The reasons why US auto insurance rates drop for the first time in 2021

 Car insurance can be a difficult and time-consuming topic to understand. This report attempts to unmask some of these key issues and uncover ways Americans can save more money.

According to the reports, auto insurance rates across America decreased by 1.7% for 2021; the average cost of auto insurance in the US for 2021 is $1,636. However, it also found that premiums are still 106% more expensive when compared to prices in 2011.

ValuePenguin noted that 45 states saw their auto insurance premiums decrease by an average of 2.3%. The states that saw the biggest year-over-year decreases in rates were Arkansas (4.8%), Ohio (4.3%) and Michigan (4.3%) although Michigan continues to pay the highest average auto insurance rates in the country, as much as 353% higher than the national average.

The report also found that a traffic violation would lead to an average premium increase of 117% in 2021. In terms of specific states, drivers in North Carolina will see the biggest increase in auto insurance rates due to a traffic violation a 255% spike. By comparison, the state of Florida has the least increase in auto rates following a violation, at only 55%.

Drivers with DUI violations will see their premiums increase by 157% on average in 2021, ValuePenguin noted. Meanwhile, those charged with minor violations (such as failing to obey traffic signs) would see a 28% average increase in their insurance.

Read more: 6 available Health Insurance for unemployed of 2021 and what is the cheapest Health Insurance

Understand these factors:

a- Age isn’t the only physical factor that affects car insurance rates. Women generally pay less for car insurance than men do.

This isn’t a form of discrimination, but a recognition of the statistical fact that men are more likely to speed and get involved in serious accidents than women are, particularly at young ages. Males are also more likely to incur traffic violations, as well as participate in drunk driving.

But despite the higher premiums that men typically pay, that result is not necessarily across the board. It’s most pronounced among young drivers ages 16 to 24, where male drivers will pay 15% or more than female drivers. Premium rates tend to be slightly more expensive for female drivers at ages 30 and 40. This may be because of pregnancy and the likelihood of driving with small children and the distraction that they create.

b- Married drivers can pay up to 50% less than single people at the same age. Part of this is because married drivers tend to be more conservative in their driving habits than single people do.

Another important factor is having multiple drivers on the same policy. Since car insurance companies typically give discounts for multiple drivers, a married couple pays less than a single person. This can be especially beneficial if one partner has an impaired driving record, and the other has a clean record.

c- Even if you are a young, single, or new driver, there are ways you can lower your car insurance premium.

Here are some ways to consider:

1- Take a driver education course ,this is especially beneficial if you’re either a new driver or you have a history of at fault accidents or traffic violations.

2- As a new or teenage driver, ask about student driving discounts ,you usually have to have a good or excellent school record to qualify.

3- If you are over 65, ask about senior car insurance discounts.

4-  Drive carefully in most states violations and accidents are dropped from your record after three years.

5- Consider the car you’re driving sports cars and high-priced cars naturally carry higher insurance premiums than other vehicles.

6-   When you buy a car, look to add insurance-friendly safety features, like air bags and anti-lock brakes.

7-   If you are a teenage driver, you can usually get a lower premium by being included on your parents’ policy, rather than having a separate policy of your own.