Key Takeaways
- Car insurance costs can range anywhere from $18 to $648 per month depending on coverage, driver profile, location, vehicle and provider chosen, according to our analysis or car insurance rates for a 35-year-old driver with a clean record.
- The three most influential factors that affect your car insurance rates are your location, provider and age.
- You can save money on car insurance by comparing multiple providers, only choosing the coverage you need and improving your credit score.
Learn more about our methodology and editorial guidelines.
If you got some serious sticker shock from your last car insurance bill, you’re not alone – auto insurance rates have skyrocketed recently. The good news? There are some simple ways to slash your premiums.
How Much Does Car Insurance Cost?
American drivers pay average annual car insurance rates of $716 for minimum liability coverage and $2,386 for full coverage, according to our research. But these averages are based on a standard profile of a 35-year-old driver with good credit and a squeaky-clean driving record. Depending on your unique driver profile, you could pay as little as $210 or as much as $7,000 per year for your coverage.
Below, we’ve listed major factors we investigated, other than coverage, that can influence your pricing. Click on any of these criteria to learn more.
- Location
- Provider
- Age
- Driving Record
- Credit Score
How We Determined Average Car Insurance Costs
Our overall national average cost is based on a 35-year-old driver with good credit and no driving violations. This acts as our base profile for evaluating how factors such as age, driving history, location and vehicle affect your rates. Minimum-coverage averages are based on each state’s minimum requirements (including Washington, D.C.) Averages for full coverage are based on liability limit splits of $50K bodily injury coverage per person, $100K bodily injury coverage per accident and $50K for property damage with a $500 deductible for collision and comprehensive coverage.
As we present costs further in this article, we control all variables and modify the factor presented to isolate how much influence it has on your rates. Keep in mind that the pricing we show is meant to act as a general guideline of rates you can expect and does not represent all combinations of factors.
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Average Car Insurance Cost by State
Every state is different when it comes to car insurance rates. Traffic and natural disasters lead to elevated auto coverage costs in states like New Jersey, Florida and Louisiana. On the other hand, the wide-open spaces of states like Wyoming and Idaho help keep car insurance premiums low.
In the table below, you can compare average rates for all 50 states plus 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 |
| Illinois | $636 | $2,092 |
| Iowa | $339 | $2,032 |
| Kentucky | $817 | $2,607 |
| Maine | $442 | $1,537 |
| Massachusetts | $622 | $1,879 |
| Minnesota | $586 | $2,362 |
| Missouri | $657 | $2,525 |
| Nebraska | $396 | $2,283 |
| New Hampshire | $504 | $1,604 |
| New Mexico | $543 | $2,236 |
| North Carolina | $684 | $2,338 |
| Ohio | $472 | $1,661 |
| Oregon | $993 | $2,257 |
| Rhode Island | $982 | $2,606 |
| South Dakota | $441 | $2,492 |
| Texas | $782 | $2,828 |
| Vermont | $394 | $1,468 |
| Washington | $591 | $2,078 |
| West Virginia | $632 | $2,426 |
| Wyoming | $292 | $1,677 |
Average Car Insurance Cost by Provider
The sheer variety of car insurance rates is enough to make your head spin. Even if you have a similar driver profile and vehicle to our sample profile, auto insurers have their own ways of evaluating risk. That’s why we think it’s best to compare quotes from several companies when you’re in the market for auto coverage.
It’s also worth noting that, sometimes, bigger names mean bigger prices. Often, regional and local car insurance providers tend to have lower average rates than the well-known providers you’re used to seeing in ads.
The table below features average minimum and full-coverage rates from auto insurers that serve 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 presented are based on a 35-year-old driver with good credit and no driving violations who is insuring a 2023 Toyota Camry.
Don’t discount the smaller names. The following table includes average auto coverage rates from providers that serve anywhere from one to 29 states.
|
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 presented are based on a 35-year-old driver with good credit and no driving violations who is insuring a 2023 Toyota Camry.
Average Car Insurance Cost by Age
It should come as no surprise that the youngest drivers (or their parents) pay the highest car insurance premiums. As drivers gain more experience behind the wheel, coverage rates creep downward. Drivers between the ages of 35 and 55 who maintain clean driving records usually enjoy the cheapest auto coverage rates.
Below, you can compare the average prices of minimum and full-coverage rates for different ages.
| 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 |
| 75 | $875 | $2,479 |
Average Car Insurance Cost by Driving Record
The next most influential factor in determining car insurance costs is your driving record. Violations like car accidents, DUIs or speeding tickets can increase your rates by as much as 76%. Below, you can see how common driving violations can affect 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 |
Average Car Insurance Cost by Credit Score
In most states, your credit score plays a big role in affecting your rates. Below, you can view the difference between our base profile with good credit (a score between 670 and 739) and a driver with poor credit (a 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 |
Other Car Insurance Cost Factors
It isn’t just about where you live, how old you are or what your driving record looks like. Here are some other factors auto insurance companies consider when they set premiums.
- Vehicle Mileage: The less you drive, the less you’ll probably pay. If you drive fewer miles per year than most drivers, you’re less of a risk to insure and may receive lower premiums.
- Home Ownership: Homeowners often get discounted insurance rates for bundling policies, meaning rates are sometimes lower for these drivers.
- Marital Status: Married drivers may pay less for car insurance than single drivers on average.
- Gender: While often not affecting rates by more than 1%, male drivers pay slightly more for car insurance. However, the use of gender as a cost-affecting factor is outlawed in California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.
- Occupation: Some professionals like teachers and government employees may get occupation or affiliation discounts.
- Market Conditions: Insurance costs fluctuate with the market. If other costs have inflated, your insurance rates may have, too.
- Vehicle Ownership Status: Leased and financed cars often require both comprehensive and collision coverage, making them more expensive to insure.
- Number of Policy Members: The more people and cars you have on your policy, the cheaper the per-person costs typically are.
- Insurance History: If you’ve had any lapses in coverage or claims, your rates will be higher, since you’re seen as higher-risk. The longer you have continuous coverage and the fewer claims you have, the less risk you’ll represent to insurance companies.
Car Insurance Cost Trends You Need To Know
The cost of car insurance, like most goods and services since the pandemic, has dramatically increased due to many factors. Prime among these is inflation caused by the Covid-19 lockdowns, leading to increased costs of all goods and services. While each industry was hit differently by these changes, we observed the following trends that affect the auto insurance industry:
- Since July of 2023, the Consumer Price Index (CPI) for auto insurance has increased by 18.6%.
- The CPI for maintenance and repairs of motor vehicles increased by 4.6%.
- Nationally, vehicle theft increased by 1% from 2022 to 2023, which impacts the amount of risk car insurance providers consider when calculating rates, typically resulting in higher prices.
- Overall, national prices for consumer goods fell by 2.9% in July of 2024, being the first time since March of 2021 inflation has been below 3%.
- New car prices have remained high at an average of $48,724, but have been relatively stagnant since 2023.
- According to Cargurus, the average prices of used cars dropped 4.6% year over year from August 2023 to August 2024.
“Once inflation is reflected in the general price levels, prices tend to stay at a higher level,” he said. “Even [a] lower inflation rate still means price levels continue to increase.”
How To Get Affordable Car Insurance Rates
You may experience some sticker shock as you gather car insurance quotes online. Here are some strategies that could help you save money on auto coverage:
Average Cost of Car Insurance: FAQ
Below are frequently asked questions about the average car insurance rates:
The average cost of car insurance for full coverage is $2,386 per year or $199 a month. Minimum-liability coverage costs an average of $716 per year or $60 per month. However, your costs will vary depending on factors such as age, location, credit score and driving record.
If you have a full-coverage car insurance policy, $100 per month is a good price. In fact, our research shows that the national average for full coverage is $199 per month. For a minimum-liability policy, the national average is around $60 per month.
State Farm is both the largest auto insurer in the country and the winner of our Best Customer Experience award. According to the National Association of Insurance Commissioners (NAIC), State Farm holds 18.3% of the market share. The company wrote about $58 billion in direct premiums in 2023.
According to our research, full-coverage car insurance for an 18-year-old driver costs $5,014 per year or $418 per month on average if they purchase their own policy. Thankfully, many providers offer discounts for adding a teen driver to your family policy.
It’s generally cheaper to pay your car insurance premium annually. This is because insurers often package processing costs into each installment if you pay monthly or quarterly. Most providers also offer a discount if you pay in full up front.
Louisiana has the highest average car insurance costs in the country. According to our research, the average cost of a full-coverage policy in the state is $3,611 per year or $301 per month.
Our Methodology: How We Calculate Average Car Insurance Rates
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
*Data accurate at time of publication.
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