Car insurance is a necessity for almost every driver, with each state having different minimum coverage requirements. If you’re curious about the cost of car insurance and looking to save money on your policy, we’ve got you covered.
How much does car insurance cost in 2024?
The national average for full-coverage car insurance is just under $2,000 per year or around $165 per month for drivers with clean records and good credit. However, rates can increase significantly with accidents and poor credit.
Drivers with good credit may pay up to 61% less than those with bad credit, and a DUI conviction can nearly double the average cost of car insurance.
It’s important to note that while minimum coverage is cheaper, it may not provide enough coverage in case of an accident where repair costs exceed the coverage limits.
Insurance rates are typically higher for men, but the difference narrows with age. Young men often pay more than young women, but the gap decreases as they get older.
What is the cheapest car insurance?
It’s essential to shop around for the best rates. USAA is often the cheapest insurer for many drivers, while State Farm, Travelers, and American Family also offer affordable rates.
There may be regional insurers or job-specific insurance companies that offer better rates or discounts for specific professions.
Which states have the most and least expensive car insurance?
Florida has the highest average insurance cost at $3,797 per year, while Wyoming has the lowest at $1,069. States with more car accidents typically have higher insurance rates.
Other states with expensive insurance rates include Louisiana, Rhode Island, and Kentucky.
How much is car insurance for teens and young adult drivers?
Youthful drivers often pay more for car insurance, with 20-year-olds typically paying around $4,110 per year for full coverage. Rates are sensitive to credit scores and driving records.
Vehicles with higher insurance costs
Sports and luxury cars are more expensive to insure due to their high repair costs and increased risk of accidents. Additionally, some car models may be more prone to theft, impacting insurance rates.
Electric vehicles may also be costlier to insure due to expensive battery replacement and advanced safety technology.
Car insurance discounts
Many insurance companies offer discount programs for various demographics, including good students, teachers, law enforcement, veterans, and safe drivers.
Installing a monitoring device can also result in discounts, although it may involve sharing driving data with the insurer.
How to save money on car insurance
Shopping around for the best rates, keeping track of available discounts, and maintaining a clean driving record are some of the ways to save money on car insurance.
Consider opting for a higher deductible if it makes financial sense, but be cautious about reducing coverage levels to save money.
What is liability car insurance, and is it worth the risk?
Choosing a minimum coverage or liability-only plan can save you money on insurance premiums, but it also means you’ll be responsible for your own repairs in the event of a collision. Consider the risks before opting for reduced coverage.
