How Much Should I Be Paying For Car Insurance?

There are many factors that influence how much you need to pay for auto insurance. Good credit is the most important aspect of safe drivers. It helps to understand your state’s averages. The national average for truck and cars insurance premiums is $1621, although there are many states that have averages much higher than this. Learn more about how much you should be spending on automobile insurance.

Average National Expenses

The source will determine the average annual cost of automobile insurance. NerdWallet gives a $1621 per year figure, while The Zebra estimates that the average expense is $1502. No matter what your situation, automobile insurance will likely cost you more than $100 per month. If you are a 40-year old with great credit, lots of driving experience and a safe driving record, you could be paying $135 per month.

There are many aspects to consider when determining national expenses. There are many protection options available from insurance companies, so the average number must show the most common type of protection. The nationwide cost figures are used to determine policies that include liability, extensive and crash insurance, as well as state-mandated coverage like injury defense or uninsured motorist protection.

Your premiums will be lower if you only purchase the minimum coverage required by law. However, your actual expenses in case of an accident can rise. The minimum insurance policy will typically cost $676 per year, which is close to $1000 less than the national average annually. These averages are useful for getting an idea of how much insurance costs. However, individual factors will have the greatest impact on the premium rates that you will receive.

The Typical Protection Level

People tend to choose more coverage than what is legally required. A typical policy provides $50,000/$ 100,000 in physical injury protection, $50,000 for home damage protection, and crash and extensive insurance with deductibles of around $500. Space insurance is also required by some states.

Auto insurance expenses by state

Your POSTAL CODE determines your truck and car insurance premiums. The minimum protection requirements and premiums for trucks and cars are also determined. This means that the area you live in can have a significant impact on your premium. This is due to a variety of factors including the state’s mishap rate, the number of dense cities, and the possibility that you might be struck by a deer. Maine is the most affordable state for insurance, considering that there is very little risk to motorists. Complete protection is usually available for as low as $900 per year. For budget-friendly, complete protection, North Carolina and Idaho are also important.

Michigan is the most expensive state for insurance. Its average premiums are much higher than the national average. Michigan insurance policies will cost you over $4000 annually for complete coverage. However, there are ways to lower this amount. Although New York City and Louisiana are more expensive than Michigan, they don’t come close to Michigan’s rates.

The most affordable state is the one that offers the least amount of legal protection. Wyoming has the lowest average annual premium cost of $315. Similar costs are offered in South Dakota and Iowa. You will still have to pay more than $2000 for minimum coverage in Michigan. However, choosing minimum protection won’t save you from Michigan’s high cost. This means that minimum coverage in Michigan is nearly $500 more expensive than the national average for policies that include liability, crash and detailed insurance.

What makes the average month-to-month car insurance payment so different?

It can be extremely difficult to understand the many products that affect the cost of auto insurance. Insurance providers want to make income so they gather a lot of information to assess the risk of ensuring you.

They then determine your premium based on that information. Different states have different policies about what information can be used to determine a vehicle’s insurance rate. These are some of the most common aspects.

Select protection options

The protection you choose is one of the most important factors that will impact your monthly automobile insurance costs. Your monthly cost will be lower if you choose the minimum required by the state.

Your policy’s coverage amount can vary greatly. Some states allow minimum liability insurance coverage of $10,000. You can also get liability insurance that covers up to $500,000 in most cases.

You have the option to choose from a variety of protection options that are not always mandatory. You don’t need to have crash or detailed protection if you own your vehicle.

Rental automobile coverage is not usually necessary. Although these protection options may be essential to you, adding them to your policy will increase the premium.


Insurance companies have data which shows gender issues when it comes to claims. Men are more likely to be chauffeurs than women, especially if they are younger.

This means that insurance companies will charge different genders different costs. Typically, females have lower automobile insurance premiums.


Insurance rates are affected by your age. Younger drivers don’t have the same experience as older chauffeurs. Additionally, younger chauffeurs are more likely to have riskier driving habits. These factors are why younger chauffeurs tend to pay more than older chauffeurs.

However, rates may rise as you age. Seniors can have more problems as a result. Your age can lead to slower responses or difficulty seeing.

Wherever you live

Your location has a significant impact on the cost of your auto insurance.

Minimum insurance requirements by the state, crime rates, average population data, and other aspects that affect this car insurance pricing element.

History of driving and mishaps

It is logical that your driving record would have an impact on your rates.

You might be more secure driving if you have never been in a mishap or committed a moving violation.

Many years of driving experience

People are not waiting any longer to learn how to drive. The age of an automobile insurance policy is a major factor in determining the rate. However, they also consider years of driving experience.

You might not be able to get your driver’s license if you live in a large city, even if you don’t need an automobile. Some insurance companies may consider you as dangerous as an 18 year old if you don’t get your driver’s license until you are 25.


Although not all states allow credit to be included in your insurance premiums. Credit scores are a great indicator of whether someone will file an insurance claim.

Your credit score can have an impact on your auto insurance premiums. Your premiums will generally be lower if you have a good credit score.


There are many lorries that can be insured. You have a greater chance of your passengers being hurt in a collision if you drive a large truck. Your truck may cause more damage than other lorries due to its size.

You might also find security features in your automobile that are not available to other vehicles. Your car and truck should brake immediately before striking anything in their course. This could reduce the number of claims and lower your car insurance rates.

Your automobile insurance premiums will be affected by the type, age, and claim specific information of your vehicle.

Miles driven

You have more chances of getting into an accident if you drive more. When you apply for vehicle insurance, most providers will ask for your estimated yearly mileage.

Many insurance companies don’t make clear how much money you save by driving less. Metromile, an automobile insurer, will show you exactly how much per mile you pay for automobile insurance. They base their rates on this information.

Marital status

Although you might not think being married would make you less risk for vehicle insurance, it often does. Singles typically pay higher rates than married couples.


Even your occupation could have an impact on the cost of your vehicle insurance. Individuals who use their automobiles for work might have to pay higher rates than those who don’t.

If the state allows it, certain insurance providers may consider certain occupations more risky than others.

Companies and associations

Many insurance providers partner with companies to offer discounts to their members. You might get a discount rate if you are a member of an alumni association at school or a company that is expert through work.

Ask about discounts offered by your association to start saving today.

What other insurance products do you have?

There are many expenses that insurance providers must cover in order to provide quality insurance plans. You may be able to reduce some of these expenses if you have multiple insurance plans with one provider. You can receive discounts if you have multiple types of insurance from the same insurance provider.

A typical discount rate includes having multiple cars and trucks covered on one policy, having renters or house owners insurance plans and having umbrella insurance coverage with a provider.

There are many vehicle insurers.

Keep in mind that although 2 auto insurance providers might have the same information about you, they might offer different vehicle insurance monthly expenses. You might get a lower premium if you are insured by truck and car insurance companies.

Because they are better at keeping expenses low, other insurers offer lower rates. It pays to research and find the best vehicle insurance provider. Here are some options to consider if you are looking for an automobile insurance provider.


Metromileis an automobile insurance provider that offers insurance based on how much you drive. Metromile can help you save a lot of money if you don’t drive a lot.

You will pay a base rate and an additional expense per mile, rather than a flat monthly cost. Metromile does not penalize you for driving more than you need to, even if you don’t drive a lot.

Metromile is currently available in eight states: Washington, California. Oregon. Virginia. Pennsylvania. Illinois. New Jersey.


Allstate ranks among the top vehicle insurance providers in the United States. Because of their size, they are often able to offer competitive rates to clients.

Every auto insurer assesses risk differently so you may be able to save money by switching to Allstate. To find out if you can start saving money, get a quote for vehicle insurance from Allstate.


Esurance lets you customize your policy to only provide the protection you need. The Protection Therapist will guide you through the process and provide a quote.

You can also reduce your monthly premiums with Esurance by bundling your vehicle insurance and your property owners insurance. DriveSense can also be registered and you will save even more by being a great chauffeur.


Average monthly cost for car and truck insurance is $125. However, depending on your individual circumstances and where you live, your cost could be higher or lower.

Get estimates from trusted auto insurance providers to see if you are getting a good deal on vehicle insurance. Compare the quotes and then choose the best option for you.