Average Auto Insurance Rate

Over the past year, the average auto insurance rates in the United States has increased in general, but in some states, the rate has actually dropped. An online study shows that the overall yearly average auto insurance rate runs $1,830 per year, or about $153 per month. These 2008 figures compare to 2007 when the average was just about $1600. Some drivers will pay considerably more, others less, depending on personal statistics. The type of policy granted, coverage details, the company, and driver age are other factors that go into determining what a personal auto insurance rate will be. If a person has had previous accidents or claims, or if a person has tickets, especially for DUI, this also affects the insurance rate. Even your credit rating can impact how much you will pay for auto insurance. Geographic location and local demographics play their part also. If you live in Florida, rates rise due to average older age in the state, and accident rates and risks. Rising rates are not restricted to Florida. Those living in Ohio, Pennsylvania, Georgia, and Texas also experienced rises in rates in the past year. Some rates rose as much as 6.6%. Other states saw their average rates lower somewhat, as in Kentucky, Maine, and North Dakota. There could be any number of reasons for these rate variations, from terrain to good credit. The three areas with the highest average auto insurance rate were: Louisiana, Washington, D.C., and New Jersey. Their averages were about $2,600 per year.

Factors Behind The Scenes

Many factors affect the average auto insurance rate.

1 – Historically, males will be charged higher rates than females, because statistically they have more accidents, they drive more miles than females, and they are greater risk takers.

2 – If you live in a large city, you will probably pay more, because of the density of population, and higher risks.

3 – The type of car you drive will affect your rate. A flashy, expensive sports car will cost more to insure than a family sedan.

4 – Your deductible will affect the final cost. Choose a higher deductible to lower your rate.

5 – Options you have, and equipment on the car will affect the rate. Having anti-theft devices, using seatbelts, and the “extras” you have on the car will affect the rate.

6 – Where your car is kept will affect your rate. If you are regularly parked in a garage, it is better than parking in the open, where you are vulnerable to vandals and weather.

7 – If you can get your auto insurance from the same insurer as your home insurance, you may have a lower cost option.

8 – The number of miles you drive will affect your personal auto insurance rate. Drive more, pay more due to increased risk.

9 – Like it or not, your credit rating can also be a factor in determining your rates. Bad credit equals higher risk behavior.

Discount are Available

Some insurance companies will offer discounts. Shop ahead to find them. Sometimes, if you tell your company you are shopping around and may switch companies, they will give you a better deal. Teen drivers may be eligible for a good student discount. Driver training courses can lower your rates if you take them and pass, and you will learn good driving habits. This training, and defensive driving courses can help you drive better, keep your record clean of accidents, and reduce your insurance rates.

Shop around for the best auto insurance rates wherever you live. Shop online, and shop before you make a decision about which car to purchase. Find out potential costs before you buy a car, and you may decide to buy a different car with lower rates. $153 a month is not chump change, it is a significant amount. If you can shop around to reduce it, you definitely should do so. If you are shopping online, remember that a quick quote is not a binding agreement. Things may be different when you actually go to sign that dotted line.

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