Average cost of car insurance for 2020
The average cost of car insurance is $ 1,758 a year or $ 146 a month for a full insurance policy.
For a driver with a good credit and a clean history, the average cost of car insurance is $ 1,758 a year, or $ 146 a month for a full insurance policy. This is the result of the analysis of the Audatex.cc rate regarding the coverage of up to six insurers for almost every postal code in the country. Although what you pay will depend on your unique driver profile, it’s worth knowing the average cost of car insurance so that you know how much you can pay. Here we provide an overview of the different driver profiles and show how the rates are broken down by level, status and company.
How much does car insurance cost?
The average cost of car insurance for the three insurance levels is as follows:
- The state of minimum liability requirements varies from state to state, and many states have very low limits, but the typical amount is USD 25,000 for medical bills for injury as a result of an accident, up to USD 50,000 for an accident, from USD 25,000 in the event of damage to property which you cause (25/50/25)
- Liability limits of USD 50,000 for injuries you cause in an accident, up to USD 100,000 in an accident, from USD 50,000 to cover material damage (50/100/50)
- Full comprehensive and collision insurance, which covers damage to your car, with a deduction of USD 500, USD 100,000 for injuries you will cause in an accident, up to USD 300,000 in an accident, with USD 100,000 for property damage (100/300 / 100)
How much does car insurance cost per month?
The average driver pays less than $ 50 a month for minimal insurance, around $ 55 for standard liability insurance and almost $ 150 a month for full insurance. Many factors affect how much you pay for car insurance, but the most important is how much insurance you buy. As can be seen in the chart above, a bare bone policy that does not cover damage to your car and is sufficient for legal driving costs much less than a policy with higher liability limits and optional comprehensive insurance and collision insurance. just around $ 6 a month to increase the range from minimum limits of state responsibility to higher limits to increase protection. The transition from the minimum insurance status to full insurance costs about $ 100 more a month.
Average costs of car insurance from various companies
Here are the average annual rates from the largest insurance companies in the country for minimum, medium and full state insurance. There are many variables that insurance companies take into account when deciding on the cost of car insurance. Your location, age, driving history and other factors matter. Each insurance company assesses these factors using its own unique calculations to estimate the likelihood of a claim being made in the future, in other words how big the risk is. That is why rates differ so much for the same policy between different insurance companies, and therefore one of the best ways to save is to compare auto insurance rates.
Do the average monthly car insurance rates differ depending on the state?
Residence is one of the main factors used by insurance companies to determine the cost of car insurance. Typically, insurers use your location as a stepping stone to make a payment decision. They include the amount and cost of claims in your area, as well as the frequency of theft and vandalism. From there, they adjust your bid up or down depending on other factors such as age, driving history, credit history, type of car driven and other demographics. In addition, state laws differ in what is required as a required driving range. In general, drivers in densely populated cities and urban areas pay more than those who live in rural areas. This means that car insurance rates vary significantly.
Average cost of car insurance by age and sex
What you pay for insurance also depends on your age and, in most states, gender. Car insurance companies generally assume that younger, inexperienced drivers will file more accidents claims, so download more to cover your costs. When it comes to sex, teens usually pay significantly less for car insurance than teens.
Drivers between 16 and 24 years of age pay an average of around $ 500 less (15%) per year for car insurance compared to their male counterparts, according to an Audatex.cc rate analysis. Our rate data shows that for men and women aged 25 to 65 is 5%, while rates for men are slightly cheaper from 45 to 75 years. After the age of 75, women start paying less, but only around 7% or 100 USD a year.
Below are the rates for each state, by sex and age, for a full insurance policy. Please note that in the following states, insurers are not allowed to use sex when setting rates:
- North Carolina
What is the average cost of car insurance for best-selling vehicles?
Car insurance costs also vary by brand and model, as insurance companies are considering, as well as other factors that we have already mentioned, how safe a vehicle is, how many claims it has for an accident, and how much it costs to repair. Here are the average car insurance rates for the best-selling cars in 2020 in the country:
Average car insurance rates for drivers with bad credit
The average cost of car insurance for drivers with a bad credit is USD 1050 per year, according to expert analysis of Audatex.cc rates. That’s 71% more than a driver with good credit pays.
Almost all states allow car insurance companies to take credit history into account when setting auto insurance rates. (California, Hawaii and Massachusetts do not allow this practice.) Using credit history to determine car insurance costs is a controversial topic. Insurers say their research shows that drivers with bad credit report more claims and are therefore more at risk. Critics say this is discriminatory and the cost of car insurance should be based solely on driver performance.
During the debate, some countries began developing legislation that would prohibit the use of credit in insurance policies. However, for now it is still common practice among carriers.
How much does car insurance cost for drivers with accidents, tickets and DUI?
Drivers with recent traffic accidents and offenses usually pay more than drivers with clean records. If you have several offenses or accidents, you will definitely have higher rates, especially if you have been convicted of a more serious violation, such as DUI. The following are the average annual insurance costs and percentage increases for such typical scenarios, based on the full insurance policy:
- DUI: 2652 USD or 79% more
- One accident from personal injury: $ 1,889, or 32% more
- One accident with property damage over USD 2,000: USD 1,880, 31% more
- Acceleration: 1709 USD or 20% more
Remember, however, that even if you don’t have a clean driving record, you can still save by comparing purchases. Some insurers will raise rates significantly, others slightly, depending on how they assess risk and set rates.
Average car insurance rates for adding a teenager
Placing a 16-year-old woman on a full insurance policy results in an average annual insurance cost of USD 3212, an increase of 125%. The cost of adding insurance for a 16-year-old man is USD 3,722, which is 160% more on average.
If you add your teenage driver to the offer, the cost of insurance will increase significantly. Inexperienced drivers pay higher rates, and teenagers fall into this category. In general, adding a teenager to your coverage will be the cheapest way to choose. Although your rates will increase, it’s cheaper than your child’s own rules.
Compare products to save
No matter what insurance cost you read here that suits your situation, you can save money by comparing purchases.
You can also use our car insurance estimation tool to see the adjusted rate for your specific driver profile. Average car insurance rates by zip code show the costs for three different levels of insurance for different age groups and locations, for three levels of insurance.