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.

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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.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 19, 2020

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Key takeaways...

  • Always compare at least three different quotes before making a final decision
  • Check with your state department for car insurance requirements
  • Ask friends and family for references and referrals when comparison shopping

Over this past year, the annual payments in each state were estimated at $800 – $2700, making the national average of car insurance premium rates approximately $1700 – $1,800 per year which rounds out to about $150 per month.

Something to keep in mind is that automobile insurance companies file changed car insurance rates on a regular basis, so, to remain current, customers who are shopping for car insurance must check and compare rates frequently.

In addition to the rates varying according to the determining factors mentioned above, adding specific coverage on a particular car may also increase premium rates.

Ready to compare car insurance quotes? Enter your zip code in our FREE comparison tool above!

Table of Contents

How to Acquire Cost-Effective Car Insurance

In some states, acquiring appropriate car insurance coverage can prove to be a costly experience so owners would benefit greatly by doing comparison shopping and seeking as many auto insurance discounts as possible.

Several discounts that come immediately to mind are:

  • Multi-Car Discounts – Households with more than one vehicle can place all of their cars under the same policy
  • Multi-Policy Discounts – If customers own a home as well as a car and they purchase insurance coverage for both from the same insurer, they will qualify for this discount
  • Loyalty Discounts – Given when customers remain with the insurance company for a substantial period of time (i.e., one year or longer)
  • Accident-Free Incentives – Insurance companies also offer discounts for drivers with good driving histories that are virtually free of accidents and traffic violations

There are numerous online sites that give customers the opportunity to find out the average rate for cars in general by simply entering their zip codes, and they can also find out the average car insurance rates for their specific cars.

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Other Available Options for Reducing Car Insurance Rates

There are a number of ways consumers can save money and lessen burdens when shopping for car insurance.

If the vehicle hasn’t yet been purchased, customers can go online to find a listing of the most and least expensive vehicles to insure and at that same time, they can check how much it actually costs to insure.

Comparison shopping can help customers make wiser decisions before they make a purchase.

Choosing a hybrid is a great way to get lower car insurance rates when compared to insuring a sports car.

People with bad credit histories pay 20 – 50 percent more in premium payments than those with good credit histories so consumers should keep up their credit ratings as well.

Insurance Companies Don’t Act on Whims and Instincts

Auto insurance premium rates are determined by a compilation of statistical data which has been gathered over a precise period of time.

These statistics can include:

  • Histories of all models of vehicles
  • Safety of the vehicle
  • Driving history of all drivers
  • Annual amount of miles driven

Once the claims experience of the cars and the consumers are included in their research, insurance companies have reliable information and they can issue premium rates with assurance.

However, consumers should still do their own homework and investigate and compare car insurance companies.

One of the best ways to do this is by talking to other customers (i.e., relatives and friends) to find out their experiences with certain insurance companies.

The most important subject to inquire about is how insurance companies handle car insurance claims.

Also, check with the state to find out if there have been any complaints on file that were lodged against the insurance company.

If there are numerous complaints on file, the consumer should be leery of that company.

Finding the Best Average Monthly Car Insurance Rates

There are two essential facts that consumers should keep in mind. You should never allow your car insurance to expire because it costs more to insure drivers who do not have a record of continuous coverage.

In addition, you should compare at least three different quotes.

The knowledge gained from doing detailed research as well as dealing with numerous companies all vying for your business can result in substantial cost savings.

Each state’s Department of Insurance has various comparison charts regarding rates under different circumstances. Use this information to your advantage when looking for coverage.

Find car insurance quotes is easy with our FREE comparison tool! Enter your zip code below to get started!

References:

  1. https://www.statefarm.com/discountdoublecheck/iphone/MultiCar.html
  2. https://www.nationwide.com/multiple-policy-discount.jsp
  3. https://www.nationwide.com/safe-driver-discount.jsp
  4. https://cars.usnews.com/cars-trucks/rankings/hybrid-cars
  5. http://www.naic.org/state_web_map.htm