Whether you pay for your vehicle outrightly or you pay it off in installments, you can agree that having car insurance gets significant financial burdens off your shoulders if you have an accident where your car suffered considerable damage. That is why car owners are always looking out for the best coverage deals they can get for their vehicles.
We at Best Car Insurance WSA offer excellent premiums on insurance coverage for your car. However, you need to know top insurance companies arrive at car insurance quotes.
Most car owners don’t know that the cost of car insurance is not based on a simple metric. There are a lot of factors and data that contribute to your likelihood of filing a claim. Each insurance company uses these factors to calculate their auto insurance rates, and that’s why prices vary from company to company when you visit SR22 Insurance Online.
You cannot know exactly how they calculate these rates, but you can at least know things that add to make the average car insurance prices. With this knowledge, you can better appreciate the insurance policies and pick the right automobile.
Factors that Affect the Average Cost of Car Insurance
You and your friend could walk into a particular insurance company, and get different insurance rates on the same car.
Shocking, I know. Just as our fingerprints differentiates us, some demographical, and even geographical statistics determine the price of the insurance policy you get. You can always use Money Expert to compare insurances prices.
For example, statistics show that the average insurance rate of an 18-year-old is around $7,000 and that for a 25-year-old is about $3,000 even though they use the same car.
To streamline the broad spectrum of factors insurance companies use to estimate their price rates, we will divide the determining factors into two parts – Car factors and Driver factors.
Car Factors
These are the vehicle characteristics that make it more or less likely to get involved in an accident or the amount of money that it would demand for a claim. Some of the car factors are:
• Safety Features: Every car has what they call “safety ratings.” This rating is dependent on the combination of all the safety features which the car possesses. This includes adaptive cruise control, traction control, automatic emergency braking, etc.
A car with many of these features has a better safety rating. It is also unlikely for the vehicle to get into an accident. A higher safety rating equates to lower premiums on your insurance.
• Make and Model: This is another crucial factor that contributes to the average price of car insurance. A luxury car brand like Mercedes will have higher premiums on their vehicles than a Toyota. This is because the former cost more on repair than the latter.
• Likelihood of theft: The National Insurance Crime Bureau (NIBC) reported in 2018 that over 750,000 cars were stolen in the USA alone. Thirty-nine thousand of which were Honda Civics. For vehicles like this, the risk of being stolen would be added to your insurance premiums and could hike up the price rates.
Driver Factors
These are a combination of the car owner’s demographic and geographic characteristics that weigh on the car insurance quote. These include:
• Age: Statistics show that teenagers and young adults are more likely to crash a car than someone in their 40’s. Asides the experience factor, younger drivers tend to violate traffic laws more, which usually leads to accidents. As a consequence, younger drivers tend to pay higher premiums on their insurance than older ones. Furthermore, if you are a young driver your average insurance rate of an 18-year-old will differ depending on many other important factors.
• Gender: This is another factor that insurance companies consider in their policy rate calculations. Males are more likely to crash their cars, especially when they are still young and aggressive than females. However, as the age cure increases, it is noticed that females are most likely at the receiving end of an accident.
• Driving History: Insurance companies will look into your driving history to try and understand what kind of driver you are before they hand out premiums. A lot of things like the number of insurance claims you’ve made, your credit score is embedded. If you have a long history of getting into accidents, you’ll probably have to pay a higher premium than others.
• Location: The environment you drive your car in is also essential. If you live in a state with higher theft rates, you would be charged a higher premium than those in countries with little or no theft rates—also, population matters. A highly populated area means you are prone to more accidents and collisions, consequently affecting your insurance premiums.
• Type of Coverage you want: This is probably the most important. There are different kinds of insurance policies, and each has its price range. A full-coverage plan that will be responsible for getting you a new car if you lose the whole car in an accident will be significantly higher than a minimum coverage plan that will only cover repairs.
So, Ahat is the Average Cost of Car Insurance?
As stated earlier, the cost of insurance plans is dependent on several factors, which have been discussed extensively above. The most relevant metric is the state you get your insurance. Below is a table that gives an insight into the average cost of car insurance yearly in each of the 51 states:
| Rank | State | Full coverage | Minimum coverage | Difference |
| 1 | Michigan | $8,723 | $5,282 | $3,441 |
| 2 | Rhode Island | $3,847 | $1,589 | $2,258 |
| 3 | Louisiana | $3,525 | $1,329 | $2,196 |
| 4 | Kentucky | $3,418 | $1,338 | $2,079 |
| 5 | Florida | $3,370 | $2,565 | $805 |
| 6 | Nevada | $3,190 | $1,295 | $1,895 |
| 7 | Colorado | $3,164 | $1,075 | $2,089 |
| 8 | New Jersey | $3,013 | $1,182 | $1,831 |
| 9 | Washington D.C. | $2,793 | $1,260 | $1,533 |
| 10 | New York | $2,752 | $1,323 | $1,429 |
| 11 | Arizona | $2,699 | $980 | $1,719 |
| 12 | Oklahoma | $2,659 | $742 | $1,916 |
| 13 (tie) | Connecticut | $2,619 | $1,192 | $1,428 |
| 13 (tie) | Georgia | $2,619 | $1,114 | $1,505 |
| 15 | Texas | $2,594 | $890 | $1,704 |
| 16 | Missouri | $2,584 | $874 | $1,710 |
| 17 | Utah | $2,538 | $1,105 | $1,433 |
| 18 | Montana | $2,525 | $641 | $1,884 |
| 19 | Delaware | $2,513 | $1,316 | $1,197 |
| 20 | Maryland | $2,431 | $1,180 | $1,251 |
| 21 | South Dakota | $2,338 | $420 | $1,917 |
| 22 | Illinois | $2,313 | $878 | $1,435 |
| 23 | Minnesota | $2,271 | $983 | $1,289 |
| 24 | Arkansas | $2,213 | $677 | $1,536 |
| 25 | Mississippi | $2,208 | $749 | $1,459 |
| 26 | Oregon | $2,205 | $1,136 | $1,070 |
| 27 | New Mexico | $2,194 | $699 | $1,495 |
| 28 | Kansas | $2,190 | $654 | $1,535 |
| 29 | West Virginia | $2,131 | $685 | $1,447 |
| 30 | Wyoming | $2,118 | $485 | $1,632 |
| 31 | Alabama | $2,078 | $736 | $1,342 |
| 32 | Nebraska | $2,038 | $599 | $1,439 |
| 33 | Pennsylvania | $2,018 | $615 | $1,403 |
| 34 | South Carolina | $2,013 | $854 | $1,158 |
| 35 | New Hampshire | $2,004 | $643 | $1,361 |
| 36 | North Dakota | $1,979 | $528 | $1,451 |
| 37 | Massachusetts | $1,866 | $646 | $1,219 |
| 38 | Tennessee | $1,821 | $577 | $1,243 |
| 39 | California | $1,804 | $574 | $1,230 |
| 40 | Idaho | $1,777 | $606 | $1,171 |
| 41 | Vermont | $1,769 | $552 | $1,217 |
| 42 | Washington | $1,691 | $706 | $985 |
| 43 | Ohio | $1,688 | $561 | $1,127 |
| 44 | Wisconsin | $1,590 | $486 | $1,104 |
| 45 | Alaska | $1,502 | $485 | $1,016 |
| 46 | Virginia | $1,498 | $607 | $891 |
| 47 | Indiana | $1,489 | $498 | $991 |
| 48 | Iowa | $1,482 | $357 | $1,124 |
| 49 | North Carolina | $1,434 | $542 | $892 |
| 50 | Hawaii | $1,340 | $475 | $865 |
| 51 | Maine | $1,268 | $489 | $779 |
Conclusion
Having an insurance package that covers your vehicle has its benefits. However, the price range of auto coverage plans varies depending on a plethora of factors. Of all these factors, the state you live in can be used as a yardstick to estimate the average cost of insurance packages.
Regardless of these factors, using the right insurance company gets you fair deals on your coverage plans, and Best Car Insurance WSA is the one company that gives you just that. Check out our price rates, and you won’t be disappointed.
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