How Much Is Car Insurance? Average Cost of Car Insurance in 2025

Car insurance costs $216 per month on average, but rates vary widely. Car insurance costs depend on several factors, including your age, driving record, credit score, location, vehicle type and coverage choices. Each factor impacts your premium, and we explain these variables in detail below.

MoneyGeek analyzed 83,056 quotes from 46 companies across 473 ZIP codes to determine average car insurance costs for different driver profiles.

Useful links: Estimate your car insurance costs now or find out why car insurance costs are so high.

*Full Coverage is a policy with 100/300/100 liability limits  and a $1,000 Ded. Minimum coverage represents the minimum required coverage by the 50 states and D.C.

*Insurance costs vary widely from person to person because each insurer calculates rates differently based on age, driving record, credit-based insurance score, state and vehicle type.

How much does car insurance cost by driver profile? Here are the average monthly costs: 

• Clean record adult (25-54): $215 full coverage, $100 minimum coverage
• Young driver (19-25): $537 full coverage, $251 minimum coverage
• Senior driver (55+): $270 full coverage, $135 minimum coverage (read more about age and car insurance costs)
• Driver with not-at-fault accident: $228 full coverage, $106 minimum coverage
• Driver with at-fault accident: $310 full coverage, $145 minimum coverage
• Driver with DUI: $377 full coverage, $177 minimum coverage (read more about violations and car insurance costs)
• Driver with excellent credit: $120 full coverage, $57 minimum coverage
• Driver with poor credit: $313 full coverage, $144 minimum coverage (read more about credit score and car insurance costs)

Location dramatically affects car insurance costs, with monthly premiums ranging from $75 in Vermont to $243 in Florida — a $168 difference for identical coverage. State insurance requirements, local risk factors, and regional economics create these wide variations.

These three states offer the most affordable car insurance rates:

• Vermont: $75 monthly ($902 annually)
• Maine: $76 monthly ($908 annually)
• Idaho: $79 monthly ($952 annually)

These states benefit from lower population density, fewer severe weather events, and modest insurance requirements that keep costs down.

The highest-cost states present significant financial challenges for drivers:

• Florida: $243 monthly ($2,916 annually)
• Louisiana: $236 monthly ($2,832 annually)
• New Jersey: $180 monthly ($2,160 annually)

Florida and Louisiana's high costs stem from frequent severe weather, high accident rates, and extensive fraud issues that drive up claim costs.

Your state's car insurance requirements directly affect how much you pay for car insurance. States with more comprehensive mandatory coverage typically see higher average premiums than those requiring only basic liability insurance.

No-fault states require personal injury protection (PIP), which covers medical expenses regardless of fault. This adds significant cost but provides immediate medical coverage. Florida ($243 monthly) exemplifies how no-fault requirements combined with local risk factors create expensive markets.

Required coverage drives costs in predictable ways. States mandating additional coverages like uninsured motorist protection or higher liability limits see correspondingly higher premiums. However, other factors like weather patterns, crime rates, and local repair costs often outweigh regulatory requirements, explaining why Vermont maintains the lowest rates despite comprehensive coverage requirements.

Get personalized car insurance cost estimates based on your specific situation. Our car insurance calculator considers your age, location, driving record, and vehicle type to show what you'll actually pay — not just generic averages.

Simply enter your details below to see rates tailored to your profile and compare costs across coverage levels and insurers in your area.

You may have noticed that car insurance rates have gone up 51% since late 2019, creating significant financial pressure for drivers nationwide. This dramatic increase stems from multiple factors converging simultaneously.

Modern vehicles with advanced technology cost significantly more to repair. A replacement bumper with sensors can run $3,000 versus $500 for older cars, while repair costs have skyrocketed over 10% annually since 2022 compared to 3-5% pre-pandemic increases. Supply chain disruptions continue affecting parts availability and pricing.

Medical expenses for injury claims keep climbing, adding pressure to liability coverage costs. Extreme weather events have intensified, with the U.S. experiencing over $92 billion in climate-related damage in 2023. States like Louisiana face major hurricanes every three years, while Florida saw 24% premium increases due to severe weather and high uninsured driver rates.

Rate increases show recent moderation. Car insurance inflation peaked at 23% in April 2024 but dropped to 5.3%, with 2025 increases at 7.5% compared to 16.5% in 2024.

Car insurance rates vary significantly across providers, with individual premiums differing by $100+ monthly for the same coverage. Travelers is the cheapest major insurer ($97 a month) while National General is the cheapest midsize insurer ($143 a month). Since insurers weigh risk factors differently, comparing quotes from multiple companies can lead to substantial savings.

Individual car insurance rates vary based on personal factors. Since insurers weigh these factors differently, the same individual's premiums vary by provider. Average monthly rates range from $97 (Travelers) to $161 (Allstate) for full coverage and from $50 to $81 for minimum coverage, depending on the national provider. Remember that the best car insurance provider for you may not be the the most cost-effective; MoneyGeek recommends looking into customer experience and available coverages to find your best fit.

While many midsized car insurance companies aren't available nationwide, they hold significant market share in states where they operate. Average monthly rates for these insurers range from $143 to $282 for full coverage and from $68 to $160 for minimum coverage.

National General leads with the most affordable full coverage at $143 monthly, while AIG charges the highest at $282. For minimum coverage, National General again offers the lowest rate at $68, though UAIC's unusual pricing structure results in higher minimum coverage ($160) than full coverage ($175). AAA and Amica provide mid-range options around $214 and $208 respectively for full coverage.

The cost of car insurance can vary greatly by age and gender, with age being the main driver of rate differences. 

Age creates the largest cost differences in car insurance. Young drivers pay more than twice as much as adults, while seniors face moderate increases compared to middle-aged drivers.

Age-Based Car Insurance Cost Breakdown

Car insurance costs vary significantly by age group. Young drivers aged 19 to 25 pay $537 monthly for full coverage or 150% more than adult drivers who pay $215 monthly. Seniors pay $270 monthly, about 26% more than adults. The car insurance costs below are based on the average driver profile and costs are lower for ideal driver profiles.

Average Full Coverage Car Insurance Costs by Age:

• Adult drivers (25-54): $215 monthly, $2,575 annually
• Senior drivers (55+): $270 monthly, $3,236 annually
• Young drivers (19-25): $537 monthly, $6,442 annually

Average Minimum Coverage Car Insurance Costs by Age:

• Adult drivers (25-54): $100 monthly, $1,202 annually
• Senior drivers (55+): $135 monthly, $1,617 annually

Young drivers (19-25): $251 monthly, $3,006 annually

Car insurance costs between men and women are virtually identical. Our data shows men and women pay nearly the same rates for both full coverage and minimum coverage, with differences of just a few dollars per month. While young men in their teens do pay and have historically paid higher car insurance costs due to riskier driving behaviors, gender differences have largely disappeared for most driver profiles.

*Some states, including Hawaii, Massachusetts and Michigan, prohibit or restrict the use of gender in insurance rating.

Traffic violations result in car insurance cost increases, with premiums rising 6% to 75% depending on the severity of the violation. Your driving record directly impacts what insurers charge, as violations signal higher risk to insurance companies.

Car Insurance Cost Impact by Violation Type

Different violations affect your rates differently. Here's how monthly car insurance costs change based on your driving record:

Full Coverage Monthly Costs:

• Clean record: $215 baseline rate
• Not-at-fault accident: $228 (6% increase)
• Speeding 11-15 MPH over: $268 (25% increase)
• Texting while driving: $272 (27% increase)
• At-fault accident: $310 (44% increase)
• DUI: $377 (75% increase)

Car insurance costs vary widely based on credit scores, creating some of the largest price differences in the industry. Average car insurance costs range from $120 monthly for drivers with excellent credit to $313 for those with poor credit. This $193 monthly difference in car insurance costs equals $2,316 annually in extra premiums. The best car insurance for those with bad credit greatly depends on how insurers calculate your credit-based insurance score.

*While Hawaii, Massachusetts, Michigan and California prohibit insurers from considering credit history in rates, most states allow it as a factor.

Car insurance costs differ based on the vehicle you drive, with annual premiums ranging from $1,291 for minivans to $3,006 for luxury sports cars. Vehicle type affects car insurance costs because repair expenses, replacement values and theft rates differ between vehicle categories.

Your car insurance premium depends on how insurers assess your risk level. Four factors create the biggest rate differences, with some causing dramatic cost swings.

Among many other factors, vehicle type, coverage levels, deductibles, and mileage all create additional variations. But the four previously mentioned factors are likely to be major factors contributing to your car insurance cost.

Lowering your car insurance costs comes from strategic shopping and qualifying for multiple discounts. The biggest savings require proactive steps, while smaller discounts add up over time.

Shop Around and Compare Quotes

Rate differences between insurers can exceed $100 monthly for identical coverage. Travelers averages $97 monthly while Allstate charges $161 — a $768 annual difference. Get quotes from at least three companies, including both major insurers and regional providers like National General, which offers competitive rates at $143 monthly.

Bundle Policies for Multi-Policy Discounts

Combining auto and home insurance typically saves 5-25% on both policies. A driver paying $150 monthly for auto coverage could save $225-$900 annually by bundling. Most major insurers including State Farm, Allstate, and Progressive offer substantial bundling discounts.

Increase Your Deductibles

Raising your deductible from $500 to $1,000 can reduce premiums by 10-20%. A driver paying $125 monthly could save $180-$360 annually. Only increase deductibles to amounts you can afford in an emergency — the savings disappear if you can't pay when filing a claim.

Improve Your Credit Score

In states allowing credit-based pricing, improving credit creates massive savings. Moving from poor credit ($313 monthly) to good credit ($125 monthly) saves $188 monthly or $2,256 annually. Pay bills on time, reduce debt, and monitor your credit report for errors.

Maintain a Clean Driving Record

Avoiding violations prevents rate increases that last 3-7 years. A single speeding ticket adds $53 monthly ($636 annually), while an at-fault accident increases rates by $95 monthly. Defensive driving courses may reduce rates by 5-10% in some states.

Take Advantage of Available Discounts

Stack multiple discounts for maximum savings:

• Good student discount: 5-15% for students with B+ averages
• Safe driver programs: 10-30% for demonstrating good driving habits
• Multi-car discount: 10-25% for insuring multiple vehicles
• Low mileage discount: 5-15% for driving under 7,500 miles annually
• Safety features: 5-20% for vehicles with anti-theft devices and advanced safety systems

Combining three discounts averaging 10% each can reduce a $150 monthly premium to approximately $110, saving $480 annually.

Car insurance costs $215 on average across all driver profiles. Car insurance costs range from $51 to $537 monthly depending on your age, driving record, location, and coverage. Young drivers pay the most, while credit scores create differences of up to $193 monthly between excellent and poor credit.

Location matters significantly, with rates varying by $150 monthly between the cheapest and most expensive states. Shopping around, maintaining clean driving records and improving credit scores remain the most effective ways to reduce premiums.

MoneyGeek addressed some of the most common questions to provide more insight into the average cost of car insurance in the U.S.

Study Overview

Car insurance rates differ greatly based on the insurer you choose, age, gender, vehicle, location, credit-based insurance score, driving record and more. MoneyGeek gathered aggregate data organized by the main factors that insurers use to calculate car insurance rates and analyzed the collection to calculate and discover average rates.

Data Acquisition, Depth and Analysis

MoneyGeek's data comes from Quadrant Information Services and state insurance departments, including 83,056 quotes from 46 companies across 473 ZIP codes.

Driver Profiles

The following sample driver profile was used to determine averages (unless otherwise noted):

• 40-year-old male
• Clean driving record
• Comprehensive and collision coverage of 100/300/100 with a $1,000 deductible
• 2012 Toyota Camry LE
• 12,000 miles driven annually

When noted, this driver profile was modified by age, gender, geographic location, vehicle, credit score and driving record to determine averages for different driver profiles and needs.

Coverage Levels and Deductibles Explained

Average rates on this page are determined with 100/300/100 comprehensive and collision coverage with a $1,000 deductible (unless otherwise noted).

A 100/300/100 policy means:

• $100,000 in bodily injury liability insurance per person
• $300,000 in bodily injury liability insurance per accident
• $100,000 in property damage liability insurance per accident

A $1,000 deductible means paying $1,000 before your insurance provider covers the rest. Generally, a higher deductible means a lower policy premium.

When different coverage levels are noted, MoneyGeek modified the coverage of the sample driver to provide average rates for a 50/100/50 liability-only policy and a 50/100/50 comprehensive and collision policy and calculated average rates dependent upon if a policy was paid in full annually, every six months or monthly.

Learn more about MoneyGeek's methodology