How Much Does Car Insurance Cost and What Factors Affect It?

An increase in the cost of car insurance can be a source of frustration, especially if you haven't filed a claim and have a clean driving record. But it's important to understand that insurance premiums don't increase arbitrarily and that the reason for a rate increase is almost always related to insurance risk. Car accidents and traffic violations are common explanations for why car insurance premiums go up, but there are other factors that can also cause an increase, such as a change of address, the purchase of a new vehicle, or the zip code where you live. The cost of car insurance can vary significantly depending on where you live, your age, the type of car you drive, and your gender.

While this may save you money in the event of an accident, it will also result in higher monthly or annual auto insurance premiums. For instance, the average car insurance costs for a 20-year-old are twice what they are for a 60-year-old. Someone who has had a few minor fender benders is considered to be at a much lower risk than someone who has totaled three cars. As you can see in the table below, younger drivers tend to pay more for car insurance, but rates start to go up again after age 60.If you don't have a credit history or your credit report isn't great, you'll pay more for car insurance.

Surprisingly, trucks and vans are usually cheaper to insure than cars. If you're looking for a new career or just want to learn more about Progressive, here's all the information you need to get started. Changing the address where your vehicle is stored overnight is one rare case in which your rate could increase by up to half of the policy without any changes to coverages, vehicles or covered drivers.While insurance companies use gender as a factor in determining auto insurance rates it is an ongoing controversial issue, only seven states have banned it. You'll find the average cost of car insurance with full coverage for each type of vehicle in the table below, assuming you have good credit and a clean driving record.

This should lower your premiums, as older drivers tend to be more responsible and older cars are cheaper to replace in the event of a serious accident. But if you know what the average monthly auto insurance payment is before you buy, you'll be much less likely to make an uninformed decision or choose a policy that gives you buyer's remorse.