Auto insurance costs have surged across the United States, with New Jersians feeling the pinch as they shell out 2.65% of their income, placing the state at 22nd in the country for lowest price, according to recent data by Bankrate.
The average annual premium for auto insurance in the Garden State stands at $2,555, which is $12 above the national average, highlighting the financial burden faced by residents particularly compared to other states.
In 2024, the national average cost of full coverage car insurance reached $2,543, marking a substantial 26% increase from the previous year. Drivers opting for minimum coverage are paying an average of $740 annually, translating to $62 per month.
However, the disparity among states is stark. Louisiana leads the pack in terms of auto insurance expenditure, with residents spending an average of $3,618 annually, amounting to a staggering 6.53% of their income.
Conversely, Massachusetts emerges as a beacon of relief for motorists, boasting the lowest auto insurance costs in the nation. With an average annual premium of $1,665, Massachusetts residents only allocate 1.76% of their income to auto insurance expenses.
What affects your car insurance cost?
The impact of car insurance costs extends beyond premiums. Decreased credit scores can significantly inflate insurance expenses, amplifying financial burdens for consumers.
Factors such as receiving a speeding ticket, causing a crash, experiencing lapses in coverage, being convicted of DUI, or insuring a teenage driver can further escalate costs.
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How can you save on car insurance?
Some factors are out of one’s control, such as inflation and extreme weather. However, there are certain ways, one can control their price from increasing even more.
Factors such as, driving history, vehicle type, coverage limits, and, for drivers in most states, credit history are all factors within your control that can positively influence your auto insurance premium.