Car insurance is a legal requirement. In the UK and the US, once you own or drive a car, the law states that you must at least have third-party-only insurance. In this article, we’ll be looking at car insurance in the UK vs. the US.
Insurance is of necessity even if you don’t drive the car and the car is kept parked on the road, driveway, or in a garage. This article is for all drivers. You can find auto insurance for
Young drivers: Drivers between the age of 17 and 24.
Learners’ drivers: drivers taking lessons with a provisional license.
Over 50s: Drivers who are aged 50 and above
Named drivers: If you intend to have another driver in your policy.
New drivers: drivers who recently passed their driving test.
Disabled drivers: If because of your disability, you need extra protection.
Multi Car: if multiple cars need to be insured.
How much does car insurance cost in the UK?
A lot of factors can determine the price of your car insurance, but generally, as you get older, premiums usually tend to get cheaper. For instance, 20-24 years old pay £1,232 a year fully comp cover39-year-old old pay £575, and 50-64 year’s old pay around £3354
This is because insurance companies think that younger drivers are more likely to make a claim, because of the lack of experience of driving and also a higher chance of being involved in an accident.
The cheapest option is usually the fully comprehensive cover, even though it offers the most coverage out of the three options. Insurers noticed that they were getting more claims on third-party-only policies because the younger or newer drivers would choose this as the cheapest option, it used to be the other way around.
The trend reversed as this pushed the price of third-party-only policies up. And now, a fully comprehensive cover is the cheapest.
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How much is car insurance in the US?
The average cost of car insurance in the United States of America is $2,014 per year. On the other hand, the minimum coverage has an average annual cost of $622. Just like fingerprints, you circumstance may seem similar, your personalized rating factors will cause your premium to vary from that of friends, family and also national average. It is important to know the average cost of car insurance that will give you the information you need to ensure you’re paying a competitive rate.
How much does car insurance cost by state?
Car insurance on an average costs around $2,014 for full coverage while per year for minimum coverage cost $622. However, when you want to determine how much car insurance cost in a specific area, a number of factors can determine that and these factors can include the state where you live, individual rating factors, accident and claim reporting frequency, and even cost of labor and parts can cause one city or state to be more expensive than others.
What are the cheapest states for car insurance?
Maine, Vermont, Idaho, New Hampshire and Massachusetts drivers pay the cheapest annual full car insurance coverage rates in the United States, on average. Factors that determined that is the cheaper cost of living, lower probability of accidents and claims, and less traffic congestion thereby leading to lower average premiums
What are the most expensive states for car insurance?
Drivers in Florida, New York, Nevada and Michigan have the highest average annual cost of full coverage car insurance. This is due to frequent claims for common losses in these states, thereby making drivers riskier to insure overall.
What affects your car insurance premiums in the US and the UK?
When insurers work out how you might be, they consider a lot of things. The more of a risk you pose, the higher the price of your car insurance will be. These considerations include:
Location: there is a higher rate of theft or vandalism in some postcodes than the others. For instance, those living in London pay an average of £780 for their yearly premium, whilst those in Scotland pay only £5015
Your Job: there are some jobs that will be seen as higher risks, especially if they involve driving a lot of miles or being around heavy machinery.
Your Mileage: there is more likelihood for you to be involved in an accident when you spend longer time on the road. If you drive infrequently, there is a chance that you could save money with low-mileage cover.
Your car make and model: it usually costs more to cover cars in higher insurance groups.
Your car storage and security: There is reduction in the risk of theft and vandalism when there is garage, driveway, and carports.
Your driving history: this may include any driving convictions you may have as well any claims you’ve made on car insurance covers in the past.
Your voluntary excess: You are less likely to make frivolous claims for low amounts when volunteering a higher excess fee.
Any other drivers on your policy: You might find adding a more experienced driver to your policy to bring down your premium if you are younger than 25.
How can I get cheaper car insurance in the UK vs. the US?
Here are some things you can try to get a better price on your car insurance policy:
Build a no-claims discount
If you can avoid making claims for smaller things by paying for the repairs or replacements yourself, you can earn a discount on your premiums – the longer you go without claiming, the bigger the discount should be
Avoid modifications
Modifying your car can often mean more expensive repair costs, or needing spare parts that are harder to get, so you’ll likely pay more to cover these
Consider telematics
Telematics policies, sometimes known as black box car insurance, give younger and inexperienced drivers a chance to earn lower premiums by showing that they have sensible driving habits.
Avoid auto-renewing
Your car insurance policy will likely be renewed automatically when the term ends, but you may be able to find a cheaper deal when you compare quotes online
Pay annually
Paying an annual lump sum for your car insurance policy may seem like a big initial outlay, but it would cost less overall than if you were to pay monthly instalments
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