How Much Is Car Insurance a Month?

Many people often ask, how much is car insurance a month? It is a valid question, as protecting your investment and your loved ones are essential, whether you’re purchasing your first car or have just bought a new one. In this article, you will find answers to that question, as well as answers to other questions you might have regarding insurance companies, policies, and prices.

Factors That Affect The Cost Of Your Monthly Insurance Rates

Here are a few elements that affect how much auto insurance costs:

State And Place

Your auto insurance costs depend on the state and area where you purchase the coverage. Most insurance providers use location information, such as your city, state, and ZIP code. Some states additionally demand Personal Injury Protection (PIP) coverage, and some regions factor local temperature and weather into calculations of auto insurance rates.[1]

Age

Teen drivers are four times more likely to cause accidents than drivers who are 20 or older, according to IIHS. It means younger, and older drivers may pay more for auto insurance than middle-aged drivers.

Vehicle Brand And Model

Contrary to popular opinion, new cars might be more expensive to insure depending on the make and model of your car, safety features, location, and personal insurance plans. Vehicle size can also affect costs for auto insurance. The cost of labor, the statistical probability of accidents, the price of components, and labor availability affect how much you spend on coverage. The vehicle’s safety and crash prevention features are also inclusive. Insurance companies view certain automobile brands and types as more expensive to cover, such as luxury or sports cars.

Driving Background And Driver’s License

High-risk vehicle insurance covers high-risk drivers, especially those with a history of traffic violations. It will cost more or less depending on if the driver’s driving habits changes or worsens over the years. Car insurance companies frequently consider a person’s background and driving history. This record might show drivers’ behaviors and how dangerous they are behind the wheel. Your insurance provider can calculate your monthly payment for vehicle insurance using these factors.

Yearly Mileage

Your credit score also affects the cost of your auto insurance. While some jurisdictions forbid insurance firms from considering your credit score when providing an auto insurance quote, others permit it to be considered when calculating your price. According to research, having a higher credit score, a clean driving record, and no prior accident claims will lower your insurance costs.

Score And History Of Credit

Relational Status

According to a study, married people are considered more financially secure and safer drivers than single people. A married driver can save as much as $96 annually on their auto insurance. Married folks are also more likely to purchase a home and combine insurance. When you fuse it with house insurance, saving money on your auto insurance premium is simple.

How Much Is Car Insurance For a 18-Year-Old Per Month?

Young drivers pay the highest average premiums for auto insurance, according to 2022 rates, with age and gender being important considerations for insurers when determining prices. In general, men are more expensive to insure than women.

According to the Insurance Information Institute, men tend to drive more recklessly than women and have a greater rate of serious accidents (Triple-I). According to actuarial data used by auto insurers, elderly and young adult drivers are more likely to be involved in collisions. As a result, these drivers’ car insurance premiums are normally higher to reflect the higher risk.[2]

However, not all states let gender and age be rating factors and have laws that forbid this. A full coverage policy costs an 18-year-old teen driver about $5,694 or more per year, or, on average, $464–$616 each month. 18-year-old female drivers pay $4,918 on average, $647 less than male drivers of the same age.

How Much Is Car Insurance For A 17-Year-Old Per Month?

Male drivers can expect to pay between $3740 and $6,272 annually for complete coverage on their policy, and female drivers must pay at least $3,420. That is an 8.9% difference in rates. It means some 17-year-old could be paying as high as $523 per month for their premiums. Remember that this varies by state, and other factors can impact these rates.

How Much Is Car Insurance For A 16-Year-Old Per Month?

Adding a 16-year-old to an existing full-coverage policy costs $342 per month ($4,105 per year). In contrast, standalone coverage costs $565 per month ($6,779 per year). For females, this is $3,669 – $335 per month, an 8.7% difference in rates. Of course, several factors could arise to change this.

Cheap Car Insurance Rates Across States

The top 5 cheapest states for car insurance are Maine, Vermont, Idaho, New Hampshire, and Ohio. On average, they pay the most affordable annual full coverage car insurance rates nationwide. The lower average premiums in these states might be attributed to factors such as a lower cost of living, less traffic congestion, and fewer accidents.[3]

They pay $876 annually in Maine, about 51% below the national average. It is $1,000 per year in Vermont, which is 44% below the national average. Drivers in Idaho spend about $1,065 per year, 40% below the national average. In comparison, drivers in New Hampshire only pay about $1,182 per year — 33% below the national average. Finally, insurance costs drivers in Ohio about $1,200 per year — 32% below the national average.

How Much A Month Is Car Insurance?

The average monthly cost of auto insurance is between $110 and $130, depending on factors like region, car type, driving history, and more. However, other factors such as age, marital status, and gender also impact the price of auto insurance. Additionally, some insurance companies offer extra coverages, which can increase the price you’ll have to pay.

The average cost of vehicle insurance fluctuates across the nation. Car insurance firms are still submitting applications for rate changes for auto insurance across the country because of recent inflation, supply chain problems, and claims increases. Rates have risen 4.9% from 2021 to 2022, which might impact more than 62.5 million policyholders nationwide.

How To Find Affordable Car Insurance

Auto insurance is relatively expensive on average. It is still possible to get affordable auto insurance. You achieve this by comparing rates annually, and doing the same when you get married, start a new job, move, or purchase a new car. Also, shop your way to a cheaper deal within the month following the third and fifth anniversaries of any recent at-fault accidents, DUIs, or other traffic violations. And remember to compare prices by looking at the cheapest providers in your state for various driver profiles.

Conclusion

Now that you know how much is car insurance a month, you must insure your car to protect your loved ones and your assets. A car insurance policy may seem expensive, but it is worth the expense. If something unexpected happens, you will be protected.

Reference

[1] PIP premiums (statewide): “Presentation on Personal Injury Protection (PIP) Insurance” florida office of insurance regulation, 2013

[2] Motor vehicle crash “Fatality Facts 2020 “Males and females” Insurance Institute for Highway Safety., 2020

[3] State Insurance Buying Guides “The 10 Cheapest States for Car Insurance in 2022” U.S. News & World Report, 2022