▪ The State you live in is a major part of the rates you will receive. One of the most expensive States is Michigan and their rates are typically over $2,200 per year. A State with one of the lowest rates is Iowa at approximately $792 per year. ▪ Your age is also a major factor. A driver aged 20 would pay a car insurance premium of about double the amount compared to someone aged 30 years or older. ▪ The typical car insurance rates in the United States is on average $50+ per month as a coverage minimum and around $105 monthly for a full coverage premium policy. ▪ Depending on the car insurance company, the rates will vary. For example, GEICO offers one of the lowest premiums or quotes at around $42 per month in comparison to Nationwide insurance which offers their cheapest premium at an average of $78 monthly.
This is just an example to show why rate comparisons are important. You could overpay by a lot if you don’t compare auto insurance quotes. It’s possible that you could also receive insufficient coverage with a cheap policy and poor customer service in the event that you need to make a claim.
A look at comparing car insurance rates
Your car insurance coverage can vary a lot depending on several reasons. The Insurer will take into consideration how much coverage is needed, your age and driving history, where you live and possibly your credit score while quoting your policy.
Each State has their own car insurance rates. Accident rates, property crime and insurance laws will vary from State to State. The same goes for Insurance rates.
As an example. the State of Michigan, has one of the most expensive car insurance premiums across the nation, with rates annually over $1,500 for a State minimum coverage and over $2,200 for full coverage.
The State with one of the lowest car insurance rates is Iowa with rates approximately $287 for a basic coverage policy and $792 for a full coverage premium.
Depending on where you live, your car insurance rates will vary
The typical driver will pay a car insurance coverage of 5 times more in Michigan than a driver in the State of Iowa.
It costs almost twice as much for a full coverage car insurance policy for a states minimum coverage premium.
Anyone buying car insurance with a poor driving record can be expensive. If there are any accidents documented on your record, this can increase your insurance rates for at least three years. This is an example of how typical car insurance rates compare with a driving record with traffic incidents vs a clean driving record.
Depending on your age, the amount you will pay for car insurance will vary. Due to their inexperience with driving, younger drivers will often experience higher insurance rates. Compared to a 25 year old, a 16 year old will face a 143% increase. Therefore, car insurance rates are drastically reduced around age 25 especially if the driver has a clean driving record.
Drivers with less than perfect credit, could often face a higher premium. A driver with poor credit could pay approximately 95% more for car insurance in comparison to a driver that has excellent credit.
Regardless of gender, we found car insurance rates to be comparable. A woman would pay a premium of only $19 more annually than men for car insurance.
In order to get the a lower cost car insurance coverage that you want at the best possible premium, you need to compare each and every quote properly, not only compare quotes.
So what is the best way to compare auto insurance quotes? It is very important to compare quotes for the same amounts of coverage and types.
Full coverage car insurance
A policy for full coverage auto insurance will include comprehensive and collision as well as liability.
The rates annually are approximately: $1,255
Car insurance state minimums
A minimum car insurance policy in most states come with only liability coverage.
Typical annual rate is: $641
You shouldn’t compare a quote for a state minimum coverage from one insurance company with a full coverage quote from other insurance companies. so what is the difference between minimum insurance coverage and full coverage?
If you receive a quote for 50/100/50 coverage from one insurance company, quotes received from another insurer should be for the same coverage.
You can place your focus on a price comparison, customer service and reputation as well as forgiveness and roadside assistance, if you receive quotes for car insurance policies that appear to offer the same amounts of coverage.
Try to receive a few quotes from different companies and or agents and then compare them all. It can be confusing at times and can take up time.
However, unless your using the very same information to receive these quotes, you’re really not comparing apples to apples. This can make it a challenge or near impossible to receive the best price for your coverage.
If for example you get a quote for $700 per year for 50/100/50 coverage from one insurance carrier, then another quote for $800 annually for 100/300/50 coverage from another insurance agent or company. It can be difficult to figure out which offer is the best option since each policy will have a different level of coverage. When you begin to receive quotes for the same amounts and types of coverage, things get a lot easier.
GEICO, State Farm, USAA, Erie, American Family all quoted the cheapest auto insurance rates. There are several factors that will determine the cheapest rates such as your driving history and where you live, etc.
You can use an auto insurance quote comparison website such as InsureOpinion to compare and receive multiple quotes all at once.
Compare rates and be sure that the coverage premiums are equal for all plans while comparing their rates, customer satisfaction ratings and reviews, features to get the car insurance policy that is best suited for your needs.