According to CarInsurance.com Premium Index - CPI, the national average cost for one year of auto insurance premiums so far in 2010 is $1,614 so that breaks down to about $135 a month. The national annual average cost in 2009 was $1,736. The average cost for auto insurance nationwide for 2008 was $1,600.
The monthly cost of car insurance depends upon many variables, the first being what coverages you choose. If you only have the state minimum required Liability coverages your monthly auto insurance expense will be less than if you carry full coverage which is Liability plus physical damage coverages of Collision and Comprehensive.
Then taken into account are other rating factors such as your driving record, your geographical location, credit rating, type of car you are insuring, etc. That is why to get an accurate quote for your car insurance premium, which you can buy for 6 months or 12 months but choose to put a down payment on and pay monthly towards, you need to go through our quoting system. When filling out the car insurance application put in the most accurate information so that your quote will also be accurate.
While there are all these factors involved in calculating your car insurance premium and what your monthly payment would be we have a way in which you can see what the average annual policy cost in your state. The CarInsurance.com Premium Index (CPI) gives you such information. The CPI represents the annual premium for the quotes displayed at CarInsurance.com.
In order to give an accurate comparison the CPI reports the lowest average annual car insurance rates quoted to consumers that compare rates at CarInsurance.com. If the premium was displayed as a 6 month policy, CPI annualized the premium for comparison.
Many factors go into the cost of your insurance, remember items such as where you live, the type of vehicle you are insuring, mileage driven each year, the limits of your insurance and the optional coverages you chose to put on the vehicle will help determine your premium rates. Beyond this, personal factors such as age, driving history, etc will also affect the cost of your auto insurance policy. A new vehicle will cost more for insurance than a used vehicle, but the simple rule is that the more a vehicle costs the more it is to insure. So, you could have an expensive used car that would be more expensive than a less expensive new car to insure.
If you review your states' insurance page on our site, you can see the averages for your particular state. We recommend you put your zip code above and start a quick quote to see how much car insurance will cost you.
For more information you can also try contacting your state insurance regulator. Many state insurance regulator websites list sample rates for different areas within a state. To see if this is available for your state, check with your state insurance regulatory body's site.
Keep in mind you can review the CarInsurance.com Premium Index - CPI at any time to learn more about average premiums.
On our site you can also learn more about costs for every driver group:
- Average Annual Car Insurance Cost for Teens
Teenagers pay the highest premiums of all groups of drivers.
- Average Annual Auto Insurance Rates for Seniors
Senior Citizens pay the lowest premiums of all groups of drivers.
- Established Families Average Annual Premiums
Established families pay less than the national average for car insurance.
- Married Annual Rates - Average Rate Comparison
Married drivers pay less than single drivers for auto insurance.
- Students Insurance Costs - Comparison
Students pay a little more than the national average cost of car insurance, but this is likely because of their age. Students pay less than those drivers not in school.
- Annual Auto Rates for Young Families
Young families pay less than the average cost of car insurance as a group.