If your recent car insurance bill gave you pause, you’re not alone. Car insurance rates have been on the rise, leaving many drivers wondering how much they should truly be paying. The good news is that understanding the factors influencing these costs and knowing how to compare options can empower you to significantly reduce your premiums. This guide will break down the average cost of car insurance in the U.S., explore the key elements that determine your rate, and provide actionable strategies to secure more affordable coverage.
Average Car Insurance Costs in the U.S.
Nationally, drivers in the United States are paying an average annual car insurance premium of $716 for minimum liability coverage. For those seeking more comprehensive protection with full coverage, the average annual cost rises to $2,386. However, these figures represent averages calculated for a 35-year-old driver with a good credit history and a clean driving record. Your individual car insurance cost can fluctuate dramatically, potentially ranging from as low as $210 to upwards of $7,000 per year, depending on your unique circumstances and the coverage you choose.
Several crucial factors contribute to these price variations. We have investigated the primary determinants beyond just the type of coverage you select. Explore the sections below to delve deeper into how each factor impacts your car insurance premiums.
Understanding Average Car Insurance Costs: Our Methodology
To establish these national averages, we utilized a base profile: a 35-year-old driver with good credit and no traffic violations. This profile allows us to isolate and analyze the impact of individual factors like age, driving history, location, and vehicle type on insurance rates. Minimum coverage averages are calculated based on each state’s minimum legal requirements, including Washington, D.C. Full coverage averages are based on a standard liability limit split of $50,000 for bodily injury per person, $100,000 for bodily injury per accident, and $50,000 for property damage, along with a $500 deductible for both collision and comprehensive coverage.
It’s important to remember that the costs presented throughout this article are intended as general benchmarks to guide your expectations. They are not exhaustive and may not encompass every possible combination of factors.
Calculate Your Potential Car Insurance Cost
Want to get a personalized estimate of your potential car insurance costs? While our tool is temporarily unavailable, understanding the factors discussed in this article will help you anticipate your likely premium range. By considering your state, age, driving history, and desired coverage level, you can begin to gauge whether you might fall into the lower, average, or higher end of the cost spectrum.
Car Insurance Costs by State: Location Matters
Where you live plays a significant role in determining your car insurance rates. States with high traffic density, frequent natural disasters, or higher rates of vehicle theft often see elevated car insurance costs. For example, states like New Jersey, Florida, and Louisiana tend to have more expensive auto coverage. Conversely, states with less congested roads and fewer risk factors, such as Wyoming and Idaho, typically enjoy lower car insurance premiums.
The table below allows you to compare average annual minimum-coverage and full-coverage rates across all 50 states and Washington, D.C.
| State | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| Alabama | $635 | $2,152 |
| Alaska | $443 | $1,962 |
| Arizona | $825 | $2,519 |
| Arkansas | $564 | $2,390 |
| California | $722 | $2,976 |
| Colorado | $567 | $2,842 |
| Connecticut | $1,188 | $2,571 |
| Delaware | $1,213 | $2,584 |
| Florida | $1,525 | $3,485 |
| Georgia | $910 | $2,575 |
| Hawaii | $445 | $1,568 |
| Idaho | $436 | $1,663 |
| Illinois | $636 | $2,092 |
| Indiana | $487 | $1,883 |
| Iowa | $339 | $2,032 |
| Kansas | $536 | $2,252 |
| Kentucky | $817 | $2,607 |
| Louisiana | $1,080 | $3,611 |
| Maine | $442 | $1,537 |
| Maryland | $955 | $2,235 |
| Massachusetts | $622 | $1,879 |
| Michigan | $927 | $2,722 |
| Minnesota | $586 | $2,362 |
| Mississippi | $514 | $2,081 |
| Missouri | $657 | $2,525 |
| Montana | $514 | $2,456 |
| Nebraska | $396 | $2,283 |
| Nevada | $1,411 | $3,170 |
| New Hampshire | $504 | $1,604 |
| New Jersey | $1,383 | $2,779 |
| New Mexico | $543 | $2,236 |
| New York | $1,117 | $2,424 |
| North Carolina | $684 | $2,338 |
| North Dakota | $463 | $2,227 |
| Ohio | $472 | $1,661 |
| Oklahoma | $566 | $2,600 |
| Oregon | $993 | $2,257 |
| Pennsylvania | $510 | $2,524 |
| Rhode Island | $982 | $2,606 |
| South Carolina | $725 | $2,187 |
| South Dakota | $441 | $2,492 |
| Tennessee | $534 | $2,086 |
| Texas | $782 | $2,828 |
| Utah | $938 | $2,458 |
| Vermont | $394 | $1,468 |
| Virginia | $649 | $1,828 |
| Washington | $591 | $2,078 |
| Washington, D.C. | $1,068 | $3,084 |
| West Virginia | $632 | $2,426 |
| Wisconsin | $460 | $2,009 |
| Wyoming | $292 | $1,677 |
*Rates are based on a 35-year-old driver with good credit and no driving violations insuring a 2023 Toyota Camry.
Car Insurance Costs by Provider: Brand Matters, But So Does Size
The wide range of car insurance rates can be confusing. Even with similar driver profiles and vehicles, insurance companies assess risk differently. This is why comparing quotes from multiple insurers is crucial when shopping for auto coverage. You might be surprised to find significant price differences between providers.
Interestingly, larger, nationally recognized insurance companies don’t always offer the lowest rates. Regional and local car insurance providers often have more competitive average rates compared to well-known national brands you frequently see advertised. Exploring options beyond the biggest names can lead to considerable savings.
Car Insurance Cost Estimates from Major Providers
The following table presents average minimum and full-coverage rates from national auto insurers that operate in 30 or more states.
| National Provider | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| Allstate | $973 | $2,802 |
| Amica | $910 | $3,122 |
| Geico | $531 | $1,980 |
| Chubb | $359 | $2,756 |
| Farmers | $1,004 | $3,099 |
| The Hartford | $873 | $2,664 |
| Kemper | $591 | $2,439 |
| Nationwide | $897 | $2,459 |
| Progressive | $733 | $2,527 |
| Selective Insurance | $957 | $2,083 |
| State Farm | $710 | $2,640 |
| SafeAuto | $690 | $3,220 |
| Travelers | $665 | $1,926 |
| USAA | $459 | $1,624 |
*Rates are based on a 35-year-old driver with good credit and no driving violations insuring a 2023 Toyota Camry.
Car Insurance Cost Estimates from Regional and Local Providers
Don’t overlook smaller insurance companies. The table below shows average auto coverage rates from regional and local providers operating in one to 29 states. These companies can sometimes offer more personalized service and competitive pricing.
| Regional/Local Provider | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| Acuity Insurance | $411 | $2,242 |
| American Family | $899 | $2,029 |
| Arbella Insurance | $639 | $2,265 |
| Auto-Owners | $491 | $1,999 |
| California Casualty | $441 | $3,873 |
| Central Insurance | $455 | $2,142 |
| Country Financial | $742 | $2,186 |
| Cumberland Mutual | $996 | $2,832 |
| Donegal Insurance | $474 | $2,943 |
| Erie | $523 | $2,016 |
| Frankenmuth Insurance | $368 | $1,675 |
| Grange Insurance | $515 | $2,725 |
| IMT Insurance | $278 | $2,006 |
| Mercury Insurance | $956 | $2,998 |
| MMG Insurance | $413 | $1,757 |
| NJM | $907 | $1,963 |
| North Star Mutual Insurance | $376 | $2,766 |
| Patrons Insurance | $411 | $1,880 |
| PEMCO Insurance | $211 | $1,860 |
| Plymouth Rock | $745 | $2,007 |
| Redpoint Insurance | $643 | $1,927 |
| Safety Insurance | $431 | $1,703 |
| Shelter Insurance | $591 | $2,212 |
| United Insurance | $1,282 | $2,670 |
| Westfield Insurance | $282 | $2,679 |
*Rates are based on a 35-year-old driver with good credit and no driving violations insuring a 2023 Toyota Camry.
Car Insurance Costs by Age: Experience Pays Off
It’s well-known that younger drivers, particularly teenagers, face the highest car insurance premiums. As drivers gain more years of experience on the road, insurance rates tend to decrease. Drivers in the 35 to 55 age range with clean driving records typically enjoy the most affordable auto coverage. This reflects the statistical reality that younger, less experienced drivers are more likely to be involved in accidents.
The table below compares average minimum and full-coverage rates for different age groups, illustrating this trend.
| Age | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| 16 | $2,815 | $5,682 |
| 17 | $2,445 | $5,317 |
| 18 | $2,186 | $5,014 |
| 19 | $1,715 | $4,577 |
| 20 | $1,534 | $4,287 |
| 21 | $1,241 | $3,661 |
| 22 | $1,139 | $3,431 |
| 25 | $880 | $2,749 |
| 35 | $716 | $2,386 |
| 45 | $744 | $2,305 |
| 55 | $703 | $2,143 |
| 65 | $739 | $2,180 |
| 75 | $875 | $2,479 |
*Rates are based on a driver with good credit and no driving violations.
Car Insurance Costs by Driving Record: Accidents and Violations Increase Premiums
Your driving record is another major determinant of your car insurance costs. Traffic violations such as car accidents, DUIs (Driving Under the Influence), and speeding tickets can significantly increase your rates. A single DUI, for instance, can raise your premiums substantially. Insurers view drivers with violations as higher risk, leading to higher premiums to offset potential payouts.
The table below demonstrates how common driving violations can impact your car insurance costs.
| Driving Record Category | Average Annual Minimum-Coverage Cost | Average Annual Full-Coverage Cost |
|---|---|---|
| Clean | $716 | $2,386 |
| Single Accident | $1,088 | $3,281 |
| Single DUI | $1,260 | $3,417 |
| Single Speeding Ticket | $908 | $2,899 |
*Rates are based on a 35-year-old driver with good credit.
Car Insurance Costs by Credit Score: Creditworthiness Matters in Most States
In most states, your credit score plays a surprisingly important role in calculating your car insurance rates. Insurers argue that credit score is statistically correlated with the likelihood of filing claims. Drivers with poor credit are often seen as higher risk and therefore face higher premiums. Maintaining a good credit score can lead to significant savings on your car insurance.
The table below highlights the difference in average rates between a driver with good credit (score between 670 and 739) and a driver with poor credit (score between 300 and 579).
| Credit Score Category | Average Annual Minimum-Coverage Cost | Average Annual Full-Coverage Cost |
|---|---|---|
| Good | $716 | $2,386 |
| Poor | $1,407 | $3,520 |
*Rates are based on a 35-year-old driver with no driving violations.
Other Factors Influencing Car Insurance Costs
Beyond the major factors already discussed, car insurance companies consider a range of other elements when determining your premiums. These can include:
- Vehicle Mileage: Driving fewer miles annually typically translates to lower premiums. Insurers see lower mileage drivers as less likely to be involved in accidents due to reduced exposure on the road.
- Home Ownership: Homeowners are often offered discounted insurance rates for bundling their home and auto policies. This “bundling discount” can lead to significant savings.
- Marital Status: Married drivers may, on average, pay less for car insurance than single drivers. Statistically, married drivers are sometimes seen as less risky.
- Gender: While the impact is often minimal (around 1% difference), male drivers have historically paid slightly more for car insurance on average. However, using gender as a rating factor is prohibited in California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.
- Occupation: Certain professions, such as teachers and government employees, may qualify for occupation-based or affiliation discounts.
- Market Conditions: Like any market, insurance costs fluctuate. General economic inflation and industry-specific trends can impact insurance rates.
- Vehicle Ownership Status: Leased and financed cars often require comprehensive and collision coverage, making them more expensive to insure than owned vehicles. Lenders typically mandate these coverages to protect their investment.
- Number of Policy Members: Adding multiple drivers and vehicles to a single policy often results in lower per-person costs due to multi-car discounts.
- Insurance History: Gaps in your insurance coverage or a history of claims can lead to higher rates. Continuous coverage and a claims-free history demonstrate lower risk to insurers.
Car Insurance Cost Trends to Watch
Like many sectors of the economy, car insurance costs have experienced significant increases since the pandemic. Inflation, driven by Covid-19 related lockdowns and supply chain disruptions, has broadly impacted the cost of goods and services, including auto insurance. Several specific trends within the auto insurance industry contribute to these rising costs:
- The Consumer Price Index (CPI) for auto insurance has risen by 18.6% since July 2023, reflecting a substantial increase in the cost of coverage.
- The CPI for motor vehicle maintenance and repairs has increased by 4.6%, indicating rising costs associated with vehicle repairs after accidents.
- Nationally, vehicle theft increased by 1% from 2022 to 2023. Higher vehicle theft rates contribute to increased risk for insurers and can lead to higher premiums.
- While overall national prices for consumer goods saw a decrease of 2.9% in July 2024, marking the first time inflation fell below 3% since March 2021, the accumulated inflation still keeps prices higher than pre-pandemic levels.
- New car prices remain elevated, averaging around $48,724, and have remained relatively stable since 2023.
- Used car prices have seen a decrease of 4.6% year-over-year from August 2023 to August 2024, according to Cargurus data.
“Once inflation is reflected in the general price levels, prices tend to stay at a higher level,” explains Stephen Yao, Associate Professor of Insurance & Risk Management at the University of Central Arkansas. “Even [a] lower inflation rate still means price levels continue to increase.”
Stephen Yao Associate Professor of Insurance & Risk Management University of Central Arkansas
Stephen Yao
Associate Professor of Insurance & Risk Management
University of Central Arkansas
Strategies for Affordable Car Insurance Rates
Facing sticker shock when getting car insurance quotes? Don’t despair. Several strategies can help you secure more affordable auto coverage:
1. Compare Quotes from Multiple Insurers:
It’s essential to shop around and compare rates from several insurance companies before committing to a policy. Insurers weigh risk factors differently, and you may find significantly lower premiums from a different provider for the same coverage.
2. Bundle Home and Auto Insurance:
Bundling your home and auto insurance policies with the same insurer often results in substantial premium discounts. Inquire about bundling discounts to maximize your savings. Also, consider insuring multiple vehicles under the same car insurance policy for potential multi-car discounts.
3. Complete a Driver Safety Program:
Many states offer state-approved driver safety programs. Completing these courses, which typically range from six to eight hours, can qualify you for discounts of up to 5% from many insurers.
4. Explore Usage-Based Insurance Programs:
Consider usage-based insurance (UBI) programs or telematics. These programs monitor your driving habits through an app, tracking factors like braking, speed, and driving times. Safe driving behavior can be rewarded with discounts.
5. Adjust Your Coverage as Your Vehicle Ages:
As your car’s value depreciates with age, you may want to re-evaluate your need for comprehensive and collision coverage. A general guideline is to consider dropping these coverages when your annual premium exceeds 10% of your vehicle’s market value.
6. Maximize Available Discounts:
Car insurance companies offer a variety of discount opportunities for different driver profiles. Be sure to inquire about all potential discounts you may be eligible for, such as discounts for good students, military personnel, or certain affiliations.
7. Shop Around Regularly:
In our 2024 car insurance study of 2,000 drivers, only 11% reported shopping for auto coverage every six months. Over half shopped less than once a year. Even if you’re comfortable with your current insurer, factors influencing your rates can change. Comparing rates from other providers before each renewal is a smart practice to ensure you’re still getting the best possible price.
Average Car Insurance Price: Key Takeaways
Our in-depth research indicates that the average annual cost for a full-coverage car insurance policy is $2,386, or about $199 per month. Minimum-liability coverage averages $716 per year, or roughly $60 per month. However, remember that your individual rate will vary based on numerous factors. To find the most competitive car insurance price for your specific needs, comparing quotes from reputable insurance providers is highly recommended.
Frequently Asked Questions About Average Car Insurance Costs
What is the average monthly cost of car insurance?
The average monthly cost of car insurance is approximately $199 for full coverage and $60 for minimum liability coverage. However, your actual cost will depend on factors like your age, location, credit score, and driving record.
Is $100 a month for car insurance good?
$100 per month for full-coverage car insurance is generally considered a good price, as the national average is closer to $199 per month. For minimum-liability coverage, the national average is around $60 per month, making $100 per month relatively high for minimum coverage.
What is the number 1 car insurance company in the US?
State Farm is the largest auto insurer in the U.S. and consistently ranks highly for customer experience. According to the National Association of Insurance Commissioners (NAIC), State Farm holds a significant market share of 18.3%.
How much is car insurance for an 18-year-old?
Full-coverage car insurance for an 18-year-old driver averages around $5,014 per year or $418 per month if they purchase their own policy. Adding a teen driver to a family policy is often more cost-effective due to available discounts.
Is it cheaper to pay car insurance monthly or annually?
Paying your car insurance premium annually is typically cheaper. Insurers often include processing fees in monthly or quarterly installments. Many providers also offer discounts for upfront annual payments.
What state has the most expensive car insurance?
Louisiana generally has the highest average car insurance costs in the United States. Full-coverage policies in Louisiana average around $3,611 per year or $301 per month.
Our Methodology: Calculating Average Car Insurance Rates
Car Insurance Methodology
Our car insurance rankings and average rate calculations are based on a rigorous and objective methodology. We gather data on numerous auto insurance providers and evaluate them across a range of factors to generate comprehensive ratings.
Key Rating Factors:
- Coverage (30% of total score): The variety and comprehensiveness of coverage options offered by a company are a significant factor.
- Cost and Discounts (25% of total score): We analyze auto insurance rate estimates provided by Quadrant Information Services and evaluate the availability of discount opportunities.
- Industry Standing (20% of total score): Market share, ratings from industry experts, and the company’s years in business are considered to assess industry standing.
- Customer Experience (15% of total score): Customer complaint data from the National Association of Insurance Commissioners (NAIC), customer satisfaction ratings from J.D. Power, and our own shopper analysis of customer service responsiveness and helpfulness contribute to this score.
- Availability (10% of total score): State availability and eligibility requirements are assessed, with companies offering broader availability scoring higher.
Our Research Credentials:
- 800+ hours of dedicated research
- 130+ companies thoroughly reviewed
- 8,500+ consumers surveyed for insights
*Data accurate as of the time of publication.
For feedback or questions about this article, please contact our team at [email protected].
