How Much Does Car Insurance Cost Monthly?

By Bill Herrfeldt

  • Overview

    In its 2006 report, the National Association of Insurance Commissioners (NAIC) stated that the average amount paid per month for car insurance was $68.09. But that figure did not account for the various ways that one's car insurance premiums can be affected by either preference or state laws. For example, the rate a person pays can be affected by where the automobile is garaged, the driver's previous accidents and the gender of the primary driver.
  • Geography

    The state in which you live sets the automobile insurance rates for its citizens. All insurance companies must bring their rates in line with each state's directive. For instance, in New Jersey where the population is dense and therefore more accidents occur, drivers pay about $100 per month for the average coverage. That is about two times what the average North Dakotan pays for the same coverage.
  • Features

    If you have been involved in an automobile accident, whether it was your fault or not, or if you have received a ticket for a moving violation, these are the types of things that will affect your automobile insurance rates. Also, if you only use your car for pleasure rather than driving it to work, or if you put fewer than 12,000 annually on your car, your premiums will be affected.

  • Considerations

    Automobile insurance companies use their own statistic to determine your susceptibility to having an accident. For example, their data indicates that females under 25 years of age are less likely to be involved in an automobile accident than their male counterparts. Their data also indicates that the larger and more powerful your car, the more damage you will do to another person's car or property. In both cases, the rate you will pay will depend on those findings.
  • Identification

    People who live in so-called "no-fault" states tend to pay higher premiums for their auto insurance than the people who do not. "No-fault" states have taken the position that you must approach your own insurance company for damages, regardless of who was at fault for the accident.
  • Warning

    It takes a serious automobile accident for a person to realize that he had insufficient coverage because any uninsured amount will have to be paid from that person's resources. For a few dollars more each month, he could have avoided this problem by increasing coverage. There are many things in life on which people can settle for an inferior product. Automobile insurance is not one of them.
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