I came across some info on average car insurance costs, but it’s got me wondering… anyone here paying around $64 per month for minimum coverage? Or is it different where you are?
I’ve seen prices vary a lot by state. Michigan, for example, is quite high… I think it’s about $154 per month there for minimum coverage, right?
Bright said:
I’ve seen prices vary a lot by state. Michigan, for example, is quite high… I think it’s about $154 per month there for minimum coverage, right?
Yes, Michigan is one of the most expensive states. I believe it’s because of the higher minimum coverage requirements. Some states have very different requirements, which affects the cost.
@Kelsey
That does make sense. So the insurance rates are directly tied to how much coverage is required in each state?
Bright said:
I’ve seen prices vary a lot by state. Michigan, for example, is quite high… I think it’s about $154 per month there for minimum coverage, right?
I’ve read that too. South Dakota, for instance, has some of the lowest minimum coverage costs, which really shows how much location can impact rates.
Isn’t Erie known to be one of the cheapest options for minimum coverage? I thought it was around $41 per month, which is pretty low compared to others.
Sky said:
Isn’t Erie known to be one of the cheapest options for minimum coverage? I thought it was around $41 per month, which is pretty low compared to others.
Yes, if Erie is available in your state, they are one of the best options for lower rates. State Farm and Auto-Owners also offer relatively affordable rates, depending on the location.
@Sloane
I looked into State Farm, but it wasn’t quite as low as Erie in my area. I suppose it really does depend on the state.
I’ve noticed that for younger drivers, the rates are extremely high. I saw something about 18-year-olds paying over $400 per month on average, which is a lot.
Ben said:
I’ve noticed that for younger drivers, the rates are extremely high. I saw something about 18-year-olds paying over $400 per month on average, which is a lot.
That’s true. Teen drivers usually have to pay much more because they’re seen as higher risk. Rates start to go down around age 25, but until then, they’re quite high.
@Jordan
Right, and it seems like each year after 18, the rates gradually decrease. Insurance companies really charge more for younger drivers until they have a solid record.
Full coverage tends to cost even more. Isn’t it usually about double the cost of minimum coverage, maybe more?
Wil said:
Full coverage tends to cost even more. Isn’t it usually about double the cost of minimum coverage, maybe more?
That’s correct. Full coverage includes both comprehensive and collision, which adds quite a bit to the cost. Interestingly, some car models are cheaper to insure because of better safety features.
@Val
That’s a good point. I think I read somewhere that the Honda CR-V, for example, is one of the cheaper models to insure. Those safety ratings probably help.
Does anyone know if rates decrease over time if you have a clean driving record or certain discounts?
Ellis said:
Does anyone know if rates decrease over time if you have a clean driving record or certain discounts?
Yes, typically, a clean driving record can help lower your rates. Some states also consider your credit score, so a good credit history can sometimes make a difference too.
@sofilin
Interesting, I didn’t realize that credit could play a role. Thanks for the info; it’s definitely something to keep in mind.