Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

Full Bio →

Written by

Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

Full Bio →

Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 8, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Car insurance comparison shopping should be easy. We partner with top car insurance companies. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • The average car insurance cost varies from state to state depending of certain criteria
  • Your driving record can have a significant impact on your premiums
  • Defensive driving courses and driver’s education courses will help you lower your monthly rate

The Insurance Information Institute, from data they have collected, indicates that the average auto insurance expenditure in 2012 was $815 per year.

This is the last year compiled statistics are available. However, the expenditures vary from state to state. For example, in New Jersey, the average expenditure was $1,219.83, whereas, in North Dakota, expenditures ran $576.08.

Be sure to compare rates easily using our FREE search tool above. Simply enter your zip code to get started!

Table of Contents

Factors Affecting Your Personal Automobile Insurance Rates

adobestock_62738654-1600x1600

The average car insurance cost varies from state to state depending upon the following criteria:

  • The number of new vehicles purchased in a particular state, therefore the economic condition of the state. More vehicles that are the result of a higher average insurance cost because more owners purchase comprehensive and collision in addition to liability coverage
  • Urban population and traffic density may result in higher premiums
  • Drivers and other factors

These factors affect your individual premium costs within your state:

  • Driving records for you and your family during the last three to five years
  • Your family’s own credit-based insurance score
  • Your age, gender, and marital status
  • Place of residence
  • Annual mileage and automobile use
  • Deductibles carried for comprehensive and collision coverage
  • The type of car you own, its value, and repair costs

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Credits That May Apply to Reduce Your Automobile Insurance Premiums

  • Purchasing auto and home insurance from the same insurance company – this can save up to 20 percent on premiums
  • Multiple vehicles – the more cars you have on a policy, the less you pay for each individual auto
  • Airbags, anti-lock brakes, and anti-theft devices can earn credits
  • Defensive driving courses and driver’s education courses can earn credits, depending on your age
  • Some insurance companies give credits for belonging to organizations such as alumni associations, work-related organizations, belonging to certain unions, or working in certain industries

A Sure Way to Save Premium Money on Auto Insurance

adobestock_97798169-1600x1600

Comparison shopping for insurance can make a difference in your premium choices.

Get at least three different quotations for automobile insurance to have a selection.

The quotations should be for the same amounts and types of insurance to get adequate comparisons.

The following coverage is available for autos:

  • Bodily Injury Liability – $100,000 per person and $300,000 per accident will usually meet state laws and provide reasonable coverage for you. Note that this coverage is for your legal liability as defined by law.
  • Property Damage Liability  $50,000 to $100,000 per accident is adequate. Consider the cost of another’s automobile if it should be totaled because of an accident for which you are responsible.
  • Medical Payments Coverage  $5,000 to $25,000, depending upon your needs. This coverage applies to pay for the costs of emergency help for you and your passengers at an accident.
  • Uninsured Motorists Coverage  $100,000 per person and $300,000 per accident for bodily injury for you and your family in the event that you are involved in an accident with someone who does not have insurance.

Law in your state may require the coverage listed above. Each state’s legislature sets the requirements for insurance coverage within the state.

To determine your state’s laws, consult the Department of Insurance.

Personal Injury Protection or PIP coverage. Some states have a system of insurance referred to as “No-Fault” in which liability insurance will pay for injuries no matter what person is at fault with regard to the accident.

It is necessary for you to examine coverage carefully if you reside in one of those states because the laws and criteria vary so much.

Compare Car Insurance Companies

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Some of the states with no-fault laws are:

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania

Insurance Protection for Your Own Property

Liability coverage does not protect the valuable asset of your vehicle from an accident and the subsequent economic loss.

To do this, you need to purchase the following coverage:

  • Comprehensive Coverage provides protection against theft, hail, flood, windstorm, fire, and animal damage
  • Collision Coverage – pays for damage to your car from hitting another car or an object

You choose the deductible applying to both comprehensive and collision with the understanding that you will be responsible for contributing that amount to any claim you may incur.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Being a Wise Shopper

dollarphotoclub_86660480-1600x1600

Insurance companies and agencies must be licensed within your state to sell insurance. In this day of mass marketing, it would be a good idea to examine the company and agency from which you purchase insurance.

You can do this by checking the following:

  • Your state’s insurance website, found under the state’s governmental listing in your search engine. You will find information about licensing of insurance companies and agencies as well as complaint ratios compiled from the state’s records
  • The National Association of Insurance Commissioner’s (NAIC) website for financial information and complaint ratios by the insurance company
  • A. M. Best Company will provide financial information about insurance companies
  • Standard and Poor’s rating services provide financial ratings

The reason financial information is important is because an insurance company that’s solvent will be able to pay insurance claims.

Complaint ratios give you an indicator of how the insurance company conducts their business both with regard to claims and with regard to everyday business.

Insurance Averages and Their Relationship to Your Auto Insurance

Examine the statistics for insurance averages for your state, recognizing that your premiums may not match the statistics.

They will, however, give you an approximation to consider when you are looking at quotations.

A premium considerably higher than the statistical average may indicate that you need to examine premiums and get another quotation.

Be careful to read your insurance quotations and policy to determine the coverage offered.

Ask questions of the insurance company and your agent if you wonder about anything. Insurance agents are trained to provide information with regard to their expertise and are required to continue their training on a regular basis.

Use the FREE car insurance comparison tool below and start your search instantly! Enter your zip code below to get started now!

References:

  1. http://www.iii.org
  2. https://www.statefarm.com/insurance/auto/coverage-options/comprehensive-coverage
  3. https://www.progressive.com/auto/discounts/
  4. https://www.aarpdriversafety.org/
  5. https://www.libertymutual.com/auto/car-insurance-coverage/bodily-injury-liability
  6. https://www.allstate.com/tools-and-resources/car-insurance/property-damage-liability-insurance.aspx
  7. https://www.allstate.com/tools-and-resources/car-insurance/underinsured.aspx
  8. https://www.nationwide.com/personal-injury-protection.jsp
  9. http://www.naic.org/cis/
  10. http://www.ambest.com
  11. http://www.standardandpoors.com