Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jul 8, 2021

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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If you are wondering if you are paying too much for your auto insurance premium today, you are not alone. You can use a FREE insurance rate comparison tool online right now to compare rates.

You simply have to enter in your own ZIP code to compare auto insurance rates with ease.

However, you may be wondering how these rates stack up against the rates other drivers are paying. So what is the average auto insurance payment drivers pay today?

A Closer Look at Average Rates

In 2010, the average insurance rate for drivers across the country was about $1,566 per year, or about $130.5 per month.

The most affordable auto insurance rates by state in 2011 include:

  • Iowa – $803 per year
  • Vermont – $878 per year
  • Indiana – $940 per year
  • Tennessee – $967 per year
  • Illinois – $988 per year
  • Ohio – $999 per year

The most expensive rates by state in 2011 include:

  • New York – $2,771 per year
  • New Jersey – $2,283 per year
  • Rhode Island – $2,155 per year
  • Delaware – $2,094 per year
  • District of Columbia – $2,028 per year
  • Maryland – $1,936 per year

How Geographical Location Affects Rates

It is convenient to compare auto insurance rates by state, as geographical demographics do play a role in how rates are calculated.

However, while it is nice to know how your current rates compare to others in your state, rates are actually determined by demographic data related to your zip code rather than the state as a whole.

Auto insurance companies will review demographic data related to the age of other drivers in your zip code.

Younger drivers are considered riskier drivers. While you may not be under 25 yourself, which are high risk driving groups, by living in your zip code, you may share the road more frequently with these risky drivers.

Further, the crime rates in your zip code are also reviewed to determine your insurance rates.

Other Factors That Affect Rates

In addition to your geographical location, there are numerous other factors that are used to determine an individual driver’s auto insurance rates. These factors may include:

  • the driver’s driving history
  • the driver’s gender and age
  • the vehicle that is being insured
  • the driver’s history of carrying insurance
  • any discounts a driver may qualify for
  • how many miles are driven each year
  • coverage and deductible amounts requested

The fact is that each of these factors can vary significantly, even for drivers who do live within the same state or zip code.

Comparing average rates can be interesting to you, but if you really want to know if you are overpaying for your car insurance, comparing your rates against the rates other drivers pay may not be the best option.

Determining If You Are Paying Too Much For Auto Insurance

If comparing your auto insurance rates against the national or state average rates is not beneficial in determining if you are overpaying, then what is a good way to make this determination?

The fact is that you will have to get several different rate quotes from different auto insurance companies.

These rate quotes will be customized specifically for you, and the quotes will tell you right away if you may be able to save money on your insurance costs by switching to another auto insurance company.

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An Easier Way to Shop for Rates

Shopping for full auto insurance quotes can take a lot of time and effort. In order to get a full rate quote, you have to contact a specific insurance company and provide them with all of the information listed above such as the make and model of your vehicle, where you live and work and a host of other details.

If you are like most drivers, you simply do not have the time available to get a quote from each auto insurance company out there.

An easier and more efficient way to get rate quotes is to first use a FREE rate comparison tool online.

By entering your ZIP code into a rate comparison website, you can receive numerous rate estimates back to compare. This information can help you to determine which insurers you should contact for the most affordable rate quotes.

Additional Savings Opportunities

You may be able to find considerable savings by using a free rate comparison tool today and getting a few full rate quotes. However, you may be able to find even greater savings with a little extra effort.

When getting full rate quotes, be sure to ask each of the insurance companies about special discounts you may qualify for. These will vary by company, but they may include:

  • a safe driver discount
  • a multiple policies discount
  • a full-time student discount
  • anti-theft and safety feature discount
  • a multiple vehicle discount

In addition, you can also talk to your insurance agent or representative about how increasing your insurance deductible may lower your auto insurance premium

Comparing your own auto insurance cost against national or state averages can be interesting, but it is not a good indicator of whether you are paying too much for auto insurance.

Comparing personalized rate quotes is a much better way to determine if you can save money on your auto insurance policy.

You can use a FREE rate comparison tool today by entering your ZIP code into a comparison website now to compare rates.

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