average car insurance rates

Average Car Insurance Rates

Insurance is an increasingly significant portion of our budget, and is one of out primary aspects to consider when buying a car. When buying a car knowing the reliability and consistency is a key factor which factors into the average of all car insurance rates across the globe. Since insurance is mandated in most countries it affects a sizeable population of potential drivers; our insurance rates fluctuate based on the decisions we make and how we approach the insurance market. Throughout this article we will explore what factors into the average insurance rate and how you can find out the average car insurance rate in your area.

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Step 1: Find out rates in your Area!

The average insurance most commonly paid in the United States is about $907.38 in 2010 according to the National Association of Insurance Commissioners. The figure varies from state to state and doesn’t include all forms of coverage that may be necessary for full coverage on your vehicle. The first thing you need to do is make a list of all options that you want in your insurance coverage then compare and contrast the benefits to see which would be the most appropriate for your lifestyle. Online research is key when it comes to finding the best insurance rates. It’s always good to compare your local insurance providers online in order to give you a better perspective on insurance rates before you go meet your local agents.

Another good way to find affordable insurance in your area is to consult friends and family members what insurance they might have, for the most part friends and family will be doing anything and everything for your best interest, thus consulting those closest to you may be your best bet in order to find an insurance rate close to the average.

Step 2: Where you live matters

Data from various states and insurance agency’s show that annual car insurance premiums are on the rise in the majority of states across the nation. Data shows that insuring your vehicles from accidents and other events has generally increased, with the exceptions of Arkansas, Georgia, North Carolina, and Virginia, who all have seen a consistent drop in the rates of their insurance.
The location of your car and where you live greatly affects your insurance rate because it matters what the environment of your car is. Generally since insurance has to pay for damage, they are concerned with how safe your area is, as well as how much the average citizen might make to relatively price the rate of insurance and incorporate other factors when pricing an insurance rate. Since the quotes for automobile insurance varies depending on the select states across the US, the average insurance rate should give you a ballpark estimate for annual costs of insurance and how much you’ll be shelling out based on where you live.

auto insurance premiums state

Step 3: Average insurance rates depend on your age too.

Average insurance rate also varies by age and will generally vary depending upon how old the driver is. Insurance companies give older more experienced drivers priority; therefore they pay much lower car insurance rates compared to younger less “experienced” drivers. Generally the quotes for teenagers tend to be 3.5x more expensive than a quote for a driver in their mid-thirties, and is upwards of about 4x on average compared to the experienced driver in their mid fifties. As soon as you hit about 25 years of age, you car insurance drastically drops about 60%, due to the experience you have accumulated over the years of driving.

When you’re in the market for car insurance there are many factors that play into the average insurance rate. Therefore the average greatly depends on your location, age , and who you’re asking.