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:
Average Cost of Car Insurance
Updated: July 14, 2025
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Key Takeaways
On average, full coverage car insurance costs $2,575 annually, while minimum coverage costs about $1,202 per year
GEICO offers the cheapest car insurance nationwide, with an average annual premium of $66 per year for minimum liability coverage.
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.
How Much Is Car Insurance?
| 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.
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.
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
| Allstate | $284 | $75 | 36% |
| Farmers | $275 | $66 | 31% |
| Geico | $151 | $-59 | -28% |
| Nationwide | $179 | $-30 | -14% |
| Progressive | $216 | $7 | 3% |
| State Farm | $247 | $38 | 18% |
| 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:
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.
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coverage_user_friendly:100/300/100 Full Cov. w/$1,000 Ded.
| Adult Drivers | $215 | $2,575 |
| Senior Drivers | $270 | $3,236 |
| Young Drivers | $537 | $6,442 |
CAR INSURANCE COST BY AGE: KEY FACTS
- Young Driver Crash Statistics: Drivers aged 16 to 19 are involved in 8.9% crashes and 6% of fatal crashes.
- Age As A Rating Factor: Hawaii and Massachusetts do not allow insurers to use age as a rating factor. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
- Senior License Renewal: In some states like California, vision and driving tests are required for license renewal for seniors.
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:
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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 |
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:
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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
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.
Age and Experience
Younger drivers usually face higher rates due to increased accident risk. Costs generally decrease as they gain more driving experience.
Claims History
Having a history of previous claims can suggest a higher future risk, affecting your premiums.
Personal Profile
Gender
In most states, gender can influence rates, with young men under 25 typically paying more for insurance.
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.
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
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.
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
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.
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
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.
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
Coverage Continuity
Maintaining continuous coverage is essential; gaps in coverage can signal higher risk to insurers and increase rates.
Previous Insurer
If you've held policies with high-risk providers, this may elevate your future rates.
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.
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
Avg. Estimated
Annual Premium
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. |
Increasing Medical Expenses | As the cost of medical care continues to rise, insurers face higher expenses for injury claims, which often results in higher premiums for drivers. |
Impact of Climate Change | The increasing frequency and intensity of extreme weather events—like hurricanes, wildfires, and floods—have significantly reshaped the insurance industry. In 2023, the U.S. experienced more than $92 billion in damages from climate-related disasters, putting immense pressure on insurance companies. |
Changes in State Regulations |
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
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
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
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
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
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
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
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
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
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
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
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
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
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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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?
The average monthly cost of car insurance for the average U.S. driver is around $1,202 for state minimum liability-only coverage and approximately $2,575 for full coverage. These averages can vary based on factors like location, driving history and the type of vehicle insured.
Who pays most for car insurance?
Young drivers, particularly those aged 16 to 19, typically pay the most for car insurance. Their rates are higher due to their inexperience and higher accident rates. Additionally, drivers with a record of traffic violations or DUIs and those with poor credit also face higher premiums.
Is car insurance higher for expensive cars?
Yes, insurance is usually higher for expensive cars. Higher costs are due to the increased expense of repairs and replacements, alongside the potential for more costly claims. Premium vehicles often have more expensive parts and specialized maintenance requirements.
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, 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.
sources
- California Department of Insurance. "Driving For Seniors." Accessed January 10, 2025.
- Insurance Information Institute. "Senior Driving Safety and Insurance tips." Accessed January 10, 2025.
- National Safety Council. "Age of Driver." Accessed January 10, 2025.