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Average Cost: In the US, full coverage car insurance costs around $1,718 to $2,278 per year, while minimum liability coverage is much cheaper at $467 to $621 annually [NerdWallet, Bankrate]. This translates to roughly $143 to $190 per month for full coverage and $41 to $52 for minimum coverage.
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Full Coverage vs. Minimum Coverage: Full coverage includes collision and comprehensive insurance, which repair damage to your car caused by accidents (collision) or other incidents (comprehensive, like theft or vandalism). Minimum coverage only meets the state’s requirements for liability, which means it pays for injuries and property damage you cause to others, but not for repairs to your own car.
Factors Affecting Your Cost:
Several things can influence your car insurance premium:
- Your Age: Younger drivers, especially teenagers, typically pay more due to higher accident risks.
- Driving Record: Accidents, speeding tickets, and DUIs will increase your rates.
- Your Location: Where you live affects insurance costs. Urban areas tend to be more expensive.
- The Car You Drive: Insuring a high-performance sports car will cost more than insuring a sedan.
- Your Coverage: The amount of coverage you choose (deductible, liability limits) will impact the price.
Getting the Best Rate:
Here are some tips to find affordable car insurance:
- Compare Quotes: Get quotes from multiple insurers before deciding.
- Maintain a Good Driving Record: Avoid traffic violations and accidents.
- Increase Your Deductible: A higher deductible lowers your premium, but you’ll pay more out-of-pocket if you need repairs.
- Shop Around Every Few Years: Don’t assume your current insurer offers the best rate anymore.
Remember: The cheapest option isn’t always the best. Consider your needs and budget when choosing coverage.