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Getty Images June 02, 2022 This article was generated using automation technology and thoroughly edited and fact-checked by an editor on our editorial staff. Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. On average, there are that take place on the roads nationwide each year. This results in insurance companies paying out billions of dollars in claims related to these accidents. To help offset these types of losses, insurance companies will charge higher car insurance rates to drivers who are determined to be riskier to insure. While the nationwide is $1,771 per year for full coverage, the drivers who are more likely to make a claim will typically pay more for a policy. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More What that means for you is that having just one small at-fault accident or traffic ticket conviction on your driving record can result in more expensive car insurance. Plus, there are other factors, such as the type of car you drive and the area you live, that can have a big impact on your rates. But one common belief is that the color of the car you drive can also have a big impact on the price of your car insurance policy, with red cars being more costly in particular. But do red cars really cost more to insure than other colors of cars? Or is this simply a common driving myth? Here’s what you should know about the cost of car insurance for red cars. Do red cars cost more to insure
While many people believe that red cars are more expensive to insure, the truth is that the color of your car has little to no impact on how much you pay for car insurance. The color of your car only matters in that it reflects your personal taste and style. That’s because car insurance rates are determined, in large part, by how risky each driver looks to the insurance company. A history of at-fault accidents or traffic convictions can make a driver more risky to insure, as there is a higher likelihood of a claim being made on the person’s insurance policy. As such, if a driver is determined to be high risk by an insurance company, it will likely result in them paying more for their car insurance. What is never part of the equation, however, is the color of the vehicle. It simply doesn’t get taken into account by insurance companies when they determine your rate. So while a history of at-fault accidents or speeding convictions can result in higher car insurance costs, driving a red car will not. Factors that are used to determine car insurance costs
Each insurance company weighs different factors to determine car insurance rates. Some of the more common include: Driving record: If you have a clean driving record, you might be able to get a lower auto insurance premium. If you have a history of accidents, speeding tickets or traffic violations, your premiums will be higher. Location: Where you live can have an impact on the cost of your car insurance, and in some cases, the cost difference from one ZIP code to the next can be significant. Type of vehicle: Certain types of cars, like performance sports cars or high-value vehicles, are typically more expensive to insure. Annual mileage: How much, or how little, you drive can also be used to help determine your rate. Age: Younger drivers typically pay higher rates for car insurance due to a lack of experience behind the wheel. Marital status: Married drivers typically pay lower rates for car insurance. Credit score (in some states): If you have a history of late payments or other credit-related issues, you might pay a higher premium in certain states. Gender (in some states): Your gender can also play a role in the cost of car insurance in some states. The amount and type of coverage can also play a part in the cost of a person’s car insurance. Minimum coverage car insurance, which is the state-required minimum coverage that a driver must carry to legally drive, is typically the cheapest option because it offers the least protection. On the other hand, full coverage policies cost more on average. Adding additional coverage to your policy can also have an impact on the cost. Adding towing and rental car coverage and other endorsements or add-ons will help to drive up the cost of your car insurance premium. Your deductible may also play a part in the total cost of car insurance. Choosing a higher deductible typically means lower premiums. That’s because more of the risk is taken on by the policyholder. Tips for lowering your car insurance premium
While there are a number of factors that determine how much your insurance will cost, there are ways you may be able to lower your car insurance costs, including: Shop around: Each company determines their own rates, so the rate you are offered by one company may be quite different from the rate you’re offered by another. Shop around with both local and national insurance companies and get personalized quotes to compare. Take advantage of discounts: Discounts can be a smart way to cut the costs of car insurance, and most companies offer at least a few discount opportunities. Ask your company if you qualify for any discounts, such as a bundling discount, safe driver discount or a discount for paying your annual premium in full. Adjust your deductible: Raising your deductible can help lower your monthly cost of car insurance. However, it can also be a risky move, so think carefully and evaluate the potential repercussions before doing so. Evaluate your policy: Add-ons, like roadside assistance or rental car coverage, can be useful, but these types of endorsements can also have an impact on your premium. If you added additional coverage in the past, evaluate whether or not it’s worth the extra costs. Frequently asked questions
Does car insurance cost more for a red vehicle
No, car insurance does not cost more if you drive a red car. This is a common belief, but it’s incorrect. Your car insurance rates are based on numerous factors, like your driving history, vehicle, coverage amount and annual mileage, but your car color does not play a role in determining the price you pay for car insurance.
How much does car insurance cost
Based on Bankrate’s analysis of average rate data, the nationally is $545 per year for minimum coverage and $1,771 per year for full coverage. The cost of your car insurance will likely differ from the average, though, because car insurance rates are based on a variety of factors, including the type of coverage you select and your driving record.
How do I get cheap car insurance
If you’re looking for the cheapest car insurance options, it may be helpful to shop around and compare quotes to find the cheapest option for your needs. It can also be helpful to evaluate your current coverage to determine whether you’re paying for add-on coverages that you don’t need. You can also check with your current insurance company to see if there are any discounts you may qualify for to help lower the cost of your policy. SHARE: This article was generated using automation technology and thoroughly edited and fact-checked by an editor on our editorial staff. Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs. Related Articles