Average Cost

• According to the Rocky Mountain Insurance Information Association (RMIIA), the average car insurance price in 2007 was $795 annually. The cost of insurance varies from state to state. New Jersey, Washington D.C. and New York were among the most expensive states for car insurance in 2007. At the same time, Nebraska, South Dakota, Iowa and Idaho were among the cheapest states to purchase car insurance.
  
  

Types of Vehicles

• Certain types of vehicles, like large SUV's, are more expensive to insure because they require more costly repair work and are likely to inflict more damage in a collision. Insurers look at statistics on car safety and popularity with vehicle thieves to determine the premiums for different types of cars.
  
  

Age and Accidents

• Sixteen-year-old drivers should expect to be charged up to 2.5 times more than average for insurance. Also, insurance companies often raise rates for high risk drivers who receive several tickets or are in an accident. On the other hand, many companies offer good driver discounts for those whose records are clean.