What Is The Average Cost Of Car Insurance

by Redeeming Riches on April 2, 2012

Every state except New Hampshire requires a person to show proof of auto insurance coverage before they are allowed to register a motor vehicle. The legal requirements differ from state to state, and so does the cost for coverage. Still, you’ve got to have it in order to be within the requirements of the law for the state you live in. Here’s a look at what the average car insurance cost is from both a state and a national standpoint.

The Latest Figures
While the data on auto insurance costs change annually, the latest 2011 figures show that the average cost of auto insurance ranges from approximately $803.00 at the low end, up to $2,771.00 at the high end. If you used these amounts, and averaged them, the average car insurance cost would be $1,787.00. That figure changes, though, when you average in the car insurance figures of all the states combined. That figure is $1,450.00.

States with the lowest average costs were Iowa, Illinois and Indiana with an average of $910.00. The three states with the highest cost for auto insurance coverage were New York, New Jersey and Delaware, which averages out to be $2382.00. Again, these figures change on an annual basis. When you’re asking yourself, “How much does auto insurance cost?” the thing to do is to come up with a pretty good average for your particular state.

Five Comparable Figures
Contact at least 5 different auto insurance providers and get quotes from each of them. Average that figure to come up with a state average. Of course, this figure can change as well, depending on what type of coverage you require, and in what amounts. Determining what the average cost for car insurance is by including discounts the car insurance carriers may give you won’t really give you an accurate figure, either.

Some car insurance companies may give discounts on certain things while others may not. This variation comes into play when trying to determine an average for your state. The easiest way to come up with an average is to eliminate these discounts in your figures. If, however, you can get auto insurance quotes from a number of auto insurance companies that are pretty close to being identical, you could use those figures.

The bottom line is that an average car insurance cost is just that; an average. It can give you a ballpark figure on how much auto insurance costs in your state, but until you make contact with a provider(s), determine what type of coverage you want, how much coverage you want, and factor in any discounts, you won’t know what you’re actually going to be paying.

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