Every responsible driver has car insurance. We all need it not only because it is the law, but also in case we get in an accident. Car insurance can cover the cost of medical bills if someone were to get hurt, and also the cost of fixing a vehicle. But how much does insurance cost? We all know that car insurance varies from policy to policy and from company to company, so what are the average car insurance rates?
CPI (CarInsurance.com Premium Index) has licensed agents who report the lowest average car insurance rates that are quoted to consumers who have compared rates. The rates come from over a dozen of the nations leading auto insurers in 49 states and the District of Columbia.
The CPI Historical Average Premiums chart shows the national average for the year of 2009 to be $1,754 a year. That means the average of american’s have been paying $146 a month for their car insurance. This is an annual increase of 9.62% because in 2007 the national average was $1,589 and only $1,600 in 2008. CPI also shows that there is a national decrease of 4.53% when you compare the months of October 2009 and November 2009. In October the average was $1,655 and in November the average was $1,580.
The state of Illinois had the lowest annual car insurance rate in 2009 with $1,214 a year, which was an 8.68% increase from previous years of $1,105 in 2007 and $1,117 in 2008. When you compare October and November 2009 however, Illinois had a decrease of 4.47%. The state law requires minimum Bodily Injury Liability of $20,000 per injured person up to a total of $40,000 per accident, and Property Damage Liability with a minimum limit of $15,000.
The District of Colombia had the highest annual car insurance rate of $2,550 for the year of 2009, followed closely by New Jersey at $2,501. New Jersey had an annual increase of 13.32% because 2008′s annual insurance rate was $2,207. New Jersey had a monthly decrease of 4.61% when comparing October, which was $2,578 and then November, which was $2,459. New Jersey state law requires minimum Bodily Injury Liability limits of $15,000 per injured person up to a total of $30,000 per accident, and Property Damage Liability coverage with a minimum of $5,000.
Kansas state had the highest annual increase in the year 2009. In 2008 the average insurance rate was $1,369 and now in 2009 it is $1,894, that is an annual increase of 38.34%. However, when comparing October and November of 2009, Kansas has had a decrease of 7.28%. October’s average car insurance rate was $1,785 and November’s was $1,655. The state of Kansas requires $25,000 Bodily Injury Liability up to a total of $50,000 per accident, and $10,000 Property Damage Liability.
Only 4 states had an annual decrease in the year 2009. Ranging from 1.71% of New York to 3.43% of Mississippi. The other states are Alabama at 1.98%, and Arkansas at 3.13%.
When trying to find car insurance you must take into consideration all the different factors that affect your own personal rates. Just a few of these factors are age, gender, driving history, where you live, and what kind of vehicle you have.
Age is one big factor that affects any car insurers rates. Drivers between the ages of 16 and 24 are classified as new drivers with little or no previous driving experience. Insurance companies view this age group as “high risk” because research has shown that they are more prone to collisions, traffic violations, and to be more aggressive drivers. Because of all of this, insurance will prove to be more expensive. However, age 25 and higher drivers are viewed as mature drivers and therefore they have lower insurance rates. Insurance providers are able to access your driving record, and therefore are able to determine if you are a safe driver or not.
Gender is another factor in determining your car insurance rate. Women attract lower insurance premiums than men because research has shown that men have more accidents than females. You also get a lower rate if you are married, because marriage shows responsibility.
Another factor to consider is what type of vehicle you are wanting to insure. Trucks are more expensive to insure than cars, and sporty cars are more expensive to insure than regular 4 cylinder cars. Unfortunately, there is no real definition of a sports car, but some things insurance companies may look at are body style, horsepower, engine size, how many cylinders, size and weight, and if it is a 2-door or 4-door car. So why is it more to insure a sports car? Because sports cars are usually smaller than other vehicles, it is likely they will incur severe damage if ever in an accident. Owners are more likely to receive speeding tickets since sports cars are typically faster than other cars. Also sports cars are likely to have unique parts on it, consequently, if the insurance company has to replace parts, it will be a considerably more amount of money than if it just had stock parts.
Where you live is another factor that affects your car insurance rates. If you live in a city or an urban area your rates will be higher than if you live in a rural area. The reasoning behind this is simple, more people and more cars equal more accidents.
Find out the auto insurance laws in your state, you will be glad to have auto insurance if you ever get into a wreck, even if it is not your fault. It saves money in the long run, when you are not paying for damage done. And remember, all insurance companies are able to access your driving history, and they will see any tickets or violations that you have had in the last 3 years, so be a safe driver, follow the laws, and you are on your way to having good insurance rates, it might even prove to be lower than the average car insurance rates.
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