KEY TAKEAWAYS
- One of the ways to lower car insurance is through a discount bulk rate for insuring several vehicles and drivers at once.
- Lower car insurance rates may also be available if you have other insurance policies with the same company.
- Maintaining a safe driving record is key to getting lower car insurance rates.
How Much Does Car Insurance Cost?
Car insurance costs are different for every driver, depending on the state they live in, their choice of insurance company and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the typical driver pays.
On average, the typical person spent $1,190 on car insurance in 2018, based on the latest figures available from the National Association of Insurance Commissioners (NAIC)1. According to the NAIC data, car insurance premiums rose 30% between 2014 and 2018, despite the number of insured vehicles only rising by 7%1.
Data from AAA put the average cost of car insurance for new vehicles in 2020 slightly higher, at $1,202 annually2. The numbers are fairly close together, suggesting that as you budget for a new car purchase, you may need to include $100 or so per month for auto insurance.
While some things that affect car insurance rates–such as your driving history–are within your control others, costs may also be affected by things like state regulations and state accident rates.
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