What is the Average Price of Car Insurance?

It's a good idea to know the average price of car insurance in your area. This is a starting point by which to compare quotes, and it will help you weed out the impossibly high estimates from various insurers. Keep in mind, however, that averages prices are not always germane to your individual situation.

Level of Auto Insurance

According to the CarInsurance.com Premium Index, for example, the average prices of car insurance in Texas were $1,327 in 2010. But I pay only $76 per month for insurance on my truck because I carry liability coverage only on that vehicle. You have to realize that average prices might include products that you don't intend to purchase.

National Averages

The national average prices of car insurance are similarly unhelpful because there are massive differences among the 50 U.S. states. The CPI reports an average auto insurance price of $2,336 in New Jersey and $874 in Indiana. Since quotes are based first and foremost on where you live, a broader average doesn't give you an accurate picture of what you should pay.

Local Averages

In addition to state differences, the average price of car insurance can also fluctuate significantly between counties and cities. I live in Harris County in Houston, but when if I lived in Fort Bend County, just a few miles away, I would pay about $10 less per month. Fort Bend is less populous and has fewer car accidents per quarter, resulting in lower auto insurance rates.

Harris County is enormous, however, and auto insurance quotes can vary depending on where you live in the county. If you live in downtown Houston, for example, prices are likely to be higher because of city traffic and limited parking conditions. If you live in the burbs, on the other hand, prices will be lower.

Driving Habits

Then you have to look at your own individual situation. How many tickets have you accrued? How many accidents have you been in? Do you drive your car on a daily basis, use it for work, or store it in a garage? All of these factors can increase or decrease the average price of car insurance in your household.

For example, the average price of car insurance is $2,541 in New York. If you live in New Your City, however, and drive your car only on the weekends when you take trips into New Jersey, you can probably swing a lower rate-especially if you pay for covered parking somewhere. The fewer miles you travel, the less chance you have of making a claim through your insurance carrier.