How Much Does Car Insurance Cost?

Auto Insurance Prices

If you've got an automobile, then you will need car insurance to protect it. However, the cost can vary drastically depending on factors such as: the driver's age, car model, geographic location, and driving record.


Typical costs:

  • For a little old granny who sits at home most of the day and goes to the shops once a week, automobile insurance can cost as little as $275/year. However, most people can expect a car insurance quote between $125-$175 per month, or $1500-$2000 per year. Drivers under the age of 25, who have expensive cars or bad driving records and those with premium coverage can pay as much as $4000-$5000 per year. Other factors that affect insurance for cars are:
  • Gender: statistically, women are safer drivers.
  • Marital status: married people pay less than single people.
  • Location: people living in rural areas with little traffic pay less than those living in traffic-heavy cities and areas where theft is prevalent.
  • Credit rating: surprisingly, those with poor or no credit history are seen as posing a higher risk.
  • Job: People who sit at a desk pay less than those who spend most of their day on the road.
  • Education: being more educated could get you lower automobile insurance quotes.
  • How far you drive to work.
  • How long you've had a license.

Discounts:

Just as many factors can result in higher insurance premiums, there are many things which can save drivers money. They include:

  • Theft protection devices such as a tracking device, gear lock, or steering column lock.
  • Multiple cars and drivers under one policy.
  • A higher deductible (a deductible is the amount the customer must pay).
  • Discounts may be available if you purchase homeowner's or another type of insurance from the same company.
  • Low cost car insurance: offering limited coverage, is available from some companies.
  • Each state has different minimum car insurance requirements. For example, some only demand liability, which covers damage you do to other vehicles and property, in place of full coverage which covers damage to your vehicle and is significantly more expensive. State requirements can be viewed here.

Shopping for car insurance:

  • Popular car insurance companies included esurance, Progressive, and Geico. Check out their websites for car insurance quotes.
  • It's a good idea to compare car insurance companies and get a car insurance quote from as many as you can. Some may offer significantly lower rates than others.