How Much Does Car Insurance Cost?February 2, 2022
Based on AAA’s 2019 “Your Driving Costs” study found that the average cost of car insurance for medium sedans was $1,251. However, that average is based on a full coverage policy for a motorist under 65 years old who lives in a suburban/urban location, with more than 6 years of driving experience, and with no accidents on his record.
Of course, that is just an estimate. What you will pay for your car insurance with no down payment is based on many different factors, including:
- Claims history
- Coverage history
- Credit history
- Coverage types and levels
- Driving experience
- Driving record
- Marital status
- Policy deductible
- Vehicle’s year, make, and model
- Vehicle’s use (how many miles you drive)
Auto Insurance Discounts for the Win!
Multiple Policies and Additional Coverage Discounts
Insurance companies offer a bulk rate discount because they want your business. So, if you were to compare quotes, the price per vehicle or driver will probably be higher for one driver or vehicle than if you are insuring several motorists or cars with that insurer.
Ask your agent if you qualify. Typically, multiple drivers must live at the same residence and/or be related. Two unrelated people may also get a discount if they jointly own the vehicle. This is different from each insurance provider, so it’s definitely something to ask about when shopping around.
If you have another policy with them such as homeowners insurance or renters’ insurance, you can typically receive a discount.
Discounts for Anti-Theft Device
If your mode of transportation has an anti-theft device installed, you can reduce your premium. For example, some companies offer potential savings of 25% if you have an anti-theft system in your car. Insurance companies can tell you which devices can lower your premiums. Lujack’s and car alarms are two popular types of devices. If you need to add this type of device, make sure the savings will be significant enough to make it worth it.
Research Additional Discounts
Insurance companies provide many types of discounts. Some of these include:
- Reduced rates if you pay the entire premium at once
- Agreeing to receive e-bills in lieu of paper bills
- Membership in particular organizations or groups that offer discounts
Believe it or not, you can just ask the agent if they offer any additional cost savings or special discounts. Many car insurance companies will provide discounts to military personnel or employees of a certain company. You never know what sort of discount pricing you can score until you ask. ALWAYS ASK!
Benefits of Being a Safe, Mindful Driver
Be a Mindful Driver
This should go without saying, but in today’s age of increasing in-car distractions, safety while driving a vehicle should be mentioned as much as possible. The more aware you are, the more accidents or traffic violations you can avoid, events that raise your insurance rates.
For those who don’t know, points are generally assigned to a driver for traffic violations, and more points on his driving record lead to higher insurance premiums.
If you are a safe, low-mileage driver you can get a usage-based insurance program which is also known as black box insurance.
When you sign up for these programs, you give permission to your insurer to install a telematic device on your vehicle and track your driving. It may also be tracked simply by using a phone app. It’s an easy way to save extra money. It’s also a quick way to know what kind of driver you are. My app lets me know when I slam on my brakes too hard.
If you don’t mind feeling like you’re on the TV Show Big Brother, this could work for you.
Increase Your Deductibles
With a lower deductible, the annual premium will be higher.
Contrariwise, a higher deductible will cause a reduction in the premiums. Ask your agent how raising your deductible might affect your premium. It may improve your annual premium by several percentage points and put some money back into your pocket. Conversely, depending on your situation, the savings may be minimal.