Most drivers want to manage essential recurring costs, such as car insurance, to save money. Registering and driving an automobile requires the owner to present proof of financial responsibility. Auto insurance protects the driver and the automobile she owns. Auto insurance, as a kind of property and casualty insurance, also protects other drivers on the road.

Many factors affect the costs of auto insurance. According to the AAA Exchange, a mature, good driver (with no record of moving violations or auto insurance claims in the past three to five years) pays slightly less than $1,000 in auto insurance a year (about $83 a month) in 2011.

Other resources, such as the National Association of Insurance Commissioners, place the average annual cost of auto insurance closer to $1,400 (about $117 a month). Statistical information collected by the NAIC’s “Auto Insurance Database” show that many drivers have saved money on auto insurance in recent years (an average 3%) because of a highly competitive auto insurance sales environment.

This article explores some of the information used by auto insurance underwriters to determine your auto insurance costs. If you’re shopping for new auto insurance coverage, keep reading to learn some of the tried-and-true ways to save money on your monthly and total costs of auto insurance. One simple way to compare multiple rates is by entering your ZIP code into our FREE auto insurance comparison tool!

According to the Massachusetts auto insurance cost comparisons site:

Drivers in Vermont pay an average of $1,250 a year (about $104 a month) for auto insurance, according to Vermont’s Department of Banking,

Insurance, Securities and Healthcare.Drivers in New Hampshire pay approximately $1,000 a year ($83 a month) for auto insurance, according to New Hampshire’s Insurance Department.

If you live in New Hampshire can add several hundred dollars to your premium: compare auto insurance rates in Hanover (about $900 a year, or $75 a month) and Manchester (about $1,400 a year, or $117 a month)!Drivers in Minnesota pay about $1,200 a year (about $100 a month) for auto insurance, according to Minnesota’s Department of Commerce.

Comparatively, drivers in New York, the District of Columbia, Louisiana, Mississippi, and Oklahoma pay the highest average premium rates for auto insurance.New York drivers pay an average $2,700 per year ($225 per month) for auto insurance premiums, reports New York’s Department of Financial Services.Washington, D.C. drivers pay about $2,200 per year (approximately $183 a month) for auto insurance, according to the District of Columbia’s Department of Insurance, Securities and Banking.

Louisiana drivers pay about $2,000 each year (about $167 every month) for auto insurance, says the Louisiana Department of Insurance.Mississippi drivers pay an average $1,450 per year for auto insurance (about $121 a month) according to the Mississippi Insurance Department.Oklahoma drivers pay about $1,900 each year for auto insurance premiums (about $158 each month), reports the Oklahoma Insurance Department.

Some great ways to save big bucks on auto insurance  include:

Small investments in safe driver programs can net impressive savings to good drivers (15% or more, according to AAA). Other strategies to reduce your auto insurance costs include:Buy at least six months of auto insurance coverage at once, rather than paying your auto insurance premium each month. Auto insurance companies may offer a discount for prepayments.Combine at least two insurance policies for discounted auto insurance  rates.Consider your vehicle’s safety record. According to author Voorhees, the National Highway Traffic Safety Administration gave just two vehicles a five-star safety rating in 2010: BMW 5 Series and Hyundai’s Sonata excelled in crash tests performed by the NHTSA. Four-star vehicles included almost every other make/model, with the exception of the Toyota Camry (which received three-stars). The Nissan Versa received a concerning two-star rating in NHTSA tests.

Now that you’ve got more information about how to compare the auto insurance average for monthly costs, save money by requesting free auto insurance quotes. Provide us with your ZIP code now to get money-saving auto insurance information! Compare auto insurance quotes to pay even lower auto insurance rates. Believe me, just two minutes to compare auto insurance quotes and you would save for the whole year. How about this. Click above and get your quote.

Janet Jackson: Is it true that woman can get cheaper auto insurance quote? I am told that if one compares auto insurance quote, one will get a cheaper auto quote?

Response: Thanks to the Automobile Insurance Cost Reduction Act (AICRA) of 1998, it is lot easier to find competitive rates in most states of USA and compare auto insurance quotes. The insurance companies want your business so they will do what they can to bring you affordable pricing and options that fit within your budget. Of course, comparison shopping is not the only thing what will net you great insurance savings. There are several things you can do to stack the odds in your favor of landing cheaper women drivers insurance. New Jersey has made changes to make insurance more affordable but here are some other helpful tips as well:

Here are the tips to this :
1. Keep up your clean driving record by avoiding accidents, moving violations and other traffic issues.
2. Avoid high profile cars as these attract thieves daily. Classic cars, luxury models and high performance muscle cars will have higher premiums.
3. Shoulder a higher risk in your insurance policy which will lower overall premiums.
4. Ask about special discounts such as multiple driver households or bundling other insurance like home and life insurance together.
5. Consider your membership in civic organizations and auto clubs. You might be able to garner discounts if you are a group member.
6. Install extra safety measures such as anti-theft devices like car alarms and lo-jack. When you shop for a new car that needs coverage, make sure extra airbags are a safety feature.
7. If you are a student or going back to school in adulthood, you may be able to get discounts, especially if you have an honor roll grade point average.
8. Determine how you use your vehicle. If it is simply for pleasure or driving around your home town, you likely can change your coverage options and garner a lower rate. Second, less utilized cars also may cop the chance at cheaper insurance rates. Remember the key to saving on insurances is to compare auto insurance quote at least four times a year. After all it is free, what are you wanting for?
Thanks.
Kamlesh

Robert : Who is a prefered driver? Will a preferred driver be entitled to discount?

Response : A “preferred risk driver” is a good driver and by the insurance industry standards generally a preferred driver is :
1.In your mid-twenties or older, offering enough time to establish an exemplary record
2.Free of moving violations or tickets in the past three or more years, depending on where you live and which insurer you choose
3.Superior when it comes to credit scores, with higher ratings than most of your peers
4.Lawful citizens, with no vehicle-related crime convictions
Taking a defensive driving course also improves your chances of obtaining a good driver discount, as it shows your insurance company a willingness to improve your overall driving skills.

If, you’re a good and careful driver who obeys the law, seldom gets ticketed and hasn’t had an accident in years, your cautious nature may just earn you some brownie points when it comes to lowering your insurance rates.

In fact, for good drivers like you, cheap car insurance is the ultimate reward for careful driving. Car insurance companies base premiums partially on past driving experience, a good driving record automatically entitles you to a discount on car insurance rates. The logic is once a careful driver, always a careful driver—at least in your insurer’s eyes. If you have a good driving record when you’re younger, you’ll usually continue that trend as you grow older. That makes you less risk to your insurance company; and they’ll most likely reward you with reduced premiums.

In fact, the better your record when it comes to things like accidents, claims and tickets, the lower your premiums are likely to be—saving you a considerable amount on car insurance.Good drivers ride safely, avoid costly repairs and medical bills, and help protect themselves and others on the road. But one of the greatest benefits comes with preferred driver discounts, an easy route to cheaper car insurance.

If you’re shopping for lower rates on car insurance, let us help. We’ll get you all the discounts you deserve—including those for good drivers—and start you on your way toward great coverage today. Compare auto insurance coverage and check out how much you can save.