How Much Does Car Insurance Cost? 

Blake RobbinsOn the Road, Understanding Insurance

An SUV model car in a field insured by Robbins Insurance Group

Car insurance is a tricky concept, and that is why “Educate” is one of Robbins Insurance Group’s Core Values. One of the industry’s most common questions is: How much is car insurance? Talk about a simple question with a complex answer. So, let’s get to it. Below, we’ll discover what factors into your monthly payment, list out typical coverages that every vehicle owner should be aware of, and throw out some tips that can help reduce that monthly payment! 

1.) What makes up the average car insurance cost?

When searching for quotes from different companies, you need to familiarize yourself with the factors that make up your monthly quote. Here are a few: 

Accidents and claims – Insurance covers the unexpected, so your premiums will reflect that. For example, the fewer wrecks you are in, the lower your quotes will be. If you ever find yourself in this unfortunate situation, here are some tips on how to best file your claim. 

Traffic violations – Insurance companies LOVE rule followers, so follow the rules! A speeding ticket has never lowered a person’s auto insurance rates. 

Vehicle make and model – Insurance companies will compare claims from other clients who own the same make and model as you. The higher the number of claims submitted under your make and model, the higher chance of an increase in your premium. 

Driver age – It is no secret that younger drivers typically assume higher rates. Teen drivers tend to pose a higher risk as they learn behind the wheel, but there are discounts that can help to lower their rates. We’ve mentioned one a little later in this article. 

Length of service with your current provider – Insurance companies cater to new customers by offering discounts and other perks to lower your premium. However, they also look into your past history to see if you will stick around. Typically, two or three years between switches won’t raise any red flags, but switching to a new provider every six months could increase your quote. 

2.) Tips on how to lower car insurance cost 

Shop with a broker – The easiest way to save time and money on your insurance search is to go through an insurance broker. Brokers complete the search process for you and leave you with a list of top options from reliable carriers that offer the coverages you need. 

Bundle up – Choosing to insure your home, car, life, and other assets with one carrier often saves you money! A broker will help determine the carrier who will provide you with the best coverage for your group of assets. 

Drive tracking programs – The better you drive, the less of a potential liability you are to an insurance company, so the cheaper your payments will be. Drive tracking devices are becoming more common by offering a monthly discount if you allow the company to receive information about your driving habits. 

Good credit – High credit scores can significantly lower your rates. According to Nerd Wallet, on average in Missouri, clients with good credit pay $1,000 less for insurance in a year than those with not-so-good credit. 

Good student discounts – Many carriers love to reward students for being outstanding scholars! In some cases, these discounts can become permanent after the student graduates. See, I told you we’d talk about it. 

Raise your deductible – By raising your deductible, in the case of an accident, you agree to pay a higher amount to cover damages before your insurance kicks in. This can be a quick way to reduce monthly payments. Still, you should consult your insurance advisor to understand the trade-off.  

These are just a few of the factors that will affect your monthly payment. Continuing to educate yourself on your carrier’s policies will help you get the most out of your insurance coverage. Applying some of these guidelines can also help to lower the average car insurance cost. 

Guidance and education are important in any big decision, and insurance is no exception. Working with an insurance broker allows you to decide between multiple policies that offer the coverage you need. Robbins Insurance Group exists to educate customers and guide them to find the policy that best insures their belongings and families. If you are seeking guidance throughout your insurance experience, get in touch. We are always happy to educate!