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If you’ve ever wondered how much you’ll pay for auto insurance over a lifetime, we’ve got a number for you, and if you don’t want to get depressed, you may want to avert your eyes.
According to Insurance.com, the average American can expect to pay $84,388 for car insurance over a lifetime. For the purposes of this study, that would be a driver who first purchased insurance at age 21, married at 27, briefly insured two teens and stopped driving at age 75. Over this lifespan, it also includes various claims, including accidents and other incidents.
Just for reference, here’s some other costs per lifetime you can expect to shell out:
Athletic shoes at one pair annually (ages 16-75): $2,737.01 for males, $2,597.18 for females
Pet insurance for one dog (12 years): $4,766
Trip to Disney World for a family of four: $5,026
Four years of college: $30,420
NYC monthly subway pass (ages 16 to 75): $63,012
New car every seven years (ages 22 to75): $150,065.71
If you’re looking to lower your lifetime insurance costs, there are a few easy steps to take. And according to Sandra Spann, a spokeswoman for American Family Insurance, to key to driving down your lifetime insurance costs is to “Obey the traffic laws and stay ticket-free.”
Count your blessings (and the extra cash in your wallet) if you’re planning on buying car insurance in the very near future. Start shopping around, because in the next few weeks, insurance rates are going to be the lowest they’ve been in more than two years.
Let’s look at the numbers. In April, the lowest average annual rate for car insurance dropped from $1,812 to $1,798 in May. Back in May of 2009, the average rate was $1,871.
“This is great news for the growing number of savvy drivers shopping and comparing car insurance quotes,” says Rob Klapper, CEO, insurance.com. “They know there is always a chance to save big because rates constantly change for various reasons – from events in the driver’s personal life, like buying a home or having a birthday, to fluctuations in the insurance market.”
But drivers should remember to look at the other side of the coin as well. According to Klapper, a disconcerting fact is the type of coverage being chosen is a factor that’s driving rates lower.
“We’re seeing more and more drivers choosing minimum coverage or liability-only coverage when they shop and compare quotes,” says Klapper. “It makes sense, since many people are on tight budgets in this down economy and car insurance is one of the easiest places to save money. But, inevitably, this trend only adds to a growing group of underinsured drivers on the road.”
Drivers don’t always look at the big picture – they often see the lower dollar amounts and base their decision on that factor alone. You should always think to what could happen if you were to ever get into a serious accident, which can result in medical expenses that exceed an underinsured driver’s policy limits. What’s left on the bill at the end of the day, you’ve got to pony up the difference – and it can get pricey. And let’s not even get started on what could happen if you were found at fault in regards to an accident and your insurance couldn’t back you up. Insurance.com always recommends drivers buy coverage that matches your financial risk.
[Source: Cars For Girls]