Why Auto Insurance Cost as Much as it Does In Murrieta

Car Insurance Cost | If you have a car, you’re going to need car insurance, but finding out the average price of insurance is tricky because not everyone agrees. Not all car insurance is the same — car insurance quotes will vary by company, by a driver, by car, and by city. You need to do your research for your personal situation to make sure you have the best coverage for you.

What determines the price of an auto insurance policy?

car insurance costMany factors help determine the cost of car insurance

The amount you’ll pay for car insurance is impacted by a number of very different factors—from the type of coverage you have to your driving record to where you park your car. While not all companies use the same parameters, here’s a list of what commonly determines the bottom line on your auto policy.

  • Your driving record – The better your record, the lower your premium. If you’ve had accidents or serious traffic violations, it’s likely you’ll pay more than if you have a clean driving record. You may also pay more if you’re a new driver without an insurance track record.
  • How much you use your car – The more miles you drive, the more chance for accidents so you’ll pay more if you drive your car for work, or use it to commute long distances. If you drive only occasionally—what some companies call “pleasure use”—you’ll pay less.
  • Location, location, location – Due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas. Where you park your car (on the street or in a secure garage) and anti-theft features may impact the bottom line as well.

Other factors that affect premium price that can vary from one area or state to another are: cost and frequency of litigation; medical care and car repair costs; prevalence of auto insurance fraud; and weather trends.

  • Your age – In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. Insurers generally charge more if teenagers or young people below age 25 drive your car.
  • Your gender – Statistically, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and—most importantly—have less serious accidents than men. So all other things being equal, women often pay less for auto insurance than their male counterparts.
  • The car you drive – The cost of your car is a major factor in the cost to insure it. Other variables include the likelihood of theft, the cost of repairs, its engine size and the overall safety record of the car. Automobiles with high quality safety equipment might qualify for premium discounts.

Insurers not only look at how safe a particular vehicle is to drive and how well it protects occupants, but also how much potential damage it can inflict on another car. If a specific vehicle model has a higher chance of inflicting damage when in an accident, an insurer may charge more for liability insurance. Read more

Your age is the most significant thing insurance companies use to give you a car insurance quote. This, along with where you live, the kind of car you drive and other factors, give potential insurers the valuable information about your driving and the likelihood that you will have a crash.

If these factors suggest you’re at low risk of getting into an accident or getting your car stolen, you’ll get a cheaper quote. Since quotes can vary significantly based on these factors, it can be difficult to know if you’re offered a fair rate or if you’re being ripped off.

What is the Average Cost of Car Insurance?

Car insurance is a monthly expense that protects you from liability in the case of injuries or damages suffered in an accident. If you’re in the process of shopping for a new vehicle, it’s also helpful to know how much you’ll need to pay for insurance so you can create a realistic budget.

While there is no simple answer for how much car insurance will cost you, it might be helpful to know that the average cost to insure a car in the U.S. is $1,457 a year, which is about $121 a month.

However, as anyone who pays much less or much more than this can tell you, there are a lot of variables that determine your car insurance rates.

If you want to be more precise when creating an estimate, however, there are a number of variables considered when calculating car insurance rates. Some factors, including where you live and what kind of car you drive, can be tough to change.

Others, such as your driving habits and the level of coverage you choose, are easier to tweak. We’ll break down these factors and discuss what, if anything, you can do to save a dime on your car insurance.

There are many factors that contribute to the overall cost of car insurance, including:

  • Basic demographics
  • The car you drive
  • Your driving history
  • Your credit score
  • Your driving habits
  • The amount of coverage you choose
  • The type of coverage you choose

Cost Factor No. 1: Basic Demographics

Your age, sex, marital status, and location all weigh heavily on how much your car insurance costs. That’s because your insurance company has an enormous amount of data that tells them how each of these things makes you more or less of a risk for filing claims.

For instance, if you’re younger (typically, age 25 or below), unmarried and male, you’ll pay more than an older married female, who is statistically less likely to file a claim. Statistically, married people are less likely to have a car accident, which is why they are offered lower-cost premiums. If you travel frequently for work, you might have a higher premium due to the heightened risk of an accident.

The location also has a huge impact on your car insurance rates. State laws that regulate car insurance can have a big effect.

You’ll also almost always pay more in densely populated areas, where you’re at higher risk for an accident. Areas vulnerable to natural disasters can mean car insurance costs a premium, too, which is why hurricane-prone Louisiana ranks second in the U.S.

How to save: Unfortunately, this is the toughest category for pulling out some savings. You’re unlikely to move or get married just to save on how much car insurance costs.

Still, it’s worth keeping in mind how big an impact where you live can have on what you pay. Even ZIP codes that aren’t very far apart can vary dramatically on average costs. For more details on how costs vary from state to state, keep reading. Read more here

Whether you’re relocating to a new state soon or you just want a local benchmark, it can help to look at the average cost of car insurance by state. The amount you pay depends on a lot of things, including the reasons above but, prices are rising across the board considerably.

How Much Car Insurance Do You Really Need?

We spend a lot of time talking about health insurance and life insurance, but what about car insurance?

Who’s going to pay for repairs on that “remodeled” SUV when your teenager accidentally drives it through the garage door? Or what if your uncle forgets to put your car in park and it rolls into the neighbor’s brand-new convertible? Would you be covered, or would you have an angry neighbor and a financial mess on your hands?

Whether you drive a nice car or a beater, you want to make sure you’re covered in case life decides to hit you . . . or your car. To protect yourself, it’s important to know the types of insurance, how car insurance works, and how much car insurance you really need!

But, before we talk about the difference between basic, extended and premium auto insurance options—and which ones are right for you—let’s cover some basic insurance terms.

The Lowdown: Car Insurance Terms Explained


The deductible is the portion of the damages you’ll have to pay for before your coverage kicks in. Let’s say you have a fender bender and the repairs cost $2,500. If your deductible is $500, all you have to pay toward that repair is $500. Insurance would cover the remaining $2,000.

Do you have the right auto insurance coverage? You could be saving hundreds!

Auto insurance deductibles typically apply per claim. So, if you have another fender bender two months later, you’ll have to pay your deductible again. But, in most cases, $500 is a steal compared to what could potentially have to come out of your pocket!

On the other hand, if you have a $1,000 deductible and only need $750 worth of repairs, you’re responsible for the entire amount because the repair cost doesn’t exceed your deductible.

You will likely have two different deductibles under your auto insurance policy—one for collision and one for comprehensive coverage.

“The average driver files a collision claim once every three years, and a comprehensive claim once every 10 years. Increasing a collision deductible on your auto policy from $200 to $500 can save up to 30% annually.”(1)

Car Insurance Premium

A car insurance premium is simply the dollar amount you pay for your coverage. Depending on your insurance company, you may pay monthly, quarterly, semiannually or even annually. Car insurance premiums can vary based on things like your deductible, your age, the make and age of your car, your driving history, and the type of insurance you purchase.

Coverage Limit

Your coverage limit is the maximum amount your policy will pay for each type of coverage you have. Work with your agent to make sure you have the maximum amount of coverage. If you exceed your policy’s limits, you’ll be responsible for any remaining costs.

No-Fault and At-Fault

Currently ,there are 12 states with no-fault insurance laws. In these states, your auto insurance automatically pays toward your claim for medical payments for you or your family, up to a certain limit, regardless of whether you’re at fault or not. The other 38 states are at-fault states—which means someone must be deemed “at fault,” even if it appears that both drivers are equally responsible for the accident. Read the full article here..

Our POV = A Lot of Determining Factors

It’s no fun getting an unexpected surprise about insurance costs. By doing some homework upfront about potential auto insurance rates, you can make informed decisions and better understand why your rates go up or down.

Better yet? You don’t have to do it alone.

SGB’s Independent  Insurance Agents are here to help you understand and navigate all the variables that impact your rates. Find an SGB agents in your neighborhood to understand what coverage you’re buying, why it matters and how it works.

. . . OR . . . You Could Just Give Us A Call
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