Does it feel like you’re paying entirely too much money for car insurance right now?
Studies have suggested that the national average cost of car insurance per month sits at just under $120. That works out to be a little more than $1,400 per year.
If you’re paying more than that, it could be time to consider switching car insurance companies. But before you do, you should educate yourself about the different factors that determine how much an insurance company charges a person to keep them insured.
By doing this, you can get a better understanding of why your car insurance company is charging you as much as they are. Check out a few of the most important factors below.
If you just learned the average cost of car insurance per month and can’t believe how low it is compared to your insurance rate, know this: The state in which you live plays a big part in your rate.
There are some people, like those who live in Alaska ($812 per year), Idaho ($552 per year), and North Dakota ($428 per year), who pay way less for car insurance than the national average.
At the same time, there are other people, like those who live in Rhode Island ($1,544 per year), Michigan ($1,600 per year), and Louisiana ($1,824 per year), who pay way more for car insurance than the national average.
So before you go blaming your car insurance company for your inflated rate, blame it on the state in which you live. The weather in your state or your state’s history of insurance claims could be the cause of your high insurance rate.
Another thing that plays a big role in your annual insurance rate is your age.
If you just started driving last month, you’re going to pay significantly more for car insurance than someone with 10 years of experience under their belt in most cases. At the same time, if you’re an elderly person, you could also be forced to pay more for car insurance because of your age.
There are some elderly people who are able to escape high auto insurance rates by proving that they’re excellent drivers despite their age. But generally speaking, your age is going to factor into how much your insurance company decides to charge you.
If you’re interested in how your age could affect your insurance rates, you can read more now about it and see when your age could start to benefit you.
Are you a man? Based on your gender alone, you’re probably going to end up paying a lot more money for auto insurance over the course of your life than a female in your same exact position.
There are many people who don’t think this is fair. But there are lots of statistics that auto insurance companies rely on when it comes to charging men more for auto insurance than women.
For example, an Insurance Institute for Highway Safety study revealed that 71 percent of those who died in car crashes in 2012 were men. That same study also revealed that only about 84 percent of men wear seatbelts regularly compared to 88 percent of women.
Future studies like this one might help bring auto insurance rates for males down. But for now, men are typically going to pay more for car insurance than women do.
You might be in love with the beautiful sports car that you just bought or leased. But you’re probably not going to be feeling much love in return when you go to insure it.
Sports cars and other so-called “high risk” cars often cost more to insure than simple sedans. Before you purchase a vehicle, speak with your auto insurance company about how much it’ll cost to insure it.
Do you have a history of:
At the end of the day, auto insurance companies are in the business of making money. So they want to insure people who aren’t going to cost them much money when companies give them an insurance policy.
If your driving record is great, this can work to your advantage. Your insurance company won’t charge you very much to stay insured.
But if your driving record is all marked up? That is going to work against you. You can still find companies willing to insure you, but they’re going to charge you an arm and a leg in most cases to do it.
This is especially true for those who have been charged with a DUI (or worse, multiple DUIs!) in the past. They’ll often be subjected to extremely high auto insurance rates for at least a few years following a DUI-related arrest.
There are lots of surprising benefits that come along with getting married.
Despite what you might think, marriage has been shown to lower people’s stress levels. It also supposedly helps people get better sleep.
But one of the most surprising benefits might just be that marriage can lower your auto insurance rates. Many car insurance companies will cut you some slack when you get married because they believe it shows you’re more responsible and less likely to drive erratically.
There are dozens and dozens of auto insurance companies out there for you to choose from. That creates competition among the companies.
You can benefit from this competition by changing your auto insurance company every year or two. But you can also do it by sticking with a company for an extended period of time.
Many insurance companies will offer discounts and special rates to long-time customers.
Every year or so, you should get into the habit of comparing your auto insurance rate to the average cost of car insurance per month across the country.
If you feel as though you’re paying too much for car insurance, try to figure out why that is. By getting to the bottom of it, you might be able to bring your insurance costs down over time.
Do you want to learn some ways to save money in other areas of your life, too? Check out our blog to find tips for saving money.