In general, you are going to find that the wealthier nations are actually the places where auto insurance tends to be the most expensive. There are many different factors that auto insurance companies use when they are trying to figure out the correct premium rates for the people in their area, and these factors tend to change quite dramatically from country to country. In fact, you will also find that these factors can change from region to region in places like the United States. If you want to know where you are going to pay the most for car insurance, then you have to look at the places where people are driving fancy sports cars and seem to always find themselves in an auto accident.
Here is a list of the top five countries when it comes to expensive auto insurance premiums:
1. United States
In the United States, driving is sometimes the only way to get from point A to point B. The average rate that people pay per year for auto insurance in this country is $1,706.86. With the average income of the United States at around $50,000, this means that Americans are paying over 3% of their yearly incomes on auto insurance. It should also be pointed out that the United States is a rather large country with 50 different states. The average cost of insurance per year actually dips below $1,000 in a few states, while others find themselves spending over $2,000 per year on auto insurance.
The people of Austria love their fast, exotic cars, and they have the resources to pay for that expensive insurance on a monthly basis. Austria is actually found near the top of the world list of average income and net worth on a regular basis, and the fact that these people can buy expensive cars has a lot to do with how much they are paying for insurance. You will find that insurance rates go up even more when you get closer to Vienna.
In Germany, you are usually going to spend around €1400 for auto insurance on a yearly basis. The people of Germany are paying similar rates to Austria and the United States because they also enjoy a high standard of living. This part of Europe is also notorious for rather laid back speed limits and traffic laws, which allows for more excitement while drivers are on the road. The expensive cars and high speed limits make this country an insurance company’s nightmare.
4. United Kingdom
The cost of car insurance in the United Kingdom has recently surpassed an average of £1,000 per year. Young people are especially hit hard by this raise in prices, along with women and people who live in London and Manchester. Premiums for young drivers are now over £2,500, which is equal to just over $3,200. Anyone living in London, Manchester, or Liverpool can expect to spend over £1,500 for car insurance every year.
Australia is a country that has done quite well during all of the economic turmoil seen around the world over the past few years, but the amazing thing is that their car insurance rates have remained quite low when compared to the other four countries on this list. People who live in Sydney, the country’s biggest city, pay an average of $1,175 per year for auto insurance. The standard of living is still quite high in this country, and the people of Australia tend to pay around 1.5% of their annual income for auto insurance.
In addition to looking at the average rates in your country, you should also think about the personal factors that go into your car insurance premiums. Do your best to keep a solid driving record for as long as possible. Insurance rates always start out high while you are young, but they tend to drop down over time as you prove yourself on the road. Anything from age to gender can come into a car insurance company’s mind when it comes to giving you coverage, so you need to do everything in your power to keep your rates low. No matter where you live, most of the control over your car insurance rates is in your own hands.