How much does car insurance cost in 2024?

By | March 12, 2024

As boring and annoying as it can be, car insurance is part of almost everyone’s life. With few exceptions, every driver must have auto insurance before hitting the road, and states have different minimum requirements for coverage for things like bodily injury and liability. If you’re wondering how much car insurance costs, we’ve got you covered and can help you find ways to save money on your next car insurance policy.

How much does car insurance cost in 2024?

Auto insurance prices vary greatly from place to place and driver to driver, but the national average for comprehensive insurance on a vehicle is just under $2,000 per year, or about $165 per month. That rate applies to a driver with a clean record and a good reputation, and can rise quickly due to accidents and dings on the driver’s credit report.

Nerd wallet found that a good driver with bad credit can pay as much as 61% more than those with good credit scores. Interestingly, having an accident didn’t cause the average rate to increase that much, but a DUI conviction nearly doubles the national average cost.

Minimum coverage is much cheaper, totaling $549 for good drivers with good credit. Similar increases apply to people with bad credit, accidents and drunk driving. However, it is important to note that minimum coverage should not be viewed as a simple way to save money, as the cost of repairing your vehicle after an accident can easily exceed the potential savings of a lower level of insurance coverage.

Insurers also charge men more for car insurance, although the gap between average insurance costs for men and women narrows as their age increases. Insurance costs for young men are more than $500 more expensive than for young women, but at age 35 the difference is only $25. At age 50, men and women pay about the same, with women paying slightly more than men in some cases.

What is the cheapest car insurance?

It’s worth looking around; the following statements are averages, so you should compare the rates for your own car and your own situation. That said, USAA tends to be the cheapest insurer for many drivers, but it is only available to active, retired, and divorced veterans with an honorable discharge. For everyone else, State Farm offers the second-cheapest rates on average. Travelers and American Family are next, although AmFam is only available to drivers in 19 states.

You may find a regional insurer that offers better rates, and you may qualify for discounts that further reduce your monthly payment. There may also be job- or occupation-specific insurance companies, such as California Casualty, which is only available to teachers, healthcare professionals and others.

Which States Have the Most Expensive and Least Expensive Car Insurance?

Florida drivers paid more than anyone else in the country, with average insurance costs of $3,797 per year. Wyoming is on the other end of the spectrum, with motorists paying $1,069 for full coverage. Insurers tend to charge higher costs in states and territories where more drivers are involved in car accidents.

Several states lean toward the more expensive end of the spectrum, including Louisiana at $3,608 per year, Rhode Island at $3,341 per year and Kentucky at $2,965 per year.

How much does car insurance cost for teenage and young adult drivers?

Young drivers pay more for car insurance than more experienced car owners. With a clean driving record, the average 20-year-old driver pays $4,110 for full coverage insurance. Rates for young drivers are also more sensitive to changes in credit scores and traffic information. Bad credit can impact the average annual insurance cost by as much as 50 percent, as 20-year-olds with a clean driver’s license and bad credit paid $6,597.

Vehicles with higher insurance costs

The cost of car insurance can vary significantly by vehicle type, and there are some that tend to be more expensive. Sports and luxury cars, which are expensive to purchase and repair after an accident, are often more expensive to insure. Sports cars also help you earn a ticket sooner and can be driven with more enthusiasm than regular cars, increasing risk and insurance costs. Insurance companies also look at how often specific car models are stolen to determine if there is an increased risk of damage repair or vehicle replacement. The recent TikTok-inspired thefts of some Hyundai and Kia models are a case in point, as some insurers have rejected new policies for those vehicles.

Finally, in some cases it can be more expensive to insure electric vehicles because replacing the batteries is shockingly expensive. They are also packed with technology from nose to tail and in many cases have the latest safety technology. All those sensors, cameras and other electronics are expensive and may require specially trained technicians to install.

Discounts on car insurance

Car insurance can be expensive, but the good news is that most insurance companies offer discount programs and many people qualify for more than one insurance policy. Some of the most common programs include good student discounts for younger drivers, teachers and school administrators, law enforcement officers and first responders, veterans and active military, good drivers and more.

Some insurance companies offer discounts for installing a monitoring device that tracks your driving speed and style. If the information shows that you have been a safe driver and have not driven aggressively or too fast, your insurer will give a small discount as a reward. The downside is that you also give up some privacy and may share more information than you want.

Why is my car insurance so high?

Your car insurance rates may increase if you have an accident or if your driving worsens. That means speeding tickets, at-fault accidents, alcohol or drug related citations and more. Insurance companies constantly monitor risks and may adjust your rates accordingly if there is reason to believe you are a riskier driver than before.

Students and young drivers often receive discounts for good grades and other incentives, so a rate increase may be related to no longer receiving these benefits. Finally, upgrading to a new car with higher replacement costs can make your rates higher.

Is a car insurance agent better than a company?

Most agents sell insurance products from a major insurer, so you won’t get completely different coverage options if you go with a local agent. That said, many have access to promotions and other savings options that can help you lower your costs. You may also find that a local agent offers you more customer service options and that it is easier to obtain information through a face-to-face interaction than if you are on hold at a remote call center.

How to save money on car insurance

There are several ways you can save money on car insurance, and only one requires you to reduce your level of coverage. Shopping around is one of the best ways to get a reasonable rate on your car insurance. You can compare insurers and possibly pit them against each other to get the best price. Some insurers offer lower monthly rates in exchange for a higher deductible, but it’s a good idea to calculate how much you’ll save compared to the higher payout down the road.

Keep track of available discounts to ensure you get all the cost savings possible, and keep an eye on your credit score to avoid surprises when applying for new coverage. One of the best ways to save money is to maintain a clean driving record, which includes staying out of trouble for things like speeding and drunk driving.

If none of these apply to you and you still need to save money, reducing your level of coverage may be a possible last resort.

What is liability car insurance and is it worth the risk?

If you have full coverage insurance on your car, switching to minimum coverage or a liability plan can save you hundreds of dollars per year. However, keep in mind that this will change your situation after a crash. If you take out full coverage insurance and are involved in a collision, you may end up paying for your own repairs and could face expensive bills if you damage property or receive a citation.

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