Everyone knows that what you pay for insurance is based on different criteria. There are some obvious things that change the cost of your insurance, such as your driving record, or where you live, but there are some averages that aren’t so obvious. Here are some facts about what average insurance costs are and why.
Per one study, the overall cost of car insurance in the United States in 2014 was $907.38 per year. Of course, averages are just that, what you pay will most likely be higher, or lower. If you just look at states it can vary by hundreds of dollars. You have Maine on the low end at $964, to Michigan at the high end at around $2,551.
One other big factor is age. There are a lot of reasons for the wide spread of averages when age is compared, far too many to list hear, but here are some average differences in cost according to age. As before, these are averages. Starting with the age of 16 which comes in at a whopping $8,226 per year! Some other notable age groups are 21, where the price drops to around $3620 which is still high. The breaks start coming when your reach 50, and the price is around $1855. Ironically the average goes up again to $2131 when you make it to 70, something to look forward to.
And then there are the averages by gender. Insurance companies use many metrics to calculate what they will charge by gender and here are some averages. 19-year-old female drivers are considered a better risk than males and pay on average $1930 compared to males who pay $2154. In the two other age groups that were studied, 31, and 43, males pay the lower costs, but only by just a few dollars.
Then there’s home insurance. The average is around $978 per year. On the high end is Florida coming in at $1933 with Idaho being the lowest at $518.
It’s interesting to see how these averages can vary according to these criteria.