Average Cost of Car Insurance – NextAdvisor


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Alex Gailey is an experienced personal finance journalist covering trends, news, and ideas on money.…
If there’s something that everyone wants to know about car insurance, it’s how much it costs.
There isn’t a universal formula. The amount you’ll pay for car insurance is affected by a number of very different factors, from the type of coverage you want to your driving record to where you live. And every company has different parameters to determine how much you’ll pay for your auto policy.
With so many options available — and the potential to save money by comparison shopping and leveraging discounts — making any impulsive decisions on your auto policy can be expensive.
If your car insurance renewal is around the corner, or if you haven’t shopped for quotes in a year or more, use this time to look at what you should expect to pay. A good starting point to figure out whether you’re overpaying for auto insurance is to consider the average cost of car insurance.
The average cost of minimum car insurance is $565 per year, while full coverage car insurance costs an average of $1,674 per year, according to the latest data from Bankrate.  
To find the best car insurance company, get quotes from at least three or four insurance companies to compare prices, coverage options, and any additional perks. Below you can compare average annual rates across several insurance companies. 
The type of car insurance coverage you get and how much of it will determine the amount of your auto premium. Liability insurance is the bare minimum coverage you need to drive in most states, and it covers the property damage and injuries to others if the accident is your fault — up to your covered limit.
Then there are optional types of coverage that protect your vehicle, like comprehensive and collision, which aren’t required by law but most people have. Having a combination of liability, comprehensive, and collision insurance is usually referred to as “full coverage” insurance.
Below you’ll find the average annual premium for common types of car insurance coverage.
Your car insurance rate is almost always guaranteed to go up after an accident, but it’s hard to say precisely how much. It’ll depend on various factors, including your insurer, the state where you live, your age, and whether you have a history of accidents or traffic violations. According to the Insurance Information Institute, a rate increase will generally stick around for three years following a claim. Bankrate data shows the difference in rates before and after an accident can be as much as $560 on average.
Your state and the local area you live in can have an effect on your auto insurance rate. Data from the National Association of Insurance Commissioners shows the average car insurance cost varies significantly across state lines; prices in the most expensive states are more than two times higher than those in the cheapest ones. Below you can compare average annual rates in every state. 
Your rate is determined by dozens of different factors, and those factors vary across insurance companies. It’s hard to pinpoint what exactly every insurance company is analyzing to determine your premium, but here are a few commonly known ones that influence the price you pay for car insurance, according to experts we spoke to and the Insurance Information Institute.
A low credit score can increase what you pay for car insurance by hundreds of dollars, according to the Consumer Federation of America. If your credit score is low, work on rebuilding it by following these tips.
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