How much does car insurance cost on average per month? A lot of people want to know what the average costs of a car insurance are. A modal cost estimate of ‘average car insurances’ cannot be given just like that…
Average monthly cost of car insurance
What are the average monthly costs for car insurance? Soon you can count on 60 euros per month. Attention: this is a global price indication that does not apply to everyone by a long shot. The main reasons for NOT being able to simply estimate the average price of a car insurance are as follows:
- The amount of a car insurance premium depends very much on the age of the driver…
- But also of other personal factors such as the car to be insured, damage-free years built up and how much you drive.
- The degree of coverage largely determines the premium, and there are three to many different forms of coverage.
- A possible deductible reduces the monthly premium (but increases the additional costs you incur when you drive damage), which makes for an unfair comparison.
Because the content and requirements of car insurance are completely different for each individual, there is no standard car insurance. Moreover, because there are huge differences between the cheapest possible car insurance and the most expensive possible car insurance, an average price is anything but representative.
So what exactly does the average car insurance cost per month?
On average, as a Dutchman, you pay 60 euros in monthly premiums for car insurance. In practice, however, this estimated average premium amount is ALWAYS proportional to the coverage ratio, excess, driver’s age and car to be insured.
Exactly what you pay for a car insurance depends first and foremost on your age. Young drivers up to the age of 24 pay a lot more than experienced drivers who have a large number of claim-free years in their name. This phenomenon is also referred to as a ‘youth bonus’. The premium supplement for young people is used because, statistically speaking, starters drive damage much more often, as a result of which young people are considered an increased insurance risk by insurance companies.
Insurers therefore apply supplements for novice drivers for risk technical reasons. Of course, your age cannot be influenced, but you do have an influence on the car you buy as a young person. Insuring a fast, expensive car costs significantly more in terms of insurance premiums (the more so for young people) and is more expensive in terms of road tax. If you buy a second-hand Renault Clio or Ford Fiesta, for example, then you are much cheaper for car insurance than for a large, heavy, expensive, new, sporty car.
Outliers: cheapest possible + most expensive possible
On average, car insurance in the Netherlands costs somewhere between 40 and 80 euros on a monthly basis. However, there are plenty of people who pay a lot more, but also countless people who pay a lot less. By way of illustration:
- A Frisian 40’er with 20 claim-free years driving a Suzuki Alto might only pay 12 euros in WA monthly premium.
- An 18-year-old Rotterdammer with 5 malus years who wants to insure a Tesla Model S allrisk could lose 800 euros a month.
What does a car insurance cost on average per month? Your age, car characteristics, risk coverage and excess determine the monthly premium costs. Young, inexperienced drivers pay significantly more for a standard / basic third party liability insurance than drivers with a lot of driving experience. The weight and value of your (future) car also influence the periodic insurance premium and road tax.
The monthly taxes are up to you
The type of fuel used in your car determines the amount of motor vehicle tax, or road tax. The government calculates the tax rate based on the following data:
- Province – Although the differences between provinces are small
- Weight – A heavy car is more expensive for the load
- Fuel – Petrol is cheaper than diesel or gas
Moreover, the road tax fortunately does NOT look at the age of a driver. However, residence and vehicle characteristics do play an important role.
Financial expenses for fuel & repairs
Although you can make considerable savings by comparing car insurances, car insurance remains a fixed, monthly recurring expense item. But that may change, because there are already plenty of experiments with prepaid car insurance bundles. Incidentally, do not underestimate the additional expenditure on fuel, maintenance and MOT. A full tank of fuel quickly costs 50 euros. And for (relatively small) repairs to an occasion, charge around 400 to 500 euros on an annual basis.