Car insurance quotes for drivers who live in the USA can vary depending on factors like driver age and location. A driver might also pay more for insurance depending on what company they purchase a policy from.
What Factors Affect Car Insurance Quotes?
Car insurance companies use demographic categories such as age, gender, marital status, and education to predict a driver’s behavior and the risk of insuring them. For example, driving data shows that teen drivers are more likely to speed or get into an accident. That’s why insurance companies charge them higher rates.
If you drive a newer car with lots of advanced safety features and GPS equipment, you might also pay higher rates. As The Zebra points out, vehicles with lots of high-end features are more difficult to repair after an accident. When you purchase more than the minimum coverage, it also makes sense that you’ll receive higher quotes when shopping for insurance. In general, the more coverage you need, the higher your premiums.
Insurance companies also look at your driving history and how often you drive. If your record includes citations, accidents, or other violations, don’t be surprised if you get very high quotes when shopping for insurance. When you’re frequently on the road, you’re more likely to get a citation or have an accident, so your insurance company will consider you a risk.
As Compare.com notes, if you’ve carried auto insurance before, insurance providers will examine your coverage history. Most providers take into account the following:
- How many claims you’ve filed in the past.
- How long you’ve had coverage with your current insurance provider.
- If you’ve ever had gaps in your coverage history.
Unless you live in California, Hawaii, or Massachusetts, state law permits your auto insurance company to access your credit history. Most insurance companies charge higher rates to drivers with poor credit scores. No matter what state you live in, you can count on paying higher rates if you drive a luxury vehicle. Insurance companies also charge higher rates if a driver lives in a zip code that has a high number of thefts and other crimes.
Comparing Car Insurance Quotes
The Zebra notes that thanks to today’s technology, it’s easier than ever to compare car insurance quotes from different companies. You can make the process even simpler by making sure that you have the following information on hand:
- Driver’s License: You’ll need your license number. If you’re adding family members to your policy, you’ll need their driver’s license information too.
- Driving History: You can get this from your state’s department of motor vehicles. Most DMVs make this information available online.
- Insurance History: If you have previously been insured, your previous auto insurance agency will have this information.
- Vehicle Information: You’ll need your vehicle’s make, model, and VIN.
- Preferred Payment Method: Having your card or checkbook in hand can be handy if you plan on purchasing a policy from a provider website.
Once you have all of your necessary information, it’s time to start gathering quotes. Compare.com recommends that you do the following:
- Browse websites that provide customer reviews for auto insurance companies. This can help you narrow down your search to only those companies that have a reputation for customer satisfaction. If you go with a company that has satisfactory reviews, it will save you the hassle of having to switch companies later because of bad service.
- Request quotes from at least three companies. Gathering numerous quotes will ensure that you find an affordable option.
- Make sure you know what’s included in each policy. When you compare liability and limits and coverage, you’ll often find better coverage at a lower cost.
How Much Does Car Insurance Cost?
Your individual driver profile (where you live, driving history, insurance history) is the primary factor that determines how much your car insurance. However, insurance companies make it easy to calculate average premiums for different demographics, so you can get an idea of what to expect.
NerdWallet provides a breakdown by company of six-month premium prices for a teen driver:
- Allstate: $2945.
- American Family: $1600.
- Farmers: $2465.
- GEICO: $1553.
- Liberty Mutual: $3332.
- Nationwide: $1721.
- Progressive: $2547.
- State Farm: $1688.
- Travelers: $1835.
- USAA: $1666.
Here’s what a 25-year-old driver can expect to pay, on average, for a six-month auto insurance premium:
- Allstate: $1121.
- American Family: $723.
- Farmers: $859.
- GEICO: $636.
- Liberty Mutual: $888.
- Nationwide: $612.
- Progressive: $685.
- State Farm: $734.
- Travelers: $696.
- USAA: $704.
Senior drivers usually pay lower rates than other age groups. According to The Zebra, this is what a senior driver can expect to pay, on average, for a six-month policy:
- Allstate: $950.
- American Family: $586.
- Farmers: $682.
- GEICO: $527.
- Liberty Mutual: $625.
- Nationwide: $460.
- Progressive: $559.
- State Farm: $573.
- Travelers: $558.
- USAA: $535.
No matter what age group you’re in, you can expect your insurance rate to increase if you’re ever in an accident. According to ValuePenguin, these are the average rate increases after a driver is involved in a collision:
- Allstate: $1013 to $1706 for a six-month policy.
- American Family: $708 to $884 for a six-month policy.
- Farmers: $797 to $1138 for a six-month policy.
- GEICO: $615 to $982 for a six-month policy.
- Liberty Mutual: $823 to $1179 for a six-month policy.
- Nationwide: $639 to $952 for a six-month policy.
- Progressive: $644 to $1088 for a six-month policy.
- State Farm: $676 to $810 for a six-month policy.
- Travelers: $684 to $923 for a six-month policy.
- USAA: $567 to $767 for a six-month policy.
Car Insurance Discounts
As ValuePenguin notes, you may qualify for several car insurance discounts. These include:
- Defensive Driver Discount: If you take a defensive driving course and provide your insurance company with proof of completion, you may qualify for a discount. This is a great discount for teen drivers because they can learn good driving habits while saving money.
- Good Student Discount: If you have a teen driver or a college student under the age of 25 on your policy, they can usually qualify for a discount if they maintain a B average or higher.
- Driver Safety Discount: If you maintain a clean driving record, you may see a decrease in your rates if you stick with your current company.
- Policy Discount: If you insure multiple vehicles with the same company or you bundle your home owner’s insurance with your auto insurance, it’s very likely you’ll receive a discount.
Check this out if you need additional information, resources, or guidance on car insurance.
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