Car Insurance Options and Cost
Average Costs and Variations in Car Insurance
Average Annual and Monthly Costs
- The average yearly cost for full coverage car insurance is between $1,668 and $2,719. This means the monthly cost is between $180 and $205.
- For minimum coverage, the yearly cost ranges from $596 to $678. The monthly cost for this is between $50 and $56.
Cheapest and Most Expensive States for Car Insurance
- Cheapest States:
- Wyoming ($1,069/year)
- Vermont ($1,319/year)
- New Hampshire ($1,362/year)
- Ohio ($1,544/year)
- Hawaii ($1,587/year)
- Most Expensive States:
- Florida ($3,892/year)
- Louisiana ($3,809/year)
- Rhode Island ($3,434/year)
- Texas ($3,347/year)
- Kentucky ($3,129/year)
Impact of Age on Car Insurance Rates
- Young Drivers: Drivers under 20 pay the most. Full coverage costs about $4,403 per year. Minimum coverage costs about $1,271 per year.
- Middle-Aged Drivers: Drivers in their 30s and 40s pay about $2,228 per year for full coverage.
- Senior Drivers: Drivers over 65 might see an increase in premiums. They pay between $1,505 to $1,716 per year.
Learn more about car insurance options and cost
Factors Influencing Car Insurance Rates
Impact of Driving History on Car Insurance Rates
- Clean Record: If you haven’t had any accidents or tickets, your car insurance will likely cost less.
- Driving Violations: Doing things like speeding or getting into accidents can make your insurance cost more. For example, having a DUI can increase your insurance by about $1,413 a month.
Impact of Credit Score on Car Insurance Rates
- Credit Score Impact: In many places, your credit score affects how much you pay for car insurance. If you have a low credit score, you might have to pay double compared to someone with a high credit score.
Impact of Vehicle Type on Car Insurance Rates
- Vehicle Model: The kind of car you drive changes how much you pay for insurance. Some cars are cheaper to insure, like the Toyota Prius or Honda Odyssey. More expensive cars to insure include luxury brands like Acura TLX and BMW 3 Series.
Learn more about factors that affect car insurance rates
Best Car Insurance Companies and Tips for Saving
Best Car Insurance Companies
- USAA: USAA is known for offering some of the cheapest options, but it’s only available to military members and their families.
- Geico: Geico has competitive rates, especially good for younger drivers.
- Auto-Owners: This company is often noted as one of the cheapest full coverage providers, but its availability varies by location.
Tips for Saving on Car Insurance
- Compare Quotes: Comparing quotes from different insurance companies can help you find the best price.
- Bundle Policies: Bundling your home and car insurance can save you money.
- Maintain a Clean Driving Record: Avoid accidents and traffic tickets to keep your premiums low.
- Take Advantage of Discounts: Look for discounts for students, retirees, safe drivers, and hybrid or electric vehicle owners.
Car Insurance in Specific Regions (e.g., Toronto, Canada)
- Average Costs in Toronto: The average yearly cost of car insurance in Toronto ranges from $2,159 to $2,400.
- Factors Influencing Costs in Toronto:
- Age: Younger drivers pay more, especially those with a G2 license.
- Location: Different areas in Toronto have different rates.
- Most Expensive Areas: Scarborough North/Rouge Park ($2,547/year), Scarborough Centre/Southwest ($2,485/year).
- Least Expensive Areas: Toronto Centre/University-Rosedale ($1,938/year), Willowdale ($1,970/year).
- Driving History and Behavior: Clean records and fewer accidents result in lower premiums.
- Vehicle Type and Use: Expensive cars to replace or repair cost more to insure. For example, the Toyota Sienna is cheaper to insure in Toronto.