Average Car Insurance Rates for Americans

Average Car Insurance Rates depend on different factors. Sometimes it may feel like you’re getting charged too much for auto insurance, but are you really getting scammed, or are your rates comparable to the average car insurance rates most Americans pay? What may seem like a simple question actually has a very complicated answer.

Rates depend on many factors, and getting an “average car insurance rates” depends on the group of people examined. So before one gets into statistics, how does one figure out rates in the first place?

Factors that Affect Average Car Insurance Rates

The most two most obvious factors that affect average car insurance rate are the car being insured and the driver. Let’s look at some of the most common ways insurers judge how to charge you for your auto insurance premium.

The vehicle is vital in the calculation. Insurance is essentially a promise to pay a policy holder the value of the vehicle should something to happen to it. Based on the risk and the value being covered, a policy premium is formed, so the average car insurance rate are higher. The more valuable a car is, the more it will cost to insure it. A car’s make, model, year and mileage are all used to determine the car’s value. So before looking at that brand new Audi, consider whether a nice Ford Taurus is better for your long-term financial health. Of course, safety equipment is also important, though not as essential in the calculation.

The driver is the other important factor. A cheap car worth $1,000 may typically cost pennies to insure, but if you’re a dangerous driver you can expect to pay more. A driver’s habits record will influence a policy, as will the amount of miles driven annually. Additionally, credit is increasingly being used to help determine levels of risk, so be careful if your credit is nothing to write home about.

Average Car insurance Rates

So what are the average car insurance rates people pay? As mentioned earlier, these average car insurance rates depend on the factors involved in the averaging. The following are just a few categories of averages, but they demonstrate the diffe

rences well. Which averages affect you?

State-by-State Average Annual Car Insurance Premium (2011)

Top Five Highest
Michigan ($2,541)
Louisiana ($2,453)
Oklahoma ($2,197)

Montana ($2,190)
Washington, D.C. ($2,146)

Top Five Lowest
Vermont ($995)
South Carolina ($1,095)
Maine ($1,126)
Wisconsin ($1,128)
Tennessee ($1,146)

States aren’t the only geographical areas that matter when it comes to average car insurance rates paid. According to the Insurance Information Institute, the highest city average rates paid in 2011 were in Detroit, New Orleans and Philadelphia, which came in at $5,800, $3,800 and $3,500 respectively.

Because the state and location affects the average car insurance rate so drastically, every other averaged group should be defined based on the state. The national average car insurance rates paid in 2011 was $1,561, of which Missouri was the closest to, coming in at $1,563. As such, here are some average car insurance rate for common popular vehicles using Missouri as the base state.

Average Car Insurance Rates for Popular Cars (2011 editions)
Chevrolet Silverado 1500 ($1,823)
Ford Escape ($1,181)
Ford F-150 STX ($1,268)
Honda Accord LX ($1,281)
Toyota Camry ($1,190)

The sex of the driver makes a big difference, too. When the U.S. Department of Transportation and the National Highway Traffic Safety Administration released statistics for 2007 the data revealed that males were involved in some 6.1 million car crashes — 1.6 million more than females. As such, it’s no wonder that across the board average car insurance rates for men are higher than average car insurance rate for women.

Average Vehicle Insurance Rate by Insurer in California (Male/Female)
21st Century ($682/$674)
GEICO ($605/$579)
Liberty Mutual ($1,272/$1,218)
Progressive ($720/$715)
State Farm ($930/$877)

How to Lower Average Car Insurance Rates

You may or may not fall within the averages, but either way, there’s always room for improvement. There are many resources with advice on lowering rates, but here are some basics:
• Ask about discounts
• Fix your credit
• Take defensive driving courses

These are just some tips on average car insurance rates, and there are many more things you can do to lower your premium. Ultimately, your rates may always differ from the average car insurance rates charged nationwide, but only your rate really matter, so do what you can to lower it.

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