- Insurance companies consider younger drivers high-risk; therefore, the premium rates for drivers younger than age 25 are usually among the highest. Teenage drivers in particular are involved in a high number of vehicular accidents nationwide. On the other end of the scale, many auto insurance companies offer drivers ages 50 and older with good driving records discounted premium rates. Married drivers of all ages can save on car insurance costs as insurance companies consider that married drivers are more responsible. Average rates are even lower if you purchase a family policy. Drivers between the ages of 30 and 60 generally pay lower auto insurance premiums than other age groups.
- Young male drivers under the age of 25 pay the highest auto insurance premiums while females in the same age group pay less. Insurance companies usually see young women as being less aggressive drivers than their male counterparts. Women are also more likely to wear seat belts when driving. However, if you are a male, younger than age 25 and married, you may pay less auto insurance than a single driver your same age.
- Auto insurance companies differ widely in the premium rates they charge. The same level of coverage can be much more expensive from one company than from another. Some insurance companies have higher operating costs or pay more claims than others do. These are factors that affect the price you pay for insurance. For this reason, you should request quotes from three or more insurers when shopping for better rates. No matter from which insurance company you decide to buy, you can expect about 5 percent of your monthly income to go toward paying for car insurance, according to Kiplinger.
- The average monthly cost for auto insurance differs depending on the insurance company you use, your state of residence and the conditions and terms of your policy. Even so, in 2009, Americans generally paid about $145 a month for auto insurance. Where you live can definitely make a difference as drivers in the state of New York pay significantly higher rates for auto insurance than licensed drivers in Illinois. The District of Columbia, New Jersey, Delaware, Maryland, Rhode Island, Louisiana, Michigan and Alaska are other states where car insurance is more expensive. Auto insurance is the least expensive in Vermont, Arkansas, Illinois, Nebraska, Iowa, North and South Dakota, Ohio and Hawaii.
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