All this results in very different rates from one person to the next. This is why the company that gives your friend super-low rates might not be the cheapest for you. Texas Farm Bureau Insurance. American National. State Farm. After an accident, average auto insurance prices for an at-fault driver are:. Accidents resulting in medical costs can be very expensive and result in even steeper rate increases. Causing an accident can raise your auto insurance costs for three to five years afterward, depending on the carrier.
Having bad credit has a surprisingly large impact on auto insurance rates in most states. Average car insurance rates for a driver with poor credit are:. The insurance score uses all the same factors as a regular credit score — things like on-time payments and delinquencies — but weighs them differently.
Insurance companies point to data linking poor credit to more frequent insurance claims to justify the higher prices to state regulators. Getting caught drinking and driving will mean significantly higher prices for car insurance.
For a year-old driver, average car insurance rates after a DUI are:. Shopping around for the cheapest car insurance after a DUI can lessen the blow. Insurers see less experienced drivers as a bigger risk and typically charge them heftier prices.
Insurers may categorize young drivers as anyone 16 to 25 years old, or sometimes even anyone under 30 years old. For our analysis, we analyzed rates for and year-old drivers. As you age, rates tend to go down. For a year-old driver with good credit and a clean driving record, average car insurance rates are:.
But young drivers with blemished credit or a less-than-perfect driving history are likely to shell out more for car insurance. Rates can vary by hundreds of dollars a year, depending on where you live and which insurer you choose. Check with several companies to find the best possible rate and be sure to ask about car insurance discounts for young drivers.
On average, car insurance costs differ little by gender compared with differences we see by company, state, credit score and driving history. In states where the practice is allowed, we averaged rates for men and women separately and found that on average:.
In other analyses, we used a 3-year-old Toyota Camry the most popular sedan in America by sales in recent years to show how rates vary by personal history and demographics. But the make and model of your vehicle will certainly affect rates. Insurers charge more to cover certain cars, including:. Sports cars , which have higher top speeds. People tend to drive them faster, increasing the likelihood of a wreck or traffic violation. Luxury cars because they tend to have expensive parts and details that are costlier to replace if damaged in a crash.
Electric vehicles , which have more expensive engine parts to replace, especially the batteries, which can cost thousands each. Cars that are stolen often , which tend to have higher rates for comprehensive insurance , which pays out when your car is stolen or damaged by something non-traffic-related, such as floods, fire and vandalism. Comprehensive insurance is typically optional unless you have a loan or lease.
To see how rates differ depending on your vehicle, we looked at average car insurance rates for the 25 most popular vehicles based on sales in a separate analysis from As you can see below, the Camry is far from the cheapest model. After all these rates and pricing factors, it could be hard to figure out what other factors affect your insurance rates.
Here are some of them:. More specific location data such as your ZIP code or city. Your previous insurance company. If it was a nonstandard insurer specializing in high-risk drivers , you might see higher insurance rates with some companies. Continuous insurance coverage. Companies charge more for drivers with lapses in coverage. Your marital status. Single people — even widows, widowers and divorced folks — tend to have higher insurance rates.
Whether you own your home and whether you bundle home insurance with auto. Additional coverage options you choose, such as new-car replacement coverage and gap coverage. Whom you live with. By now you may have concluded that average car insurance costs have little to do with your own — this is true. But you can still find the best cheap insurance for you by shopping around for rates every year and every time something major happens in your life, including marriage, a new job, moving or buying a new car.
Cick your state to find the cheapest car insurance there. NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services.
We examined rates for year-old men and women for all ZIP codes in any of the 50 states and Washington, D. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company.
Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers. Before you buy a new or used car, check into insurance costs. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety www. Deductibles are what you pay before your insurance policy kicks in.
By requesting higher deductibles, you can lower your costs substantially. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Many insurers will give you a break if you buy two or more types of insurance.
You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multipolicy discount. Establishing a solid credit history can cut your insurance costs.
Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle. If one of your drivers is a teen, you can expect to pay more to insure them.
Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. In other words, be a safe driver. For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums all else being equal.
Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course. Every state has its own rules about accredited defensive driving courses, and GEICO allows you to check what they are by state on its website. If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies.
Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there. To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it.
When you sign up for insurance, the company will generally start with a questionnaire. Among the questions it asks might be the number of miles you drive the insured automobile per year.
If you use your vehicle to commute three hours to work every day, you will generally pay more in insurance premiums than someone who only drives one mile a day. If possible, try to use mass transit to rack up fewer miles, keeping in mind that you will usually have to decrease your mileage significantly before incurring a discount. Also, check with your provider to see how many miles they have you currently driving, as most can give you an improved insurance quote.
Buying a huge SUV may sound exciting, but insuring a 5,pound, top-of-the-line vehicle can be more expensive than insuring a small but safe lower-cost commuter car. Some insurers will offer a discount if you buy a hybrid or an alternative fuel vehicle. You can feel good about protecting the environment and save money on insurance at the same time.
When selecting car insurance, you can typically choose a deductible , which is the amount of money you would have to pay before insurance picks up the tab in the event of an accident, theft, or other types of damage to the vehicle. The catch is that, generally speaking, the lower the deductible, the higher the annual premium.
Conversely, the higher the deductible, the lower the premium. Ask your agent how your premium might be affected if you raised your deductible. It may make the annual premium better by several percentage points and put some money back in your pocket, or the savings may be minimal. If you are reluctant to file smaller claims to avoid the risk of pushing up your premium, raising the deductible may be a particularly sensible move.
After all, it makes sense that a driver who has been in a lot of accidents could cost the insurance company a lot of money. However, folks are sometimes surprised to find that insurance companies may also consider credit ratings when determining insurance premiums.
Why is your credit rating considered? Michael Barry, senior vice president and head of media relations of the Insurance Information Institute, puts it this way:. Your credit card company or bank may offer free credit score access.
You can check credit reports for free at AnnualCreditReport. However, when planning a move, the potential change in your car insurance rate is something you will want to factor into your budget. Dropping certain types of coverage can be a slippery slope. After all, nobody can predict if or when an accident will occur. The reason for this is that were the vehicle to be involved in an accident, the insurance company would likely total the car.
Individuals have the potential to lower their annual premiums if they install anti-theft devices. Your insurance company should be able to tell you specifically which devices, when installed, can lower premiums.
Car alarms and LoJacks are two types of devices you might want to inquire about.
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