Average Car Insurance Rates Revealed

Paying too much for auto insurance? Find out the average cost of car insurance across the country.

Is there such a thing as average car insurance rates? According to NAIC in 2006, the average cost for auto insurance in New Jersey was $1152 while the average cost in Maine was $634. That’s an 81.7% difference – big money when you’re buying a policy every year. According to that same study, average premiums across the nation were $817.

We also compiled some average car insurance rates below – more on that later. For now, the better answer to the question about average car insurance rates is: it depends.

Auto Insurance Rates Depend On Your Location

As you may have guessed, auto insurance rates depend on your state of residence. New Jersey is notorious for high rates. Historically, insurance regulations in New Jersey are strict. In some cases, regulators have encouraged some companies to leave, decreasing competition, and thereby driving premiums even higher. Still, as high as New Jersey rates are, they’re usually more in Washington, D.C.

In addition, if you live in a city, you’ll pay more for a policy than if you live on a farm. Because, insurance companies base their prices on risk, city-dwellers pay more. It’s more likely for bad things to happen to your car in a city than driving to and from the convenient store in Podunk, USA.  

Car Insurance Rates Depend On Your Driving History

If you have a not-so-stellar driving history, insurance companies will reward you with not-so-stellar rates. Drivers with clean/clean records earn cheaper premiums. Clean/clean is insurance-speak for no accidents and no tickets. If you drive without accidents or tickets for three years, in most cases insurers won’t count your old record against you. There are definite exceptions to the rule: example DUI.

Auto Rates Depend On Your Age and Sex

Like it or not, younger drivers carry more risk than older, more experienced drivers. As such, drivers under 25 usually pay more for their car insurance policy than drivers over 25. If you’re under 25 right now, don’t worry, it’ll be here before you know it.

In addition, younger female drivers often pay less than their male counterparts. Research shows younger males are more aggressive drivers, often having more accidents than females in the same age bracket. That’s why insurance companies charge higher premiums for young male drivers. 

Average Auto Insurance Rates Revealed

As for average auto insurance rates, we compiled a list of rates from several states. Although they’re not definitive lists, it’s a helpful tool for comparing rates at different companies in a few different states.

It’s better to compare your current premium to a few other companies directly. Make sure you get several quotes before you settle on a policy. You may not know the exact average car insurance rates, but you’ll find out if you’re getting ripped off by your current insurer.

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