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The amount you pay for car insurance depends on factors such as your driving history, the type of car and the location. According to the National Association of Insurance Commissioners, the national average auto insurance premium in 2019 was $1,070 for the year.
Let’s take a closer look at average auto insurance costs by state, as well as factors that affect how much you pay.
Here’s what you need to know about the average cost of car insurance:
How much is car insurance?
The amount you pay for your car insurance depends on many factors. You may pay more or less than the national average of $1,070. Auto insurance providers determine your rate based on how likely they are to pay claims, in addition to things like your age, gender, and driving history.
Factors that affect the cost of car insurance
All auto insurance companies have their own unique way of setting prices. Some common factors insurers use when determining your car insurance premium include:
- Place: The weather, traffic density, and crime rate where you live can all affect your likelihood of filing a claim.
- Type of coverage and amount: The more coverage you want, the more you pay for it.
- Driving record: If you have a clean driving record, you are likely to pay a lower premium than someone who has had multiple accidents.
- Your age: Younger drivers tend to have higher premiums because they have no experience.
- Type of car: The cost of your car affects your insurance rate. A new luxury car is more expensive to repair and insure than an old sedan.
- How much you drive: The more you drive, the more you pay for car insurance, as you have a higher chance of being in an accident.
Checking out: Can you get car insurance with a learner’s permit?
Average auto insurance costs by state
Auto insurance costs can vary greatly by state. To help you get a better idea of what different types of auto insurance policies can cost in your state, the table below shows the average premium costs for full coverage insurance (liability, collision, and comprehensive coverage) and for liability coverage in all 50 states, from 2019.
Annual premiums are based on the latest data from the National Association of Insurance Commissioners. We’ve also listed the current minimum coverage levels by state so you know how much coverage to get. Minimum coverage levels by state are based on data from the Insurance Information Institute and Progressive.
How to save on auto insurance
Auto insurance is a major expense for drivers. Here are some steps you can take to save money on your policy:
- Pay everything. If you pay a full year’s premium in advance, you may be eligible for a discount.
- Drive safely. Most car insurers give a discount if you drive without accidents for a certain period of time. You may also qualify for a discount if you take a defensive driving course to improve your driving skills.
- Get a usage-based policy. If you don’t drive often, paying for a usage-based policy may work to your advantage. These policies allow you to pay based on the number of kilometers you drive.
- Comparison shop. Shop around with a few different insurance companies to see who can give you the most coverage for the lowest cost. Make sure you get quotes for the same level of coverage and deductibles across all insurers for a true apples to apples comparison.
When you’re ready to compare car insurance policies, we can help. Credible makes it easy to get quotes from multiple insurance companies.
How to get car insurance
Gaining knowledge about the average cost of car insurance is a good first step towards finding the right policy for your needs. Once you’re ready to buy car insurance, you generally follow these steps:
- Choose your coverage type. Your state probably requires you to purchase certain types of auto insurance, but you may decide you want more than you need. To really cover your bases, consider adding coverage for liability, collision, comprehensive, uninsured and underinsured motorists, and medical payments or personal injury protection.
- Determine your coverage amounts. Again, your state typically requires a certain amount of coverage, but you can choose to purchase more for added financial protection and peace of mind. The more coverage you want, the more your coverage will cost.
- Compare insurance quotes. Get free quotes from at least three insurance companies to find out which one offers the best deal for the coverage you need.
- Apply for cover and pay the first premium. After choosing an insurer, you apply for a policy, set a start date (when your coverage begins), and make your first payment.
Disclaimer: All insurance related services are offered through Young Alfred.