Average Cost of Car Insurance

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By Alex Neely on July 9, 2020.

Are you ready to learn more about the average cost of insurance? Buckle up for a thrilling ride!

What is the Average Cost of Car Insurance?

Many factors are at play when talking cost for car insurance. You have your driving record, age, and the state in which you reside all tying into the cost of premium equation, which is based on likelihood of a claim. At Say, we believe in full transparency during the quote process. Here is what you can expect when trying to determine the average cost of car insurance from different providers.

Average Car Insurance Cost by Age

Despite our desire to act like we don’t get a little bit older every year, we do. Although our bodies may not feel as spry, you’ll be glad to know that average cost of car insurance declines with each passing decade from teens to 20s, 30s, 40s and 50s. Your 50s, however, might just be your car insurance peak, because as soon as you make it to 60, those rates steadily increase. Shout out to The Zebra’s 2020 State of Auto Insurance report for these averages!

Luckily, at Say, we can offer a defensive driving discount for qualified customers who are 55+ in Colorado, Illinois, and Tennessee! We think this is a pretty awesome perk of getting older. In Kansas, drivers of any age are eligible for this discount—those lucky Kansans!

Average Cost of Auto Insurance by State

Each state has different legal regulations for auto insurance and while you might not be the world’s biggest fan of your state, you are in this together.

Earlier in 2020, we compiled a list of the 5 U.S. states with the highest rates on average and the 5 with the lowest rates on average. Here’s a quick refresher:

5 Most Expensive

1. Michigan

2. Louisiana

3. Florida

4. Kentucky

5. Rhode Island

5 Least Expensive

46. Ohio

47. Hawaii

48. New Hampshire

49. North Carolina

50. Maine

So, we are all wondering why does the average cost of auto insurance by state vary so significantly? Well, here are a couple of reasons!

  • You are in a no-fault state…looking at you Florida and Michigan. Being a “no-fault state” means that your insurance company will address your claim and possibly pay for your vehicle’s damages no matter who was at fault. Great perk, but this typically drives rates up.
  • Population. Generally, the lower the number of people residing in the state, the lower the car insurance rates. We’re hollering at Maine here!
  • Weather patterns. For better or worse, this is one for Louisiana. Weather patterns and location tend to bring floods and hurricanes that can raise rates. Hey, you can’t beat that Cajun food though!

Always remember that car insurance rates are calculated based on a wide variety of factors, which help determine the likelihood of a claim.

Average Insurance Cost for New Drivers

We gave you a few tidbits of information about how when you age, your auto insurance rates likely age with you. Just like a fine wine, it gets better with age, well until you’re 60 that is.

When you’re fresh to the driving scene, it’s a much different situation. Insurance companies determine 16-year-old drivers as a higher risk based on statistics that show more accidents and claims involving young drivers. So, even if you’re lucky enough to be added to an existing policy – that rate will likely increase to account for the anticipated risk!

Conclusion

The big takeaway here is that the average cost of car insurance varies! While the averages are higher in certain regions and certain age groups, the best thing you can do is get a quote and find out your specific rate!

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Alex Neely is a Data Analyst at Say Insurance. He graduated from the University of Missouri with a Bachelor’s of Science in Mathematics with an emphasis in Actuarial Science. His experience is in Statistical and Financial Analysis. Alex enjoys applying his analytical background to the Say team to help guarantee the best experience for our customers.