Car insurance costs are one of the expenses that are paid the most in a year.
The average American driver spends an average of nearly $1,000 per year on car insurance, which makes the typical car insurance cost per year just under $100. In comparison to other countries, such as Canada, where drivers spend about half that amount per year. This means that the average Canadian driver has about double the amount of money put into their car insurance policy. While a number of factors may contribute to this amount, the fact remains that Americans spend far more on car insurance than Canadians.
One contributing factor to the much higher average monthly car insurance cost per month in America than Canada is the high number of crashes involving automobiles in America. Compared to Canada, drivers in America are involved in fewer car accidents, and those accidents which do occur here are less likely to involve serious or fatal injuries. American drivers also have fewer fatal accidents than Canadian drivers do. In fact, it is estimated that the average American male is involved in approximately two fewer car accidents each year than the equivalent Canadian male.
American drivers spend so much on their car insurance policies
Another reason that American drivers spend so much on their car insurance policies is that many of them are less likely to file insurance claims. Those who file claims often do so because they are not able to pay their premiums. However, those who have good credit scores are more likely to receive discounts from their insurance companies. For those drivers who have poor credit, good credit scores result in lower insurance rates.
On the contrary, those who have bad credit often pay higher rates than those who have good credit. Those who own sports cars or vehicles that are considered “expensive” also have higher premiums. Those drivers who have a history of frequent accidents and traffic violations are also more likely to be charged higher rates.
When getting quotes from different car insurance companies, it is important to obtain several different quotes.
The amount of coverage provided will vary greatly from company to company. Insurance companies base their premiums on how much risk the insured poses to the company. If you have a good driving record and you drive an inexpensive vehicle, then you should not expect to pay very much for your coverage. However, if you have tickets, accidents, or another type of negative mark against your name, then you can expect your rates to be more expensive.
Typically, comprehensive and collision coverage will be the most expensive types of coverage that you can get from your vehicle insurance company. Collision coverage will cover your vehicle in case of an accident. The cost will depend on the state where you live, but it is generally around five dollars per day per accident. Comprehensive coverage, on the other hand, will pay for repairs to your vehicle. Generally, the cost of comprehensive coverage will be much higher than collision coverage, which could make it difficult for some drivers to afford comprehensive.
Another way to save money on your insurance premiums is to receive an auto insurance driver discount.
Auto insurance driver discounts are available for drivers who have a clean driving record, who do not smoke, and who avoid accidents and citations. Typically, these type of auto coverage premiums are much lower than they are for those drivers who have a number of traffic violations. If you want to take full advantage of an auto coverage driver discount, you will need to ask your insurance agent about the program.
The fourth way that you can save on your car insurance premiums is to make sure that you have at least the minimum required coverage. Some states require that you have at least the minimal required coverage as a legal minimum. Other states, however, may require that you have even more protection than the minimal required by law. Therefore, it is recommended that you check with your local DMV to find out exactly what the minimum coverage requirements for your state are. This will allow you to determine whether or not you are financially protected if you should ever become involved in an accident that exceeds the minimal required by law.