Average Car Insurance Per Month: What You Need to Know

Car insurance is an essential expense for all drivers, as it is a legal requirement in most states. However, the cost of car insurance can vary widely depending on several factors, such as your age, driving history, and the type of car you drive. In this article, we will discuss the average car insurance per month, what affects it, and how you can save money on car insurance.

Factors that Affect the Cost of Car Insurance

The cost of car insurance varies widely based on several factors such as:

Age

Your age plays a significant role in determining your car insurance premium. Younger drivers are generally charged higher premiums as they are considered to be high risk. The average car insurance per month for a 16-year-old driver is much higher than that of a 30-year-old driver.

Driving Record

Your driving record also affects your car insurance cost. If you have a history of accidents or traffic violations, you can expect to pay a higher premium as you are considered to be a riskier driver.

Gender

In some states, gender is a factor that affects car insurance premiums. Statistics show that men are more likely to be involved in accidents compared to women, so men generally pay higher premiums.

Location

The location where you live also affects the cost of car insurance. If you live in an area with a high crime rate or a lot of accidents, your premium will be higher.

Type of Car

The type of car you drive also affects your car insurance premium. Expensive cars or cars with a high risk of theft or damage generally have higher premiums.

Average Car Insurance Per Month

According to the National Association of Insurance Commissioners (NAIC), the average car insurance premium in the United States was $1,004 per year or $83.67 per month in 2020. However, this is an average, and your premium can be much higher or lower depending on the factors listed above.

The average car insurance per month for a 30-year-old driver with a clean driving record and a mid-range car is around $100 to $150. However, if you are a high-risk driver or have an expensive car, your premium can be much higher.

Ways to Save Money on Car Insurance

Car insurance can be a significant expense for many people, but there are ways to save money on your premium. Here are some tips:

Shop Around

Don’t settle for the first car insurance policy you come across. Shop around and get quotes from different providers to find the best deal.

Consider a Higher Deductible

A higher deductible means you will pay more out of pocket in case of an accident, but it also means you will pay lower premiums. Consider if this is the right option for you.

Take Advantage of Discounts

Car insurance providers offer various discounts such as multi-car, good driver, and low mileage discounts. Ask your provider if you are eligible for any of these discounts.

Bundle Your Policies

If you have other insurance policies such as home insurance, consider bundling them with your car insurance. This can help you save money on both policies.

Drive Safely

The best way to avoid high car insurance premiums is to drive safely. Avoid accidents and traffic violations as they can significantly increase your premium.

FAQ

What is the minimum car insurance requirement in the United States?

The minimum car insurance requirement varies by state. However, most states require drivers to have liability insurance, which covers damages to other people or property in case of an accident you cause.

How can I lower my car insurance premium?

You can lower your car insurance premium by shopping around, increasing your deductible, taking advantage of discounts, bundling policies, and driving safely.

Is it necessary to have car insurance?

Yes, it is necessary to have car insurance as it is a legal requirement in most states. Car insurance helps protect you financially in case of an accident and also provides peace of mind while driving.