Average Car Insurance

Factors Influencing the Average Car Insurance policy

Like any other insurance policy, auto insurance is also calculated based on several factors that judge the percentage of accident risk of the driver. Greater the accident risk, higher are the insurance rates. Insurance providers calculate the Average Car Insurance for a person depending upon how much risk he or she can pose to the company. For instance, a new driver or a teenager is more likely to get into accidents in comparison to aged cum experienced drivers. In this manner, there are several factors that judge the Average for car insurance one has to pay.

Two of the main factors are the age and gender of the driver. The following discussion will highlight all the necessary details one should know about the impact of these two factors.

What is the Cost of Average Car Insurance in the United States?

Before getting into the factors, let us first get to know the average car insurance prices in the United States. As per a study conducted by ‘Quadrant Information Services’, the average car insurance cost in 2014, is somewhere around $907.38. This amount is just a rough estimation and changes from one State to the other. The actual premium is dependent on the amount of coverage one chooses to have.

Select More Than 2 Insurance Companies for Best Rates In Your Location:

As said that the average car insurance cost varies from one State to the other; in order to understand the variation, rates from various insurance providers across different States were collected and analyzed. This analysis revealed that the average for car insurance has shown a substantial rise in most of the States in the United States, except for North Carolina, Arkansas, Virginia, and Georgia, which have experienced about 1% to 5% decrease in the premiums over the past year.

How Does Age Affect the Average Car Insurance Cost?

Age of the driver is considered as a major risk-calculating factor by the insurance companies. This is because of the fact that people who have years of experience behind the wheels are less likely to get into accidents and newbie drivers are undoubtedly more prone to accidents. With this said, one can understand that an aged person with hands-on driving experience can pay less average car insurance monthly in comparison to teens or young adults.

To understand the varying trends in the average car insurance rates, estimations of premiums for different age groups were collected. Following are the results or observations in the trend:

• 16 – 20 years: This age group is found to pay the highest premiums. The reason, as said earlier, is the high accident risk the teens and young adults pose.

• 21 – 55 years: Drivers within this age group tend to pay cheap average car insurance prices, with the lowest amounts paid by 55-year-old drivers.

• 60 years and above: The graph seems to showcase a spike in prices for drivers above 60 years of age. This is because; people above 60 tend to suffer from weak senses as they are growing old. Hence, the premiums paid by this age group driver are high but not as high as the teenagers.

• The average car insurance varies from an amount as low as $1,845 up to as high as $8,226, with the lowest amount paid by drivers above 50 and the highest paid by young drivers at 16.

With the above figures and observations, one can easily identify the drastic variations in the average car insurance cost by age. It is highly necessary that one carefully understands the effect of age, as this can help in comparing quotes from various companies in an easier way.

How Does Gender Affect the Average Car Insurance?

Gender of the driver is not actually considered as the actual judging factor but is definitely a worthy reason for the change in premiums. This is because of the fact that male drivers are more aggressive and are more prone to accidents in comparison to female drivers. The study conducted across 54 insurance providers reveals that a male driver aged 19 pays 12% more than a 19-year-old female. This simple example can help one to understand the impact of gender on the average for car insurance one has to pay.

The above analysis of average car insurance rates depending on the age and gender of the driver can help the insurance shoppers to compare quotes from various companies and find the best average car insurance.