Car Insurance Rates By Car Type
Your cars make, model, trim and model year affect your rates. Even in an expensive state for car insurance like New York, a few popular models stand out for their high safety and low car insurance rates.
Cheapest car models to insure
How we got these rates
We aggregated data from top car insurance sources for the cheapest and most expensive insurance companies. For insurance rates, we compiled car insurance quotes for 280 of the top car models using this specific driver profile:
- Driver located in New York
- Drives a 2017 model
Additional Factors That Affect Your Car Insurance Rate
Vehicle. Expensive or luxury vehicles are usually much more costly to insure compared to cheaper models. The parts on these vehicles are pricey to replace and repair, so insurance companies typically charge you a higher premium to protect your car.
Drivers with excellent credit scores will likely receive more affordable rates than those with poor credit. Some insurers use credit scores as a rate factor because they believe there is a correlation between credit scores and the number of claims filed. However, certain states have banned the use of credit scores to calculate insurance premiums.
Gender. Our study shows that young male drivers spend more, on average, for car insurance compared to young women. This is attributed to the fact that young male drivers are more likely to be involved in accidents and receive traffic citations than young women. However, we found that as women get older, they are quoted slightly higher rates than their male counterparts.
Mileage. The more you drive, the higher chance you have of being in an accident. Driving less frequently can also make you eligible for low mileage discounts offered by your insurance company.
How Much Is Car Insurance For You
While the average cost of car insurance is a good place to start researching the best policy and provider to fit your budget, the next step of the process is to begin comparing quotes to find the best and cheapest car insurance policy and rates for you. MoneyGeek recommends getting at least three quotes from different providers for the same policy to ensure a fair comparison.
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How Car Make And Model Affects Insurance Rates
Your cars make, model and trim directly affects how much youll pay for car insurance because insurers use this information to determine your cars worth, safety features and how expensive it may be to repair. For example, an expensive luxury car model costs more to repair compared to a standard model, which results in higher premiums.
- Vehicle MSRP. Pricier cars typically cost more to repair due to custom, foreign or premium parts, which generally result in higher insurance premiums. You might also need higher coverage maximums to cover claims, which means youll pay more for coverage.
- Safety ratings. Safer cars get into accidents less frequently and cost less to repair. That means fewer claims on average and more savings for you.
- Likelihood of theft. Some cars, like the Honda Accord and Chevy Impala, are frequently targeted by thieves. This drives up the price of insurance.
- Sportiness. Most drivers are more likely to drive fast in a sportier car, which makes these drivers at higher risk of getting in a collision. Convertibles tend to have higher theft rates as well, since soft tops can be easier to steal.
What Are The Average Car Insurance Costs
Relying on average car insurance costs to estimate your car insurance premium may not be the most accurate way to figure out what youll pay. But its a start. Insurers use multiple factors to determine rates, and you may pay more or less than the average driver for coverage based on your risk profile.
For example, younger drivers are generally more likely to get into an accident, so their premiums are typically higher than average. Youll also pay more if you have an at-fault accident, multiple speeding tickets, or a DUI on your driving record. On the flip side, if you have 20 years of driving experience under your belt, a clean driving record, and pristine credit, you may qualify for lower than average rates.
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Average Car Insurance Deductible
The average car insurance deductible is $500, which, if a claim is filed, will generally be less than whatever the cost of repairs are for a serious accident. If the cost of repairs is less than your deductible, you should not file a claim. Your insurance company wont pay for any repairs below the deductible, and filing a claim can cause your insurance premium to rise.
For example, if you get into an accident that damages only your windshield, it may cost around $400 to fully replace it. With a $500 deductible, youd pay the entire cost yourself, rather than your insurance paying for it, and you wouldnt file a claim. But if you get into a covered accident that damages the structure of your car, causing it to need extensive repairs, this could cost upwards of $3500 to fix. With a $500 deductible, you would only pay $500 towards the repairs, while your insurance company would pay the rest.
Average Car Insurance Costs For Good And Bad Credit
Having bad credit has a surprisingly large impact on auto insurance rates in most states. On average, car insurance rates for drivers with poor credit are more than 71% higher than for people with good credit.
Average car insurance rates for a driver with poor credit are:
$2,792 per year for full coverage.
$973 per year for minimum coverage.
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How Much Is Car Insurance
The average cost of car insurance is $1,771 per year for full coverage, or about $148 per month, according to Bankrates 2022 analysis of average quoted premiums from Quadrant Information Services. Minimum coverage costs an average of $545 per year. But because auto insurance premiums are based on more than a dozen individual rating factors, the actual cost will differ for every driver.
- Full coverage car insurance costs an average of $1,771 per year, while minimum coverage is $545 per year.
- USAA, Geico and Erie offer some of the cheapest full coverage car insurance, but are not all available to all drivers.
- Having a severe infraction like a DUI on your motor vehicle record could increase your car insurance premium by 93% on average.
- Teen male drivers may pay $807 more for car insurance on average compared to teen female drivers.
How To Lower Your Auto Insurance Premiums
Though you might not be able to change the qualities about yourself that could cause you to pay more for car insurance, like your age or location, there are still several ways that you can lower your auto insurance premiums if your rates are too high.
Instead of reducing your coverage levels and leaving yourself unprotected in the event of an accident, you may be able to get lower rates by changing your policy’s deductibles the amount you pay to settle a claim. By raising your deductibles for comprehensive or collision coverage, you can lower your car insurance premium and retain full coverage.
You may also lower your insurance premiums with auto insurance discounts. While any discounts you qualify for were applied to your cost of coverage when you bought your policy, you may be able to keep lowering your rates if you:
Complete a defensive driving course
Enroll in paperless billing
Outfit your vehicle with safety devices
Sign up for your insurer’s telematics or usage-based discounts program
Your premiums will also fall naturally, even if you’re a high-risk driver. The longer you have an insurance policy and avoid accidents, tickets, and claims, your premiums will steadily get cheaper.
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Average Full Coverage Car Insurance Cost Vs Liability
The amount of coverage you decide on will depend on the state you live in and your unique needs. Typically, more coverage is more expensive.
- Liability-only insurance costs an average of $898 per year.
- A full coverage policy with the same liability limits costs an average of $1,311 per year.
Liability-only car insurance coverage tends to cost the least, but getting only the minimum comes with risks. For example, you wont be covered for damage to your vehicle with liability-only coverage youd only be covered for any damage that you do to another persons car. Thats why full coverage is generally a better option for many drivers.
Car Insurance Premiums by Coverage Level
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While average rates for high school and college students tend to be the highest for all age groups, there are also specific discounts for students with good grades that allow them to lower their rates. Young drivers can also lower their rates if it’s possible to stay on their parent’s policy to do so, they must reside in the same home as their parents.
In MoneyGeek’s study on the best and cheapest car insurance for students, we found that the average cost increase for the top five providers for 18-year-old students on their own policy was $1,124 more than for students on a parent policy.
Car Insurance Rates By Gender
On average, average car insurance costs for male drivers are higher than for their female counterparts. The cost of insurance still goes down for men over time, but male drivers pay an average of $16 more per month, or $189 more per year, for coverage.
Its still possible for men to find affordable insurance, even if their coverage tends to cost slightly more than the average female drivers. And some states dont allow car insurance providers to charge more based on gender, so male and female drivers will pay the same rates.
Table shows the average annual costs of car insurance for drivers of different genders.
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Other Factors That Impact Cost
The way insurance companies calculate the costs of insuring any given person is usually based on a wide variety of unique factors. Our car insurance cost calculator can help see how these various impact estimated costs. Heres a breakdown of some of those other aspects you should be aware of and how those can influence your cost of getting car insurance:
What Factors Affect My Car Insurance Price
In addition to your state requirements, vehicle type, age , driving record and gender , several other common rating factors will impact your auto insurance premium. By looking at these rating factors, car insurance companies can get a sense of your risk profile and what it might cost to insure you.
- Coverage selections: Your car insurance coverage options have a significant effect on your rate. If you select higher liability limits, choose lower deductible levels or add optional coverage types like comprehensive and collision coverage, your rates will likely be higher.
- Insurance history: If youve had continuous car insurance for the length of time youve been a licensed driver, you may pay lower rates. Lapses in your coverage can be an indication of high-risk behavior and may increase your premium.
- Annual mileage: The more you drive, the more likely you are to get into an accident. Policyholders who drive fewer miles a year often qualify for lower rates .
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Average Cost Of Car Insurance By Age
As youll see in the table below, the younger you are, the more youll pay for car insurance, but rates go up after age 60. This is because insurers consider teens and young drivers higher risk drivers due to inexperience.
For instance, average car insurance costs for a 20-year-old have been found to be double what they are for a 60-year-old. Rates decrease with each year of age. But after age 60, rates begin to increase as senior drivers also are considered higher risk by insurance companies. Below are average rates for people at various ages, based on Insures 2022 analysis.
How Much Is Car Insurance For 20
For a 20-year-old male, the cost is $1,159 per year and for a female driver, the same policy could cost an average of about $1,058 per year for the state minimum policy. Heres a breakdown of insurance rates for various coverage levels:
- Your credit history
- Your annual mileage
Each of these rating factors, along with the type of coverage you choose, deductibles and discounts, influences the rate youll pay for your car insurance policy.
To get an idea of how much you can expect to pay, you can start with an estimate of car insurance costs by using the average rate tool at the bottom of the page. It shows rates for six age groups and three coverage levels by ZIP code.
Finally, the car insurance company you choose makes a difference in your car insurance rates because companies assess risk differently, and each uses its own formulas to calculate the price you pay.
Whatever age and whether male or female, you can save hundreds of dollars if you compare car insurance companies and find the one that offers the best rates for you. Our guide to the best cheap car insurance for seniors shows how much drivers aged 65, 75 and 85 can save.
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Who Pays The Most For Car Insurance
Who pays more for car insurance, men or women? For the most part, men and women pay about the same amount for car insurance. For typical adult drivers, we found only a slight difference in the cost of insurance between men and women. We found a price difference of less than 1% between men and women in their 30s.
Car Insurance Cost By State
To give you some idea of what drivers in each state pay for average annual premiums, we collected data from the Quadrant Information Services and found the average car insurance cost by state. The cost estimates in the table below include estimates for minimum coverage and full coverage car insurance.
Driving less often can mean lower rates. Many insurers offer usage-based discounts to reward low-mileage drivers.
Each state sets its own minimum insurance requirements, but you can get additional coverage if you want to be fully protected. Shopping for full coverage insurance with higher policy limits will increase your car insurance quotes.
Collision and comprehensive insurance policies typically include a deductible. Choosing a higher deductible will result in a lower premium and vice versa.
The discounts for which you are eligible affect your rate. Common car insurance discounts include a homeowners discount, military discount, multiple policy discount and pay-in-full discount.
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How To Pay Your Auto Insurance Premiums
Depending on your insurance company, you may be able to pay your car insurance premiums a few different ways. Commonly, insurers allow you to make payments via:
In-person charge at your insurers local offices
Electronic or paper check
You may also be able to pay your car insurance premiums online. Most companies have their own apps or websites where you can manage your claims, contact your insurer’s customer service center, and pay your premiums.
Average Cost Of Car Insurance In 2022
By: Lyle Daly |Updated June 29, 2022
Image source: Getty Images
The average cost of car insurance is $2,875 per year, according to a 2022 rate analysis by The Ascent, a Motley Fool service.
That’s the overall average, but it can change quite a bit depending on a variety of factors, including a driver’s age, driving record, and location. Keep reading for a detailed look at auto insurance rates across the nation.
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How Much Is Car Insurance A Month After A Speeding Ticket
Compounding the higher cost is the fact that younger people generally do not have experience with shopping for financial products such as insurance.
In my studies of financial literacy among college students, we have found many of them lacking. This general finding most likely can be extended to understanding car insurance among college students as well. Anecdotal evidence from when I teach this topic in class suggests over half of my students do not fully understand auto insurance, says James Brau, the Joel C. Peterson professor of finance and editor-in-chief of the Journal of Entrepreneurial Finance at Brigham Young Universitys Marriott School of Business.
Even so, Dr. Brau points out that greater familiarity with computers and the internet can be a way younger people can make up for being new to shopping for financial products. Computer literacy seems to compensate to some degree for lack of financial literacy, he says. Motivated students can scour the internet to compare insurance products. They can also Google around to learn terms and concepts they have never been taught.
Dr. James Brau
Computer literacy seems to compensate to some degree for lack of financial literacy.
Cheapest Car Insurance Companies By Age And Gender
The cheapest companies vary by age and gender. We found that GEICO is often cheaper for male drivers compared to other top companies, but State Farm is usually the cheapest company for female drivers.
USAA tends to be the company with the absolute lowest auto insurance rates, but its only available to active and retired members of the military and their families. USAA has the lowest rates for men and women from 21 to 70 years old, but its limited availability means many drivers wont qualify for coverage.
Cheapest of the ten largest companies for male and female drivers. Ages with an asterisk next to them indicate that USAA is actually the cheapest company.
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