Auto insurance provider AAA released this week its 2011 Your Driving Costs study, which showed that the price of insuring a sedan dropped 6.1 percent while overall driving costs rose 3.4 percent since the publication of last year’s study.
According to AAA, the average annual car insurance premium for a sedan is now $968, down $63 from last year. That decline in effect cancels out the increase that was seen in the 2010 study. In that edition, it was reported that policy costs had risen 5.7 percent from the year before.
Insurance costs were calculated for a married 47-year-old man who has a good driving record and drives between three and 10 miles to work every day. The sample policy provided “$100,000/$300,000 coverage with a $500 deductible for collision and a $100 deductible for comprehensive coverage.”
The study showed the total annual cost to own and operate a sedan is now $8,776, based on an annual mileage of 15,000 miles. That number is up from last year because of rises in the cost of gasoline and tires and increases in depreciation rates.
Cost categories evaluated in the study include automobile insurance coverage, fees for licensing and registration, taxes, financial charges, depreciation, fuel, maintenance and tires.