You know the feeling when you’ve got a car accident and your insurance costs are way too high?
That’s the feeling I get when I pay for my basic car insurance.
You know, like you should have.
But then, the first time I’m driving in a city and I see a sticker saying my car has $2,000 deductible, I get a sense of how high my premiums are.
A sticker that says, “If you’re not insured, we won’t cover you” isn’t just annoying, it’s also a bit of a liability policy.
Insurance companies, however, know the real cost of a low-value car insurance policy.
You need to know the cost of an actual, full-fledged car accident, not the price tag.
The average cost of auto insurance is about $20,000, according to data from the National Association of Insurance Commissioners.
The typical car insurance premium is about 4 percent.
That means that an average accident is going to cost you $20K.
To find out how much that car insurance is costing you, I did some research.
Here’s how I calculated my average car insurance premiums for the first two years of my life.
In 2014, I bought a 2015 Ford Fusion.
The sticker on the car said that it would cost $22,000.
That year, I paid $7,800.
Then in 2015, the sticker on my Fusion said that its price would go down to $19,000 and that I could buy a car with a $3,000 car loan.
After all that, I could afford to pay $22K.
But, for the next three years, the price was still $19K.
After a few years, I dropped to $15,000 on the sticker.
And, after a few more years, it was still less than $19.
That was a total of $16K.
So, for this year, my average auto insurance policy costs $16,000 after a $20k deductible.
What to expect from your policy in 2018 The biggest thing you need to consider when buying your basic auto insurance plan is the amount of coverage you get, according a recent report from the Institute for Insurance Research and Education (IRIE).
“We need to understand the full cost of the coverage to make the right choice,” IRIE Chief Economist Joe Cappello said.
“We need data on what types of coverage people are choosing, what type of coverage they’re getting and what the premium costs are.”
If you’ve only got one-third of your coverage covered, then your costs are going to be significantly higher than if you’re getting 90 percent of it covered,” Cappellosaid.
For this year’s plan, I figured that I would have at least 80 percent of my coverage covered and my deductible was likely around $4,000 or $5,000 for a basic car.
I decided to pick the cheapest plan in the cheapest category and just keep the other 80 percent.
So, I chose the lowest-priced auto insurance with the lowest deductible, according the IRII’s 2017 data.
If you plan on getting a $5k car loan, I recommend that you get the cheapest auto insurance that is going for a car loan of $2k or less, and I recommend you pay no more than the average of your monthly premium.
There are some other things to consider too.
The IRIe report noted that in 2020, the average age of auto buyers was 37.
For many people, that’s an older car, so I’m sure their car insurance was probably higher than the cheapest car.
So I’d recommend that your cheapest auto policy includes at least the same amount of insurance coverage as the average car.
But if you are buying a $10k car, you’ll want to get the most expensive auto insurance, as IRIEs 2017 data shows that the average insurance costs for a $1,000+ car in 2020 were about $2.9K.
If you are a 40-year-old, you may want to pay more for your auto insurance than the IriE reported.
But for someone just getting started in life insurance, I’d suggest that you pick the best auto insurance for your needs.
And if you don’t have any car insurance at all, the best policy is probably a $2-3k policy that covers your full car coverage, including the deductible.