How much is car insurance? It’s a simple question, right? Wrong. Many factors contribute to how much a person pays for auto insurance. Before we can determine how much you’ll pay, we need to take a look at some of those factors.
Car Insurance Averages
When determining rates, insurers look at different factors that can help them predict how much a person might cost the insurer in terms of future claims. One of these factors is age.
Young drivers, especially teens who only recently got their licenses, have high crash rates. According to the California DMV, the crash rate for drivers aged 16 to 17 is 3.7 times higher than it is for drivers of all ages. Adding in slightly older teens improves the odds, but they’re still not great. The crash rate for drivers aged 16 to 19 is still 2.7 times higher than it is for drivers of all ages. These high crash rates result in higher insurance premiums.
Another factor comes down to where you live. Some areas have higher claims, so people who live in those areas will have to pay more for car insurance. According to the Value Penguin, California has the fourth highest rates in the country. Only Florida, Louisiana and Michigan have higher rates.
Where you live within the state makes a difference, too. According to Nerd Wallet, 17 of the 20 most expensive cities for auto insurance are in Los Angeles County. This isn’t exactly surprising. According to a global study conducted by INRIX, Los Angeles has the worst traffic in the world.
Your personal driving record will also impact your rates. If you’ve gotten into a lot of accidents in the past, you’ve shown that you’re a risky driver. The same goes for moving violations and DUIs. Furthermore, the type of car you drive and the amount of insurance you want will also have big impacts on your premium.
How Much Should You Be Paying?
The best way to determine how much you should pay for car insurance – and whether you’re currently paying too much – is to get an insurance quote.
Using the online quote tool at Pronto, we can see how much different people might pay.
Let’s start with a single 40-year-old woman living in Los Angeles, zip code 90017. She drives a 2010 Ford Taurus Limited Sedan 4D, and she has no violations. For a basic insurance package, she might pay $78.83 down and $78.48 per month.
Raising her limits to the premium package level and adding comprehensive and collision coverage would cause her costs to go up to $254.19 down and $253.79 per month. A DUI would have an even bigger effect, causing the basic package with comprehensive and collision to go up to $356.40 down and $355.98 per month.
Now let’s look at an 18-year-old man living in San Diego’s 92130 zip code. He drives a 2004 Jeep Wrangler Sport, and he doesn’t have any violations. For a basic policy with no comprehensive or collision coverage, he could pay $167.20 down and $166.82 a month. With all other things being equal, a 30-year-man might pay $64.08 down and $63.73 per month for this coverage.
Get a Car Insurance Quote
How much should you be paying for car insurance? Now is a good time to find out! Get a quote today.