Car Insurance Statistics

U.S. car Insurance Statistics

According to statistics, the average premium for car insurance is approximately $1,577 per year. This figure is less than corresponding figures for 2009 and 2008 where average premium were $1,736 and $1,600, respectively. Interestingly, the cost of car insurance is two and half times higher in New Jersey than Iowa. This trend is consistent in Northeastern and Southern United States where car insurance is relatively very high as compared to Central regions.

For example, car insurance is approximately $2,500 in New Jersey whereas it is only $1000 in Iowa. Perhaps, the most expansive premiums are in the Tri-State area and New England states. In these territories, cost of car insurance is as much higher as 39% of the national average.

Just consider how much drivers have to pay to insure in New Jersey, Rhode Island and New York where premium is 39%, 37% and 31% higher than the national average. In contrast, premium policies differ in the northern most stretches of Eastern United States where Maine, Vermont and New Hampshire share similar policies in enacting lower insurance costs, which are surprisingly 20% lower than the national average.

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One of the reasons for comparing such statistics is to remind readers

how cost of car insurance may fluctuate just a few miles across the state

border. Another important aspect to consider is the fact that car insurance premiums do not remain stagnant, but they continue changing every month.

Although, these changes may not be significant they demand that consumers are aware of different factors contributing to insurance costs. Savvy consumers know how to manipulate these factors to their advantage. Some of the most important factors are listed below.

Factors Affecting Car Insurance Rates

There are certain factors that are standard for all drivers which mean that drivers can do little to save insurance costs. These are:

Age- The cost of insurance increases for drivers under 25 years and decreases for anyone aged between 50 and 65. Therefore, if you hold family insurance and there is someone in your household who falls under one of these age categories, chances are that your car insurance will be higher or lower, accordingly. Teen drivers pay notoriously high rates.

Gender- Generally, females have lower insurance rates which can sometimes compensate for higher costs of male drivers holding the same insurance policy.

Martial Status- Generally, insurance companies view married people as more responsible than singles.

How to Reduce Car Insurance Rates

Generally, areas with lower traffic have low premiums. It is one of the reasons for significant difference in insurance costs between two bordering states such as New York and New Hampshire. Likewise, a luxury car with accessories will cost higher than a low priced car.

Furthermore, it is also important to check policies of rival insurance companies as some of these companies may give higher insurance quotes due to past traffic violations. Other contributing factors may include:

Driving distance to work

Number of miles driven every year

Potential use of the vehicle

Safety systems

Compare Insurance Companies

Due to range of factors, it is always prudent to compare car insurance companies. A large company does not mean that it has the best insurance policy. It is recommended that drivers should not rely on just two or three quotes, but try to lower price by comparing multiple insurance companies.

You can utilize the service of websites like this one that offer car insurance quotes from multiple source. Anyone with an internet connection can not only get several quotes, but also manipulate factors according to their preference. Before you buy your next vehicle, try to reduce your costs by entering your state and comparing online car insurance rates and companies now!