Average Cost of Full Coverage Car Insurance (May 2024)

Full coverage car insurance typically includes liability, collision and comprehensive insurance. It's around 117% costlier than liability-only coverage but provides extensive protection for its price.

You might be paying too much if your annual car insurance premiums exceed 10% of your car’s value. In this case, you may consider switching to liability-only coverage, especially if you can afford out-of-pocket repair costs.

The average annual cost of car insurance for a 40-year-old driver with a good driving record is $1,286, or about $107 per month.

When buying full coverage, insurers consider factors like your age, location, driving record, credit score and car model to set your rates. Each insurer evaluates these factors differently.

For example, Nationwide typically offers the cheapest car insurance for teens, while State Farm provides the lowest rates for drivers with poor driving records.

Different insurers have their own rating methods, so a driver might get three distinct quotes for the same coverage. MoneyGeek found that the car insurance companies with the cheapest average full coverage car insurance rates are:

• Travelers: $1,105 per year, $92 per month
• Nationwide: $1,111 per year, $93 per month

The table below reveals the average rates for full coverage car insurance from major insurers.

Among midsized insurers, the insurers with the lowest average costs for full coverage car insurance are:

• North Carolina Farm Bureau: $531 per year, $44 per month
• Vermont Mutual: $635 per year, $53 per month

While many midsized insurers are not available nationwide, they still cover a large portion of the market in the states they serve. Similarly, not every major insurer operates across the country, and their available coverage can vary.

The states with the cheapest average rates for full coverage car insurance are:

• New Hampshire: $741 per year
• Vermont: $752 per year

Meanwhile, the top two states with the most expensive average full coverage car insurance premiums are:

• New York: $2,180 per year
• Louisiana: $2,170 per year

Car insurance rates vary significantly based on location. State regulations, urban congestion, crime rates and repair costs drive up premiums in cities, while rural areas usually have lower costs due to fewer cars and less crime.

Even within your state, things like local accident rates and the chance of bad weather can affect your insurance prices.

Teen drivers face the highest insurance premiums, with 16-year-old drivers paying an average of $5,486 per year to be added to an existing full coverage policy.

Drivers between 25 and 65 usually enjoy the lowest average rates. Teenagers and young adults often pay the highest premiums because insurers consider them less experienced and riskier to insure. Older adults may also face higher rates due to potential declines in vision, reflexes and overall health.

Unlike liability-only car insurance, which only covers the other driver, what kind of car you drive significantly impacts your full coverage rates. On average, the vehicles with the cheapest full coverage car insurance rates are:

• Subaru Outback: $1,203 per year, $100 per month
• Honda CR-V: $1,249 per year, $104 per month

However, insurance costs for electric cars are dropping. While once pricier, electric vehicles now average $1,589 annually to insure, matching typical sedans.

Typically, the cheapest cars to insure have strong safety records, are less expensive to repair and have lower resale values.

The 10-year-old car models with the cheapest average full coverage premiums are:

• Subaru Outback: $1,112 per year
• MINI Cooper: $1,129 per year

You can save on car insurance with an older car. For example, a 10-year-old Ford F-150 ($1,165 per year) with its good safety ratings could be as much as 24% cheaper to insure than a brand-new one. But don’t forget to look at model-specific factors too. The pickup truck is also more affordable to insure than a decade-old Toyota Camry ($1,299 per year).

The severity of your driving record impacts your average premiums for a full coverage car insurance policy.

DUIs make car insurance much more expensive and harder to get. Insurance companies see them as a major risk because they often lead to serious accidents and costly payouts. Companies might charge you a lot more or even refuse to cover you at all.

If you have a DUI and struggle to find a standard insurer, consider nonstandard auto insurance. These companies specialize in insuring high-risk drivers.

Staying covered is important as long as you own a car. A lapse in coverage can increase your future premiums even more. Insurance companies and the DMV share information, so they'll be aware of any gaps in your coverage.

Insurance companies often use your credit score to predict your likelihood of filing a claim, and good credit usually means lower insurance costs.

Insurers in some states, such as California, Hawaii and Massachusetts, don’t include credit scores when calculating insurance rates.

Full coverage car insurance isn’t a specific type of auto insurance; it’s a combination of different types. In most cases, a full coverage policy combines liability coverage, collision and comprehensive insurance.

The annual cost of your policy will depend on the coverage types you include. The cheapest full coverage car insurance only covers liability, comprehensive and collision damages. You can opt to add other types of insurance to protect your vehicle more comprehensively. Below are some of the most common options.

The average cost of full coverage car insurance can vary significantly, but it's key to understand when it's worth the investment. Here are some scenarios where the added protection might make financial sense.

Review your insurance needs each year before your policy renewal. Life changes (e.g., a new job, moving, different driving habits) can impact your ideal coverage levels.

Full coverage car insurance offers extensive protection but comes with higher costs. By managing these expenses effectively, you can enjoy comprehensive coverage without overpaying.

Choose full coverage car insurance if you rely on your car and can’t easily afford major repairs or a replacement. While full coverage can be expensive, it's there for those unexpected, potentially costly events. This protection can save you from much larger financial burdens if something happens to your car.

The best type of coverage depends on your specific needs and circumstances. Understanding full coverage can help you make an informed decision. Here are some answers to frequently asked questions on the topic.