The Average Monthly Payment for Car Insurance
Insuring a vehicle is one of the most significant costs associated with owning a car, along with gas, maintenance and depreciation in the car's value. The average amount people pay each month for car insurance varies widely because the types of policies people buy and the cars they drive vary as well.
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National Averages
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The average cost per month for a car insurance policy in the United States is $65.75, according to the Insurance Information Institute. This statistic is based on data from 2008 for all policyholders driving all types of vehicles. Rates vary by location, with people in urban areas typically paying more for car insurance than people in rural areas.
Types of Coverage
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The average monthly payment depends largely on what type of coverage the policyholder chooses to purchase. Drivers are required by law to carry liability insurance on their cars, with an average monthly cost of $39.25, according to the Insurance Information Institute. Increasing the amount of liability coverage can lead to a higher cost for this part of the insurance. Optional comprehensive and collision coverage cost an average of $24.83 per month and $11.17 per month, respectively. Having lower deductibles on comprehensive and collision coverage generally leads to higher premiums.
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Considerations
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Car insurance is more expensive for some types of cars and drivers than others. For example, sports cars are much more expensive to insure than minivans, and new vehicles tend to be more expensive to insure than older ones. In addition, driver demographics are a factor. Teen drivers and elderly drivers have higher premiums than middle-aged drivers. In addition, men tend to pay higher rates for auto insurance than women do.
Monthly Payments
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Some insurance companies charge policyholders extra to make monthly payments of the insurance premium instead of paying the six-month premium amount all at once. People purchasing insurance through a company that charges extra might have higher monthly payments than average because of this. Depending on the amount of the surcharge for paying monthly, it can be more advantageous to put a six-month premium payment on a credit card and pay it off within six months instead of making monthly premium payments.
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