Hiring the services of a car insurer is essential and even mandatory in some states of the USA. Obviously, not all plans work in all cases, much less if we take into account that their prices vary depending on many and varied factors.
That is why before answering how much auto insurance costs in the United States , it is essential to know all the variables that determine the price of each policy. If you want to know all this information, then we can only invite you to read the data that we have gathered for you in this article. Shall we start?
What is car insurance?
Before starting with some of the things that you should take into account when choosing the plan that suits the needs of your car, you should know that vehicle insurance is nothing more than backups that cover problems that may happen to you.
How do they do that? Through policies that adapt to the potential risks that may affect the car and that, in turn, are paid for by the owner of the vehicle. As with health and life insurance, these plans also work with the payment (monthly, annual or single) made by the client to the insurance company.
You should also know that the plans are not only responsible for covering the expenses of the car owner, but can also respond for the inconvenience caused to others involved in an accident, for example.
Types of car policies
And now that we have mentioned the plans offered by insurers, it is time for you to know which are some of the best known of them.
Of course, do not forget that each company can offer policies that are not included in the ones that we will mention below, and this is because many of them have special clauses that adapt to the needs of each client.
That being said, we are ready to explain liability insurance, collision insurance, and those that are responsible for providing comprehensive coverage to those affected.
Liability Plans
As its name indicates, this type of policy has the main objective of supporting the damages that the client may cause both to another person and to their property . In this sense, it is likely that this insurance is mandatory in many states, and precisely for this reason it is one of the most purchased in insurers.
The operation of this plan may change depending on the company, but in most cases the policy begins to work when the affected person files the claim with the company contracted by the person responsible for the accident (that is, the client).
However, in the event that the expenses presented by the affected party are greater than the amount of the civil liability insurance, the client will have to pay the rest of the money.
Collision Policies
In this case, the plans focus on covering the damage caused to the same driver of the insured vehicle, as long as he was at fault for the collision . Remember that, otherwise, it is most likely that the owner of the car can file a complaint with the insurance company of the person responsible.
However, this type of insurance usually has an excess (which is nothing more than a type of payment that will have to be covered by the owner of the vehicle), whose value will be determined by the plans of the insurance companies. That amount will be the first installment to be paid at the beginning of the repair of the wrecked car.
To exemplify it in a better way, if the total cost of repairing the car is around $15,000 and the stipulated franchise is $2,000, this last figure is what the client will have to pay, while the rest (the $13,000) will be covered. for the insurance.
Comprehensive coverage plans
As it happens with the policy that we have just mentioned, in comprehensive coverage plans it is also usual for the insured to have a deductible that they must pay when they use the contracted company. In this case, this will be necessary when the vehicle is damaged or stolen .
In turn, these policies are the ones indicated if the car has some type of damage caused by natural disasters, for example. Regardless of the context, the insured will have to pay the initial amount of his excess , while the rest will be the responsibility of the comprehensive coverage insurance.
Factors that influence the price
It is time, then, for you to know what are the variables that will determine the premium that you will have to pay when opting for any of the types of insurance that we explained in the previous section.
- Residence – The state where you live is one of the main things insurance companies look at, and this is because the larger the town, the greater the potential risks. Therefore, people who live in metropolises tend to pay higher prices when hiring their policy.
- Driving history : In addition, insurers must rule out or verify if the driver has had problems such as violations, liability in car accidents and other similar aspects, because, if it is positive, you will have to pay more for your insurance.
- Age : Regarding this factor, you should know that older adults, those under 25 years of age, and those who are learning to drive are the most likely to be at risk, which translates into a higher cost for their plans.
- Credit file : obviously, the economic possibilities of the potential insured is another of the most important things to evaluate, especially if we take into account the highest price plans. In the event that the credit history is positive, it is totally probable that the insurers will choose to reduce the price of the policies, since they will trust that it is a person with economic solidity.
- Type of car : as expected, insurers design more expensive plans for people who have luxury, collector or sports vehicles, and therefore it is essential to specify the car model to choose the policy that will really suit your needs .
car insurance cost
Well, you should know that the approximate costs of car insurance in the United States can be from $70 to more than $200 per month , the exact amount of which can only be determined once all the aspects that we explained in the previous section have been evaluated.
And if we talk about annual amounts, auto insurance can range from $800 to more than $1,000 , depending on the exact characteristics of the plan. In this sense, the company and the client will have to study, together, which is the best plan for their case and for their budget.
For this reason, it can be extremely difficult to estimate a fixed price for the cost of vehicle policies, but the amounts we mention are an estimate that you could use as a starting point.
Likewise, it is crucial to take into account what are the minimum coverages that each state requires in the area of civil liability insurance. As we have already detailed, this type of plan is mandatory in many regions, and for this reason it is common for each of them to have specifications in this regard.
discounts
Although the prices of car insurance are fully adapted to the economic capacities of each client, we cannot leave aside the possibility that you can opt for discounts on them.
Of course, the eligibility criteria will depend on each company , but, in general terms, the insured who can have their rates reduced are those who:
- They have not had fines or problems with traffic agents in the country.
- They have paid their installments in a single payment or in advance.
- Have not been involved in car accidents in recent years.
- Have other policies contracted with the same insurer.
