How Costly Is Car Insurance

If you need car insurance, you may be concerned about how much car insurance costs. If you already have car insurance, and you’re considering switching carriers, you may be wondering if you’re paying a fair, competitive rate. The only way to see how costly car insurance has become is to get quotes and compare prices. As always when we are talking about the money car insurance forces us to pay, it would be wise to notice the trends and the main factors that increase the insurance costs.

auto-insurance-ratesEven though you got and compare accurate quotes, you should keep in mind that there are many variables which will be discussed with an insurance representative. This person will ask and tell you more about available offers and discounts.  It is important that each state has its own limits regarding minimum coverage level. States like Alaska impose $ 100.000 minimum liability coverage.

One national level, the average value for car insurance in 2014 (the last year this data is available) was $866.31 per year. Again, the location where you lives influences the costs. In 2014, New Jersey had the highest average premiums at $1,237 per year, while Vermont was the lowest at $665.17 per year.

As you can imagine, the value of car insurance depends strongly on the coverage options you make. Of course, a basic liability plan, with only a minimum coverage level, will be the cheapest option.  Depending on the state you live, your coverage will be around $15.000 to $75.000.  However, this coverage is not sufficient in case you cause a serious accident. Ideally would be to evaluate the total value of your assets. Then you should get an insurance plan that is equal to the value of your assets.  This is usually the value recommended by all financial advisors.

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