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Average Monthly Car Insurance Cost: Factors That Influence Your Rates

For most people that have average car insurance, paying the monthly bills is not that tough to do. People that are established drivers usually have their insurance completely figured out and know how much coverage they need in order to feel secure and protected while on the road. Some people that are new drivers usually want to know how their rates compare to others.

The truth is that it is tough for me to tell everybody how other people with “average” coverage compare because costs and types of insurance are going to be subject to a lot of variation. The average monthly car insurance bill for one person may be fairly cheap because they may live in a low population city and drive a very low cost vehicle. However, for another driver that has comprehensive coverage, the bill that they pay on a monthly basis may cost them a lot, but may be worth it because they could be driving an expensive car.

Understanding Your Average Monthly Car Insurance Bill: Factors that Influence the Cost

Location plays a role

There are many people that stress out about making an average monthly car insurance payment, when the truth is, they really shouldn’t. The first step that you should take whenever getting an auto insurance policy is finding a company that you can afford and that provides good coverage. The place that you live (e.g. location) is going to play a huge role in determining your average monthly cost of insurance. So if you live in a state like New York, New Jersey, or Florida where insurance prices are naturally higher due to higher amounts of traffic, you should expect to pay more for coverage.

For people that live in states like North Dakota, South Dakota, and Iowa, the average monthly cost of car insurance is going to be lower than the norm. In most cases, if you live in these states, you probably end up paying a lot less than individuals that live in busier states. There are other things, though, besides location that determine the rates of your auto insurance cost.

Type of coverage plays a role

People that get collision auto insurance coverage and extensive medical coverage are going to pay more on average than others for an insurance policy. Making a payment is going to be different depending on how much coverage you need for your vehicle. If you are driving around in a Yukon Denali, you are probably going to need more coverage than a teenager who is driving around in a used, old, Chevrolet truck. This is why you probably shouldn’t be comparing your auto insurance cost to someone else unless they are getting the same amount of coverage as you, but are getting a better overall price.

Different car insurance companies

Even if someone else is getting a lower price than you, it may be due to the company that they decided to go with for insurance. Some companies offer better average monthly insurance rates than others. Don’t be discouraged if you are making a higher payment each month for your coverage than someone else you know. It may be due to the fact that they are with an insurer that offers a lower rate. In that case, you could consider changing car insurance companies if you think there’s a better deal out there.

Personal factors play a role

Some people just have better driving records than others and are going to get a lower average monthly auto insurance price because they have had a clean driving history. If you have gotten into a couple of accidents, it looks worse on your record and your risk increases. Everybody has had different experiences on the road, and each of these unique experiences has potential to increase the rate that you pay each month for your car insurance.

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