It's one of the most common questions we get from car buyers: How much does car insurance cost per year, and per month, on average? In truth, these costs can vary widely based on a number of factors. But it's helpful to know the average cost in your area, when shopping for a policy. This kind of knowledge will help you spot a "good deal," if and when it comes along. So let's take a look at the average cost of car insurance in 2014.
At a Glance: In a hurry? Here's the gist of this article in 100 words or less. On average, drivers pay around $797 per year on their car insurance policies. This is according to a study published at the end of 2013. This number reflects current trends in 2014 as well. But there are a number of variables that can affect the total price. So the true cost varies from one driver to the next. These variables include the driver's age, driving record, type of vehicle, and the amount of coverage you get. You can learn more about each of these factors below.
That's the short answer. Now let's take a more detailed look at the average cost of car insurance premiums in 2014:
In December 2013, the National Association of Insurance Commissioners (NAIC) issued a report that showed how much people are paying on their auto premiums, per month and per year. It is the most current research available on this subject. According to the NAIC's data, the average cost of car insurance actually declined slightly over the last few years. In 2007, drivers paid an average of $799 per year on their auto insurance premiums. In 2011, that number fell to $797 annually. That comes out to about $66 per month.
So, over the last few years, the typical cost for car insurance policy has held steady, and actually decreased slightly.
It's important to note, however, that the averages mentioned above reflect the premiums paid each year. But they do not account for the deductibles that are typically paid whenever an insurance claim is filed. Drivers who make claims against their policies tend to pay significantly more per year, as a result of those deductibles. When you factor in the deductibles, the cost of insurance is much greater -- and it also becomes harder to track.
The NAIC report also listed the average price in each state across the country. Drivers in New Jersey paid the most for their insurance premiums, with an average cost of $1,184 per year (or roughly $98 per month). On the more affordable end of the spectrum, drivers in Idaho spent the least on their policies, which averaged $535 per year (or approximately $44 per month). Auto insurance prices tend to be higher in more crowded / congested areas, where the risk of collision is greater. Conversely, the price tends to go down in less populated areas.
For a complete list of average costs per month and per year, in every state of the country, visit:
So that answers the first question: How much do car insurance premiums cost, per month and per year, in 2014? Now let's talk about some of the different factors that can influence the amount you pay for your policy.
First of all, it's important to realize that every insurance company is different. As a result, they all have their own internal methods for determining the cost of an individual car insurance policy. With that being said, there are certain factors that are common across all companies, and those are the ones I've listed below.
So let's recap: How much does car insurance cost per month and year, on average, in 2014? According to the most recent studies available, the average driver pays around $797 per year in policy premiums. That comes out to about $66 per month.
But remember, this is only the premium cost -- it doesn't include the deductibles that drivers typically pay in the event of an accident.
At the end of the day, the only way to find out how much your policy is going to cost you is to shop around and obtain quotes from different auto insurance companies. You can start here.
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