violation conviction, this will increase your car insurance premium. There may also be factors outside your control that affect your premiums, such as the loss rate in your area. When insurance companies face more claims due to rising repair costs, they may decide to request rate increases from the state Department of Insurance, which may result in higher premiums for some insured.
Every driver brings something unique when it comes to car insurance. Rates can vary greatly depending on where you live, the type of car you drive, your credit score, age, gender, and more. Therefore, the company that offers the lowest rates for one person may not be the cheapest for everyone. However, Bankrate conducted an extensive study to find the most affordable rates.
Our research shows that Auto-Owners, USAA, Geico, Amica, and Erie may be among the cheapest auto insurance companies. When considering the companies that offer the cheapest monthly car insurance, there are several things to consider. Even if you moved to an area with more expensive car insurance, comparing prices can help you get cheaper coverage. The combination of affordable car insurance rates with full coverage and a strong customer experience make State Farm a great company for drivers across the country. Collision insurance covers damage to your car after a collision with another vehicle or structure, such as a fence, mailbox, or pole.
Compare full-coverage auto insurance quotes from the cheapest companies to help you find the best full-coverage insurance near you. Auto insurance companies aren't willing to take risks with a new policyholder who hasn't started making their monthly car insurance payments, unless a down payment applies. However, USAA only sells auto insurance to military personnel, veterans and their families, so most drivers can't buy a policy for USED. Information from NerdWallet points out that State Farm offers the cheapest coverage rate after an at-fault accident, and Progressive offers cheaper rates for drivers who have experienced a DUI.
You should consider waiving your comprehensive and collision insurance when you can reasonably afford to replace your car. That's more than double the average price of liability only car insurance, as it also includes comprehensive and collision coverage. For example, not all companies offer rideshare insurance, something you'd probably prefer if you drive for Uber, Lyft, or a delivery service like GrubHub. Yes, most lenders require you to have a full coverage policy with comprehensive crash coverage if you have an auto loan or lease.
The following table shows the annual and monthly average total coverage premiums of some of the largest auto insurance companies in the country, broken down by market share. However, rates vary widely from person to person depending on factors such as gender, the car you drive, and your location.
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