How Much Does Car Insurance Cost? Everything You Need to Know


Triston Martin

Dec 04, 2023

Car insurance costs vary from person to person based on the state in which they reside, the insurance company they choose, and the kind of coverage they have purchased. However, while saving money on auto insurance, it is beneficial to understand what the average driver spends—approximately $1,190 on car insurance by the average individual in 2018. By NAIC statistics, car insurance rates increased by 30% between 2014 and 2018, even though the number of covered cars increased by just 7% during the same period.

How to Lower Your Auto Insurance Rates

· Take Advantage of Discounts for Multi-Car

The cost of insuring one car with an auto insurance company may be much greater than the cost of insuring numerous drivers or vehicles with the same company if you ask for a quotation for just one vehicle. The fact that insurance firms would provide what amounts to bulk pricing reflects their desire to win your business. In certain cases, they are prepared to provide you with a discount if it means that you would bring in more of their product. Enquire with your insurance agent to determine whether you are eligible. Generally speaking, numerous drivers must dwell at the same address and be related to one another by blood or marriage to be eligible. Two unrelated persons may also be eligible for a discount; however, they must normally own the car together to qualify.

· Drive with Caution on the Highway

To put it another way, drive defensively. This should go without saying, but in today's world of increased in-car distractions, it's important to emphasize it whenever possible. The more conscientious you are, the fewer accidents or moving infractions you will be able to avoid, which will lower your insurance premiums in the future. Travelers provide savings for safe drivers ranging from 10 percent to 23 percent, depending on your driving record and other factors. For those unfamiliar with the concept, points are normally assigned to a motorist for driving offenses, and more points may result in higher insurance costs (all else being equal).

· Enroll in a Defensive Test Driving Centre

Insurance companies may provide a discount to drivers who finish a defensive driving course that has been certified by the department of transportation. A defensive driving, prevention of accidents, or other training may also help drivers minimize the number of points they have on their driving records. Please be sure to inquire with your agent or insurance provider about this discount before enrolling in a course. After all, the time and effort invested and the expense of the course must result in significant insurance savings. Also essential is that the driver enrol in a course that has been approved. Every state has its own set of regulations for authorized defensive driving classes, and GEICO's website enables you to look up the specifics of each state's regulations.

A Variety of Variables Determines the Cost of Automobile Insurance

Various elements influence the amount of money you'll pay for vehicle insurance, ranging from the kind of coverage you have had to your driving record to the location where you park your car. While not all insurance companies employ the same criteria, the following is a list of factors often considered when determining the final cost of your vehicle coverage.

· Driving Record

The stronger your credit history, the cheaper your insurance price. If you've been in an accident or had several significant traffic offenses, you'll almost certainly have to pay more than if you have a spotless driving record. You may also face higher insurance premiums if you are a new driver with no prior insurance history.

· How Much Time Do You Spend In Your Car

Because the more miles you drive, the greater the likelihood of an accident, you'll pay more for vehicle insurance if you drive to and from work or if you travel lengthy distances. If you simply drive sometimes, as some companies refer to as "pleasure usage," you'll pay less.

· Location

Because urban drivers face greater vandalism, theft, and collisions than drivers in small towns or rural regions, the cost of vehicle insurance in metropolitan locations is higher. The location of your automobile and the use of anti-theft measures may also influence your bottom line.


Several additional elements influence premium prices and may vary from one location or state to another, including the cost and regularity with which lawsuits are filed; medical treatment and automobile repair expenses; the incidence of auto insurance fraud, as well as weather patterns.


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