If you want to drive legally in the United States, you must buy a car insurance policy. Car insurance policies are meant for protecting you from liabilities in case you have an accident. The first question that comes to one’s mind while shopping for car insurance is, “What are the average car insurance costs?” The average car insurance rates change on a year-to-year basis. Currently, the average car insurance cost in the United States is $1,602. In the previous two years, i.e. in 2011 and 2010, the average car insurance price in the country was respectively $1,450 and $1,539. Costs of car insurance premiums vary widely depending on several factors – for instance, gender, age, driving skill, lifestyle, marital status, occupation, vehicle cost, credit rating, etc. Read through the pointers below to learn how these factors affect your car insurance rate.
How the average car insurance rate is determined:
Your location: If you live in an area that is more prone to automobile accidents, the car insurance companies are likely to charge higher premiums.
The type of car you drive: Expensive cars will make you pay higher premiums than moderately priced cars. For instance, if you drive a two door sports car, your car insurance premium is likely to be higher than the premium paid by an individual who drives a family car.
Your credit rating: Insurance providers believe that people with poor credit history have higher chances of getting into accidents compared to people with an impressive credit score. As a result, they increase car insurance premiums for individuals with bad credit.
Your education: Insurers believe that people who are more educated have a lower chance of getting into accidents. Thus, people with a good educational background will pay lower car insurance premiums compared to people with less education.
Your age: In the United States, teenagers need to pay the highest auto insurance premiums. This is because the largest share of automobile accidents that take place in the country involves teenagers. Another factor due to which teens need to pay higher premiums is lack of experience. Teenagers score much lower when it comes to driving experience and total number of miles driven. Currently, the average car insurance rate for teens in the US is more than $2,500.
The next highest car insurance premiums are paid by individuals aged between 18 and 25 years. Drivers over 65, on the other hand, need to pay the lowest car insurance premiums. This is because statistics suggest that this group has a minimum chance of having accidents as they usually do not drive as much as the younger drivers. Average car insurance costs for senior citizens range between $1,250 and $1,350.
Your marital status: Average car insurance rates for single drivers are much higher than those of married couples.
Your gender: In the United States, the average auto insurance rates for males are higher than for females. Males below 25 years are mostly affected by this regulation. The differences between average car insurance premiums paid by older men and women are however not as significant as the differences between average car insurance premiums paid by younger men and women.
