Is $500 a Month for Car Insurance Expensive? (2024)

Permalink Report Abuse

Yes, $500 a month for car insurance is very expensive. The average cost of car insurance ranges from about $60 per month for state-minimum coverage to $166 per month for full coverage, though individual car insurance rates vary based on factors such as driving record, age and location.

Average Cost of Car Insurance by Company

Company

Monthly Cost for Minimum Coverage

Monthly Cost for Full Coverage

Geico

$42

$139

AAA

$48

$177

USAA

$52

$166

Progressive

$54

$168

Travelers

$57

$199

Liberty Mutual

$73

$229

State Farm

$76

$218

Average monthly premiums reflect nationwide quotes for a 45-year-old driver with a clean driving record.

To learn more, check out WalletHub’s guide to the cheapest car insurance companies.

This answer was first published on 04/07/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

People also ask

How much is car insurance monthly?

Car insurance costs $60 per month, on average, for a minimum coverage policy, although individual rates might vary. Full coverage car insurance is more expensive because it also pays to repair or replace your car after it is damaged by a crash or something other than an accident, like vandalism.

Average Price of Car Insurance per Month

Driver’s Age

Average Monthly Premium

...

$278

read full answer

Can I get classic car insurance without a garage?

Yes, you can get classic car insurance without a garage, though finding an insurance company to cover your vehicle may be difficult, and you’ll still need a safe place to store the car. Instead of a garage, some companies may allow you to store your vehicle in a driveway, carport, barn, trailer, or storage unit, for example.

Storage Requirements by Classic Car Insurance Company

Even though a garage is a common requirement for classic...

read full answer

How much should I pay for full coverage auto insurance?

You should pay between $1,100 and $4,500 per year for full coverage auto insurance, depending on your state. The average cost of full coverage insurance is about $1,997 per year, though the exact price depends on how much coverage you purchase, your characteristics as a driver, and your insurance provider. Since the cost of full coverage insurance varies between drivers and insurers, it’s best to get quotes from at least three different companies before purchasing a policy.

...

read full answer

Thank you for submitting your comment! Please login or join Wallethub for your comment to post.

Is $500 a Month for Car Insurance Expensive? (2024)

FAQs

Is $500 a Month for Car Insurance Expensive? ›

Yes, $500 a month for car insurance is very expensive. The average cost of car insurance ranges from about $60 per month for state-minimum coverage to $166 per month for full coverage, though individual car insurance rates vary based on factors such as driving record, age and location.

Why did my car insurance go up $500? ›

Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.

How much do most pay for car insurance? ›

Key insights from Bankrate's 2024 car insurance cost analysis: Full coverage car insurance costs an average of $2,311 per year, while minimum coverage is $640 per year. On a monthly basis, full coverage averages $193, with minimum coverage averaging $53 per month.

Is $200 a month good for insurance? ›

Is $200 a lot for car insurance? If paid on a monthly basis, $200 is a lot to pay for car insurance. The national average costs for car insurance are $52 per month for minimum liability coverage and $167 per month for a full-coverage auto insurance policy.

What does a $500 deductible mean on car insurance? ›

After you pay the car deductible amount, your insurer will cover the remaining cost to repair or replace your vehicle. Example:You have a $500 deductible and $3,000 in damage from a covered accident. Your insurer will pay $2,500 to repair your car, and you'll be responsible for the remaining $500.

How to lower the cost of car insurance? ›

Here are some ways to save on car insurance1
  1. Increase your deductible.
  2. Check for discounts you qualify for.
  3. Compare auto insurance quotes.
  4. Maintain a good driving record.
  5. Participate in a safe driving program.
  6. Take a defensive driving course.
  7. Explore payment options.
  8. Improve your credit score.

Why is full coverage so expensive? ›

A full-coverage policy costs two and a half times more than one with minimum liability coverage only. That's because full coverage typically includes comprehensive and collision insurance.

What age pays the most for car insurance? ›

Based on our research, car insurance costs the most for 16-year-olds. Young drivers can pay thousands of dollars more than older, more experienced drivers. Car insurance rates decrease in your 20s and can continue to go down into your 50s.

Who normally has the cheapest car insurance? ›

  • Geico is the cheapest car insurance company among large insurers according to NerdWallet's analysis, with an average rate of $30 per month for minimum coverage.
  • American National offers the cheapest auto insurance among midsize companies, with an average rate of $25 per month.

Is $100 a lot for car insurance? ›

Is $100 a month for car insurance good? Our cost estimates show that 35-year-old married drivers with good credit and clean driving records pay an average of $144 per month for car insurance. Paying around $100 per month for quality auto coverage is a good deal.

Does credit score affect car insurance? ›

Yes. A higher or lower credit score can have a big impact on your insurance rate. Poor credit increases full coverage rates by 86% compared to good credit.

How much a month should you pay for insurance? ›

Average Monthly Health Insurance Premiums for Benchmark Plans by State Without Premium Tax Credits
Location20232024
California$432$468
Colorado$380$451
Connecticut$627$661
Delaware$549$533
49 more rows
Mar 14, 2024

What car insurance cover is the cheapest? ›

Third party cover is the minimum level required by law and normally the cheapest cover available. It only covers you for damaging someone else's car (or property) or injuring another person (a 'third party') in an accident. It won't cover any injuries to you or damage to your car.

What deductible is too high? ›

The benefits of a high-deductible versus a low-deductible medical plan. In 2023, health insurance plans with deductibles over $1,500 for an individual and $3,000 for a family are considered high-deductible plans.

Is it better to have a $500 deductible or $1000? ›

If you're more likely to get into an accident, you won't want to pay out a higher deductible. However, if you're generally a safer driver, your car insurance premiums will be lower with a $1,000 deductible.

Is $500 a low deductible? ›

A low deductible of $500 means your insurance company is covering you for $4,500. A higher deductible of $1,000 means your company would then be covering you for only $4,000. Since a lower deductible equates to more coverage, you'll have to pay more in your monthly premiums to balance out this increased coverage.

Why did my car insurance go up when nothing changed? ›

The collective risk factor

You are particularly affected by where you live and the people directly around you. If you live in an area where there is a lot of car theft or a higher number of accidents, your insurance company may assume there is a higher risk that you will also have similar claims.

Why is car insurance so expensive all of a sudden? ›

This may be because you have recent at-fault accidents, moving violations or convictions like a DUI on your insurance record. To car insurance companies, people who have violations like these on their records are more likely to get violations in the future.

Did my car insurance go up because of inflation? ›

The index is a key inflation gauge and a broad measure of the cost of goods and services across the economy. Auto insurance costs have been on the rise for some time, growing every month as part of the index since December 2021. Since then, costs have increased by 45.8%, according to U.S. Bureau of Labor Statistics.

Why is my insurance over $1,000 a month? ›

Auto insurance premiums are determined by factors you can control — such as where you live, the type of car you drive and how much coverage you buy — and those you can't, such as your age or inflation. Poor credit can significantly raise your rates in many states, as can accidents or DUI violations.

Top Articles
Latest Posts
Article information

Author: Arielle Torp

Last Updated:

Views: 5998

Rating: 4 / 5 (41 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Arielle Torp

Birthday: 1997-09-20

Address: 87313 Erdman Vista, North Dustinborough, WA 37563

Phone: +97216742823598

Job: Central Technology Officer

Hobby: Taekwondo, Macrame, Foreign language learning, Kite flying, Cooking, Skiing, Computer programming

Introduction: My name is Arielle Torp, I am a comfortable, kind, zealous, lovely, jolly, colorful, adventurous person who loves writing and wants to share my knowledge and understanding with you.