Car insurance of any type is a burden to one’s budget, which is why it’s really important for people to know exactly how much is car insurance. That way they are able to plan their expenses beforehand and calculate the amount they have left for covering other needs.
However, answering this question isn’t simple at all, especially without the proper guidance and knowledge of the factors that play a key role in determining the price of the insurance and the calculations that should be made. Not to mention that in order to save more money on this, you should be aware of certain tips and tricks related to the price.
Luckily, we are here to give you a hand with all of this. It may seem overwhelming, but don’t worry as we’ll break down the details. Enjoy!
How Much Is Car Insurance – Determining the Price
The price that should be paid for the insurance incorporates a few key factors. They play a vital role in determining how high or low it will be.
For starters, the demographics climb higher on this list. As the companies have all the data about you including your marital status, sex, age as well as the location of driving, they can easily calculate the risk and ask for a fair compensation. Therefore, a young male person that’s still not married will pay more for his car insurance than a middle-aged woman, who is married and not very inclined to file a claim, at last statistically speaking.
Another important thing is the location you drive your car in. The areas with a higher population density have an increased price of the insurance. This is understandable considering the higher risk of getting into an accident there when compared to the calmer places with a little number of residents.
Most people don’t think about it when they buy it, but your vehicle has a role to play here, as well. The rate depends on its price, the model, year of production, mileage and so on. The more pricey and new it is, the more you’ll pay for the insurance. Connected to this, the insurance companies consider your driving history and habits, and the type and amount of coverage you choose, as well.
How Much Is Car Insurance in Different States
Not all states have the same rates and ways to monetize the possible risks involving your automobile. In fact, in the United States there are three main categories when it comes to how high the car insurance costs are:
- States with low insurance costs – The average rate for a policy of six months here is $817. The reason for it being so low is first and foremost linked to the weather, which is nicer than in the other parts with a minimal risk of catastrophes like hurricanes hitting these states. Then, the crime is on a lower level with thefts of cars and vandalism not as common as in the other categories. Some of the states that fall into this category are Idaho, Indiana, Kansas, Maine, Vermont, Minnesota, Wyoming, North Carolina, New Mexico, and others.
- States with medium insurance costs – The average for six months is slightly higher here – $999. While the coast and natural catastrophes aren’t near these states, they are susceptible to dry weather and desert climate. Because of this, there’s a risk of damaging the car’s glass with debris and rocks. Aside from this, the density of the population is in the middle and the crime rates are a bit higher than the ones in the states in the first category. Some of the states in this category are Washington, Arizona, Virginia, Kentucky, Utah, Hawaii, Alabama, Mississippi, and more.
- States with high insurance costs – With as much as $1,379 per six months, these states have higher risks concerning the weather, crime rates, population density, and dangerous intersections. Actually, they tend to be larger than the rest, as well. Since there are more people driving in the streets, the chance of more accidents happening increase. Also, the busy intersections with five or six-way stops contribute to the higher number of accidents. As for the weather, there are more earthquakes, hurricanes, and floods coming as a result of these states being coastal. Some of the ones in this category are California, Texas, New York, South Carolina, Florida, Louisiana, New Jersey, Colorado and the rest.
How Much Is Car Insurance – Getting Lower Rates
What if we tell you that there are ways to reduce the price you pay for insuring your car? You should only follow a few steps and tips and you’ll be good to go.
Aside from the obvious facts that you should try to maintain a good driving history with less or no violations at all, be mindful of the price of your vehicle before buying it, and choosing the type of coverage carefully, there are a few more details to keep an eye on:
- Get insurance for only one car – This totally makes sense as the more cars you put out on the road, the higher the risk and the rates are.
- Become the owner of your car right away – If you have a loan on your car, the insurance companies may not offer you the rate they would have given you if the vehicle was actually yours.
- Have no claims in the past – Insurance companies like clients that haven’t had any claims so far.
- Don’t request SR-22 – Being a proof of your financial responsibility in the event of a bad driving history, this document is not viewed as positive. Therefore, you may not get lower rates when trying to secure your car.
Summing Up – How Much Is Car Insurance
All in all, getting your desired car insurance rates can be tricky, especially since you have to pay attention to certain aspects. We hope we helped you learn more about this matter. Share your opinions and experiences with us in the comments section!