Though auto insurance premium rates vary a lot, knowledge of average price of insurance is useful when you wish to shop for auto insurance policies. This is what you must know about average price of auto insurance:

The average price of auto insurance was $1837 annually for every car as of May 2009. This comes up to approximately $153 per month. This price takes into accounts entire households that may also include families with multiple cars. The national average is 3 drivers for every household and this brings down the average to about $50 per person every month. If you wish to compare the rates of various auto insurance companies with average costs, it is advisable that you use the average cost of your state, because the national average or average of a different state could be misleading. The amount of money you spend on your auto insurance depends on a large number of factors.

Your age and gender play an important role in determining auto insurance premium rate. Males under the age of 25 are considered very high-risk drivers and thus, are charged insurance premium rates that are higher than average. A few auto insurance companies don't even offer insurance to men under 25 years of age.

Men between the age group of 35-50 without any record of driving offence are considered safe drivers due to the amount of driving experience they have. They enjoy low insurance premium rates. Women are considered safer drivers than men, because they file for fewer claims and are involved in less severe accidents than men are.

Your driving history is a major factor in deciding your auto insurance premium rate. A person with a clean driving record- no tickets or accidents will enjoy low auto insurance premium rates.

Your location also affects your auto insurance rate. You will have to pay more if you live in a congested place, where the incidence of accidents is high.

The number of miles you drive also affects your auto insurance premium. The more your mileage, the higher is your insurance premium. This is because your chances of meeting with an accident rise directly with the time you spend on the road.

The choice of your car also affects the rate, because more expensive the care, more will be the cost of its repairs. Also, luxury cars are more likely to get stolen than regular cars. The safety features installed in your car, such as, anti-theft systems, airbags, anti-lock breaks and roll bars can lower your insurance premium.

Other factors, such as, your credit rating, purpose of use of vehicle (personal or business), your history of insurance claims and the number of cars you have on the policy also play a major role in determining your auto insurance rates.