How Much Do You Pay for Car Insurance?

You may feel that your premium is too high. But you can only know for sure when you compare it to average sum charged to other drivers with similar particulars. It is a good idea to check what friends, colleagues, people in similar age or policyholders in a state get typically charged by asking how much do you pay for auto insurance? Also, median expenditures are not difficult figures to find and use as benchmark, as you will see below. Only then you know if you spend too much money for a policy or it is relatively cheap.

There are many ways of checking if the premium is reasonable or not. There is a high chance you can save hundreds of dollars if you spare a little time to look into it.

How Much Should I Pay for Car Insurance?

People start with similar questions that suggest they are looking to find what is fair. The underwriter has to charge enough to make it work so that they can cover claims, overheads and of course keep their shareholders happy. And you don’t definitely want to be taken for a fool by spending several times over the amount you should.

One way of knowing what a fair premium would be for someone like you is to get a few quotes and see where most of them end up. You can start right here by entering the zip code above. If you get several quotes you will see how wide the gap can be between the most expensive and cheapest.

The other way is to figure out the amount you should spend by looking at readily available data. Luckily, we have already done extensive work on this in order to help motorists determine if they get acceptable prices. First of all, you can check how age affects rates by checking average car insurance rates by age. It is a very telling factor especially in the early years of driving life. If you are a teenager you shouldn’t be comparing the price with a middle-aged person. Actually, you should be expecting to spend around 3 times more than them. It is important to check it against people in the similar age group.

Once you know how influential role it plays the next thing you may want to establish is how much is vehicle insurance in your state for a typical driver. It is granted that your record, type of vehicle, credit score and coverage will affect costs. But, it is a good starting point. The good thing is that we have already separated the median expenditure for full and liability only coverage in that post.

Average premium expenditure in the US is $841 according to NAIC. According to our calculations, the mean for liability only is $684. And average premium for full coverage is $1,325, according to

No doubt each company is different and the type of policy they offer may be different too. Certainly, it isn’t a commodity where prices are easily comparable. Nonetheless, it isn’t hard to know when a carrier isn’t being fair with you and charging you more than most others.

You should know in no uncertain terms that you can end up spending 4 or 5 times more for automobile insurance if you take the first quotation offered to you and that comes from one of the most expensive company.

Before you start calling it outrages you should know that you don’t have to accept any quote offered to you. And if you do accept the first one you receive, you only have yourself to blame. They are free to charge whatever they want within state regulations. And you are free to go with whichever you like.

How to Know What You Pay for Auto Insurance Is Fair?

Although it is difficult to comment on individual costs there are a few factors that can influence the premium positively or negatively. You should check below points first to determine if it should be high or low.

  1. Good motorists with no recent claims or traffic tickets get the most discounts. They should save about 30 – 50% in comparison to people with imperfect records.
  2. Find out how badly accident claims can increase premiums? In general, a recent accident claim can increase rates 20 – 80% depending on where you live. In states like California where driving records are the main factors taken into account you could see large increases. A good credit score can alleviate some of the claim related increases in states where credit checks are allowed.
  3. These days, other factors like credit score can be as important as driving history. So, recent drop in the credit score can push up rates more than you expect.
  4. Another thing to find out is does insurance go up after a ticket? Several tickets are obviously a worry but one DUI can be a serious problem in many ways.
  5. The type of vehicle you own can affect costs a lot. If it is a normal run of the mill sedan you probably don’t need to spend much. On the other hand, sports type cars can trigger enough alarms with some companies to double their quotes.
  6. Carriers look at the policyholder’s driving records more closely. But he/she isn’t the only one priced for. Having a teenager or a high risk driver in a household can influence costs substantially.
  7. Living in a high risk zip code like a city center or high crime neighborhood can influence rates a lot in relation to a nice township.
  8. Things like being married and owning home usually allow you to save some money and therefore you should be paying less than someone who is single and renting.
  9. If you seem to be struggling to get affordable coverage right now you should know that this can change if you can manage to stay away from above troubles only few short months. So, current problems can be temporary.
  10. Finally, shopping is the best way to lower costs. People who shop around spend only fraction of someone who never shops.

The bottom line is that you shouldn’t be naïve to think that they would offer similar quotes. It isn’t the case as every company is different in many ways including price. And you can save money by checking the alternatives.