Car Insurance Cost refers to the cost of insuring a car which should be paid to the insurance provider for a specific period. Insurance providers charge different rates according to the coverage required. For example, if you want comprehensive auto insurance with legal responsibility, then there is an additional charge for that.

The following are factors that affect Car Insurance Cost

1) Type of Car

The type of auto you drive and its value will determine the insurance cost. For example, if you have a sports car, then the insurance cost is higher than that of a sedan.

2) Usage

Car usage is also another factor that affects your car insurance cost. For example, if you use your auto for commercial purposes then there is an additional fee for that. Some policies provide greater coverage for cars used for commercial purposes than those used for personal use. This is because losses from accidents are higher in the case of cars used for commercial purposes as compared to those used for personal use.

3) Driving History

The driving history of the owner also affects your insurance cost. Driving history includes whether you have been in accidents or not, how many traffic tickets you have been issued, and whether you have been involved in a parking violation. All these factors play a role in determining your car insurance cost.

4) Deductible

The deductible is the amount of money that will be taken from your settlement if any. The higher the deductible amount is, the lesser your insurance costs will be. For example, if you choose to pay $300 as deductibles, then you can avail yourself of coverage for the legal liability of up to $30,000 and $100,000 for bodily injury per person and per accident respectively. However, if no deductibles are paid then there will be additional costs for that too.


The insurance cost of a car depends on the above factors. In general, if you have a sports car that you use only for personal purposes, then it will be very less in respect of the insurance cost charged by insurance providers. By keeping all these factors in mind you can save a lot of money by purchasing the cheaper policy plan.