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What Are the Average Car Insurance Rates and What That Means For You

Average Car Insurance Rates
Average Car Insurance Rates

The automobile insurance industry is on the rise as more people have a new interest in it. From the various types of coverage to the average car insurance rates, the topics of this industry just keep appearing in the newspaper headlines and on the news.

One growing question insured drivers always have on their mind is “Am I paying enough?” or “Am I paying too much?” How much do other people pay for auto insurance services nowadays?

The first logical answer would be to look at the average car insurance rates. The word ‘average’ brings real comfort to people. So, in the following sentences, we’ll talk all about that. What’s the average rate? Is it relevant to you? What does it mean? We’ll try to answer these questions and more!

An Abundance of Average Car Insurance Rates

An Abundance of Average Car Insurance Rates
An Abundance of Average Car Insurance Rates

If you’re following the news, you’ll definitely see that the insurance rates for autos are going up and up. Some experts say that it’s because of the very high number of vehicles as well as the rise of distractions while driving and the great possibility of accidents. People have noticed this trend, and that is why this topic has been one of the most searched about on Google.

So, the natural step would be to check whether what you’re paying is normal and in the average amount. However, looking for average rates may not be the best indicator for that.

There’re multiple factors that affect the rate of the premium, so it’s very, very tough to find an average that you may consider relevant to your situation. It’s almost needle-in-a-haystack level hard. For instance, one source can claim that the annual average rate in New York is around 1,000 US dollars, but another one can estimate it close to 1,500. Yes, this may make you feel better if you’re paying something that’s close to that number. But that information doesn’t help much if you want to know the worth of your coverage.

Why Are Average Car Insurance Rates Increasing?

There can be many reasons why your current rate is going up at the moment. Let’s take a closer look at some of the most common ones in 2018.

  • Accidents where you’re to blame – It’s only natural for your rate to start climbing if a claim is filed against you after a traffic accident.
  • Age – Another con to growing old is paying high car insurance rates. Elder people are treated just like teens who are still learning how to drive by insurance firms. On the other hand, there’re some companies who may offer discounts when you’re approaching fifty, but if you’re going to seventy – the rate will most likely go up.
  • Changing your location – Who knew that moving could affect the insurance on your vehicle! If you’re moving to another state and even another neighborhood just a short distance from where you previously lived, the rate may shift. That’s definitely true for metropolitan areas, for instance, where the claims are usually higher. And so are the average rates. Take California, New York, Florida, Louisiana, and more as examples.
  • Violations while driving – Whether we’re talking about minor violations like speeding and passing in an unappropriated way or bigger ones like running away from the police, careless driving, driving the wrong way, and such, the rates will react.
  • Not being insured for a while – Usually, the car insurance company will charge you more if you have a lapse or a gap in the policy.

How Are Average Car Insurance Rates Calculated?

Usually, it’s said that there are two ways to measure the average rates of auto insurance. One of the ways takes into consideration the average premiums whereas the other one is concerned with the average expenditures. You may think that they’re very similar, but apparently, they aren’t.

The calculation process is an enormously complex process where the average expenditures by state point out the sum of written premiums for comprehensive, liability as well as collision insurance coverages that are divided by the complete liability written car years in all states.

Numbers Related to Average Car Insurance Rates

As we previously mentioned, it’s tough to nail the exact averages of each state or district. It’s all about which source you want to trust. So, we took a look at some of them and drew some conclusions.

The states where the annual car insurance rates are higher include Delaware, California, New Jersey, Florida, District of Columbia, Georgia, Louisiana, Michigan, Rhode Island, and more.

It’s surprising to see that drivers who are around the age of 16 pay the highest rates. And that’s regardless of the gender of the driver. However, the statistics say that female driver who is sixteen years of age pay around 23% less than their male counterparts. Does that mean that insurance companies think that girls are safer drivers? Some of the reasons for that is because male drivers are prone to receive more speeding tickets, drive more, participate in more traffic incidents, and similar.

What You Can Do About the Average Car Insurance Rates

It’s safe to say that you can’t easily compare to all the averages you can find because there are so many factors at play here. What’s more, you can’t really influence them. You can’t move to another state, you can’t choose your credit record nor change the model of your car overnight. Each driver has his/her own unique set of factors that result in the rate given to him/her.

Something you can do is take a look at the factors that matter and try to see which directly apply to you and which ones you can easily change.

Then, it’d be great to do some car insurance quote shopping and find different proposals from a wide variety of companies.

Some Final Words About Average Car Insurance Rates

So what do you think about all of this? We know that it’s a lot to think about, but we hope we explained some things regarding the average rates of automobile insurance. Tell us all about your experiences in the comments!

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