What’s your cheapest insurance?
A cheap auto insurance policy could save you more than $1,500 a year, according to a new study by the American Association of Personal Injury Lawyers.
The study, based on data from insurers, found that an average premium of $2,000 for an individual in 2018 would pay for an average of 12,000 miles for a typical driver.
The analysis of the cheapest car insurance policies was carried out for a report released by the National Highway Traffic Safety Administration (NHTSA) in January.
The report, entitled The Cost of Cheap Auto Insurance, examined how the cost of auto insurance has increased over the last two decades.
A key part of the study is comparing the cost per mile of the lowest cost auto insurance policies from the most expensive to the least expensive, with the results showing that an extra $1 per mile for the cheapest auto insurance could save $1.3 million over two years.
The average cost per car insurance premium in 2017 was $2.50, according the report.
According to the National Association of Insurance Commissioners, the average price of auto coverage in 2017 rose $1 billion in two years to $8.3 billion.
Auto insurance is the biggest single expense consumers face, costing consumers nearly $7 trillion a year.
NHTSS data from 2016 showed that auto insurance cost the consumer $3,600 in 2018, up from $2 per mile in 2016.
The cost of car insurance has also increased by nearly $20 per month for a 20-year-old driver, from $7.95 per month in 2016 to $13.30 per month.
The report found that drivers who had an average auto insurance premium of less than $2 a mile in 2017 would save $7,700 on average over a two-year period, while drivers with a premium of more than that would pay $11,900 more a year in premium, according a summary of the findings.
It also found that average auto coverage would cost consumers between $7 and $8 per month, which is significantly higher than the average annual cost of $1 to $2 for an 18-year old driver.
Drivers under the age of 26 would pay a premium that is $7 to $10 per month more than the typical 18- to 25-year age group, the report said.
In a statement, the AAA said it would look into the study and offer its own suggestions for consumers.
“Our analysis shows that if the average rate paid for an auto insurance plan was $1 or less per mile, that would save consumers over $1 million over a one-year cycle,” the statement said.
“AAA is committed to offering consumers a low cost auto policy that’s fair, affordable, and covers them with dignity.”