Car Insurance Cost: How Much is Car Insurance?

How much is car insurance? Car insurance has become a necessary procedure in our time.

It doesn’t matter what kind of car you have: it must be insured. car insurance is a reliable way to avoid financial losses in the event of theft, damage to the car and damage to property and health of third parties.

Car insurance is a must for every vehicle owner. How much the average car insurance cost? How to calculate car insurance? all you need to know.

How are Auto/Car insurance Cost set?

Even if insurers compete on their rates and claim this with a lot of publicity. They all use roughly the same criteria to set the price of an motorcycle, auto or car insurance contract.

The principle is simple: the less the insured has had and will have responsible accidents, the less it will cost his insurer. Then, the principle of the bonus makes it possible to do it on a case by case basis, as well as the history of the insured as a driver.

Drivers who are responsible for accidents can see their auto/car insurance premium increase up to a maximum of 400%. However, these increases are withdrawn after two years.

car insurance
Car Insurance

The average price of auto / car insurance differs from driver to driver. It depends on your driver profile (age, length of license, existence of claims). The type of car in your possession (mileage, mode of parking, use made of it), but also the guarantees you need (breakdown of ice, natural disasters, legal assistance, etc.).

Car insurance Cost

Car insurance price will be calculated according to a multitude of criteria:

  • Vehicle: the more powerful the vehicle is, the higher your contribution will be. Similarly, the higher the value of your vehicle, the higher your annual premium;
  • Geographical area of ​​circulation: whether you drive in Marseille or Versailles, the price of your car insurance will not be the same. The more risks your locality presents (road accident, damage, theft, etc.), the much more you pay;
  • The use made of your vehicle: private trip, home-work trip, business trips, etc. The more you use your vehicle, the higher your insurance will be;
  • your parking method: closed box, enclosed collective parking, public road, or open parking. If your parking method is secure, the less this will have a positive impact on the price of your car premium;
  • The mileage of your vehicle: the lower the mileage carried out during the year, the more the premium will be reduced;
  • your age: young people are, according to statistics, the cause of more accidents. Auto insurance therefore costs more for them;
  • The length of your license: novice drivers are subject to an additional premium which may be reduced in the event of learning through accompanied driving;
  • Occasional or exclusive driving : if you choose exclusive driving of the vehicle, you will have a lower premium. In the event of an accident involving another driver, he will then have to pay a deductible;
  • your bonus: a few players are specialized but beware, the insurance premium is extremely high.

Car Insurance Cost for young Driver

What is the car insurance cost for young driver? For insurance companies, the young driver, because of his lack of driving experience, presents an aggravated risk on the road. As a result, their auto contract is on average more expensive than that of “normal” drivers.

There is no specific auto coverage for young drivers. You must therefore take out classic insurance (third party, intermediate or full risk), which will have been increased to compensate for your status as a “at risk” driver and its guarantees will be limited.

But you can also subscribe to certain optional guarantees in order to better cover yourself and control your budget.

Auto/Car insurance Cost by state

Each state handles auto/car insurance differently. States regulate their own laws and policies regarding auto insurance coverage, including the amount of coverage required, the amount of insurance responsible for coverage, and the factors insurance companies can use to determine rates.

Some states, such as New Hampshire, do not even need auto insurance. Auto / car insurance in Michigan is expensive due to an no-fault law that requires unlimited coverage for personal injury protection.

Such a solution would be a big reason for the amount you pay for coverage. Business Insider has compiled a list of average auto insurance prices for each state.

Average car insurance cost

Average car insurance costs for full and minimum coverage by state:

StateFull coverageMinimum coverageAnnual difference
Alabama$1,501$474$1,027
Alaska$1,521$417$1,104
Arizona$1,536$567$968
Arkansas$1,883$495$1,388
California$1,911$617$1,294
Colorado$2,012$528$1,484
Connecticut$1,791$841$950
Delaware$1,733$823$910
Florida$2,321$685$1,636
Georgia$1,820$757$1,063
Hawaii$1,049$326$723
Idaho$998$320$678
Illinois$1,397$468$929
Indiana$1,179$383$796
Iowa$1,151$255$896
Kansas$1,600$464$1,136
Kentucky$2,363$790$1,574
Louisiana$2,762$895$1,867
Maine$963$372$591
Maryland$1,872$860$1,011
Massachusetts$1,100$431$669
Michigan$2,387$1,128$1,259
Minnesota$1,418$559$859
Mississippi$1,636$498$1,138
Missouri$1,526$484$1,043
Montana$1,726$362$1,364
Nebraska$1,376$365$1,010
Nevada$2,161$839$1,322
New Hampshire$1,169$429$740
New Jersey$1,860$851$1,009
New Mexico$1,418$390$1,028
New York$2,131$1,070$1,061
North Carolina$1,212$410$801
North Dakota$1,195$352$843
Ohio$989$351$638
Oklahoma$1,748$451$1,297
Oregon$1,358$670$688
Pennsylvania$1,406$431$974
Rhode Island$2,043$842$1,201
South Carolina$1,652$606$1,046
South Dakota$1,455$301$1,154
Tennessee$1,298$400$898
Texas$1,610$560$1,050
Utah$1,390$577$813
Vermont$1,123$338$785
Virginia$1,248$478$771
Washington$1,234$457$777
Washington, D.C.$1,880$736$1,144
West Virginia$1,605$517$1,088
Wisconsin$1,160$361$799
Wyoming$1,369$335$1,035

Auto/Car Insurance Cost for Men and Women

car insurance

car insurance

Gender influences auto/car insurance, at least in states that allow insurers to take it into account. And according to Business Insider data, auto insurance companies tend to charge women more.

Business Insider collected quotes from Allstate and State Farm for basic coverage for male and female drivers with identical profiles in Austin, Texas.

By swapping only gender, the male profile was rated $ 1,069 for coverage per year, while the female profile was rated $ 1,124 per year for coverage, costing the driver 5% more.

This is true in other cities and states across the country, including Seattle, Miami , Chicago, and Columbus, Ohio. On average, female profiles were cited $ 172 more. But, there is a relationship between age and gender.

According to Zebra data, young men tend to pay around 14% more for coverage. The gap in coverage costs narrows as young men approach their mid-twenties.

However, six states – California, Hawaii, Massachusetts, Pennsylvania, North Carolina, and Montana – don’t allow sex as a factor in premium prices.

10 car insurance companies in the U.S

RankCompanyPremiums written in billionsMarket share percentage
1State Farm$40.416%
2Geico$33.914%
3Progressive$33.213%
4Allstate$25.910%
5USAA$15.86%
6Farmers$12.25%
7Liberty Mutual$11.85%
8Nationwide$5.82%
9American Family$5.22%
10Travelers$4.92%

Best Car Insurance Company

Best car insurance company: According to usnews: USAA is the best car insurance company in 2021, but you need to have a military affiliation to get it. If you do not qualify for USAA, State Farm is the second-best auto insurer according to our data.

They asked the real customers from the nine best auto/car insurance companies about the country’s experience.

Their feedback provides valuable insights about insurance company into how well these companies serve their customers, which can help you decide on an insurance company that suits your business.

They used this survey to identify the best insurance company in the country, as well as the best companies in the areas of customer service, claims handling and customer loyalty. It is also identifies the insurers that are most likely to be renewed and recommended by their policyholders.

Disclaimer: Myworldstuffs does not endorse, rate or any particular insurer or insurance product offered by an insurer.

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