If a person owns a vehicle it is mandatory to have it insured, there is no option in this. These insurance policies will help you reduce your liabilities in any case of any damage or injuries that happen due to unfortunate accidents which can be heavy on our pockets.
Car insurance can be very expensive. Average car insurance can cost $1,758 per year, this means $146.50 per month. This amount is, even more, rent or mortgage in some places. So you must choose the insurance very wisely.
Car Insurance rate depends on variables. One of the factors is the type of car you drive. Another important factor is where you live. Other factors are the driving habits of yours and the coverage you select.
Rates as per state
One of the important factors is the state where you. There places where there is a dense population, the income is low and there are many drives who drive without insurance have higher insurance costs. The model, the make year and even the coverage required by the state may affect the cost of the insurance.
Here is the list of states with cheapest annual car insurance
The List is from Low to High
The List is from High to Low
- District of Columbia
Factors that affect insurance costs
- Basic Demographics
- The car
- Driving History
- Credit Score
- Driving Habits
- Coverage amount
- Type of Coverage
Age, Sex, Marital Status, and location are some factors that come under Basic Demographics. These are the things that tell the insurance company that what the risks of filing claims by you are. If you are unmarried and below 25 age then you will have to pay more than a married female who might be older. Actually married people are less likely to have an accident. So they are offered lower premiums. Even your travel history makes a lot of difference. If you travel more you will be offered a bit high premium. The location also affects the cost of the premium because of different state laws.
Yes, it also depends on your car, the bigger and smaller cars have bigger or smaller risks too.
Your Driving history affects your insurance cost, the tickets and violations are the factors of higher rates here.
Yes, you read it right, your credit score affects your insurance amount. The higher the credit score you have, you are less likely to claim the insurance and so is vice versa.
Yur driving habit affects a lot, like how often you drive, for what purpose you use your car for, how and where you park your car and all other risks that can crash your car.
The coverage amount will definitely affect your premium
Type of Coverage
There are many types of coverage and that will affect your premium cost.