What's The Average Auto Insurance Cost Per Person?

Auto insurance premiums can vary widely, but knowing the average auto insurance cost per person can be helpful when you start to shop around for better policies and rates. Here is what you need to know when it comes to insurance rates.

What’s the Average?

As of May, 2009, the average cost for auto insurance was $1837 per year, per car. This breaks down to about $153 per month. This estimate is based on a household, and may include multi-car families. However, if we assume that was based on the national average of 3 drivers per household, that breaks down further to approximately $50 per person per month. What you end up spending on your insurance rates will depend on a variety of factors.

How Does Age Affect the Rates?

Traditionally, males under 25 are considered the highest risk group, and the insurance premiums for someone who falls under this category are higher. But anyone under 25 will have higher than average premiums since the driving experience is lessened. Some companies won’t even offer insurance to those under 25.

The best rates are found for those with no tickets who are between the ages of 35-50. In the insurance industry these drivers are seen as safer, and can enjoy lower premiums. Age does affect the rates.

Does My Location Affect the Rates?

Yes, your location absolutely affects the premiums for your auto insurance. If you live in a congested area or an area with more accidents than normal you can expect to pay higher insurance premiums. An area with more traveled roads will see more accidents, and the insurance company will end up having more money paid out in claims.

On the other hand, if you live in an area that is rural and have a commute to work you can expect higher rates as well. The idea is that the more time you spend on the road, the higher your chances of an accident are.

Will My Choice in Vehicles Affect My Rates?

Yep, it sure will. That fancy ‘arrest me’ red sports car is a much higher risk than the no-nonsense silver two door commuter car. If you must have that sports car, you can go ahead and plan on a substantially higher insurance rate. Newer cars with more safety features will save you money on your rates. Things like airbags, anti-lock breaks, anti-theft systems, and roll bars will help bring your risk down, and your rates will follow suit.

What Other Things Can Affect My Rates?

There are other factors, such as your credit rating and your occupation. If you use your personal vehicle as a business tool (think pizza delivery) or you have no or poor credit, the insurance company can see you as a higher risk. The more miles you drive each year, how many cars you have on your policy, and past claims can also affect your rates.

The best thing to do is to keep the average in mind when you call and shop around. But shopping around is the best way to find the rates and policies that best fit your needs.


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