Whether you are ready to test your new auto or get a professional driver, you will always be engulfed with fears of how much you are protected with your vehicle in case of accidents. This is also followed by worries about how much you will spend on your auto insurance. While this may sound like a complicated question, the good news is that getting your insurance policy or the best auto insurance companies can be as easy as ABC.
Roughly, the national average cost of auto insurance is around $1,200 per year or $100 per month. However, these auto insurance quotes may vary based on various factors such as your minimum deductibles, coverage types that are ideal for you, your demographics like age, gender, and marital status, auto features, your driving habits, and the insurer you choose. With this in mind, you can move on and look for the best auto insurance policy that will shine your headlights on the road.
What’s the average cost of auto insurance?
Auto insurance gives you the freedom and confidence when driving your machine on the road. In addition, you will have an assurance of a backup plan whenever anything happens. However, while the whole idea can be a relief to many drivers, the biggest question lies on how to get the right auto insurance quotes that will favor your financial status.
Therefore, if you are looking for the ballpark figure on how much you will cover your car, the average cost of auto insurance is around $1,200 or $100 per month. This is a figure according to the National Association of Insurance Commissioners. Besides, this quotation may vary depending on your location, driving record, different insurers, credit score, and auto model.
Different coverage types will also give additional auto insurance quotes. For example, minimum liability coverage is cheaper than full coverage auto insurance. While this could be a money-saving tip for drivers, you are likely to incur higher maintenance costs later.
Factors affecting auto insurance rates
As mentioned above, average auto insurance rates may vary from state to state, depending on many factors. As such, new auto buyers should understand that their calculations will be based on three categories, including their demographics, auto specifics, and driving habits. These factors can be expanded as follows:
Driver’s age and gender
Your age and gender may determine if you will win the cheapest auto insurance or not. This is because most auto insurance companies review drivers’ age and gender before settling for a specific rate since it is assumed some driving risks are associated with the age and gender of the driver. For example, young men are believed to cause most accidents; hence receive higher auto insurance rates than young women. Contrary, older women receive higher quotations than older men since they tend to crash more often.
Ever wondered why married people tend to receive lower rates on their auto insurance than singles? This is because most married people drive carefully and cause fewer accidents than dollars, which go carelessly and cause more accidents. Therefore, couples with a clean driving record often receive lower auto insurance premiums. Similarly, men will have their insurance rates reduced drastically once they wed.
Your credit score also plays a significant role in determining how much you will be charged for your annual premiums. For instance, a poor credit score will attract higher rates than a good credit score. Therefore, people with a good credit history will receive more insurance discounts when signing for a policy.
Your car’s age
Auto insurers will also look at a car’s state when determining the minimum rate of its insurance policy. For example, new cars tend to cost more for maintenance and replacement during a total loss than old or second-hand cars. As such, new cars need a higher collision coverage than old cars.
Your car’s safety rating
Before any vehicle hits the road, it needs to pass through auto safety testing to be certain that the drivers or occupants are safe in case of an accident. Therefore, a higher safety rating means a safe driver and requires lower insurance rates since the insurer will only pay less for medical bills during accidents.
Your driving history
Before getting into any auto insurance policy, insurance providers will look at your driving history to see how often you were involved in accidents. Drivers with a bad driving record, such as more fault accidents, are likely to receive higher cost of auto insurance quotes than those with a clean driving history. Similarly, those with more speeding tickets or liability insurance claims are also likely to see their rates increase temporarily over time.
Your driving activity
It is assumed that the more time you spend behind the wheel, the higher chances of causing accidents. Therefore, cars with more driving activities are likely to receive higher quotes than those who spend most of the garage.
Best auto insurance companies
When reviewing different insurance providers, you will learn that what works for your neighbor might not be ideal for you. Most auto insurance companies are tailored to work best for specific groups depending on various factors such as customer service ratings, available discounts, and their average insurance payments. Here are the three best auto insurance companies to check out:
State Farm’s cheap auto insurance company is one of the best options for people who need a local agent or online services. The company has the highest customer rating with more than 18000 local agents in most states. Also, State Farm has a Pocket Agent application, a convenient smartphone app that customers can use to pay insurance premiums, file claims, and request roadside assistance.
State Farm offers basic minimum coverage types with other services like GAP and rideshare insurance policies. It also has numerous insurance discounts, including Drive Safe and Save incentive and a 5% discount on the insurance once the driver enrolls.
USAA is the most affordable auto insurer for current and former military and their families. Its success is caused by the excellent customer service ratings, lower rates, and insurance discounts on both auto and home, making it a preferred choice for young homeowners who are just getting into the auto industry. Besides, soldiers who stay in camps or those deployed overseas can enjoy up to 60% insurance discounts.
USAA offers its services in different coverage types, including personal injury protection and medical bills, collision coverage, comprehensive insurance policy, and property damage liability.
Geico is another winning insurance company in the auto industry, credits its excellent customer service and lower insurance payments. It is also unique, providing a highly convenient website and mobile application where drivers can easily handle their auto insurance policies on the go.
Geico’s insurance policies include the guaranteed asset protection (GAP), rideshare, and mechanical breakdown insurance. It also offers numerous discounts, including a multi-policy discount to homeowners looking to combine auto and house insurance.
As the automotive industry continues to expand, the cost of auto insurance is also likely to increase in the future. Unfortunately, this means getting a nationwide quotation will continue to be a riddle to many new auto buyers. However, mastering the above information and learning how to minimize auto insurance costs can help drivers to quickly estimate how much it will cost them to get full coverage for their cars. One can also visit the auto insurance quotes section or talk to a national insurance agent to get their coverage limits estimates within minutes or, better yet, turn to a free platform that does comparison shopping, such as CarInsurance.net.