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 13, 2020

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Key takeaways...

  • Insurance comparison tools allow you to comparison shop before buying
  • Basic coverage  does not cover collision costs
  • Urban dwellers are likely to pay far higher premiums than their counterparts in the suburbs

One of the best ways to tell whether or not a car insurance company is charging too much is to have an idea of the nationwide average .costinsurance policy before even requesting the first quote.

This information is a good frame of reference, and its range of prices will help determine whether or not a company should be offering higher deductibles according to their monthly rates or whether they’re actually offering a great discount on their service.

Combined with insurance comparison tools that have become increasingly sophisticated online, consumers are bound to find a great deal.

We can help you find cheap car insurance. Enter your zip code above to receive car insurance quotes for FREE!

Table of Contents

Those Looking for Basic Coverage Can Save a Bundle

The average cost of car insurance in the United States, with basic policies and full coverage policies counted among the masses, came out to a staggering $274 per month in 2011.

That’s a huge increase from the year prior and keeps with the trend of vehicle insurance coverage increasing at a far faster pace than the rate of inflation.

Amid this gloomy and very expensive news, there is one bright spot: The average price for barebones, basic coverage, stayed relatively steady.

The average vehicle owner covered by a basic liability car insurance policy paid between $40 and $60 per month, according to the Bureau of Labor and Statistics.

Of course, it’s worth noting that basic coverage costs very little per month, but very much when an accident actually occurs.

This is because such basic coverage often has sky-high deductibles in the tens of thousands of dollars, does not cover collision, and likely covers only very basic bodily injury services.

Some basic coverage, in some states, may not cover bodily injury at all. So, while drivers saved more money with this option, they also spent more money if they were involved in an accident.

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Midrange Coverage Increasing Faster than All Other Price Points

Two interesting statistics company the average car insurance liability policy prices in America. The first is that,  basic coverage stayed relatively steady in terms of monthly price from 2011 to 2012.

Those plans increased at a rate of roughly 11 percent year per year, while midrange coverage increased at a blindingly fast 33 percent in price over the course of 2011.

The average price of a full coverage policy now well exceeds $300, while the price of a midrange policy generally comes in between $110 at the low end and $290 at the high end.

These rates are based on a number of factors, not the least of which is the policyholder’s state and any regulations imposed on insurance companies.

Things to Consider When Researching Average Insurance Prices

The average insurance policy price nationwide is a great way to tell whether or not an insurance company is offering a fair deal, but it doesn’t tell the whole story.

The amount of risk faced by the average driver from state to state is actually very different, and insurance companies evaluate every customer not only a state-by-state basis but on a city-by-city basis.

For this reason, urban dwellers are likely to pay far higher premiums than their counterparts in the suburbs.

That’s because the risk of accident, damage, theft, and burglary is exponentially higher in suburban and even urban environments.

Since insurance companies cover all of those things, they must also charge customers appropriately.

For reference, rural customers should adhere more to the low end when considering the average rate of insurance coverage in their area. Suburban customers trend more toward the middle of the average coverage range of prices.

And those in urban environments will almost certainly pay rates on the high end of the scale for the increased liability they pose the insurance company’s bottom line.

Compare Average Rates and Insurance Companies at the Same Time

Knowing the average insurance rate is only one part of the process when looking for a fair and affordable liability insurance coverage quote from major national insurance brands.

In addition to knowing how much the average American is paying to insure their vehicle, consumers should also use an online insurance comparison tool to compare companies’ policies without navigating to each company’s website and quote form.

Online insurance quote comparison tools collect the same set of data from each customer and then submit it to the full range of companies with which their tool has partnered.

Once the quote comparison tool has been used effectively, it’s easy to see which company’s customers are paying a premium price for their car insurance coverage, and which customers are getting an unexpectedly great deal.

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Details, Research, and Comparison: The Affordability Trifecta

When it comes to getting a liability car insurance policy that trends toward the national average instead of well above the median price of car insurance, the best way to pick a gear policy provider is to do research and conduct comparisons.

With a new slate of comparison tools, combined with thorough data on the average price of insurance, it’s easier than ever to hold insurance companies accountable for offering robust coverage at a fair rate to all of their customers.

Enter your zip code in the box below and start saving on your car insurance today!

References:

  1. https://www.nationwide.com/how-much-is-car-insurance.jsp
  2. https://www.geico.com/information/aboutinsurance/auto/
  3. http://www.21st.com/auto-insurance-information/understanding-car-insurance-deductibles.htm
  4. https://www.nationwide.com/index.jsp
  5. https://www.progressive.com/
  6. https://www.libertymutual.com/auto/car-insurance-coverage/bodily-injury-liability