How much is car insurance per month?

Plenty of motorists want to know how much is car insurance per month. It’s a question that’s asked by a wide range of people – from those who are looking for the best deals possible to those who just want to avoid paying thousands per year on car insurance. In actuality, finding out how much you’ll end up paying every month is a process that involves a fair bit of footwork, since there are many factors that have to be kept in mind in order to get an accurate picture of your monthly premiums.

Driver Information Plays a Part in Monthly Car Insurance Cost

Insurance companies use many factors in determining how much your car insurance will be. These factors often include the following:

• Where you live
• How many cars you own
• How many miles you drive
• The make and model of your car
• Whether your car is used or new
• Your state’s minimum mandated liability coverage
• Optional coverage
• Driving record
• Age
• Marital status
• Gender

All of these factors are taken into account by the insurance companies, which assess your “risk factor” – the likelihood of you filing multiple claims in a short period -- depending on how many variables represent the least risk and the lowest costs for the insurance company. Falling into the highest risk category can result in a rather pricey insurance premium. For instance, single male drivers under the age of 25 who own vehicles with high accident involvement or theft rates will pay significantly higher premiums than a married woman over the age of 30 who drives an ordinary 4-door sedan with a 5-star crash safety rating.

Car Insurance Cost Per Month: The Bottom Line

So how much will you end up paying every month on car insurance? According to CarInsurance.com’s Premium Index, the national average for car insurance rates $1,561 as of July 2010, which works out to about $130 per month. This figure can vary greatly depending on discounts, optional coverage and the number of cars being insured on a single policy. This figure can even vary by state. For instance, the most expensive state to have car insurance in 2008 was New York, with residents paying an average of $204 per month. Meanwhile, Illinois held the distinction of having the cheapest car insurance rates, with residents paying $93 per month. The best way to find out how much your car insurance will be per month is to compare quotes between several insurance companies. Comparison shopping is a task recommended by most, as rates between companies can differ by hundreds of dollars.