car insurance

How Much Is Car Insurance?

by Redeeming Riches on April 30, 2012

how much is car insurance Hope They Had Car Insurance…

Since people do not always have a choice as to whether or not they will purchase auto insurance, they want to know one thing before they have to seek the policy: How much is car insurance? The answer to this question can be as much as $1,600 just for a six-month policy! The good news is that this price just may be an anomaly.

Each state has its own average car insurance rates that people are paying for their total insurance coverage. Luckily, insurance costs are much less than the $1,600 quoted earlier for most people. The average insurance rate tends to be around $800 for the entire year for most people.

What Determines How Much Car Insurance Is?

The reason that there can be such a discrepancy between one person’s car insurance rates and another is because of demographics. For example, the person paying $1,600 just for a six-month policy drives a high-performance sports car. These types of vehicles, generally, cause insurance companies to increase the insurance costs for several reasons. One is the fact that the expensive sports car costs the company a lot of money to repair if it is involved in a car collision. If the company totals the vehicle, it will cost a significant amount of money to replace it.

Sports cars do not have a very good reputation. They are cars that encourage people to drive at the highest speeds because they are capable of doing so. Because people take the challenge and reach these speeds, drivers of sports cars are involved in the most serious car collisions with the worst damages to the vehicles and the most serious bodily injuries. With these types of collisions, car insurance companies pay a lot of money for medical bills as well as for repairing the vehicles. What makes things even worse for the sports car owner mentioned above is the fact that he has DUIs on his record, and this fact alone is enough to cause the average auto insurance rate to skyrocket.

How to Lower Car Insurance Premiums

Most people do not have as dramatic a profile as the example from above. With this being the case, they will be able to qualify for the average insurance rate that can be lowered with discounts. If people choose a higher deductible, this will lower their auto insurance rates. If they have been very good drivers, they will qualify for the good driver discount that some insurance companies give their clients. They can also choose to purchase a vehicle based on how insurance-friendly it is. The vehicles with the lowest insurance rates are the safest vehicles being manufactured today.

What people need to remember is that the average car insurance rate is going to be different for everyone. It will also be different for the same person who seeks a quote from several insurance companies. This would be the reason that they need to seek a quote from several insurance companies at once so that they can find the one with the best rate for them.

How much do you pay for car insurance?


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