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

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Updated: August 30, 2025

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How Much Does Car Insurance Cost Key Takeaways

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The average cost of full coverage car insurance is $2,575 annually or $216 monthly, and minimum coverage costs $1,202 or  $100 per month based on MoneyGeek's analysis of 83,056 quotes from 46 companies across 473 ZIP codes.

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Car insurance costs continue to increase due to increases in repair costs and increasing car values.  Car insurance rates have increased 11.3% in the last year and 57% since early 2022.

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Your driver profile, location credit score (in most states), insurance company choice and vehicle type have the biggest impact on your car insurance cost. Location is one of the biggest factors, with rates ranging from $113 to $266 monthly by state.

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The states with the lowest average car insurance costs include New Hampshire, Vermont, Ohio, Idaho and Hawaii. New York and Florida have the highest average cost.

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How Much Is Car Insurance?

Car insurance cost $216 per month on average, but rates vary widely. Car insurance cost depends 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. 
How much does car insurance cost by driver profile? Here are the average monthly costs: 

  • Driver with excellent credit: $120 full coverage, $57 minimum coverage
  • Clean record adult (25-54): $215 full coverage, $100 minimum coverage
  • Driver with not-at-fault accident: $228 full coverage, $106 minimum coverage
  • Senior driver (55+): $270 full coverage, $135 minimum coverage
  • Driver with at-fault accident: $310 full coverage, $145 minimum coverage
  • Driver with poor credit: $313 full coverage, $144 minimum coverage
  • Driver with DUI: $377 full coverage, $177 minimum coverage
  • Young driver (19-25): $537 full coverage, $251 minimum coverage
100/300/100 Full Cov. w/$1,000 Ded.$125$1,495
State Minimum Liability Only$61$727

*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.

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COST COMPARISON: LIABILITY-ONLY VS. FULL COVERAGE

Liability-only car insurance costs an average of $61 monthly for the most ideal driver profile. This coverage provides financial protection for damage or injuries to others when you're at fault. This budget-friendly option doesn't include a deductible since you only pay deductibles for comprehensive and collision coverage on your own vehicle.

Full coverage costs an average of $125 monthly for the most ideal driver profile and combines liability with comprehensive and collision insurance. This covers both your liability to others and damage to your own vehicle from accidents, theft, weather and other incidents.

Average Monthly Cost of Car Insurance by Company

Car insurance costs vary widely across the country and depend on your insurer and where you live. While large insurers provide coverage options nationwide, many regional and midsized companies offer competitive rates within specific states, making them locally popular. Here's what national and midsized providers charge for auto insurance:

Average Monthly Cost of Car Insurance by Major Insurers

Car insurance costs vary by insurance company. Since insurers weigh buyer profile factors differently, the same driver's cost vary by provider. Average monthly rates range from $97 to $161 for full coverage and from $50 to $81 for minimum coverage, depending on the national provider.  Note that these car insurance costs are for an ideal buyer profile and factors like a poor credit score and accidents will increase these costs.

Data filtered by:Results filtered by:
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Allstate$161$2619%
Farmers$152$1612%
Nationwide$127$-9-6%
Progressive$125$-11-8%
State Farm$121$-15-11%
Travelers$97$-39-29%

Average Monthly Car Insurance Costs by Midsized Insurers

While many midsized car insurance companies aren't available nationwide, they hold a large share in the states where they operate. Location has a major impact on these insurers' car insurance costs which are highlighted in the table below:

Data filtered by:Results filtered by:
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
National General$143$-66-32%
Kemper$160$-49-23%
UAIC$175$-34-16%
Chubb$203$-7-3%
Amica$208$-10%
AAA$214$52%
Farmers$275$6631%
AIG$282$7335%

Average Car Insurance Cost by State

Where you live makes a huge difference in what you pay for car insurance. Your state's laws, local crime levels, road conditions and repair costs all factor into your car insurance cost. Cities cost more than rural areas because of traffic, theft and accident rates.

For full coverage, monthly premiums range from $113 to $263 - a $150 monthly difference between the cheapest and most expensive states. For minimum coverage, the range spans from $49 to $120 monthly.

This means drivers in the most expensive states pay nearly 2.3 times more than those in the least expensive states for identical full coverage. The location factor alone can add or save drivers up to $1,800 annually.

Data filtered by:Results filtered by:
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Alabama$212$2,538
Alaska$207$2,481
Arizona$188$2,256
Arkansas$232$2,783
California$182$2,186
Colorado$223$2,676
Connecticut$189$2,264
Delaware$217$2,609
Washington, D.C.$247$2,960
Florida$181$2,169
Georgia$186$2,232
Hawaii$120$1,444
Idaho$247$2,963
Illinois$193$2,313
Indiana$184$2,206
Iowa$232$2,784
Kansas$218$2,612
Kentucky$205$2,458
Louisiana$190$2,275
Maine$219$2,623
Maryland$192$2,301
Massachusetts$155$1,857
Michigan$213$2,557
Minnesota$172$2,064
Mississippi$229$2,751
Missouri$180$2,160
Montana$263$3,157
Nebraska$190$2,281
Nevada$159$1,909
New Hampshire$186$2,230
New Jersey$187$2,242
New Mexico$216$2,589
New York$113$1,353
North Carolina$210$2,514
North Dakota$240$2,884
Ohio$199$2,388
Oklahoma$215$2,574
Oregon$205$2,459
Pennsylvania$136$1,627
Rhode Island$215$2,575
South Carolina$202$2,424
South Dakota$204$2,446
Tennessee$208$2,496
Texas$222$2,666
Utah$203$2,434
Vermont$221$2,651
Virginia$195$2,345
Washington$189$2,265
West Virginia$249$2,991
Wisconsin$190$2,280
Wyoming$266$3,192

Average Car Insurance Rates by Age

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 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 cheaper 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
Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Adult Drivers$215$2,575
Senior Drivers$270$3,236
Young Drivers$537$6,442
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CAR INSURANCE COST BY AGE: KEY FACTS
  • Teen drivers car insurance costs more: Drivers aged 16 to 19 have crash rates nearly four times higher per mile driven than drivers 20 and older, and they're more likely to speed, drive distracted, and make risky decisions due to inexperience and brain development factors.
  • Senior car insurance rates increase after 70: Older drivers have higher car insurance cost due to age-related changes including slower reaction times, vision changes, and potential medication effects that increase accident risk.
  • State restriction for age as a car insurance cost factor: Hawaii and Massachusetts don't allow insurers to use age as a rating factor, though some states like California require additional testing for license renewals at certain ages. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

Average Car Insurance Cost by Gender

Car insurance costs between men and women are virtually the same. Our data shows men and women pay nearly identical rates for both full coverage and minimum coverage, with differences of just a few dollars per month.

Why Gender Car Insurance Cost Differences Have Narrowed?

While young men historically paid higher car insurance cost due to riskier driving behaviors, gender differences have largely disappeared for most driver profiles.

Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Male$215$2,575
Female$218$2,618

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

Average Cost of Car Insurance for Drivers With Violations

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)
Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Clean$215$2,575
Not At Fault Accident ($1000-$1999 Prop Dmg)$228$2,734
Speeding 11–15 MPH Over Limit$268$3,217
Texting While Driving$272$3,265
At Fault Accident ($1000-$1999 Prop Dmg)$310$3,721
DUI - BAC >= .08$377$4,530
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HOW LONG DO TRAFFIC VIOLATION IMPACT CAR INSURANCE COST?

Car insurance costs increase after driving violations remain on your record, typically three to seven years depending on the violation and state. DUIs have the longest impact on car insurance costs, affecting rates for up to 10 years in California but only five years in Texas. Most speeding tickets and minor violations impact car insurance costs for three to five years.

Average Cost of Car Insurance by Credit Score

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.

Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Below Fair$236$2,836
Excellent$120$1,442
Fair$187$2,247
Good$125$1,495
None$215$2,575
Poor$313$3,752

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

Average Car Insurance Costs by Vehicle Type

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.

Minivan$1,291
Compact SUV$1,378
SUV$1,387
Pickup Truck$1,429
Compact$1,436
Sedan$1,479
Electric$1,514
Luxury Compact SUV$1,561
Sports Car$1,713
Luxury Compact$1,745
Luxury SUV$1,792
Luxury Sedan$1,967
Luxury Electric$2,722
Luxury Sports Car$3,006

Car Insurance Cost Factors

Car insurance costs differ because insurers evaluate risk differently for each driver. Your driving history, vehicle choice and coverage selections all influence your final premium. Here's what insurance companies examine when calculating your car insurance costs:

Driving Record Impact on Car Insurance Costs

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    Driving History

    Your driving record shapes what you pay more than almost anything else. Keep it clean, and you'll see lower rates. Get a speeding ticket, cause an accident or get a DUI, and expect higher premiums for the next three to seven years.

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    Age and Experience

    Younger drivers usually have higher rates due to increased accident risk. However, costs generally decrease as they gain more driving experience.

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    Claims History

    A history of previous claims can suggest a higher future risk, affecting your premiums.

Personal Profile Cost Factors

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    Gender

    In most states, gender can influence rates, with young men under 25 typically paying more for insurance.

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    Marital Status

    Married people are often viewed as more responsible drivers, which can lead to lower premiums. However, states like Hawaii, Massachusetts and Michigan prohibit insurers from using marital status in their calculations.

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    Credit Score

    A good credit score and certain occupations and educational backgrounds can qualify you for discounts, as these factors indicate lower risk.

Vehicle-Related Car Insurance Cost Factors

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    Car Type and Value

    The type of vehicle you drive has a major impact on your insurance costs. Luxury and sports cars usually carry higher premiums due to expensive repairs and a higher likelihood of accidents, while sedans and SUVs generally cost less. Vehicles with safety features and lower repair costs can also reduce premiums.

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    How You Use Your Car

    The amount you drive impacts your premiums. Higher annual mileage means more accident risk. For example, drivers covering 15,000 miles annually pay more than those who drive only 5,000 miles.

Coverage-Related Car Insurance Cost Factors

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    Coverage Levels

    The type and amount of coverage you select will affect your premium. Higher liability limits and comprehensive coverage increase premiums, while minimum coverage lowers them, albeit with greater financial risk. Add-on coverage like gap insurance and rental car coverage can also increase overall costs.

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    Deductibles

    Opting for higher deductibles can reduce monthly payments but require more out-of-pocket expenses in case of a claim.

Location Car Insurance Cost Factor

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    Where You Live

    Where you live has a big impact on your insurance rates. Urban areas like New York or Miami often have higher premiums due to traffic congestion, theft and accident rates, while rural areas usually have lower costs.

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    Parking Situation

    Where you park your vehicle can also impact your rates. Insurers typically offer lower rates for cars parked in garages or driveways than those parked on the street.

Insurance History Car Insurance Cost Factors

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    Coverage Continuity

    Maintaining continuous coverage is essential; gaps in coverage can signal higher risk to insurers and increase rates.

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    Previous Insurer

    If you've held policies with high-risk providers, this may raise your future rates.

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    Household Factors

    Homeownership often qualifies you for discounts, especially if you bundle multiple insurance policies. The driving histories of other licensed drivers in your household can also affect your rates.

Why Is Car Insurance So Expensive?

Car insurance costs in the United States rank among the highest globally. American drivers pay two to three times more for car insurance than drivers in developed nations like Australia or the U.K. These elevated car insurance costs reflect unique economic and regulatory conditions in the U.S. market.

Several factors contribute to expensive car insurance in America compared to other countries:

  • Legal System Impact on Car Insurance Costs Liability-based insurance systems create higher potential payouts than other countries' systems, directly increasing how much car insurance costs for all drivers.
  • Higher Overall Driving Expenses A 2017 study found U.S. drivers face $10,228 in annual driving costs, 55% more than U.K. drivers and 14% more than German drivers, with insurance representing a major portion of these expenses.
  • Regional Car Insurance Cost Variations Car insurance costs vary dramatically by state, with some areas exceeding $4,000 annually due to local economic and regulatory factors.

Are Car Insurance Rates Going Up?

Car insurance costs have increased substantially in recent years. Average car insurance costs for full coverage jumped from $1,633 in 2022 to $2,313 in 2024, a 42% increase in just two years, with more increases expected through 2025.

Current Car Insurance Cost Trends:

  • 2022: $1,633 annually for full coverage
  • 2024: $2,313 annually for full coverage
  • 2025: Expected around $2,600 annually ($217 monthly)

Why Are Car Insurance Car Insurance Costs Increasing?

Car insurance rate increases in recent years have been driven by several key factors such as increased inflation, changes in state regulation and higher medical costs. Here are the main drivers behind these rising costs:

Factor
Impact

Post-pandemic recovery issues

The ongoing effects of COVID-19 are still disrupting supply chains, driving up costs for car parts and repairs. Manufacturing took a hit while demand surged after the lockdowns ended.

Rising inflation

General inflation affects all sectors, including insurance. As overall costs for goods and services rise, insurers increase premiums to maintain their operating margins.

Higher repair costs

Modern vehicles come with advanced technology and more expensive parts to repair or replace, driving up insurance costs. While repair expenses rose by 3% to 5% each year before the pandemic, they have skyrocketed by over 10% since 2022, with the average repair cost reaching around $4,721 by 2023.

Supply chain delays

Supply chain issues have made vehicle parts more scarce and expensive, leading to higher repair costs and, consequently, higher insurance rates.

Rising vehicle values

The increasing prices of new and used vehicles add more challenges for insurers. Higher car values mean greater financial risks associated with total-loss claims.

Even though premiums are still high for all of the above reasons, the slower pace of increases suggests that the market might be stabilizing after years of volatility. Staying informed about these trends and comparing rates regularly can help you manage costs, even as market factors influence premiums across the board.

How to Save on Car Insurance Costs

These proven strategies can lower how much you pay for car insurance. For more detailed savings strategies, see our comprehensive guide on how to lower your car insurance rate.

  1. 1

    Maintain a clean driving record

    Safe driving reduces car insurance costs over time, as avoiding accidents and violations signals lower risk to insurers. This remains the most effective way to keep car insurance costs low.

  2. 2

    Bundle insurance policies

    Bundling auto and home insurance often reduces car insurance costs through multi-policy discounts. Most major insurers offer bundling options that can lower your overall insurance expenses.

  3. 3

    Shop around and compare quotes regularly

    Compare quotes from at least three insurers annually, as car insurance costs vary between companies. Notify your current insurer about life changes like moving, graduating or getting married, as these factors can reduce your premiums.

  4. 4

    Improve your credit

    Strong credit history can lower car insurance costs, as many insurers offer better rates to drivers with good credit scores, viewing them as lower risk.

  5. 5

    Increase your deductible

    Higher deductibles reduce monthly car insurance costs but increase out-of-pocket expenses when filing claims. Balance potential savings against your ability to pay higher deductibles.

  6. 6

    Reduce your mileage and try usage-based programs

    Lower annual mileage decreases car insurance costs by reducing accident risk. Usage-based insurance programs can further reduce costs by monitoring safe driving habits.

  7. 7

    Attend a defensive driving course

    Approved driving courses can reduce car insurance costs, particularly for drivers with violations. Some states allow courses to shorten how long violations affect your rates.

  8. 8

    Maximize discounts

    Ask insurers about all available discounts to reduce car insurance costs. Common discounts include safe driver, good student, low mileage, safety features and professional organization memberships.

  9. 9

    Adjust coverage as your car ages

    Review coverage annually to avoid paying unnecessary car insurance costs on older vehicles. Consider reducing comprehensive and collision coverage when annual premiums exceed 10% of your car's current value.

  10. 10

    Optimize your policy structure

    Eliminate optional coverage that doesn't provide value to reduce car insurance costs. Make sure your policy meets your needs without paying for unnecessary add-ons.

Car Insurance Cost: Bottom Line

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.

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Car Insurance Cost: FAQ

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

How much is car insurance per year?

Who pays most for car insurance?

Is car insurance higher for expensive cars?

Average Cost of Car Insurance: Methodology

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

About Mark Fitzpatrick

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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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