How Much Does Auto Insurance Cost?

To drive legally within the United States all drivers are required to carry some form of liability auto insurance coverage. Auto insurance can be quite expensive, and it costs many drivers a couple thousand dollars each year. The cost of auto insurance depends on many factors including type of car, level of insurance, and the driver’s driving history.

The first primary factor in determining auto insurance cost is the type of car. Generally speaking, the more expensive a car is the more auto insurance costs. This is because in the event the car is stolen or damaged to the point that it is beyond repair, the auto insurance provider will need to replace the car. Therefore, more expensive cars place more of a potential financial burden on the insurance company. Certain car amenities, such as a security system within the car or anti-lock breaks lower the risk of theft or accident and will lower the cost of auto insurance.

Another factor in determining auto insurance cost is the level of insurance. Most states require only liability insurance, but many drivers still elect to get collision and comprehensive car insurance. This additional coverage will cover the driver in the event their car is stolen or if they get into an at-fault accident. In the event that they insured is involved in an at-fault accident, liability insurance only covers other people’s cars. Collision and comprehensive insurance accounts for about half of a person’s auto insurance costs.

The last major determining factor in auto insurance cost is the driver’s historical driving record. The fewer amounts of at-fault accidents or moving violations that an individual has on their driving record, the lower their auto insurance cost will be. Most accidents and moving violations stay on a driver’s record for 5 to 7 years.