Average Cost of Car Insurance in December 2022

The average cost of car insurance is $1,424 per year. But that’s just an average. How much car insurance costs for you will be determined by a variety of factors, and MoneyGeek’s data can give you an idea of what to expect based on your profile.

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Last Updated: 11/28/2022
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Average Cost of Car Insurance: Summary

MoneyGeek's analysis of car insurance rates across the country highlights that good drivers pay an average of $1,424 per year for a policy with 100/300/100 liability insurance and comprehensive and collision coverage. Car insurance rates vary based on many factors such as location, age, driving record, credit score and vehicle type, and each insurance company weighs these factors differently when calculating rates.

Average Car Insurance Rates

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The average costs of car insurance in the table above represent the average cost of car insurance 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.

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Methodology

Why Trust MoneyGeeK There are many factors that affect the cost of car insurance. To discover the most accurate average cost of car insurance for different drivers, MoneyGeek gathered data from Quadrant Information Services and state departments of insurance using sample driver profiles that accounted for how insurers typically calculate costs.

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Table of Contents
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    Some companies may cost $800 more than others, based on annual premiums.

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    The average minimum coverage policy may only cost $75 per month, but a full coverage policy with better protection could cost an average of $119 a month.

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    On average per year, a college-aged 20-year-old might pay almost 50% more than a 30-year-old.

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    If you live in Maine, you might pay $51 monthly but could pay $456 in Michigan. States mandate their own coverage requirements, making these numbers more accurate than national averages.

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    A Honda CR-V is the cheapest to insure, while a Nissan GT-R is the most expensive.

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    Having a DUI can double the cost of what you'll pay in premiums.

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    Getting a ticket could cost almost 29% more on an average premium than a driver with a clean record. For an accident, it's 57% more.

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    Those with bad credit can expect to pay roughly 56% more than an average driver when paying in full for annual coverage.

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    Take the next step and find out how much car insurance will cost for you by getting and comparing quotes.

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Average Cost of Car Insurance by Company - Major Insurers

One of the most important factors determining car insurance cost is the company's average. Of the companies widely available across the country:

  • GEICO is the most affordable and widely available insurance for the average driver, costing $1,047 per year.
  • MetLife, the most expensive, costs $1,686 per year for the average driver.

While USAA is the cheapest, costing $883 per year on average, it is only available to current or former military personnel and their families.

The price difference shows the importance of getting quotes from multiple insurers.

The Average Cost of Major Insurers - From Cheap to Expensive

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Average Car Insurance Costs by Company - Midsized Insurers

Certain insurance companies don’t have national availability, but still make up a large share of the car insurance market for the states in which they’re available. These mid-sized insurance companies range from affordable — such as Erie, which costs an average of $934 per year — to expensive, such as Allied Insurance, a Nationwide subsidiary which costs an average of $1,633 per year.

The Average Cost of Midsized Insurers - From Cheap to Expensive

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Average Full Coverage Car Insurance Cost vs Liability-Only

The amount of coverage you decide on will depend on the state you live in and your unique needs. Typically, more coverage is more expensive.

  • Liability-only insurance costs an average of $898 per year.
  • A full coverage policy with the same liability limits costs an average of $1,311 per year.

Liability-only car insurance coverage tends to cost the least, but getting only the minimum comes with risks. For example, you won’t be covered for damage to your vehicle with liability-only coverage — you’d only be covered for any damage that you do to another person’s car. That’s why full coverage (comprehensive and collision) is generally a better option for many drivers.

Car Insurance Premiums by Coverage Level

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  • Payment Cycle
    50/100/50 Liability-only
    50/100/50 w/ Comprehensive and Collision
    100/300/100 w/ Comprehensive and Collision
  • Monthly
    $75
    $109
    $119
  • 6-Month
    $449
    $656
    $712
  • Annual
    $898
    $1,311
    $1,424

Average Car Insurance Costs by Age

Age is another factor that can impact the cost of insurance. For example, a less experienced teen driver could cost as much as $5,318 per year to insure by themselves.

The average cost of car insurance greatly decreases from age 16 to 30, at which point car insurance rates tend to remain steady until slightly rising in a driver’s senior years.

Average Car Insurance Premiums by Age

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  • Age
    Individual Premium
  • $5,318
  • $4,621
  • $3,997
  • $2,789
  • $2,465
  • $1,957
  • $1,818
  • $1,648
  • $1,543
  • $1,402
  • $1,267
  • 40
    $1,246
  • $1,179
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While average rates for high school and college students tend to be the highest for all age groups, there are also specific discounts for students with good grades that allow them to lower their rates. Young drivers can also lower their rates if it's possible to stay on their parent's policy — to do so, they must reside in the same home as their parents.

In MoneyGeek's study on the best and cheapest car insurance for students, we found that the average cost increase for the top five providers for 18-year-old students on their own policy was $1,124 more than for students on a parent policy.

Average Cost for Seniors

While insurance rates lower as drivers age and gain more experience, premiums for seniors typically begin to rise around the age of 65 as risk and vulnerability to injury increases. According to the CDC, drivers over the age of 70 have higher crash mortality rates than drivers aged 35-54.

Average Costs for Seniors by Coverage
  • Average Cost
    Coverage
  • $797
    National Minimum Liability
  • $1,334
    50/100/50 Full Coverage
  • $1,454
    100/300/100 Full Coverage

Average Cost of Car Insurance by State

The requirements and coverage types for car insurance vary by state, which can impact the costs. Michigan — the highest-cost state ($5,471 annually) — recently required drivers to carry at least $20,000 in liability protection for bodily injury (a maximum of $40,000 per incident) and $10,000 for property damage. On July 1, 2020, the state enacted sweeping changes to its auto insurance requirements, which may serve to lower costs for car insurance there. In Maine — the lowest-cost state ($607 annually) — the minimum required for liability coverage is $50,000 per person, $100,000 per accident for bodily injury and $25,000 for property damage.

Average State Premiums

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How Average Car Insurance Rates by State Have Changed Over Time

At a national level, car insurance rates have been fairly stable over the last half decade. From 2015 to 2021, average car insurance rates have only increased by 2.7%; in other words, less than $50. In fact, in the last year car insurance rates have fallen by 2.2%.

But changes in car insurance rates are not uniform, and certain states have seen large changes over the last five years. The five states that have seen the biggest decrease in car insurance rates in recent years are New Jersey, Arkansas, Illinois, Oregon and Connecticut. All five of these states saw average car insurance rates fall by at least 23%.

States With the Biggest Decreases in Rates - Last Six Years

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  • State
    % Rate Decrease (2015-2021)
  • New Jersey
    -30%
  • Arkansas
    -25%
  • Illinois
    -25%
  • Oregon
    -24%
  • Connecticut
    -23%

Conversely the states with the largest increase in insurance rates over the last six years are Montana, Louisiana, Florida, Nevada and Missouri. All of these states saw their average insurance rates increase by 19% or more.

States With the Biggest Increases in Rates - Last Six Years

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  • State
    % Rate Increase (2015-2021)
  • Montana
    37%
  • Louisiana
    34%
  • Florida
    25%
  • Nevada
    23%
  • Missouri
    19%

Average Car Insurance Costs by Car Model

Certain car models can be extremely expensive to insure, but most car models will alter a driver’s rates by less than a few hundred dollars per year. For example, the top selling sedan (Toyota Camry), truck (Ford F-150) and SUV (Toyota RAV4) models in the country all cost our sample driver an average of $1,266 to $1,414 to insure.

On the other hand, sports cars and electric car models can be much more expensive to insure than the average car. MoneyGeek found that the most expensive car to insure is a Nissan GT-R. The cheapest car model to insure is a Honda CR-V.

Explore Costs of Car Insurance by Make and Model

Average Cost of Car Insurance After a DUI

If you have a DUI on your driving record, that can significantly increase your rates, as insurance companies take it as a sign that the driver is high-risk.

  • The average annual cost of car insurance across the board was $1,424.
  • The cost for someone with a DUI was $2,879. That’s more than double the average.

A DUI can stay on your driving record for years, and the exact length of time will depend on the state in which you live. For many reasons, not only insurance rates, you need to avoid a DUI.

Car Insurance Premiums With a DUI
  • Payment Cycle
    Rate After DUI
  • Monthly
    $240
  • 6-Month
    $1,440
  • Annual
    $2,879

Average Car Insurance Costs With Tickets or Accidents

Your accident and ticket history is another factor insurance companies consider when setting rates and determining if they can insure you.

  • A driver with a clean record pays an average of $1,424 per year for car insurance.
  • The same driver with a ticket on their record pays an average of $1,836 per year.
  • If that driver were at-fault for an accident, he pays an average of $2,237 per year.

There are things that can combat increases or lower the costs to your car insurance after an accident. In some states, attending traffic school can get violation points taken off your record. That, in turn, can impact your premiums. And, depending on the insurer, you may get a break if it’s your first violation. It’s worth discussing your options with your insurance agent.

Car Insurance Premiums With Tickets and Accidents

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  • Payment Cycle
    Rate After A Ticket
    Rate After An Accident
  • Monthly
    $153
    $186
  • 6-Month
    $918
    $1,119
  • Annual
    $1,836
    $2,237

Average Cost of Car Insurance By Credit Score

In most states, your credit score can impact your auto insurance rates. The exceptions to this rule are Hawaii, Massachusetts and California, where this practice is not allowed. But for those who live elsewhere in the U.S., even having just average credit can increase your costs more than, for example, having a moving violation, according to research from Consumer Reports.

Raising your score can help you get lower car insurance rates and access other benefits. So it’s something to keep an eye on if you’re planning on taking out a new policy soon.

Average Car Insurance Premiums for Drivers With Poor Credit
  • Payment Cycle
    Poor Credit
  • Monthly
    $223
  • 6-Month
    $1,335
  • Annual
    $2,671
Average Car Insurance Premiums for Drivers With Fair Credit
  • Payment Cycle
    Fair Credit
  • Monthly
    $135
  • 6-Month
    $811
  • Annual
    $1,623
Average Car Insurance Premiums for Drivers With Good Credit
  • Payment Cycle
    Good Credit
  • Monthly
    $110
  • 6-Month
    $660
  • Annual
    $1,321

Other Factors That Impact Cost

The way insurance companies calculate the costs of insuring any given person is usually based on a wide variety of unique factors. Our car insurance cost calculator can help see how these various impact estimated costs. Here’s a breakdown of some of those other aspects you should be aware of and how those can influence your cost of getting car insurance:

Vehicle Type

Your car’s make, model and year all impact how much you’ll pay in insurance costs. For example, classic car insurance companies would come with special requirements as those have a different kind of value than a typical vehicle. On the other hand, a car that’s rated highly for safety and can qualify for eco-friendly discounts can lower your car insurance costs.

Gender

Your gender can be another factor that influences your rates. In general, this rule only applies to drivers under 21. Among those younger drivers, men tend to pay more than women. But, after that, things tend to even out.

Insurance History

Those who have a gap in coverage are generally seen as being less credible, or safe, from the perspective of car insurance companies. So it’s essential to make sure that you have at least the minimum required insurance for your vehicle at all times to avoid inflated rates.

Your ZIP Code

Where you live can have a significant impact on your rates as well. For example, more dense population areas and those with higher crime rates tend to be more expensive. On the other hand, more sparsely populated areas or places with lower crime rates can help you get a better deal.

Annual Mileage

The more you drive, the more opportunities there are for an accident or other damages. So your rates will vary depending on your annual mileage as well.

Deductible Amount

Opting for a higher deductible will lower your monthly costs and vice versa. Keep in mind that if you need to file a claim, you will have to pay more. If you choose a higher deductible, it’s important to have that amount saved, if possible, to lessen potential financial shock later on.

Claims History

Can insurance companies tend to assume that those who have had claims filed in the past are more likely to do so in the future. In general, having fewer claims under your belt is better for getting a lower rate.

Number of Drivers in Household & Marriage Status

Having more drivers in your household will cost more, but it can also lower your overall costs, per driver, if your insurer offers a multi-driver discount. That’s in comparison to each driver getting their own policy. Marital status also impacts your rates as single people tend to pay more than married individuals.

Some factors are hard to control when it comes to the cost you’ll pay for car insurance, such as your age and where you live. Since insurance companies weigh many factors when determining your premium, it’s good to control the elements you can, such as not getting tickets or DUIs and maintaining good credit. Knowing the average cost of car insurance in your state can help you make an educated decision when you shop for the best rate.

How Much is Car Insurance For You?

While the average cost of car insurance is a good place to start researching the best policy and provider to fit your budget, the next step of the process is to begin comparing quotes to find the best and cheapest car insurance policy and rates for you. MoneyGeek recommends getting at least three quotes from different providers for the same policy to ensure a fair comparison.

To compare car insurance quotes:

If you want to make the process even easier, use our Auto Insurance Calculator below to get personalized quotes and to review the top providers in your area.

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Expert Advice: Factors That Influence the Cost of Auto Insurance

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About the Author


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Devon Delfino is an independent journalist based in the Pacific Northwest. Her personal-finance coverage has been featured in publications such as the L.A. Times, Teen Vogue, Mashable, MarketWatch, CNBC and USA Today, among others.


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