The most influencing factor determining a customer’s wish to buy a car insurance policy is the average car insurance rates. Though, it is considered mandatory by the Federal law of the United States of America for vehicle owners to buy a car insurance policy, a lot of consideration goes into comparing between many car insurance policies before the customer buys one.

What are factors impacting average car insurance rates?

*The age of the vehicle driver – Generally, the insurance rates and the premiums are on the higher side with increase in age. The car insurance rates form a bell curve pattern with peaks observed with rates offered to the teenagers and senior citizens.

*The coverage of car insurance policy – Most car insurance policies cover driver insurance, collision insurance as a part of their policy. Depending upon the vehicle in possession, vehicle owners may intentionally decide to drop one of the covers. Though, people feel it is a cost-cutting measure, vehicle owners do this knowing their vehicle and the driving conditions well.

*The driving conditions and the usage of the car – One of the questions most insurance companies ask is the usage of the car. If the vehicle is going to be used as a sports car driving up and down on hilly terrains, chances are that the premiums would be priced high. One can expect to pay a lower premium on their vehicle’s insurance policy if it will be used for an up-down travel on a safe highway.

*State of residence in the United States of America – Depending on the state of residence in the United States of America, the average car insurance rates may vary. One can access the comparison charts for car insurance rates by contacting the State Department of Insurance.

The average car insurance rates have fallen from $933 in 2003 to $867 in 2006. If the same trend continues one can expect the insurance rates to breach below the $800 mark. This obviously indicates that car insurance covers are no longer considered as an expensive option for vehicle owners.