Some people do not believe that insurance can give good benefits for their life. Insurance is commonly offered in the lowest rates possible to people with low risk or no risk at all. This is a little unfair because we all know that we want to get insurance because we want to get financial cover for all of the risks that we might face. But this is quite true. Insurance companies do not want to get bankrupt by allowing people with high risk to get a good insurance cover in low rates. In the auto insurance, companies do not provide easy and cheap quotes for those who are regarded as high risk drivers or insure a high risk vehicle. This is one of the most common reasons why people do not want to get insurance.
However, what the companies do is actually normal. It will be dangerous for an insurance company to let someone who is not eligible for an insurance to get a quote because that kind of customer will usually do nefarious purpose of buying insurance in order to make a fake claim. Insurance companies who are experienced in this business will give a professional service and fair rates. Those who are high risk will be charged properly and those who are low risk drivers will get a discount. Smart insurance buyers will know that they are actually investing when buying a quote. But how much is car insurance per month? Well the answer might vary because different types of insurance and different policies will charge different rates as well.
The Significances of Auto Insurance
Buying car insurance will of course burden our monthly living cost. Yet, the rates that people pay regularly will provide a huge benefit if people are buying the insurance policies from reliable companies. The amount of the rate will not be expensive if people can plan their insurance well. They have to include it as part of an investment. Besides, people have to also use it as their future financial cover which will absolutely be beneficial for their family finance. Auto insurance gives more benefit if people really what they want and need for their vehicles. However, there are some people who are still questioning about this car insurance reliability. Also, they will question how much is car insurance per month to include in their hard economic problem.
Some people do not want to buy `insurance because the insurance policies are regarded as the preparations for the worst situations in life. Therefore, buying the insurance means preparing for a future unfortunate event. People do not like hoping to experience a bad car crash or expecting their car to be stole. That is why they simply don’t want to buy insurance policy. However, that is not a good point of view. In the past, we could possibly avoid car crash by driving carefully. We could avoid driving after drinking alcohol. Besides, we could stop driving when we are not health enough or when we feel terribly sleepy. Yet, that is no longer possible in this modern society. We might be very careful when driving but other drivers are sometimes not. Besides, many car accidents now happen not only due to the bad traffic or alcohol influences. Nowadays, people are too dependent to the gadgets, internet, and social media that they forget about the real surrounding. Though laws forbids and restricts drivers to not receiving any calls and texting while driving, still many people cannot resist touching and opening their smart phones while driving. A car crash as the consequence of online gaming applications is also reported to occur in some countries. Those reasons are enough for us to get auto insurance.
How much is car insurance per month?
Calculated from the insurance policy premium, the average monthly car insurance rate is $100 to $200 per month. In the US, different states have different insurance rates averaged. The average numbers are taken by several methods of research. We cannot thus conclude that the rates are the common rates for all types of drivers because some of the methodologies do the research to the high risk drivers, young drivers, and many others.
The research result was from 2012 and showed that a state with the lowest auto insurance rate is North Dakota. The state’s average insurance policy premium monthly was $ 46.17. Meanwhile, the state with the highest rate auto insurance policy premium in the USA was Washington DC. The rate was $98.5 and that is quite a lot compared to the lowest state of North Dakota. Right in the second highest rate was New York with $92.5. The result was from five years ago and the rates should have changed today. But I believe that the lowest and highest state remains the same. This is so, because insurance premium rate is determined by several factors including the state and its life standard and quality.
Most auto insurance policies are offered for half a year to a yearly payment. However, it is possible to arrange a monthly payment for an easier schedule. The monthly payment is more preferable because we can set an easy and cheaper rate.
How car insurance premiums are calculated?
Normally, the basic number of insurance rate is approved by the state’s department of insurance. So, there is actually a standard that should be obeyed by the auto insurance companies. The approved rate will be the basic rate to add with the qualifications of the insurance policy holders. Through the registration and interviews, the rate will be determined. Young drivers and inexperienced drivers will have to pay more rates. Meanwhile, the non high-risk drivers will get better rate. Those who can provide a clean driving record can possibly get a discount as well.
What about the vehicles? For new and sporty cars that are expensive, the cost of the auto insurance will be high. The cars are regarded as risky and thus they will need to be well protected. In addition, if we are living in a neighborhood with high vandalism and high crime level, we might need to pay more for the rates as well. So, how much is car insurance per month? The answer depends on those aforementioned factors.