The Highs and Lows of American Insurance Expenditures

The Highs and Lows of American Insurance Expenditures

Last Updated February 5, 2020

Just how much does the average American pay for car insurance? Quite a lot! Michigan has the highest total at $2,551, and West Virginia, Georgia, Washinton D.C., and Rhode Island all have over $2000. There are only three states that pay less than $1000: New Hampshire with $938, Maine with $964, and Ohio with $926. It sure would be annoying to live in Southern Michigan and be paying more than double what Ohio is paying a few miles away. 

Despite all the money we shell out for auto insurance, we very rarely end up using it. The average driver files a collision claim once every 17.9 years and a comprehensive claim once every 10 years. Sure, it's great that we're avoiding wrecks, but it also means we're paying way too much for insurance. 

Check out our latest infographic for ideas on how to lower your car insurance bill: 

[click the infographic below]

Insurance Expenses Infographic

Here are a few of the best ways to take action on our car insurance bill:

  • Combine your insurance coverage - Save $285 when you combine your auto, homeowners, and life insurance together. 
  • Opt for a higher deductible - Simply increasing your deductible from $200 to $500 will save you over $450 a year! 
  • Keep your annual mileage low - Ride your bike to work or carpool to save on more than gas. You can get a discount if you drive less than 10,000 miles a year. 
  • Be a loyal customer - Many insurance companies offer discounts at your one year, three year, or five year mark. If only cable companies would do that! 
  • Opt for automatic withdrawals - Companies don't want to deal with paperwork either. Save a stamp and get rewarded with a discount by setting up online automatic payment. 
  • Stay in school - You can get savings from insurance companies if you get a bachelor's, master's, or Ph.D. 
  • Have good credit - You could save up to 50% if you have a great FICO credit score. 
  • Pay for small repairs out of pocket - Fewer claims means a lower auto insurance bill. Pay for repairs under $1,000 out of pocket. 

You may also be eligible for discounts if your car has special features, such as driver-side air bags, anti-lock brakes, an anti-theft system, or daytime running lights. Some companies even reward you for driving accident-free. 

Combining the discounts that most people could quality for would give you a total savings of $1,040. That would make your average auto insurance expenditure only $463. That doesn't even include all the ways you could get a discount! 

The Highs and Lows of American Insurance Expenditures

Car insurance in the US is very expensive. CJs new infographic takes a look at the places with the highest and lowest premiums and offers up some suggestions you could use to help reduce your car insurance bill each month.