Buying an auto insurance policy is something every driver should do. If you are looking for a new vehicle, this decision is even more important. How much does new car insurance cost? According to the National Association of Insurance Commissioners, it’s about $538.73 a year for liability insurance alone. Let’s examine all the factors that go into this daunting task, so you can figure it out for your new car.
how to estimate car insurance before buying a car
Insurance companies use several variables to determine how much they will charge you. the type of vehicle you drive is just one of the factors they factor into their formula. Depending on your provider, insurance costs can vary dramatically from year to year.
You may want to get some quotes from the models on your short list. Beyond maintenance and fuel costs, insurance is an essential piece of the puzzle when calculating the monthly costs of owning that new car.
why some cars cost more (or less) to insure than others
The top three things that affect the cost of auto insurance are:
- Price: The higher the sticker price, the more it will cost you to insure that car. lenders require comprehensive and collision coverage to protect their interests. Your carrier is obligated to pay the market value of your luxury car if it is stolen or damaged beyond repair.
- Parts and Repairs: Some automakers use high-tech parts made from carbon fiber or other specialized materials. these parts are expensive to repair, increasing the total cost of damage claims. According to auto insurance nerds, electric cars are typically more expensive to insure because they’re so much more expensive to repair.
- safety: Today’s vehicles roll off the lot equipped with innovative safety features. these developments equate to fewer injuries, and fewer injuries mean less money paid for medical bills.
how to get car insurance estimates
Follow these simple steps to estimate the cost of your next auto insurance policy:
- Narrow down your best vehicle choices.
- Decide how much coverage you need.
- get quotes from at least three insurance companies.
- Louisiana: $1405.36
- new shirt: $1382.79
- michigan: $1364.00
- idaho: $679.89
- iowa: $702.46
- main: $703.82
how much does car insurance cost?
according to policygenius, the average cost of auto insurance in the us. uu. it is $1099 per year. this website further breaks down those figures by type of coverage. Americans pay $538.73 a year for state-mandated liability insurance, plus $322.61 a year for collision and $148.04 a year for comprehensive coverage.
average auto insurance rates by state
All states have mandatory auto insurance. If your state is densely populated, has high crime rates, or constantly experiences inclement weather, your prices will most likely be higher than they would be in states that don’t meet those criteria. valuepenguin put together this list of the top three states with the highest premiums:
Here is a list of the top three states with the lowest premiums:
average cost of car insurance by type of coverage
The type of insurance coverage you select directly affects the price of your monthly premiums. You should definitely have liability insurance to protect your financial interests when you are at fault in an accident.
There are also two basic types of coverage that protect your vehicle: comprehensive and collision. These policy additions are not required by law, but may be required as part of your sales contract.
The average cost of these three types of insurance nationwide, according to policygenius, are:
- liability: $538.73
- collision: $322.61
- wholesale: $148.04
- female, 18 years old, single, rent: $4682
- male, 18 years old, single, rent: $4522
- female, 30 years old, single, homeowner: $1136
- male, 30 years old, single, homeowner: $1038
- female, 70 years old, married, homeowner: $838
- male, 70 years old, married, homeowner: $798
average car insurance rates by age and gender
Age is another important factor when estimating your annual premiums. Both young and old drivers should expect to pay more than someone in their 40s or 50s. here is a sample of the rates by age as reported by the zebra:
average cost of car insurance by type of vehicle
As we mentioned, the type of car you buy contributes directly to the cost of your premiums. the most expensive vehicles are subject to theft and are more expensive to replace. costs range from $1,074 a year for a small SUV to $1,209 for a full-size sedan.
average car insurance premium by driving record
Most insurers consider five years of driving history when calculating their rates. If you’re not sure what’s on your motor vehicle report (MVR), request a copy from your state’s driver licensing agency.
average cost of car insurance by credit score
Some insurance agents consider your credit score to be a measure of responsibility and use this number to estimate your premium. the higher your score, the lower your rates. Here’s a list of average annual rates for full coverage, by credit score:
- very poor (300-579): $1364
- fair (580-669): $1120
- good (670-739): $920
- very good (740-799): $769
- exceptional (800-850): $654
car insurance discounts
Most drivers want to save as much as possible on their monthly insurance costs. ask your agent what discounts his company offers. some options include:
- safe driver discounts, when you have no accidents or traffic violations.
- discounts on safety and protection equipment.
- Group affiliations, colleges, and alumni discounts.
- good student discounts for young drivers.
- bundle your auto and home policies with the same provider.
- pay an annual lump sum up front, rather than cover charges monthly.
- Statewide: $2,185
- surance: $1279
- farmers: $1724
- geico: $1620
- mutual freedom: $2271
- Nationwide: $1,589
- progressive: $1481
- state farm: $1188
- united states: $1051
Which car insurance companies are the most affordable?
Auto insurance companies offering the most affordable coverage, based on their average six-month policies, include:
Use this handy guide the next time you buy a new car and a new auto policy. Armed with this information, you should have a few dollars in your pocket. why not spend that money on some car upgrades, like a 10-speaker audio system?