That Average Cost of Car Insurance


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Key Takeaways

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On average, full coverage car insurance costs $2,575 annually, while minimum coverage costs about $1,202 per year

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GEICO offers the cheapest car insurance nationwide, with an average annual premium of $66 per year for minimum liability coverage.

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Your driver profile, credit score (in most states), and car choice impact your car insurance cost. Also, location is one of the biggest factors and costs vary significantly by state. 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?

The average cost of car insurance in the U.S. is $2,575 per year, according to MoneyGeek's analysis. Minimum liability car insurance costs significantly less at an average of $1,202 per year:

100/300/100 Full Cov. w/$1,000 Ded.$215$2,575
State Minimum Liability Only$100$1,202

**Car insurance costs vary widely from person to person, as car insurance rates, which are calculated differently by each insurer, are influenced by factors like age, driving record, credit-based insurance score, state and vehicle type.

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LIABILITY-ONLY VS. FULL COVERAGE

Liability-only car insurance provides financial protection for damage or injuries to others when you’re at fault, offering a basic, budget-friendly option. In contrast, full coverage combines liability with comprehensive and collision insurance, covering non-collision incidents and damage to your vehicle.

Average Cost of Car Insurance by Company

Car insurance rates vary significantly across the country, influenced by both the insurer and region. While large insurers provide coverage options nationwide, many regional and midsized companies offer competitive rates within specific states, making them popular choices locally. Below, we break down average costs for both national and mid-sized providers:

Average Cost of Car Insurance by Company: Major Insurers

Individual car insurance rates vary based on personal factors. Since insurers weigh these factors differently, the same individual's premiums vary by provider. Average annual rates range from $191 to $284 per month for full coverage and from $66 to $134 for minimum coverage, depending on the national provider.

Data filtered by:Results filtered by:
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Allstate$284$7536%
Farmers$275$6631%
Geico$151$-59-28%
Nationwide$179$-30-14%
Progressive$216$73%
State Farm$247$3818%
Travelers$191$-18-9%

Average Car Insurance Costs by Company: Midsized Insurers

While many midsized car insurance companies aren’t available nationwide, they hold a significant share in the states where they operate. For this reason, location has a significant impact on these insurers' average annual rates, which are highlighted in the table below for both coverage levels:

Data filtered by:Results filtered by:
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
National General143.01$-66-32%
Kemper160.45$-49-23%
UAIC175.23$-34-16%
Chubb202.51$-7-3%
Amica208.40$-10%
AAA214.33$52%
Farmers274.87$6631%
AIG282.24$7335%

Average Car Insurance Cost by Location

Location significantly impacts car insurance rates. Based on state and local regulations, crime rates, driving conditions and average costs for car repairs and medical expenses, premium levels vary widely across U.S. cities and states. Additionally, since population density influences several risk factors, average premiums tend to be higher in highly populated states and urban areas than in less populous states and rural areas.

Average Car Insurance Cost by State

Below are the average annual car insurance rates for both coverage levels in all 50 states and the District of Columbia, compared to the national average:

Data filtered by:Results filtered by:
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Coverage User Friendly: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
District of Columbia$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 Cost by Age

Age and driving experience have a significant impact on car insurance rates. While young drivers aged 16-25 often face higher premiums due to increased accident rates, average premiums decrease with age but rise slightly after 70. Below are the average full coverage and minimal coverage rates for young (19-25), adult (25-54), and senior (55+) drivers.

Data filtered by:Results filtered by:
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coverage_user_friendly:100/300/100 Full Cov. w/$1,000 Ded.
Adult Drivers2152575
Senior Drivers2703236
Young Drivers5376442
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CAR INSURANCE COST BY AGE: KEY FACTS

Average Car Insurance Cost by Gender

Due to statistical trends in driver behavior that insurers consider, gender impacts car insurance rates to varying degrees across age groups. While young males often pay more than young females for car insurance, female drivers pay about the same on average across all driver profiles. The table below highlights average car insurance rates by gender:

Data filtered by:Results filtered by:
Select
coverage_user_friendly:100/300/100 Full Cov. w/$1,000 Ded.
Male$215$2,575.00
Female$218$2,618.00

Average Cost of Car Insurance for Drivers With Violations

One's driving record affects insurance rates, as violations like speeding tickets, at-fault accidents, or a DUI usualy lead to rate increases, resulting in premiums 24% to 77% higher than average. Below are the average costs for minimum liability and full coverage car insurance for drivers with a speeding ticket, at-fault accident or DUI:

Data filtered by:Results filtered by:
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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 PREMIUM INCREASES LAST AFTER A TRAFFIC VIOLATION?

Rate increases after a driving violation often apply as long as the infraction is on record—typically three to seven years, depending on the violation and state. For example, while a DUI affects rates for up to 10 years in California, the period is around only 5 years in Texas.

Average Cost of Car Insurance by Credit Score

Improving your credit score can lower your car insurance premiums and offer other financial benefits. For example, drivers with poor credit pay an annual average of $3,752, a rate that is dramatically more expensive than what drivers with good credit pay:

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

The type of car you drive plays a big role in determining your insurance rates. As the table below demonstrates, because luxury cars, sports cars, and electric vehicles tend to have higher MSRPs and more advanced technology, they are more costly to insure than standard vehicles because they repairing and replacing them is more expensive than average:

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 Rates: Comprehensive Guide

Car insurance rates vary widely, leaving many drivers confused about their premiums. Knowing what affects your car insurance costs is essential for making smart choices and saving money. In the sections below, we'll look at the factors that affect car insurance rates, why rates are expensive and (and rising), and how to lower your car insurance rates.

Factors That Affect Car Insurance Costs

Understanding key factors like driving record, vehicle type, and coverage choices helps you make informed decisions and potentially save hundreds annually while maintaining proper protection. Here are the main factors that insurers assess when setting your rates:

Driver-Related Factors

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    Driving History

    Your driving record significantly impacts your insurance rates. A clean record typically results in lower premiums, while violations such as speeding tickets, DUIs, or at-fault accidents can increase costs for several years.

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    Age and Experience

    Younger drivers usually face higher rates due to increased accident risk. Costs generally decrease as they gain more driving experience.

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    Claims History

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

Personal Profile

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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 individuals 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, along with certain occupations and educational backgrounds, can qualify you for discounts, as these factors indicate lower risk.

Vehicle-Specific Factors

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    Car Type and Value:

    The type of vehicle you drive greatly affects 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 lead to reduced premiums.

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    How You Use Your Car

    The amount you drive impacts your premiums. Higher annual mileage increases the likelihood of accidents. For example, drivers covering 15,000 miles annually typically pay more than those who drive only 5,000 miles.

Coverage and Policy Choices

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    Coverage Levels

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

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    Deductibles

    Opting for Higher deductibles can reduce monthly payments but require more out-of-pocket expenses in the event of a claim.

Location and Environment

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    Where You Live

    Where you live significantly influences your insurance rates. Urban areas like New York or Miami often have higher premiums due to traffic congestion, theft, and accident rates, whereas 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 and Household 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 elevate 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.

Factor
How it Affects Car Insurance Rates

Vehicle Type

Your car’s make, model and year significantly impact your insurance costs. Generally, luxury and sports cars carry higher premiums due to expensive parts and higher accident risks, while sedans and SUVs often have lower rates. The cheapest cars to insure often have high safety ratings, low repair costs and modest market values.

Gender

With the expection of states that prohibit insurers from using it as a factor (California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania), gender can also impact car insurance rates. Because they're more likely to be involved in accidents, men under 25 tend to pay more for coverage, That said, across ages, females pay slightly more for car insurance than males.

Insurance History

Drivers with a gap in coverage are often viewed by insurers as higher risk, which can lead to increased premiums. For example, if you go six months without insurance — even if you weren't driving — insurers may consider you less reliable or more prone to risk, resulting in higher rates when you reapply.

Car Insurance Cost Estimator

Because car insurance costs depend on a variety of factors, which are weighed differently depending on the insurer, the best way to get the most accurate calculation of your likely car insurance costs is to get a personalized estimate directly from car insurance companies. You can use our car insurance calculator below to see how these factors impact your car insurance costs:

The Top Car Insurance Companies

Insurance Carrier

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Annual Premium

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How Expensive is Car Insurance?

Based on available data and population weighting across major developed countries, the drivers United States pay some of the most expensive car insurance premiums in the world. In fact, car insurance rates in the US average 2 to 3 higher than developed nations like Australia or the UK and are significantly higher on average than in much of Europe.

Why Is Car Insurance Expensive?

Aside from recent trends, which we discuss below, US car insurance is currently so expensive due to a variety of economic, behavioral, and environmental conditions. Some of the top drivers include:

  • Legal System: Liability-based insurance leads to higher potential payouts than other countries' systems
  • Overall Driving Costs 2017 study found US drivers face $10,228 annually—55% more than UK drivers and 14% more than German drivers
  • Economic Factors: Due to a host of economic factors that we'll detail in the next section, car insurance in some US states exceed $4,000 annually.

Are Car Insurance Rates Going Up?

Even with average rates among the highest in the world, car insurance have continued become much more costly over the last few years. The average expense for full coverage jumped from $1,633 in 2022 to $2,313 in 2024, marking a 42% increase within just two years. 2024 alone saw a 16.5% rise.

Current Costs:

  • 2022: $1,633 per year for full coverage
  • 2024: $2,313 per year for full coverage
  • 2025: Expected to be around $2,101 per year (close to $175 per month)

States like Nevada, Florida, and Michigan are particularly impacted, with many drivers facing monthly premiums that often surpass $250. Contributing factors include high traffic density, challenging weather conditions, and differing regulatory climates.

Why Car Insurance Rates Keep Going Up

Car insurance rate increases in recent years have beem 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 packed with advanced technology and safety features, making repairs more costly. Modern vehicles come with advanced technology and parts that are more expensive to repair or replace, driving up insurance costs. While repair expenses rose by 3-5% 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

Knowing how different factors affect your premium can help you identify ways to cut costs while still maintaining adequate coverage. Here are some practical tips to help reduce your car insurance expenses:

  1. 1

    Maintain a Clean Driving Record

    Safe driving and avoiding accidents or traffic violations can keep your premiums in check. This is one of the best ways to ensure your rates stay low over time.

  2. 2

    Bundle insurance policies

    Bundling auto and home insurance often leads to discounts, as insurers reward multiple policies with reduced rates. Most major providers offer home and auto bundles. Whether you live with other drivers or own multiple vehicles yourself, combining them on one policy can help you secure a discount.

  3. 3

    Shop Around and Compare Quotes Regularly

    It's wise to get quotes from at least three different insurers every year since your rates can change based on your circumstances and the providers' policies. Make sure to keep your current insurer informed about any life changes, such as moving, graduating, changing jobs, or getting married, as these can affect your premium.

  4. 4

    Maintain a clean driving record & improve your credit

    Safe driving over time can significantly reduce your rates, as avoiding accidents and violations signals lower risk to insurers. Many insurers also consider credit history; a strong credit record may qualify you for better rates, reflecting financial responsibility.

  5. 5

    Increase Your Deductible

    Opting for a higher deductible can lead to considerable savings on your premium. Just make sure that you're okay with the increased out-of-pocket expenses if you need to file a claim.

  6. 6

    Bundle Your Insurance Policies

    Look into combining your auto insurance with home, renters, or other types of coverage to benefit from multi-policy discounts. Also, insuring several vehicles under one policy can result in additional savings.

  7. 7

    Reduce Your Mileage and Try Usage-Based Programs

    Driving less decreases your risk of accidents, which could lead to lower rates. Additionally, you might explore usage-based insurance options that adjust premiums based on your driving habits, potentially rewarding safe driving.

  8. 8

    Attend a defensive driving course

    Completing approved driving courses can reduce rates, particularly for those with a record, and in some states, it may shorten the duration of an offense on your record. However, if you have SR-22 or FR-44 insurance, a course won’t lower rates during the SR-22 term. Options like state-sponsored driving courses may reduce the impact, and not all insurers raise rates after a first offense.

  9. 9

    Maximize Available Discounts

    Always ask your insurer about all the discounts you qualify for. Common discounts are often available for safe drivers, good students, those who drive less, vehicles with safety features, and members of certain professional organizations.

  10. 10

    Improve Your Credit Score

    If your state factors in credit scores for insurance premiums, taking steps to improve your credit by making timely payments and reducing credit card balances can help lower your rates.

  11. 11

    Complete a Defensive Driving Course

    Taking an approved safety course, typically lasting six to eight hours, can earn you discounts of up to 5% from many insurance providers.

  12. 12

    Adjust Coverage as Your Car Ages

    As your vehicle loses value, it's important to revisit your coverage to avoid paying for unnecessary insurance. A good general guideline is to lower comprehensive and collision coverage when your yearly premium surpasses 10% of your car's current market value.

  13. 13

    Optimize Your Policy Structure

    Review your coverage levels and consider eliminating optional add-ons that don't add value for you. Make sure your coverage is tailored to your needs while excluding extras that you don't require.

Car Insurance Cost: Bottom Line

The cost of car insurance depends on several factors, including location, vehicle type, driving history and individual demographics. While national trends show rising premiums due to inflation, repair costs and other market factors, comparing quotes and exploring discounts can help you secure a competitive rate. Ultimately, understanding the factors affecting your premium allows you to make informed decisions and find coverage that fits your budget.

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Compare Auto Insurance Rates

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Car Insurance Cost: FAQ

MoneyGeek addressed some of the most commonly asked questions on this topic 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 various factors — the insurer you choose, your 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 as well as State departments of insurance and includes 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
  • 12K 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 that you would need to pay $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 50/1000/50 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


Mark Fitzpatrick headshot

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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