Car insurance prices in America the average cost of car insurance in the United States is $1,982 per year, according to Nerd Wallet’s 2023 rate analysis. That works out to an average car insurance cost of about $165 per month.
Car insurance prices in America
it's important to remember that this is just an average, and your individual rate could be much higher or lower depending on a number of factors, including:- Your location: Car insurance rates vary widely by state, with some states charging significantly more than others. For example, the average annual rate in Louisiana is $3,247, while the average rate in Maine is just $1,178.
- Your age: Younger drivers are typically charged more for car insurance than older drivers. This is because they are statistically more likely to be involved in accidents.
- Your driving history: If you have a clean driving record, you can expect to pay lower rates than drivers with tickets or accidents on their record.
- Your credit score: In most states, your credit score is a factor in your car insurance rates. Drivers with good credit scores typically pay lower rates than drivers with poor credit scores.
- The type of car you drive: More expensive cars and cars that are more likely to be stolen or damaged in accidents will typically cost more to insure.
- The amount of coverage you choose: The more coverage you choose, the higher your rates will be.
Car insurance in America
Here are some additional factors that can affect your car insurance rates:- Your marital status: Married drivers typically pay lower rates than single drivers.
- Your gender: In some states, male drivers pay more for car insurance than female drivers.
- Your occupation: Some occupations are considered to be higher risk than others, and drivers in these occupations may pay higher rates.
- Your annual mileage: Drivers who drive more miles each year typically pay higher rates than drivers who drive fewer miles.
Car insurance
If you're looking for ways to save on car insurance, there are a few things you can do:- Shop around for quotes: Don't just accept the first rate you're offered. Get quotes from multiple insurers before you make a decision.
- Choose a higher deductible: A deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your monthly premiums, but it's important to make sure you can afford to pay the deductible if you need to file a claim.
- Bundle your insurance: If you also have homeowners or renter’s insurance, you may be able to get a discount by bundling your policies with the same insurer.
- Maintain a good driving record: Avoiding tickets and accidents is one of the best ways to keep your car insurance rates low.
- Improve your credit score: If you have poor credit, take steps to improve your score. This could help you qualify for lower car insurance rates.
- Drive less: If you can, try to drive fewer miles each year. This will help you save on gas and car insurance.
- Consider usage-based insurance: Some insurers offer usage-based insurance policies, which base your rates on how much you drive and how safely you drive. This can be a good option for drivers who don't drive very often or who have a clean driving record.
