How much is car insurance per month | average car insurance cost
Great stuff cool vehicles all the fun stuff and they actually put out an article that is way off our basis as far as dollar amounts and prices so they're talking about the average cost of car insurance in the u.s
now we got to put a little bit of a back story to this because they essentially are using triple a's data but you got to be careful this data even though the article was basics of 2024 the data is from 2023 they say the average cost of car insurance is 1342 annually which isn't even close the average cost of car insurance
today is ranging between 16 to eighteen hundred dollars per year that's not including the states that have the higher rates so if you're in michigan or new jersey or new york and all florida and those guys those guys are closer to three thousand dollars per year the data that they're using is actually really good information so it's people that are under 65 years old you're gonna have a little bit lower of a risk
but that's the most common driver out there they're looking at somebody that wants full coverage on a vehicle somebody that's just the average driver so between the ages of i would say 18 and 35 is kind of a good range that we should talk about keep in mind those numbers don't include if you have good credit if you have a high risk area that you live in if you've had a dui or claims or tickets and all of that there's essentially profiles for each person individually that's going to get you the rate that you want by the way
if you are shopping for car insurance i have a link in the description below to a company that actually works with a ton of different companies so if you want a hassle-free way to find out what the rates are in your area for your specific profile odds are you're going to be below that 16 1700 range go ahead and check it out below otherwise let's dive into the factors that are causing this rate to be where it is today so the largest piece is your age if you're 16 to 25 you're a high risk
if you're 70 to 75 and 75 plus you're also a higher risk the claims in those two categories or the two age groups are a lot more medical injuries in general so the cost for insurance for that person you can add 20 to 30 based on the numbers we have if the average for you was let's say sixteen hundred dollars you have to add another three to four hundred dollars on top of that just to get what it would cost one of the best ways to do it if you're younger and you still live at home
is if your parents have a good driving history driving record and they love you enough to put you on their insurance you typically carry some of their discounts down to you that's going to give you the better rates in general but if you're looking to go on your own then you may want to look at some of those companies like i have linked below
if you're the type that just wants the minimum coverage this isn't mentioned in the article but i'll tell you those numbers as well you're going to be anywhere between six and fifteen hundred dollars per year if you have decent credit you're going to be in that 600 range if you have really bad credit maybe a ticket and whatnot your average for just personal liability and property damage that's the state requirements in almost every state the minimum coverage
you're going to be right around let's just say that 800 to 1200 range now the driving experience was explained but in this article they used the average of six years driving accident free in this case that's what they're saying that 1300 which today is closer to that 1800 range the location once again that makes a big difference if there are a lot of uninsured motorists around you if you're in a large city if you're having a large commute that location
the weather plays a factor if you're in a state that has a higher speed limit if you have cannabis there's a lot of little factors it might only be three percent here and eight percent here of higher risk but if you're in one of those zones then you're going to have a higher premium that eighteen hundred dollars is going to quickly go to twenty two hundred dollars and so on and so forth depending on the average cost average guesstimate
the payout that an insurance company would be paying if they had a claim these territories are monitored for what those pieces are that's why different companies have different rates for example let's just use company a might have a 1200 a month rate in your area while company b for you is 1800 a month era same coverage it's crazy
how low risk maybe they have less insureds in your area that have claims maybe they have more or they had some major claims or maybe they had to pay out for something major that's going to raise the risk for that company b and company a is going to be better that's the main reason i decided to go as an independent agent because i didn't want to be tied to just one company when i have multiple companies
if company b goes crazy and decides that the rate should be twice as much i'm not stuck i can still get business and give you a good policy and switch you back over to company a now of course your car plays a small factor not as much as you would think but it is starting to play more of a factor today than it was two years ago the age of the vehicle the value of the vehicle the crash test rating
which almost all of them are five star so it doesn't play as much of a factor today but that all plays a factor now if they're a foreign car how much does it cost with today's market to get that part from out of the country most companies you may not know this don't even buy the parts anymore outside and buy the manufacturer equipment
it's an additional add-on that most people have to add on to your policy there are some companies that actually do offer that and so that's just a matter of just researching the company
if you want to get more advice on that type of stuff if you're the person that's just doing that plpd that minimum coverage then none of that matters the repair to the car the color of the paint the cost of the mechanic to fix it you're not covering that in that case you're gonna have hundreds less expensive in almost every scenario on average
i would say it's between five to eight hundred dollars less expensive so about thirty to forty percent less if you're going to just do the basic coverage now one of the things i would recommend that you do is don't just say i need the best budget policy i can get try a couple different scenarios not necessarily full coverage what i'm saying is that you do a little bit higher liability limit in some states especially
when medical is required the cost of liability raising it from a low to a high amount is very minimal so to protect yourself even better it doesn't necessarily cost you an arm and a leg other states they are expensive because of the risk that they have so it's just a matter of playing if you're going to do more of a basic coverage try that and maybe the level above it just to see what the cost difference is and it might be worth it for you to go with that next level up all right mark that's great and all thanks
for telling me the average blah blah blah how do i actually save money that's the best thing i'm gonna link a video in here that goes over the discounts there's a ton i'm going to rattle some of them
if you have car renters car home all that you have the multi-car discount if you have more than one car defensive driving in most states you have accident free safe driver claims free discounts if you've had insurance with the same company there's a loyalty discount with most companies low mileage early shopping if you're shopping at least a month in advance or two weeks in advance technically seven days but most companies are starting to change that there's the safety rating of the vehicle