Any individual who owns a car (or a television for that matter) knows the stress and responsibility that comes with shopping for automobile insurance.  It’s illegal to drive without insurance, so unless you are young enough to be covered by your parent’s insurance on a car you share, this is something you’ll have to do.

The best way to combat the stress of trying to find insurance for a vehicle is to be as educated and aware of it as possible.  Average auto insurance costs change according to many factors, many of which are in our control.  However, try as we might, our age and our physical location are also major factors in the price we receive for our automobile insurance.

Factors Affecting the Cost of Auto Insurance

The average cost of auto insurance is influenced by a lot of factors.  Insurance companies need to make sure that they turn a profit for their business.  They do this by weighing the risks associated with insuring a person, and taking that into account when charging a person for an annual rate.

For example, there are some details an insurance company looks at to assess risks:

  • Type of Car – The kind of car you drive can greatly affect your average annual insurance rate.  Some older models aren’t as safe as newer cars, and so their insurance rates will be higher because the chances of a driver being part of an accident are higher, as is the likelihood of the car being totaled due to a collision.  Having a sporty car will also drive the rate up because people with these cars tend to get into more accidents due to speeding and racing other cars.
average cost of auto insurance


  • The color of Car – Having a red or other bright colored cars will result in a higher annual automobile insurance rate because it is seen as a distraction on the road.  Looking for a lower rate?  Settle for a darker, plain color.
  • Past Accidents – If you have the tendency to get tickets for speeding or have been in any accidents, your insurance rates will increase because you are now considered a high-risk driver.  The more you prove that you are possibly irresponsible on the road, the higher the rates will go.
  • Location – Based on where you live, your insurance could go up or down.  Places such as New York City have much higher rates than places like Maine.  This is because the chances of accidents occurring are higher in New York than they are in Maine.  This causes some people to register their vehicle in another state with lower monthly rates, but this practice is illegal.
  • Use of Car – Depending on whether you use your car primarily for getting to work, or primarily for pleasure determines which direction your rates will go.  Your rates will be the lowest depending on what the insurance deems as the safest scenario.
  • Gender – Men are stereotypically seen as more aggressive drivers, and so their policies tend to result in higher annual rates.  Based on gender, your insurance rates could change, especially coupled with the statistics on your driving.

Average Cost of Auto Insurance Based On Age

Age brings with it another problem when it comes to automobile insurance—regardless of what you try, you can’t control your age.  Below are the average annual insurance rates according to age:

  • 24 and Under – $1950
  • 25 – 29 – $1125
  • 30 – 39 –$1000
  • 40 – 49 – $950
  • 50 – 59 –  $875
  • 60 and higher – $850

After drivers surpass the age of 60, the insurance rates begin to differ across the board.  Individual records become more important, as does the safety the driver exhibits on the road.  The safer the elderly driver, the lower their rates will be.

Highest and Lowest Rates by State

Most automobile insurance and car insurance costs are based on things a driver can control, like the model of the car, the color, and how many accidents they’ve been in.  Other factors, like the state’s regulations or policies, are completely out of driver’s control.  Based on all these factors, some states have significantly higher annual insurance rates than others.  To give you an idea of the costs, below are the three highest and lowest annual rates arranged by the state as listed on in 2012:

States with the Highest Rates:

  1. Louisiana: $2,536
  2. Oklahoma: $2,047
  3. Michigan: $2,013

States with the Lowest Rates:

  1. Maine: $889
  2. Iowa: $985
  3. Wisconsin: $987

Regardless of where you are in the world or where you are in life, finding your average annual auto insurance rates is an easy thing to do—find an insurance company you trust and begin the process of evaluating your life and the risk you pose on the road.

DISCLAIMER: This article is for guidance only. Always consult with a Specialist on everything.