How Much Should I Budget For Auto Insurance

Jun 13, 2022 | Personal Insurance

Budget Auto Quote

When the budget is tight, you need the best auto insurance in Denver, CO (or any other state) at the most affordable rates. We will discuss the budget auto quote for this article.

Auto insurance protects you and your vehicle in the event of an accident. You can never say when an accident will happen; being prepared for it can be your best protection. Having auto insurance may be quite expensive however if you are going to make a comparison between the amount of your auto insurance and the cost of hospitalization, car repair, or a new car, and your life. You will certainly realize that having insurance is a must. 

Most states legally require all drivers to carry auto insurance. It consists of different types of coverage, such as: 

  • Comprehensive – A coverage that helps pay for the replacement. Or the repairs of your car in case it is stolen or damaged due to an accident that is not a collision. 

What is covered under Comprehensive Insurance? 

Vandalism, Fire, Theft, Natural Disasters like a tornado, hurricanes, or Hail Damage to your car caused by animals, Damage due to civil riots and chaos, Damage caused by falling objects 

What is not covered by Comprehensive Insurance? 

Any damage due to collision Medical expenses for you and your passenger ( if there is any ) Damage to another person’s car due to a collision 

  • Collision – This coverage helps you pay for the repair of damage due to a collision with another vehicle, objects like fences, and signage. 

What is not covered by Collision Insurance? 

Damage to another person’s vehicle as a result of the collision. Your medical expenses and your passengers will not be covered as well The driver from the other car you collided with, as well as the passengers, are not covered. 

What is covered by Collision Insurance

Collision with another car or vehicle 

Single car roll-over accidents Collision with objects like signage and fence 

Personal Injury

It covers your medical expenses as well as your passengers. And its good feature is it doesn’t matter who is at fault. When an accident happens, you will be covered no matter what. Even when you are just walking on the side of the road, and an accident happened, a car hits you. That should be covered as well because personal injury covers not only just when you are driving. Another example is when you are sitting inside your car while in a parking area waiting for your child, then another car accidentally hits yours. That one must be covered too. 

Bodily Injury

It covers the costs of medical expenses for the person or people who you injured in your car. The coverage also includes the driver injured by the other car, passengers inside your car who are not your family, and even pedestrians that might get injured during the accident. However, if you are the one who caused the accident, this coverage may help you pay your legal expenses in case you need to file a case in court. 

Uninsured / Underinsured Motorist

Underinsured coverage kicks in when an accident happens, and you are not at fault. The other motorist must pay for your medical expenses. However, underinsured coverage must take over if it isn’t enough to cover yours. For example, your medical expenses and automobile damages reached $1,500. Unfortunately, the other motorist’s insurance’s maximum coverage is $1000. Your insurance provider will shoulder the remaining balance as long as it is within the maximum coverage. 

Personal Property

This covers the fees for damages to another person’s property due to an accident you caused while driving. If you are trying to maneuver while parking your car in your garage but accidentally hit your neighbor’s fence, the personal property covers that. 

Your state will require you to carry a minimum amount of coverage before you can drive legally. You can choose and add ranges to your policy if you wish to have more protection. But on average, auto insurance costs $1,548 per year. That is $774 if you choose a per six-month policy and $129 if you choose a monthly payment. However, auto insurance’s amount will still vary. Depending on different factors, the insurance provider will determine how much your premium will be. 

Factors that can affect your auto budget insurance rate/quote

Which state and kind of place do you reside

The location is a great factor that can affect the amount of your auto insurance. Each state has its own rates and laws regarding auto insurance, just like Louisiana. Areas that are vulnerable to natural disasters pay higher premiums. It is known as a hurricane-prone area. Hence, Louisiana ranks second in the U. S. for having the highest premium among all states. Moreover, areas that are densely populated tend to pay higher premiums because accidents are very common in such types of areas.

Louisiana pays the highest auto insurance in the whole U.S., with an average premium of $3,280 for full coverage and $1,488 for minimum coverage. On the other hand, Indiana holds the first spot for the lowest premium rate in the whole country, with an average rate of $1,094 for full coverage and $430 for the minimum. Iowa drivers pay the lowest rate for minimum coverage car insurance for just $300 per year. The majority of its states are rural rather than urban. That being the case, the fewer cars on the road, the less likely accidents will happen.

The age concerning your budget auto quote

This factor significantly impacts the amount of your auto insurance more than you think. Single men aged 25 and below pay more for auto insurance than married men. Here are why: Younger men with no responsibilities are typically more adventurous and wild. Most of us can relate to this for sure! This is the stage of our lives where everything new and risky sounds enticing. And these characteristics can be a risk for the possible filing of claims.

The nature of your work and driving habits

Understandably, your auto insurance cost is higher if you have a high-risk job. So what exactly are the factors that can contribute to doing your work and habits a high risk? Driving your car daily going to and back from work is one. Being on the road alone can be a reason for you to meet with an accident. That said, if your job requires you to travel often, expect a higher-than-average cost for your insurance.

Also, a garage at home and a safe workplace parking space are necessary. If you happen to just park on the street side or in a shared garage, those factors can affect the cost of your auto insurance. So think of what can make you and your car prone to accidents. If you are doing any high-risk things, you already know what will happen to your premium.

The kind or type of car you have regarding your budget auto quote

Always remember the faster and the higher-performance car you choose, the more costly your auto insurance is. If your car runs faster than an average car, the tendency to encounter an accident is immensely high. That being the case, buying a sports car will cause you higher auto insurance. On the other hand, if you happen to have a family car along the lines of a sedan, minivan, and SUV, your auto insurance will likely fall on the average amount.

Aside from the fact that these types of cars don’t typically run extremely fast, bigger cars are also considered safer because bigger cars can absorb more significant amounts of impact during an accident. Some factors can lower your auto insurance, such as alarms, anti-theft devices, anti-lock brakes, and other safety features that can be added to your car. Another way to save money is by buying a used car. Auto insurance for used cars is way cheaper than insuring a new one.

Your credit score

Credit ratings have always been a significant factor in auto insurance, homeowners’ insurance, and bank loans. It is indeed important that your credit score must be good to get a great deal. Insurers often check credit ratings to assess if the applicant can be a risk. You are less likely to file a claim if your credit score is good. The same analysis goes with if you have a bad credit score, then you are a big risk and might be more likely to file a claim. So how can you fix it?

In spite of the fact that your credit score is something that you can’t fix overnight, what you can do is at least improve it by making sure to pay your bills on time. As well as trying to reduce your debt. This may be a long road to take, but if you are planning to get auto insurance, include this in your requirements to prepare you for your plans of having insured. However, some states wherein using credit scores to assess the insurer’s risk is illegal. These states are the following: 

  1. Hawaii 
  2. California 
  3. Massachusetts 

Your driving and claims history regarding your budget auto quote

This factor can give any insurance company a red flag. If you have received tickets and committed violations before, like DUI and reckless driving, expect a higher rate for your auto insurance. The same goes if you have a record of filing too many claims in the past. If you have homeowners insurance, this news can no longer surprise you. Just like in any other type of insurance, every insurer will make a background check regarding what happened in your previous auto insurance, if there is any. So don’t fret. This step is just standard because all insurance companies have this procedure. Better yet, talk to your insurance agent about it, and they will surely provide you with the best option they can give. 

Marital Status

This may seem like a petty reason for some, but statistics show that married men and women are less likely to file claims. If we think about the reasons, maybe it is because married people are older and wise enough to be responsible and cautious drivers. And two, people with a family (like having a spouse and children) tend to be more careful about their actions because their behavior on the road can affect other people and their lives. That being the case, married drivers are usually offered lower premiums. Now, tying the knot might not be so bad after all!


Deductibles are the amount you pay out of your pocket before your insurance pays anything after filing a claim. The average cost of the deductible is roughly $500. But it can be as high as $1,000 to $2,000 and as low as $100. You can save a lot if you are strategic when budgeting your insurance. It is better to pay a deductible worth $1,000 than to play safe and pay $200 for your deductibles. Because once you file a claim, that $1,000 deductible can save you a fortune. That said, if you have some extra money in your bank, you shall include this option because it can be more beneficial for you in the future than you think. 

Now that you already understand how much your budget should be for your auto insurance, you can easily shop now from different insurance providers. It’s best to ask your insurance agent about everything you want to add to your policy and let them know what you don’t need. Surely they will be happy to help!

Ask Us Today

We hope you learned a lot regarding the budget auto quote. Being the best independent auto insurance agency in Denver, CO, is no easy feat. But we’re ready and able to assist you should you have anything you need to clarify. We’re only a phone call away chat with us in that pop-up box on the screen’s lower right-hand corner, and get a FREE insurance review today!

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