Auto Insurance Rates and Costs

Auto insurance is an essential part of owning a vehicle – and in almost all states it is required by law to have at least basic coverage. Auto insurance ranges in price depending on numerous factors that we shall look at in this guide.


The Type of Auto Insurance Coverage You Require

Naturally the more coverage you want for your vehicle the more expensive the insurance premiums will be. As a general rule, third party auto insurance is the cheapest insurance you can get and fully comprehensive is the most expensive. Obviously there are other types in between that also vary in prices depending on what the policy offers you.

The Type of Vehicle You Drive

The more expensive your car is to repair or replace, and the faster the engine – the more expensive your auto insurance costs will be. A fast top-of-the-range sports car will have much higher insurance premiums than a family sedan. The higher the theft rate for your type of car will also affect the cost of your auto insurance.

Before purchasing a fancy car make sure that you can afford the insurance on it.


Where you live

It might sound silly, but where you live can have an effect on the cost of your auto insurance. If the neighborhood that you live in has high levels of crime – and in particular car thefts – then your insurance cost will rise.

Also, more cars are damaged and stolen in urban areas than rural areas, so the closer to the city you live the more expensive your auto insurance costs will be.

How Often You Drive

The more often you drive the higher the cost of your auto insurance. Obviously the longer you spend driving the more possibility that you will have an accident. If you have a long commute to work you can expect to pay higher insurance premiums than those that live close to work or catch public transport to work. If you only use your car on weekends then your insurance cost will be lower than those who use it every day.

Who You Are

Another major factor affecting the cost of your car insurance is about who you are. If you have just got your license then your costs will be higher as accident rates are much higher in young people than experienced drivers. Male drivers can also usually expect to have higher auto insurance costs as they are more prone to accidents than females. If you are a young male driver then you will have some of the highest auto insurance costs.

Your driving record is also very important. If you have an impeccable record with no fines or tickets then you will get cheaper insurance than someone with a bad driving record.

How to Keep your Auto Insurance Costs at a Minimum

Auto insurance can be very expensive but there are several things you can do to ensure that your costs are kept to a minimum.

The first thing to remember is to drive carefully! Any tickets you get or driving violations will mean that your auto insurance cost will go up. That’s a great incentive to follow the rules of the road!

Why not consider using public transport to get to work? The less you use your car the less insurance you will need to pay. You could also try car-pooling.

Some insurance companies offer discounts for various things so always check to see what discounts you might be eligible for. Drivers over 55 can often get up to a 15 percent discount on their auto insurance, and some insurance companies reward good students too – so knuckle down!

If you haven’t bought your car yet you may want to consider how your insurance company will look at the car before you buy it. The type of car you drive is one of the main factors that can put the price of your auto insurance significantly up. Auto insurance companies are very clued up and they know what cars are prone to damage – so the more reliable the car the less your insurance. They also know what types of cars are stolen most often. Speak to an auto insurer to find out what cars are on their good list before you put down the cash.

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