Vehicle Insurance

Here is the average cost for auto insurance in 2021, and how to keep your costs down

Auto insurance costs are rising, but vary by state. Here’s how to keep your premiums low.  (iStock)

The cost to insure a vehicle is on the rise, according to data from the Bureau of Labor Statistics. This brought the 2021U.S. average to $1,451 per year, or a premium of $121 per month, according to the latest report from AdvisorSmith.

“A variety of factors can affect the cost of auto insurance,” the study stated. “Drivers should take stock of what coverages are available and determine what coverage they need. It’s also important to shop around between different auto insurance carriers to see which one offers the best coverage for the best value.”

If you are interested in lowering your auto insurance policy costs, visit an online marketplace like Credible to compare multiple providers at once and choose the option that best fits your needs. 

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Car insurance costs vary by state

While these are the national averages, costs to consumers can vary widely by state as well as personal circumstances. Some factors that affect an area’s auto insurance costs include the cost of repairs in that state, costs of medical aid and the prominence of natural disasters. 

“Some of the most important factors are the types of vehicles in each state, the average cost of medical care, the frequency and severity of crashes, exposure to natural disaster damage and the rate of automobile theft and vandalism,” the study states.

When it comes to individual states, the study showed Maine is the least expensive with average premiums reaching $939 per year, or $78 per month. That is 35% below the national average. On the reverse side, Louisiana drivers see the highest premiums with an average of $2,154 per year, or $180 per month. This represents an increase of 48% from the national average. 

Regardless of what state drivers are in, there are still multiple ways to ensure they are paying the best price for their auto insurance, including comparing car insurance quotes from multiple providers. Visit Credible to get prequalified for your car insurance coverage without affecting your credit score and see how much you can save.

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Keeping your auto insurance costs low

There are multiple factors that determine the cost of auto insurance, and drivers can take steps proactively to ensure their premiums remain low, or to work on lower car insurance premiums. 

Here are a few of the top ways to lower your auto insurance costs: 

Find out what determines your cost

There are multiple factors that go into determining the cost of your auto insurance. This can include a driving record and whether they have a history of at-fault accidents or traffic violations, type of coverage such as comprehensive coverage or collision coverage, higher deductibles, the type of vehicle and its safety features, bundling it with other insurances such as homeowners insurance and annual mileage. A driver’s age and gender can also determine their costs, or qualify them for special discounts. For example, some car insurance companies offer good student discounts to teen drivers.

Review options from multiple providers

When it comes to auto insurance, loyalty doesn’t pay. As a driver’s situation changes – such as their age or driving history – the rates and discounts available to them could change. Because different providers offer different types of discounts, it is good to get into the habit of checking multiple companies often to ensure you continue to receive the best rate. Visit Credible to fill out your information once and view quotes for auto insurance rates from multiple auto insurance providers.

Work on your credit score

Auto insurance companies use a driver’s credit history as one factor that determines the rate they will pay. Drivers with poor credit may pay much higher premiums than a driver with good credit. Drivers should consider options such as a defensive driving course to keep violations of their record to maintain a clean driving record. You can keep up with your credit score, review changes and get suggestions on how to improve it through Credible’s credit monitoring service

If you are interested in lower car insurance rates, contact Credible to speak to an auto insurance expert and get all of your questions answered. 

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