Insurance Archives | Page 5 of 10

Mar

02

2023

Average Cost of Car Insurance in Texas

By Jacqueline DeMarco | Family Finances, Insurance, money | Comments Off

If you drive a car in Texas, you’ll need to make room in your budget for car insurance. The state requires it. The amount you’ll pay for protection depends on a number of factors, such as your driving record, age, car type, and insurer. Understanding the cost of coverage in your area can help as you’re comparing quotes. Keep reading to learn more about the average cost of car insurance in Texas.

How Much Does Car Insurance Cost in Texas?

The average cost of car insurance in Texas is $1,842 per year, according to a 2023 U.S. News & World Report analysis of cheap car insurance companies. By comparison, the national average is $1,442 per year.

Average Car Insurance Cost in Texas per Month

The average cost of car insurance in Texas is $153.50 per month, which is $33.33 more than the national monthly average of $120.17. But as the chart below shows, prices can vary greatly among the state’s insurers.

Company	Average Cost Per Month	Average Annual Cost
AAA	$150.42	$1,805
Allstate	$242.75	$2,913
Geico	$111	$1,332
Home State Insurance	$278.42	$3,341
Mercury	$123.67	$1,484
National General	$146.67	$1,760
Nationwide	$131.33	$1,576
State Farm	$98.67	$1,184
Texas Farm Bureau	$73.41	$881
The General	$221.16	$2,654
USAA	$111.08	$1,333

Source: U.S. News & World Report

Average Car Insurance Cost in Texas by City

Where you live can also impact how much you spend on car insurance. The rate of theft, vandalism, and accidents in your area can help insurance providers estimate how likely you are to file a claim, which can raise insurance costs. In the chart below, notice how rates vary even among 10 major cities in Texas.

City	Average annual cost
Austin	$1,841
El Paso	$1,855
Corpus Christi	$1,867
Fort Worth	$1,890
Plano	$1,891
Arlington	$1,899
San Antonio	$1,927
Laredo	$2,050
Dallas	$2,162
Houston	$2,226

Source: Insure.com

Average Car Insurance Cost in Texas by Age and Gender of the Driver

Usually, teen drivers (aka new drivers) can expect to spend more on car insurance than older drivers. Gender is another consideration. Because women statistically get in fewer car accidents and have fewer DUI incidents, they tend to spend less on car insurance.

Company	17-Year-Old-Female	17-Year-Old-Male	25-Year-Old-Female	25-Year-Old-Male	60-Year-Old-Female	60-Year-Old-Male
AAA	$4,805	$5,441	$2,042	$2,264	$1,554	$1,587
Allstate	$6,627	$8,044	$3,315	$3,495	$2,641	$2,641
Geico	$2,991	$3,200	$1,407	$1,426	$1,162	$1,325
Home State Insurance	$12,208	$14,935	$3,445	$3,579	$2,919	$3,393
Mercury	$7,052	$8,802	$1,850	$2,066	$1,089	$1,146
National General	$8,039	$9,134	$2,008	$2,228	$1,300	$1,599
Nationwide	$5,486	$7,096	$1,883	$2,062	$1,250	$1,350
State Farm	$3,037	$3,794	$1,216	$1,492	$1,044	$1,044
Texas Farm Bureau	$1,654	$1,908	$1,110	$1,282	$640	$674
The General	$6,043	$7,864	$3,194	$3,637	$2,069	$2,386
USAA	$2,588	$2,821	$1,577	$1,697	$1,138	$1,136
Statewide Average	$5,503	$6,640	$2,095	$2,293	$1,528	$1,662

Source: U.S. News & World Report

Average Car Insurance Rates After an At-Fault Accident

Your driving record plays a big role in the auto insurance rates you’re offered. In general, the better someone’s record is, the less they’ll spend on insurance. This table compares how much someone can generally expect to spend on car insurance in Texas when they have a clean record and after just one at-fault accident.

Type of Policy	Clean Record Premium	After One At-Fault Accident Premium
Full Coverage Car Insurance	$1,316	$2,048

Source: MoneyGeek.com

Average Car Insurance Costs for Good and Bad Credit

Some insurance companies examine applicant credit scores when determining rates, as certain credit behaviors can indicate how likely someone is to file a claim. Rates can increase for drivers with lower credit scores. See how the average cost of full coverage car insurance in Texas differs between drivers with good and bad credit scores.

Type of Policy	Good Credit Premium	Bad Credit Premium
Full Coverage Car Insurance	$1,023	$2,344

Source: MoneyGeek.com

What Else Affects Car Insurance Costs?

Other factors that can affect car insurance costs include:

How Much You Drive

The more someone drives, the more likely they are to get in an accident simply because they are on the road more often. As a result, driving more miles can lead to higher insurance prices.

Make and Model of Your Car

When setting a rate, insurance companies often consider how expensive it would be to repair or replace the driver’s car. The higher these costs are, the more the driver will likely pay for coverage.

Amount of Coverage

How much car insurance do you need? The amount may be based on your personal preference or your state’s minimum car insurance requirements. But in general, the more coverage you have, the more expensive your policy will likely be.

Related: Car Insurance Terms, Explained

How to Get Affordable Car Insurance

Looking to lower your car insurance costs? Consider these tips and tricks for finding a more affordable car insurance policy.

Compare Quotes From Different Insurers

There’s no need to accept the first quote you’re offered. Instead, shop around with a few different car insurance issuers to see which can offer the most coverage for the best price.

Recommended: How to Get Car Insurance

Choose a New Car Carefully

If you’re shopping for a new car, you may want to factor in the cost of insurance. The Insurance Institute for Highway Safety shares helpful information on its website, iihs.org, about the cost of insuring different makes and models of cars.

Consider Whether a Higher Deductible Is Right for You

Choosing a higher deductible often means spending less on monthly premiums. However, it’s important to select a deductible you’ll be able to pay if you ever do need to file a claim.

Ask for Discounts

From taking a defensive driving course to earning good grades as a college student, there are many different reasons insurance companies offer discounts. It can’t hurt to ask your insurer if you qualify for any discounts.

Recommended: How to Lower Car Insurance

The Takeaway

The average cost of car insurance in Texas is $1,842 per year, or $153.50 per month. The amount you’ll spend on car insurance depends on several factors, including your driving record, age, gender, location, credit score, and insurer.

Feeling uncertain about how much auto insurance you really need or what kind of premium you might have to pay to get what you want? Check out SoFi’s online auto insurance recommendations. The better you drive, the more you can save.

FAQ

How much is car insurance in Texas per month?

The average cost of car insurance in Texas is $1,842 annually. This breaks down to $153.50 per month.

Is car insurance expensive in Texas?

According to the Insurance Information Institute, the average price of car insurance in Texas is higher than the national average but lower than other states in the South, including Louisiana, Mississippi, Florida, and Georgia.

Is $300 a lot for car insurance?

In many cases, the average monthly cost for coverage in Texas is well below $300. But remember, the amount you pay depends on a number of different factors. A 17-year-old woman, for example, could very well pay more than $300 per month largely because of her age and lack of driving experience.

Photo credit: iStock/lightkey

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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Mar

02

2023

Average Cost of Car Insurance in California

By Kelly Boyer Sagert | Family Finances, Insurance, money | Comments Off

Most drivers know that the cost of car insurance in California varies, sometimes by hundreds of dollars. What you pay may be substantially different from what your friend pays, even if you have similar driving records and similar cars. That’s because there are dozens of data points that car insurance companies consider, from your age and Zip code to your insurance deductible and amount of coverage.

Keep reading to find out the average cost of car insurance in California, and how you can lower your premiums without sacrificing the coverage you need.

How Much Does Car Insurance Cost in California?

Drivers in California pay on average $1,940 a year — 35% higher than the national average, according to U.S. News & World Report. In a state where housing prices and the cost of living are so high, it stands to reason that car insurance is more expensive. But what exactly goes into insurance companies’ calculations?

The California Department of Insurance weighs the following information in its estimates:

• Coverage type. Liability Only vs. Standard.

• Location. Divided into cities and, in bigger cities, into regions/neighborhoods.

• Number of drivers covered. Single, couple, or family.

• Years licensed.

• Annual mileage.

• Driving record.

• Vehicle.

Average Car Insurance Cost in California per Month

Each insurance company has its own formula for calculating insurance rates. The table below shows how premiums vary among the ten largest insurance companies serving California.

These quotes are for a single driver in East Los Angeles, licensed for 8-13 years, who drives 12,000-16,000 miles annually and has one ticket.

Insurance Company	Annual Premium	Monthly Premium
Allstate	$4,289	$357
Capital	$2,690	$224
Chubb	$5,374	$448
Farmers	$4,848	$404
Geico	$3,764	$314
Kemper	$3,400	$283
Mercury	$3,336	$278
Nationwide	$4,359	$363
State Farm	$5,503	$459
Wawanesa	$3,107	$259

Data per the California Department of Insurance

Recommended: Car Insurance Terms Explained

Average Car Insurance Cost in California By City

Your location has a big influence on the cost of car insurance in California. Insurance companies actually track traffic volume, accidents, and crime in different neighborhoods across the state. Drivers in more populated areas pay more than those who live in small towns or out in the countryside.

Here are average costs for standard car insurance in ten of California’s biggest cities.

Anaheim (Brookhurst Center)

City	Annual Premium	Monthly Premium
Los Angeles (East)	$4,462	$372
San Diego (Mira Mesa)	$3,527	$294
San Jose (95111)	$4,235	$353
San Francisco (Sunset)	$4,734	$395
Fresno (Sunnyside)	$3,847	$321
Sacramento (Fruitridge)	$4,335	$361
Oakland (Piedmont)	$4,137	$345
Bakersfield (Kern City)	$3,876	$323
$4,161	$347
Riverside (92503)	$4,069	$339

Data per the California Department of Insurance

Average Car Insurance Cost in California By Age of Driver

A driver’s age (or experience level, really) also plays a role in the cost of car insurance. A teenager who has just gotten their license is considered a greater risk by insurance companies. Higher risk translates to higher premiums. This is why many teens share a policy with parents. Once a driver hits age 20 (and still has a clean driving record), premiums often decrease. To find the best deal for younger drivers, compare quotes from an online insurance marketplace.

According to the California Department of Insurance, the average cost of car insurance in Los Angeles for a couple with a teenage driver is about $8,000 annually, or $667 monthly, for standard coverage. If you’re in this predicament, our car insurance tips for first time drivers may be helpful.

Average Car Insurance Cost in California After an At-Fault Accident

Your driving record has a major effect on your insurance premiums. Whether you’re involved in a fender bender or a more serious crash, insurance companies just need to know whether you were at fault.

As with our insurance company breakdown above, the quotes below are for a single driver in East Los Angeles, licensed for 8-13 years, who drives 12,000-16,000 miles annually and has one ticket. In this scenario, they’re looking to insure a Honda Accord, before and after an at-fault accident.

City	Clean Record	After an Accident
Los Angeles (East)	$3,446	$4,882
San Diego (Mira Mesa)	$2,718	$3,832
San Jose (95111)	$3,283	$4,612
San Francisco (Sunset)	$3,660	$5,151
Fresno (Sunnyside)	$2,980	$4,195
Sacramento (Fruitridge)	$3,367	$4,724
Oakland (Piedmont)	$3,199	$4,471
Bakersfield (Kern City)	$2,987	$4,228
Anaheim (Brookhurst Center)	$3,207	$4,572
Riverside (92503)	$3,140	$4,466

Data per the California Department of Insurance

Recommended: How to Get Car Insurance

Average Car Insurance Costs for Good and Bad Credit

In California, insurance companies can’t factor in credit scores when underwriting car insurance policies. So your credit history won’t have an affect on your ability to get or renew a car insurance policy — or how much you’ll pay.

Californians should be thankful for this. In New York state, drivers with excellent credit pay on average $3,927, while those with poor credit pay — whoa! — $10,640.

Recommended: How to Get Car Insurance

What Else Affects Your Car Insurance Cost?

As noted above, there are dozens of data points that insurance companies can use to estimate their risk and set premiums accordingly. One is marital status. Another is your car’s make and model, as well as its safety features and overall value.

Aside from the driver and the car, the type of policy impacts premiums. The more coverage you have, the more expensive your policy will be. Your state’s minimum car insurance requirements will get you the most rock-bottom premiums.

The type of deductible you choose also influences your cost. With a higher deductible, your premiums will be lower. The trade-off is that, if you get in an accident, you’ll be responsible for a larger share of the repair bill. In short, you can pay now or pay later.

Recommended: How to Lower Car Insurance

How to Get Affordable Car Insurance

To find the most affordable car insurance for your profile and needs, it’s best to shop around and compare quotes. These days, online insurance marketplaces make that easy to do.

Once you’ve chosen one or two reputable insurers, it’s important to ask yourself how much car insurance you need. This goes back to the “pay now or pay later” dilemma mentioned above. A no-frills, liability-only policy with a higher deductible will have the lowest monthly premiums. But if you’re in an accident, you may wish you’d chosen more coverage.

Also consider bundling opportunities. Just as you pay less for Internet and TV when you combine services, you can save on car insurance if you purchase it from a company with which you have another policy, such as homeowners coverage.

And finally, ask about possible discounts through organizations and schools you’re affiliated with. Most insurers have a long list of companies they partner with to offer lower rates to customers.

Takeaway

The average cost of car insurance in California is $1,940, significantly more than the nationwide average. Your premiums may be higher or lower depending on factors related to your background (age, location, driving record), your vehicle (make and model, safety features), and your level of coverage (liability vs. comprehensive, low vs. high deductible). Just remember that the lowest premium may not offer all the coverage you need in case of an accident.

If you’re ready to shop for auto insurance, you can receive and compare multiple quotes from top insurers in a matter of minutes through SoFi, powered by Experian. You’ll save time and potentially money without having to go to numerous websites.

Explore your options with Experian at SoFi, your personal insurance shopper.

FAQ

How much is the average car insurance per month in California?

Numerous factors go into the calculation of a car insurance premium, including where you live in California, the length and status of your driving record, the type of vehicle you have and its mileage, and more. The average statewide is about $1,940, but the best way to find the most affordable coverage for your situation is to shop around for quotes from multiple insurers.

How much does the average person pay for car insurance in California?

Numerous factors go into the calculation of car insurance for a California resident. This post breaks it down in multiple ways and offers sample averages based on certain demographics and situations.

Is $300 a lot for car insurance?

In many cases, the average monthly cost for coverage in California is well below $300. But remember, the amount you pay depends on a number of different factors. A 17-year-old, for example, could very well pay more than $300 per month largely because of her lack of driving experience.

Photo credit: iStock/gguy44

Insurance not available in all states.
Experian is a registered service mark of Experian Personal Insurance Agency, Inc.
Social Finance, Inc. ("SoFi") is compensated by Experian for each customer who purchases a policy through Experian from the site.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Mar

02

2023

Average Cost of Car Insurance in New York

By Kelly Boyer Sagert | Family Finances, Insurance, money | Comments Off

When shopping for car insurance, how much is too much to pay? The answer can vary based on your driving record, age, car type, insurer, and even where you live. But knowing the average cost of coverage in your state can help as you’re comparing quotes. Here’s a look at average prices in New York and how different factors can impact how much drivers there pay for protection.

How Much Does Car Insurance Cost in New York?

Drivers in New York pay an average of $1,872 per year for car insurance, according to a 2023 U.S. News & World Report analysis of cheap car insurance companies. By comparison, the national average is $1,442 per year.

Average Car Insurance Cost in New York per Month

The average monthly cost of car insurance in New York is $156, or roughly $36 more than the national monthly average of $120.17. The amount you pay can vary by insurer, as the chart below shows.

Company	Average Cost Per Month	Average Annual Cost
Allstate	$131.16	$1,574
Erie	$121.08	$1,453
Geico	$124.50	$1,494
Mercury	$370.91	$4,451
Progressive	$71.25	$855
State Farm	$155.67	$1,868
USAA	$117.25	$1,407

Source: U.S. News & World Report

Average Car Insurance Cost in New York by City

Your location can influence how much you pay for car insurance in New York. That’s because when setting rates, insurers often consider the local volume of traffic, accidents, and crime. People living in cities tend to pay more for car insurance than those living in small towns or rural areas. But as the chart below shows, prices can also vary by city. Here are estimates for 10 of the biggest cities in New York:

City	Average Annual Cost
Schenectady	$1,524
Rochester	$1,526
Albany	$1,532
Utica	$1,579
Syracuse	$1,622
Buffalo	$2,093
New Rochelle	$2,374
Yonkers	$2,847
Mount Vernon	$3,017
New York City	$3,924

Source: Insure.com

Average Car Insurance Cost in New York by Age and Gender of the Driver

Your age can impact your premiums. Younger, first-time drivers, for example, often pay more for coverage because they tend to have more accidents than older, more experienced drivers. Gender can play a role, too. In New York, women may end up paying less for car insurance than men because they tend to get into fewer severe accidents.

Age of Driver	Average Annual Cost for Men	Average Annual Cost for Women
18	$6,156	$5,038
25	$2,413	$1,897
65	$2,016	$1,980

Source: Insure.com

Average Car Insurance Rates After an At-Fault Accident

As anyone who has been in a fender bender knows, car insurance rates tend to go up after an accident. New York drivers with a clean record pay around $1,872 per year for coverage. That amount rises to an average of $1,951 for drivers who have one accident.

But even traffic violations can cause prices to go up. A driver with one speeding ticket on their record pays an average of $2,190 for coverage, and one driving under the influence (DUI) offense causes rates jump to an average of $2,789.

Related: Car Insurance Terms, Explained

Average Car Insurance Costs for Good and Bad Credit

Your credit score doesn’t just impact your ability to secure a loan. It can also play a role in how much you pay for car insurance. According to an analysis conducted by MoneyGeek, drivers with poor credit pay $10,640 on average per year for coverage, while those with excellent credit pay around $3,927.

Recommended: How to Get Car Insurance

What Else Affects Your Car Insurance Cost?

Here are other factors that can cause your car insurance rates to go up — or down.

Marital Status

Married drivers may qualify for more discounts than single drivers, since insurers often place them in a different risk category.

Make and Model of the Car

Your car’s safety features, accident rating, size, and overall value can all affect your insurance rates.

Amount of Coverage

The amount of coverage you need comes down to a number of factors, including your state’s minimum car insurance requirements, your budget, and your lifestyle. As a rule of thumb, the more coverage you have, the more expensive your policy will be.

The type of deductible you choose can also influence your overall costs. A deductible is the amount of money you’re responsible for after an accident before the insurance company pays its portion. With a higher deductible, you pay less money in premiums each month, but will be responsible for a bigger share of the expenses if you get in an accident.

Insurance History

Drivers who allow their coverage to lapse may be more likely to cancel their policy, so having a reliable history with one insurer may qualify you for a lower rate. In fact, it’s possible you’ll get a better quote when switching car insurance carriers than if you purchase insurance after going a few years without it.

Recommended: How to Lower Car Insurance

How to Get Affordable Car Insurance

The cost of coverage often varies by insurer. To find affordable car insurance, it’s a good idea to shop around and compare quotes. You can search online insurance companies and compare multiple car insurance rates.

You’ll also want to figure out how much car insurance you need. Keep in mind your state’s minimum car insurance requirements as well as additional coverage you may need.

If you’re looking to lower your car insurance, there are several strategies to consider. You may want to explore different policy options; look for bundling opportunities, such as getting your home and auto insurance from the same company; ask about possible discounts; and consider whether a policy with a higher deductible makes sense for you.

The Takeaway

Drivers in New York pay an average of $1,872 per year for car insurance, which is higher than the national average of $1,442 per year. However, the amount you pay can depend on several factors, including your age, gender, driving record, credit score, marital status, and where you live. It helps to shop around and compare multiple quotes to find coverage that fits your needs and budget.

Feeling uncertain about how much auto insurance you really need or what kind of premium you might have to pay to get what you want? Check out SoFi’s online auto insurance recommendations.

The better you drive, the more you can save.

FAQ

How much is car insurance in New York monthly?

The average cost of car insurance in New York is $156 per month. But you may end up paying a different amount based on a wide range of factors, such as age, gender, driving record, credit score, and location.

How much is car insurance in New York for a 25-year-old?

A 25-year-old man pays an average of $2,413 per year for car insurance. Women of the same age pay an average of $1,897 per year. Gender and age are two of several factors that can impact how much you pay for coverage.

Is $300 a lot for car insurance?

In many cases, the average monthly cost for coverage in New York is below $300. But premium amounts vary based on a number of factors. An 18-year-old male driver, for example, could very well pay more than $300 per month because of his age and lack of driving experience.

Photo credit: iStock/cmart7327

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOPT1222003

Mar

02

2023

Average Cost of Car Insurance in Florida

By Jacqueline DeMarco | Insurance | Comments Off

Before you hit the open road, you’ll want to make sure you have the right protection in place. Car insurance can offer a sense of security when you’re driving. While the average cost of car insurance is up across the country, many drivers in Florida may be paying higher-than-average premiums for coverage.

Of course, geography is just one factor that can influence how much someone pays for insurance. Other considerations include driving record, age, gender, credit score, car type, insurer, and level of coverage. Let’s take a closer look at the average cost of car insurance in Florida and how different factors may impact how much drivers pay for protection.

How Much Does Car Insurance Cost in Florida?

Florida drivers pay an average of $2,393 per year on car insurance, according to a 2023 U.S. News & World Report analysis of cheap car insurance companies. (By comparison, the nationwide average is $1,442 per year.) But as the chart below shows, that amount can vary widely by insurer.

Company	Average Rate in Florida
Allstate	$3,169
Direct General	$3,132
Farmers	$2,957
Geico	$1,414
Mercury	$2,492
Nationwide	$2,039
Progressive	$2,735
State Farm	$1,606
Travelers	$1,993
Source: U.S. News & World Report

Average Car Insurance Cost in Florida per Month

The average cost of car insurance per month in Florida is $199.42, compared to the national monthly average of $120.17.

Average Car Insurance Cost in Florida by City

Location can also impact car insurance costs. That’s because insurance companies consider factors such as local crime rates and traffic when determining how much to charge for coverage. Let’s see how the price of car insurance changes for residents of some major cities in Florida.

City	Average Annual Cost
Orlando	$2,426
St. Petersburg	$2,680
Fort Lauderdale	$2,929
Tampa	$3,089
Miami	$3,321
Source: U.S. News & World Report

Average Car Insurance Cost in Florida by Age of the Driver

The driver’s age and gender can impact premium prices. Generally speaking, younger, newer drivers may pay a higher premium because they tend to have more accidents than older, more experienced drivers. Women often pay lower premiums than men because they tend to have fewer drunken-driving accidents. In the chart below, notice how insurance rates change based on age and gender.

Company	17-Year-Old-Female	17-Year-Old-Male	25-Year-Old-Female	25-Year-Old-Male	60-Year-Old-Female	60-Year-Old-Male
Allstate	$13,247	$14,515	$3,339	$3,419	$2,861	$2,941
Direct General	$6,803	$7,202	$3,656	$3,837	$2,711	$2,696
Farmers	$10,637	$10,684	$3,422	$3,400	$2,721	$2,698
Geico	$3,508	$3,875	$1,614	$1,661	$1,273	$1,216
Mercury	$12,237	$14,232	$3,137	$3,027	$1,870	$1,927
Nationwide	$6,836	$8,649	$2,273	$2,401	$1,737	$1,821
Progressive	$8,728	$9,290	$3,392	$3,319	$2,309	$2,299
State Farm	$3,989	$5,057	$1,736	$1,845	$1,446	$1,446
Travelers	$5,982	$7,306	$2,161	$2,188	$1,693	$1,741
Statewide Average	$7,996	$8,979	$2,748	$2,789	$2,069	$1,847
Source: U.S. News & World Report

Average Car Insurance Rates After an At-Fault Accident

Have a history of fender benders and tickets? You may end up having to pay more for coverage. In general, the better a driver’s record, the more comfortable an insurance company is offering them lower rates. The chart below illustrates how insurance can go up even after one accident.

Type of Policy	Clean Record Premium	After One At-Fault Accident Premium
Full Coverage	$2,208	$2,902
Source: U.S. News & World Report

Recommended: Auto Insurance Terms, Explained

Average Car Insurance Costs for Good and Bad Credit

A driver’s credit score is typically used by insurers to help predict insurance losses and set rates. A good credit score contribute to a lower premium, as shown in the analysis below from MoneyGeek.

Type of Policy	Good Credit Premium	Bad Credit Premium
Full Coverage	$1,644	$4,194
Source: MoneyGeek

What Else Affects Car Insurance Costs?

Let’s examine some other factors that can impact how much someone pays for car insurance.

How much you drive

The more someone drives, the more likely they are to get in an accident simply because they are on the road more often. As a result, driving more miles can lead to higher insurance prices.

Make and model of the car

When setting a rate, insurance companies often consider how expensive it would be to repair or replace the driver’s car. The higher these costs are, the more the driver will likely pay for coverage.

Amount of coverage

How much car insurance do you need? The amount may be based on your personal preference or your state’s minimum car insurance requirements. But in general, the more coverage you have, the more expensive your policy will likely be.

How to Get Affordable Car Insurance

Looking to lower car insurance costs? Here are some strategies to consider:

Recommended: How to Get Car Insurance

Choose a Car Wisely

The more expensive a car is to fix or replace, the more it may cost to insure. If you’re shopping for a new car, you may want to factor in the cost of insurance. The Insurance Institute for Highway Safety shares helpful information about the cost of insuring different makes and models of cars.

Request a Discount

Yes, it can be that easy to save on car insurance. Many insurance companies offer discounts for things like having a high GPA as a college student or being a longtime customer.

Recommended: How to Lower Car Insurance

Budget for a Higher Deductible

Choosing a higher deductible often means spending less on monthly premiums. However, it’s important to select a deductible you’ll be able to pay if you ever do need to file a claim.

Shop Around

Take some time to research and compare a handful of auto insurance issuers, so you can find the one that provides the coverage you need for the best price.

The Takeaway

Though the price of car insurance varies across the country, drivers in Florida often pay higher-than-average costs. The average cost of car insurance in Florida is $2,393 per year, or $199.42 per month. However, several factors can impact how much you’ll pay, including your driving history, credit score, age, gender, location, insurer, and the type of car you have.

Feeling uncertain about how much auto insurance you really need or what kind of premium you might have to pay to get what you want? Check out SoFi’s online auto insurance recommendations. The better you drive, the more you can save.

FAQ

What is the average car insurance cost per month in Florida?

The average cost of car insurance in Florida is $2,393 annually. This means consumers spend an average of $199.42 per month.

Is it expensive to insure a car in Florida?

Florida is the fifth most expensive state to insure a car, according to the Insurance Information Institute. On average, car insurance in Florida costs almost $1,000 more than the U.S.’s overall annual average of $1,442.

How much is full coverage in Florida?

For extra peace of mind, some consumers may choose to buy a full coverage policy. In Florida, the average full coverage car insurance policy costs around $2,208.

How much is car insurance for a 25-year-old in Florida?

The amount may depend on your gender. A 25-year-old female driver in Florida spends an average of $2,748 per year, compared to the $2,789 a male driver spends per year.

Photo credit: iStock/FrankMirbach

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Jan

27

2023

Does Paying for Your Car Insurance Build Credit?

By Dan Miller | credit card, Insurance | Comments Off

You might think that paying for your car insurance each month affects your credit in the same way that paying other recurring bills does. In most cases, paying for car insurance does not help build credit. This is mostly because car insurance is not an installment loan, so it isn’t reported to the major credit bureaus.

However, if your insurance account goes delinquent and is sent to collections, that could have a negative impact on your credit score. In this way, car insurance does have the potential to affect your credit score.

How Does Paying Car Insurance Work?

Like most types of insurance, car insurance works by making monthly (or annual) premium payments to the insurance company. Then, if you are in an accident that is covered by your policy, the insurance company may pay to repair or replace your vehicle, subject to the deductible listed on your policy.

Every car insurance policy is different, so work with your agent to make sure you understand how your particular policy works.

Paying Car Insurance With a Credit Card

Many insurance companies do allow you to pay for your car insurance with a credit card. However, it’s possible that your company may only allow payment by cash, check, or bank transfer.

If you do pay for your car insurance with a credit card, make sure that you are including that amount in your monthly budget. That way, you can make sure to have enough money in your bank account to pay your credit card statement in full.

How Your Credit Score Can Be Affected by Paying Car Insurance

While your regular and on-time car insurance payments likely will not have an effect on your credit score, that doesn’t mean your score can’t be impacted by paying car insurance. Specifically, your credit score can be affected by not paying your car insurance premiums. If your insurance agency sends your account to a debt collection agency, that could result in negative impacts to your credit score.

Does Paying Car Insurance Help Build Credit?

As we’ve mentioned before, paying your car insurance does not usually help with building credit. So if you’re hoping to do so, you’ll need to look at other avenues, like making regular on-time payments to your creditors. Additionally, paying off a debt affects your credit score by lowering your debt-to-income ratio and your overall credit utilization, so that could be another avenue to consider.

Factors to Consider When Paying Car Insurance With a Credit Card

The biggest factor to consider if you want to pay your car insurance with a credit card is whether or not your insurance company accepts credit card payments. While many insurance agencies do, some do not. If your agency does not take credit card payments, you’ll have to find an alternative way to pay your bill.

Additionally, you’ll want to make sure that you have the money budgeted to pay off your credit card balance in full when it comes due. That way, you’ll avoid accruing interest on your car insurance payment if you used your credit card to cover it.

Recommended: How to Avoid Interest On a Credit Card

Consequences of Missing a Car Insurance Payment

If you’re significantly late with a car insurance payment and your account is sent to collections, that can negatively impact your credit score. However, the biggest consequence of missing a car insurance payment is that you may not be covered if you get into an accident. Generally, car insurance covers you only if your premium payments are up-to-date.

Additionally, if you live in a state where car insurance is required and your insurance has lapsed, you may face civil or criminal charges.

Recommended: What is a Charge Card?

Do Car Insurance Payments Appear on Your Credit Report?

Generally, car insurance payments do not appear on your credit report. This is in contrast to other types of recurring payments like mortgages or loans. However, if you make significantly late payments, your insurance company may report those late payments to the credit bureaus.

Recommended: When Are Credit Card Payments Due?

Does Your Credit Score Impact Car Insurance Rates?

While paying your car insurance does not usually impact your credit score, the reverse is not true. Your credit score can (and often does) impact the rates that you are charged for car insurance.

A lower credit score can mean that your insurance premiums are higher. That is yet another reason to work on improving your credit score by following solid financial practices.

Factors That Determine Your Car Insurance Rate

Here are some of the major factors that can determine your car insurance rate:

• Age

• Gender

• Make and model of your car

• Location (ZIP code) where you typically park your car

• Your driving habits, including how much you drive and your driving record

• The type of coverage you choose, as well as the limits and deductibles

• Your credit score

If you’re looking to lower your car insurance costs, making changes in some of the above areas can help. This could include improving your credit or driving record or reviewing your coverage needs.

Recommended: What is the Average Credit Card Limit?

Other Ways to Build Credit

Although paying your car insurance on time does not usually impact your credit, there are a few other ways you can build your credit.

Paying Your Bills On Time

One of the best ways to build your credit is by paying your bills on time, each and every month. Set up a budget and make sure that your monthly expenses are less than your monthly income. Work toward having an emergency fund to help cover you when you have unexpected expenses. Organize your bills and make sure that you pay them by their due dates.

Responsibly Using a Credit Card

Another way of establishing credit is by responsibly using a credit card. Most credit card payments and balances are reported to the major credit bureaus. Responsibly using a credit card and paying it off in full each month can help you build credit.

Additionally, some credit cards, like the SoFi Credit Card, offer rewards, such as cash-back rewards, with each purchase. Those rewards can serve as a bit of extra income each month to help you meet your financial goals.

Taking Out a Personal Loan

When potential creditors look at your credit report, many of them are looking for evidence that you can be trusted to pay your debts. If you don’t have many items on your credit report, lenders may not be sure if you’ll be responsible with additional debt. Taking out a personal loan (and then responsibly paying it back in full) can be one way to build your credit.

The Takeaway

While having and paying for car insurance is important if you regularly drive a vehicle, it usually won’t have much of an impact on your credit score. However, if you don’t pay your insurance premiums when they’re due, your account might be sent to collections, which can negatively impact your credit score. If you’re looking for ways to build your credit, you might consider getting a personal loan or opening and responsibly using a credit card.

When you’re ready for a new credit card, you can consider a cash-back rewards credit card like SoFi’s credit card. With the SoFi credit card, you can earn unlimited cash-back rewards if you’re approved. Then, use those rewards as a statement credit, invest them in fractional shares, or put them toward other financial goals you might have, like paying down eligible SoFi debt.

Apply for a SoFi credit card today!

FAQ

Can unpaid car insurance affect my credit score?

Yes, unpaid car insurance can negatively affect your credit score. If you make significantly late payments, your insurance company might report the late payments to the credit bureaus. If your account becomes too delinquent, it may be sent to collections, further impacting your credit score.

How does my credit score impact my car insurance rate?

Many insurance companies do consider your credit score and credit history when determining the rates you pay for car insurance. As with many financial products, having a good credit score can help you to pay lower monthly premiums for car insurance.

Can I get car insurance with low credit?

Yes, it is possible to get car insurance with low credit, though your monthly premiums may be higher than those of a similar applicant with better credit. If you’re looking at lowering your car insurance, one option is to raise your credit score. You could accomplish this through paying down debt, examining your credit report for inaccuracies, or being more regular about making on-time payments to your creditors.

Photo credit: iStock/Believe_In_Me

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