Average Cost of Car Insurance (July 2024)

The average driver will pay $50 per month for a liability-only car insurance policy or $108 per month for a full coverage policy.

Your average cost may vary based on the coverage level, location or driver profile. For example, a driver with a DUI might pay 89% more for coverage, and a teen driver pays more than double what an older adult does on average.

Car insurance rates vary based on many factors, such as age, driving record, credit-based insurance score, your state and vehicle type. Each insurer also weighs these factors differently when calculating rates.

Here is a snapshot of how much car insurance costs for different drivers:

• Average U.S. Driver With Full Coverage: $ 1,296 per year, $108 per month.
• Average U.S. Driver With Liability-Only Coverage: $595 per year, $50 per month.
• Average Cost With Good Credit: $1,296 per year, $108 per month.
• Average Cost With Bad Credit: $4.064 per year, $339 per month.
• Average Cost With a Speeding Ticket: $1,621 per year, $135 per month.
• Average Cost With an Accident: $1,903 per year, $158 per month.
• Average Cost With a DUI: $2,280 per year, $190 per month.

The average car insurance costs above represent the average cost for a policy paid in full per annum. There is usually a discount for paying in full, and drivers should be aware that they may pay more for their policy if they opt for monthly payments.

National car insurance premiums vary widely due to factors like location, age, driving record and credit history. Costs also depend on policy type and deductible, with middle-aged drivers often getting the most affordable options.

• Full Coverage Policy: $1,296 per year, $108 per month
• 100/300/100 Liability Only: $752 per year, $63 per month
• State Minimum Liability Only: $595 per year, $50 per month

Explore the table below to find the right coverage option that meets your preferences and budget. Whether you seek state minimum coverage or a more comprehensive policy, the following data can help inform your insurance decisions.

Car insurance rates differ significantly between companies and regions. Among the widely accessible insurers nationwide, here are the companies offering the cheapest average cost of car insurance:

• Travelers: $1,124 per year and $94 per month
• Nationwide: $1,141 per year and $95 per month

Use the table below to review the national average rates for one of three options: full coverage car insurance with 100/300/100 coverage, liability-only insurance with 100/300/100 coverage or state minimum liability-only.

Among regional insurance companies, North Carolina Farm Bureau has the lowest average rate for full coverage at $531 and Farmers Mutual of Nebraska has the cheapest state minimum liability-only car insurance at $208 per year, respectively.

Although many midsized insurers don’t have national availability, they still make up a large share of the car insurance market for the states where they’re available.

Car insurance rates tend to decrease as a driver ages. However, premiums may slightly increase for those over the age of 65. Here are average rates for various age groups:

• 16 years old: $5,486 per year, $457 per month
• 40 years old: $1,220 per year, $102 per month
• 70 years old: $1,252 per year, $104 per month

Young drivers are charged more expensive premiums due to a lack of experience on the road and higher rates of accidents. Teens between 16 and 19 account for 8.9% of drivers in all crashes and 6% of drivers in fatal crashes.

Drivers over 70 also face higher risks as they are more prone to accidents, which can be particularly dangerous at their age. Some states, like California, have implemented stricter renewal processes for senior drivers — seniors are required to take vision, written and driving tests to renew their licenses at the Department of Motor Vehicles.

Car insurance rates vary significantly based on your location, influenced by state regulations, crime rates and traffic conditions. Urban areas typically have higher premiums due to increased risk factors, whereas rural regions enjoy lower costs because there are fewer risks.

To understand how these factors might affect your insurance costs, select a state from the table below to view the average rates for both full and minimum coverage policies in your area.

Liability-only car insurance coverage offers financial protection against the cost of damage or injuries to the other driver when you are at fault. Full coverage includes liability insurance and comprehensive and collision coverage, covering non-collision incidents and damage to your vehicle.

Choose your coverage level wisely to ensure you get the best car insurance for your particular needs and circumstances.

On average, households with multiple cars can save 52% or $736 per year with a multi-car policy.

A multi-car insurance policy allows you to insure several vehicles together under one plan. If you live with another driver or drivers, getting a single policy makes the most financial sense. Even if you live alone but have multiple vehicles, you can get discount by insuring multiple cars.

The top-selling car models in the U.S. cost an average of $1,203 to $3,212 a year to insure.

• Sedan: Toyota Camry, $1,434 per year
• Compact SUV: Toyota RAV4, $1,334, per year
• Pickup Truck: Ford F-150, $1,280per year

The type of car you drive impacts insurance rates as different models have varying repair costs, risk of theft and safety features. Expensive cars typically have higher insurance premiums due to the higher cost of repairs and replacements.

Old, used cars are generally cheaper to insure than new cars:

• 10-year-old car: $1,299 per year
• 5-year-old car: $1,407 per year
• New car: $1,569 per year

The cheapest cars to insure usually have high safety ratings, are affordable to repair and have low market values. To find the cheapest full coverage car insurance policy, look up the cost to insure your car before you buy it. But if your car is new and expensive to replace, consider getting collision and comprehensive insurance.

For older cars, it’s usually more effective to buy the cheapest liability-only car insurance policy. The rates for this policy type are independent of your car's value, and older cars generally incur lower out-of-pocket expenses. If your insurance premium exceeds 10% of your car's actual cash value (ACV), consider switching to liability-only or reducing your coverage.

Drivers can anticipate an average annual car insurance cost based on their driving history, which is a critical factor in premium calculations.

• With a ticket: $1,621 per year, $136 per month
• With an at-fault accident: $1,903 per year, $158 per month
• With a DUI: $2,280 per year, $190 per month

The severity of a driving violation significantly influences the additional amount you'll pay for car insurance. This higher premium persists as long as the infraction remains on your record. In California, for example, a DUI can impact insurance rates for up to 10 years, whereas in Texas, it might only affect them for five.

A driver with a traffic ticket on their record pays an average of $1,621 per year, $325 higher than a driver with a clean record.

Insurance companies take your moving violation history into account when determining rates. A traffic ticket can remain on your record for three to seven years. However, some states offer the option to reduce this time by completing driving courses. And not all insurers raise rates after the first offense.

Check the table below for the national average rates of major car insurance providers offering full coverage car insurance with a ticket on your record.

A driver with an at-fault accident on their record will pay $1,903 per year, $607 more than the average driver, for a full coverage policy.

Depending on your state and insurer, an at-fault accident can increase your insurance rates for three to five years. In no-fault states, your rates might spike even if you weren't responsible for the accident. However, some no-fault states limit the extent to which insurers can raise your rates based on your degree of fault in the accident.

Drivers with a DUI (driving while under the influence) pay an average of $2,283 annually for full coverage, which is $983 more than drivers with a clean record.

A DUI can stay on your driving record for years — the exact length of time will depend on the state in which you live. Additionally, having a DUI on your record may mean you are required to file an SR-22 or financial responsibility form (FR-44).

For national average rates for drivers with a DUI, see the table below.

Raising your credit score can help you get lower car insurance rates and other benefits. For example, a full coverage policy for a driver with poor credit costs an average of $4,064 per year, $2,767 higher than if you have a good credit score.

Four states don’t allow your credit history to factor into your rates: Hawaii, Massachusetts, Michigan and California. For those who live elsewhere in the U.S., even having average credit can increase your costs as insurers use your credit information to determine your risk and the appropriate premium. However, it's still only one factor that goes into your rates, and every insurer weighs it differently.

Car insurance rating factors are criteria used by insurers to determine your premium. They include driving history, age, vehicle type, location and credit score. Insurers use these factors to assess the risk level associated with insuring you.

Our car insurance cost calculator can help see how these factors impact estimated costs. Here’s a breakdown of some other aspects you should be aware of and how they can influence your cost of getting car insurance.

Shopping around, bundling your policies and stacking discounts can save you hundreds of dollars in car insurance costs.

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.