Average Car Insurance

Averages can be misleading as you probably know, and “average” car insurance costs are exactly the same.

For example in looking at list of “average” car insurance prices across the United States, in New York State the average cost of car insurance is a little under $1500 a year, which is pretty much in line with the national average.

The problem with averaging the cost of car insurance in New York State is that car owners in New York City will pay substantially more for car insurance than someone who lives in rural upstate New York. Averages really don’t mean very much.

The only use for an average car insurance figure is that it can be a benchmark especially if you’re looking to buy car insurance, but it really isn’t a lot of help. There are so many different questions and factors involved when an insurance company comes to looking at your application. These will include how old you are, what kind of car you drive, what your past driving record has been like, your credit history and your zip code. These are only a few of the considerations.

People called actuaries are the ones who figure out how much your premium is going to cost you and they take all the above points into consideration plus many more. I have to wonder if twin sisters with exactly the same driving record, who are both teachers and live in the same zip code would actually pay exactly the same amount of car insurance if their cars were identical as well!

If you find the average for your particular state and you find that you’re paying less than the average annual cost of car insurance it certainly doesn’t mean you should be happy paying that amount. It’s prudent to check a couple of times a year to see if you can get a better deal on your “average” car insurance.

If you’re paying an amount over the average car insurance costs in your state and you have no moving violations, a good credit history and an average kind of car I would definitely be asking why.