What Is The Average Car Insurance Cost?

Reader’s Question:

What are the factors affecting the average car insurance cost?

Laura

Augusta ME

 

A lot of people are wondering about the average car insurance cost. According to a website known as CPI or CarInsurance.com Premium Index, the average car insurance cost as of May 2009 is $1,837 which is slightly higher compare to that of last May 2007, which is only about $1,600. Based on these statistics, the rates have continuously increased. The average may continue to rise but it will certainly vary depending on some factors that will affect the price range of the premiums.

One major factor is age. Young drivers who are at their teens or are below 25 years old have one of the highest insurance premiums. This is due to the fact that these individuals are still considered inexperienced in terms of operating the vehicle. Other than that, they also tend to be aggressive behind the wheel, putting them at higher risks for accidents. Their lack of appropriate driving skills also affects the average car insurance cost.

Another factor is gender. There is no denying that men tend to be more aggressive than women, when they are behind the wheel especially when they are around 25 years old and below. This is the reason why their average car insurance cost is slightly higher as compared to women.

The marital status can also affect the average cost of car insurance. Married individuals tend to drive more carefully when they are behind the wheel, especially when they have kids and other family members on board. This is regardless of the age.

Where you live is also a factor. Different states have different rules when it comes to the cost of car insurance premiums. The price of your car insurance will depend on the area you live in and the limits that were set by insurance regulators otherwise known as the Department of Insurance.

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Reader’s Question:

My brother got a speeding ticket last month and when his car insurance called to talk about his premium he went ballistic for his insurers told him about the increase. He thinks that speeding in Texas is not a crime, is he right about this? If he is, then how can he make his car insurance for high risk lower?

Paige

Dallas, TX

Honestly, speeding is a crime, you may not have caused an accident yet but most likely you will, especially like Texas which is a big and crowded state too. Getting a speeding ticket usually makes people proud of themselves for being the fastest driver but when accident happens, you are called a monster if you have caused a lot of deaths. Another thing is, you are classified as a high risk driver therefore you have to get a car insurance for high risk drivers which is very different from your previous one for it is way more expensive.

If you cannot afford the car insurance for high risk premiums and you know that the reason of your high premiums is your driving record then what you should do is change your behavior on the road. If you get a speeding ticket then drive slower the next time you hit the road. If you have been convicted of DUI then make yourself sober whenever you are going to take the wheel. Doing these things does not make your premium easily go down, it takes time. And if you still cannot afford the car insurance for high risk then you can go to a more remote place, go to a quite neighborhood with few cars pass by the road every day. When you move out from the crowded city with lower risk, you will surely have a lower premium.