AUTOMOBILE INSURANCE AVERAGE COST
In the case where a member of an insurance owns a car, the chances are extremely high that he/she needs car insurance not only to provide financial protection but also to comply with the member’s state’s laws.
With so many options to choose from for a member’s car insurance, it can help any member of an automobile insurance to choose his/her provider and policy to know what other drivers are paying for their policies. Here’s a review of some typical auto insurance rates for several different areas across the country.
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National Average Car Insurance Rates
Based on reported rates from several state-governing insurance departments, and information from organizations such as the National Association of Insurance Commissioners, the national car insurance average rate is just above $900 per year of coverage.
There are some important considerations to keep in mind when an auto insurance member is comparing his/her car insurance rates or quotes to the average rate.
The first thing a member should consider about car insurance averages is that each state has its own requirements for how much coverage a driver must hold.
Here’s an instance, A member’s state might require only a low limit of liability insurance, or it might require several coverages such as liability, no-fault (personal injury protection), and uninsured motorist.
The differences in state requirements for car insurance policies means that average rates will vary from state to state. The average rate in a member ’s state could be significantly higher than the national average if his/her state has stringent car insurance requirements.
Most numbers used to help find the car insurance average rates only include policies that meet a state’s basic requirements.
If a member of auto insurance adds optional coverage such as comprehensive and collision, he/she may find that his/her rate differs from the national average.
A member of automobile insurance must consider that car insurance company use information about him/her and his/her car to help determine his/her insurance rates. These are called rating factors and include:
Auto insurance history.
Information about a member’s Car(s):
The miles you drive his/her car per year.
Where he/she regularly park his/her car.
While considering how unique one is, it is fair to expect that one’s car insurance premium may also be unique and differ from the national average.