Average Car Insurance Rates
Average car insurance rates can be confusing to say the least. You may find that when you are looking at the national average car insurance rates, your price quotes are much higher or much lower. There are several different reasons for this. It is important to understand how average vehicle insurance rates work when you are comparing your own car coverage.
Average National Rates on Coverage
One of the most important things to remember when it comes to average automobile insurance rates is that this number will change dramatically over the days, weeks, months and years. Currently the nation's average rate is around $1600 but state rates vary anywhere from $700 to $2600. Iowa drivers, for example, pay an average of around $780 per year while New Yorkers are stung with average car insurance rates over $2500 . Furthermore, average car insurance rates also fluctuate each and every month as well as year. In some states, such as California, car insurance rates are down an estimated 20 percent from the previous year. One of the main reasons to constantly compare and check average car insurance rates quotes is to ensure that you are getting the best deal right now.
Another thing to consider when it comes to car insurance rates is what is included in this price. The prices of the best auto insurance rates will vary depending on the basic requirements for each state. States that do not require their drivers to carry much insurance will usually have a much lower standard than states that come with higher limits on their basic coverage. In most instances, the average auto insurance rates are based on a full coverage plan, as this is what most drivers will choose. However, if you do choose a basic coverage plan only, then you can expect much lower price quotes than the average.
Full or Basic Coverage
Choosing basic coverage may be cheaper but it can also land you in a lot of trouble financially speaking if you are ever in a serious car accident. In most states, basic coverage will pay for the damage you cause to the other driver or partial repair to your vehicle. For example, $5,000 of property damage protection is not going to pay to have your brand new SUV replaced with an MRSP of $40,000. Although you never plan on being in an accident, you need to be prepared for anything on the road which is why most drivers will invest in more than just the basic coverage.
Most car insurance rates are on full coverage which includes compensation for damages both on and off road. Most full coverage plans come with bodily injury liability, property damage protection, collision and comprehensive coverage. However, you might also want to consider roadside assistance, uninsured/underinsured motorist coverage, personal injury protection and loss of use coverage to remain completely protected on the road of life. The level of coverage you choose will depend on a number of things including how much you drive, your marital status, where you live and what type of car you need to insure. A family man looking to insure a minivan and an SUV will have a much different policy requirement than a student looking to insure a two door coupe built in the 90's.
Compare Car Insurance Premiums
Keep in mind that, while it is interesting to compare your rate quote with the average rate quote, you are an individual and thus you should not be too concerned with how you stack up. Every single policy is different and thus finding a policy that fits your lifestyle should be the most important thing. You may be paying $200 more than your state average but you also may need higher limits and additonal coverage for your family.
If you have a poor driving history, drive a brand new or expensive car or spend a lot of time on the road, then you might be looking at higher prices. This does not mean you should sacrifice your level of coverage to get closer to the national and state standard. Furthermore, if you only need basic coverage, if you are over the age of 55 or if you do not spend a lot of time on the road, you could be looking at much lower prices. Use the state and national averages as what they are - numbers - and focus on finding a policy that is as individual as you are.
Why pay more than you need to on your car insurance? By comparing average car insurance rates as well as various quotes from leading providers, you will get an accurate indication of how much or how little you should be paying each year. Don't settle for last year's rates - get the best prices on your policy.
