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How much for auto insurance



How much for auto insurance

How much for auto insurance

How much for auto insurance? The average American spends $867 a year on car insurance. That’s an astronomical number, and it’s no wonder people are looking for ways to save money. But how can you reduce your cost? While there are many factors that go into determining your price, there are some simple things you can do that will cut down on premiums by hundreds of dollars per year.

How much for auto insurance


The most important thing you can do to reduce your cost

You can lower your auto insurance premium by getting a quote from multiple providers and asking about the available discounts. When you get a quote, ask if there are any discounts that could apply to you. Some common discounts include bundling auto and home insurance, good driving behavior (such as not speeding), being over 60 years old, and having good student drivers in the household.


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The single biggest driving factor that impacts your price

The single biggest driving factor that impacts your price is your driving record. Insurance companies use this to determine how much they will charge you, and it can include tickets, accidents, and other violations like speeding or drunk driving. That’s why it’s so important to keep a clean record if you want affordable auto insurance quotes.


The second-most important thing you can do to lower premiums

The second-most important thing you can do to lower your auto insurance premiums is to get a good driving record. If you have a long history of safe driving, it will make it easier for your insurance company to offer you better rates. You can also drive safely and politely, which will help keep costs down as well.


For example, if your car is in the shop for repairs after an accident and someone else is already waiting for their oil change or tire rotation, don’t keep them waiting by keeping them on hold when they call to schedule an appointment. This shows that you take responsibility for others’ time and not just yours!



  • Drive within the speed limit
  • Don’t drive aggressively (tailgating, running red lights)
  • Don’t drink before getting behind the wheel or use drugs while driving​


How much insurance do you need to purchase

How much auto insurance coverage you need to have depends on the value of your car and your driving record. If your car is worth a lot, then you’ll want to purchase more coverage than if it’s not worth very much. If you have a clean driving record, then there’s no reason to overcompensate with extra insurance; however, if there are blemishes on your or someone else’s history (such as speeding tickets), then it might be wise for both parties involved to increase their policies’ limits and deductibles.

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How much for auto insurance

Your location

Your location can have a big impact on the price of your auto insurance. If you live in an area with high crime rates, it’s likely that your car insurance premiums will be higher than someone living in a low-crime area (even though they might have the same type of car).

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The same goes for drivers who opt to park along the street instead of in their garage or driveway. The more expensive your neighborhood is, the more likely thieves are to break into cars—and if yours happens to be unlocked, even better!


Your age and gender

  • Your age and gender are also important factors when it comes to setting your auto insurance rate. Younger drivers typically pay more for coverage because they tend to be riskier on the road but that doesn’t mean an older drivers can’t enjoy a lower rate, particularly if they have a good driving record.


  • Women generally pay more than men for insurance, although younger women often get a break from their male counterparts in the same age bracket. That’s because young men tend to be more risky drivers than their female counterparts although this is changing as more women get behind the wheel. Mature drivers may be able to get cheaper rates since they’re statistically safer on the road and don’t require as much coverage as younger or newer drivers.


Your driving history

  • Your driving history. This is the most important factor in determining your auto insurance rates, so it’s a good idea to be as accurate as you can with this information.


  • How many years of driving experience do you have? The more years under your belt, the better! If you’ve been driving for less than 3 or 4 years, it’ll be harder to get a discount on your insurance because young drivers are perceived to be riskier than older ones. If you don’t know how many miles per year that translates into, look up “average miles driven per year” and then multiply by 10 for an approximate number of miles driven over 10 years.


  • How many accidents and tickets (if any) have you had? Accidents are always going to affect your premium negatively and depending on what type of accident it was and how severe it was could determine whether or not an insurer will even consider insuring someone like yourself! Tons of tickets in short order also means higher rates; although one ticket every five years doesn’t usually raise too much concern with insurers when considering long-term trends like multiple speeding tickets or DUIs within a certain timeframe (usually 2-5 years).


Your credit score

A good credit score can save you money on your insurance. A bad one can cost you money on your insurance.


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If you have no credit history but want to buy a car or house in the future, consider applying for a secured credit card from your bank or a credit union. This will give you some financial credibility that insurers look for when determining how much they’ll charge you for auto insurance coverage and other types of policies.


Your occupation and education level

  • Your occupation and education level

Occupational and educational factors can also affect the cost of car insurance. If you’re in a field that’s associated with higher risk, such as construction or manufacturing, your insurance rates will probably be higher than someone who works in an office building. Additionally, if you have a bachelor’s degree or more (especially in a STEM-related field), your rates may be lower than if you only have an associate’s degree from a community college or high school.


Announcing NerdWallet’s car insurance comparison tool, which gives you a personalized estimate of how much insurance should cost for your specific situation.

NerdWallet’s car insurance comparison tool gives you a personalized estimate of how much insurance should cost for your specific situation.


The tool, which is backed by NerdWallet’s financial advisors and data analysts, takes into account:

  • Your annual mileage.
  • Where you drive.
  • Your credit score.
  • Your deductible level (in case you cause an accident).


You can reduce your auto insurance premiums, but not all at once.

You can reduce your auto insurance premiums, but not all at once.

It’s important to know what you’re paying for when you buy car insurance. Some of the factors that influence your insurance premium include:

How much for auto insurance

  • Your driving record. If you have a history of moving violations and accidents, or if you have no prior driving history at all, then expect to pay more than someone who has been accident-free for years on end.
  • Your vehicle type and use (for example, does it run on gas? Is it used solely for commuting or errands around town?)
  • Your location (where do you live?) and driving habits (how often do you drive; how far do those drives take place; what routes do they follow?).



If you follow these suggestions and shop around for the best insurance deal, you’ll find yourself saving money. We hope that our tool helps you find the right price for your needs.