Car insurance costs can vary widely depending on several factors, including your location, age, driving history, vehicle type, coverage limits, and more.
In this article, we’ll explore the average cost of car insurance per month, factors that affect the cost, and ways to save on car insurance.
Average Cost of Car Insurance Per Month
According to a 2021 report from The Zebra, the average cost of car insurance in the United States is $125 per month or $1,503 per year.
However, this is just an average and your costs could be higher or lower depending on your individual circumstances.
Factors that Affect the Cost of Car Insurance
There are several factors that can affect the cost of car insurance, including:
Location: Your location can have a big impact on your car insurance costs. Urban areas or areas with high crime rates may have higher insurance rates than rural areas or areas with lower crime rates.
Age: Younger drivers are typically more expensive to insure than older drivers because they are more likely to be involved in accidents.
Driving history: Drivers with a history of accidents or traffic violations may be charged higher premiums because they are considered higher risk.
Vehicle type: The make and model of your car can affect your insurance rates. Sports cars and luxury vehicles are typically more expensive to insure because they are more expensive to repair or replace.
Coverage limits: The amount of coverage you choose can affect your insurance costs. Higher coverage limits will result in higher premiums.
Deductible: The amount of your deductible can also affect your insurance costs. A higher deductible will result in lower premiums, but you will have to pay more out of pocket in case of an accident.
Credit score: Your credit score can also affect your insurance rates. Drivers with lower credit scores may be charged higher premiums because they are considered higher risk.
Ways to Save on Car Insurance
There are several ways to save on car insurance costs, including:
Shop around: It’s important to shop around and compare quotes from different insurance companies to find the best policy for your needs.
Bundle policies: Many insurance companies offer discounts if you bundle your car insurance with other types of insurance, such as home insurance or life insurance.
Raise your deductible: Increasing your deductible can lower your premiums, but make sure you can afford the higher out-of-pocket costs in case of an accident.
Take advantage of discounts: Many insurance companies offer discounts for safe driving, good grades, or certain occupations.
Maintain a good driving record: Avoid accidents and traffic violations to keep your insurance costs low.
Drive a safe vehicle: Vehicles with safety features, such as airbags and anti-lock brakes, may qualify for lower insurance rates.
Final Words
In conclusion, the average cost of car insurance per month in the United States is $125, but this can vary widely depending on several factors.
Location, age, driving history, vehicle type, coverage limits, and credit score can all affect the cost of car insurance.
To save on car insurance costs, it’s important to shop around, bundle policies, raise your deductible, take advantage of discounts, maintain a good driving record, and drive a safe vehicle.
By doing so, you can find an affordable car insurance policy that meets your needs and budget.