Auto Insurance

How Much Does Car Insurance Cost?

Individual car insurance rates will vary for each person based upon a number of factors such as the number of miles driven yearly, whether the car is used for business or pleasure, the age and model of the vehicle, and the driver’s history of convicted traffic offenses. State law often limits the specific rating factors that car insurance companies may consider when pricing an car insurance policy. The rates and rating factors for most types of car insurance must be filed with the insurance regulatory agency for each state where the insurance is to be sold. In some states and for some types of car insurance, the rates must get regulatory approval before they can be used. 

You can get a cheap car insurance quote online to find out how much money you can save. Car insurance companies offer car insurance quotes online with the intent of giving you a great deal and gaining your business. When you get a car insurance quote online you can compare car insurance quotes in a matter of seconds and see who gives you the best deal.

Specific factors that go into calculating car insurance cost usually include:

Your driving record and car insurance history – Most states require a car insurance company to accept an applicant at regular rates unless they fail to meet specific eligibility requirements. However, having traffic and drunk driving convictions, as well as substantially-at-fault (more than 50%) accidents will cause you to pay higher rates. The more tickets and accidents you have, the higher your rates may be. Non-driving matters such as cancellation for nonpayment of your auto premiums may also affect your eligibility.

Your age, or length of driving experience - While car insurance companies are no longer allowed to rate a driver on sex or marital status, your age or length of driving experience still affects the cost of car insurance. Young drivers will pay more than those considered adults. Different companies set different ages at which drivers are considered adults.

Where you live – Car insurance companies charge based upon the area in which you live. The insurance companies have found that more accidents are likely to occur in some areas than in others, and it costs more to settle claims in some areas.

Income – When car insurance reimburses you for lost wages due to an automobile accident, some companies charge less if a person's income is below a certain level.

Vehicle use - Different people use their cars for different purposes. Some people drive to work, and others drive only for pleasure. The less you drive, the less you may be charged for car insurance.

The kind of car - Expensive cars cost more to repair or replace, and so collision and comprehensive insurance costs more. Also, some companies charge extra for sports cars or high-performance models.