Car insurance costs $216 per month on average, but rates vary widely based on your age, driving record, credit score, location, vehicle type and coverage choices. Understanding how to compare car insurance companies effectively can help you find the best rate for your specific situation. Understanding how much car insurance you need and how to compare car insurance companies effectively can help you find the best rate for your specific situation.
Average Cost of Car Insurance in 2026
Updated: April 27, 2026
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How Much Does Car Insurance Cost? Key Takeaways
The average cost of full coverage car insurance is $2,575 annually or $216 monthly, while minimum coverage costs $1,202 or $100 per month. The average cost of state-minimum liability car insurance is $61 per month.
Car insurance costs continue rising due to increased repair costs and higher vehicle values. Car insurance rates have increased 11.3% in the last year and 57% since early 2022.
The gap between what you pay now and what the data says you should pay is almost always explained by one of five variables. Your driver profile, location, credit score (in most states), insurance company choice and vehicle type most impact your car insurance cost.
MoneyGeek analyzed 83,056 quotes from 46 companies across 473 ZIP codes, with rate data sourced from Quadrant Information Services and state insurance departments. The dataset covers urban centers, suburban markets and rural areas across every U.S. state to reflect real-world pricing variation rather than averaged national figures.
The baseline profile is a 40-year-old man with a clean driving record, driving a 2012 Toyota Camry LE 12,000 miles annually, carrying 100/300/100 liability limits with a $1,000 comprehensive and collision deductible. Every section that shows rates for a specific profile, age, violation type, credit score or vehicle category substitutes that variable while keeping everything else constant. That approach isolates the cost impact of each factor so the numbers reflect what that one change actually costs you, not a different driver profile entirely.
Why You Can Trust MoneyGeek
MoneyGeek's average car insurance cost data is derived from analyzing 83,056 quotes from 46 companies across 473 ZIP codes, with rate information sourced from Quadrant Information Services and state insurance departments. We started with a baseline of a 40-year-old driver with a clean record, then systematically adjusted age, gender, location, vehicle type, credit score, and driving record to show you exactly how each factor affects your premium—helping you make informed decisions and identify opportunities to lower your costs.
*Full coverage refers to a policy with 100/300/100 liability limits, comprehensive and collision coverage with a $1,000 deductible. Minimum coverage represents the minimum required coverage mandated by each state and D.C., which varies by location.
How Much Is Car Insurance on Average?
| Full Coverage | $125 | $1,495 |
| Minimum Coverage | $61 | $727 |
Car Insurance Cost by Driver Profile
Car insurance costs range from $120 to $537 monthly for the same full coverage policy depending on your driver profile. That $417 spread is the most important number on this page, because it means the national average of $216 describes almost no one's actual bill.
Clean record adult (25-54) | $215 | $100 |
Young driver (19-25) | $537 | $251 |
$270 | $135 | |
Driver with not-at-fault accident | $228 | $106 |
$310 | $145 | |
$377 | $177 | |
Driver with excellent credit | $120 | $57 |
$313 | $144 |
The two biggest jumps in that table are age and credit. A young driver pays 150% more than a clean-record adult. A driver with poor credit pays 150% more than one with excellent credit. Those two variables create more rate variation than any violation short of a DUI. If either applies to your situation, the age and credit sections below identify the specific carriers and strategies most likely to lower your rate. See car insurance rates for married couples to see how much it costs with multiple drivers.
Average Cost of Car Insurance by State
Location creates the biggest effect on car insurance costs, with monthly premiums ranging from $75 in Vermont to $243 in Florida or a $168 difference for the same coverage. That $168 monthly difference has nothing to do with how well you drive. It reflects state insurance rules, litigation environments, weather exposure and regional economics that vary dramatically across state lines.
The table below shows full coverage rates for an ideal driver profile in each state. For detailed state-specific information, explore our guides on the cheapest car insurance companies and the cost of car insurance in different states, or find the best car insurance companies nationwide.
Data filtered by:
Full Coverage
| Alabama | $104 | $1,245 |
| Alaska | $106 | $1,278 |
| Arizona | $136 | $1,628 |
| Arkansas | $114 | $1,373 |
| California | $155 | $1,861 |
| Colorado | $146 | $1,754 |
| Connecticut | $145 | $1,745 |
| Delaware | $179 | $2,149 |
| District of Columbia | $164 | $1,963 |
| Florida | $243 | $2,912 |
| Georgia | $135 | $1,620 |
| Hawaii | $82 | $983 |
| Idaho | $79 | $952 |
| Illinois | $99 | $1,189 |
| Indiana | $84 | $1,009 |
| Iowa | $97 | $1,162 |
| Kansas | $116 | $1,389 |
| Kentucky | $132 | $1,580 |
| Louisiana | $236 | $2,827 |
| Maine | $76 | $908 |
| Maryland | $150 | $1,802 |
| Massachusetts | $99 | $1,193 |
| Michigan | $138 | $1,652 |
| Minnesota | $109 | $1,310 |
| Mississippi | $123 | $1,472 |
| Missouri | $124 | $1,486 |
| Montana | $112 | $1,346 |
| Nebraska | $110 | $1,320 |
| Nevada | $152 | $1,826 |
| New Hampshire | $82 | $984 |
| New Jersey | $180 | $2,160 |
| New Mexico | $116 | $1,388 |
| New York | $120 | $1,435 |
| North Carolina | $105 | $1,264 |
| North Dakota | $90 | $1,078 |
| Ohio | $83 | $990 |
| Oklahoma | $133 | $1,599 |
| Oregon | $115 | $1,376 |
| Pennsylvania | $117 | $1,407 |
| Rhode Island | $126 | $1,518 |
| South Carolina | $130 | $1,559 |
| South Dakota | $106 | $1,269 |
| Tennessee | $103 | $1,233 |
| Texas | $150 | $1,799 |
| Utah | $127 | $1,524 |
| Vermont | $75 | $902 |
| Virginia | $97 | $1,162 |
| Washington | $109 | $1,305 |
| West Virginia | $111 | $1,326 |
| Wisconsin | $87 | $1,038 |
| Wyoming | $82 | $984 |
Average Car Insurance Cost by Company
Major national insurers charge significantly different rates for identical coverage. Monthly full coverage rates range from $97 with Travelers to $161 with Allstate, a $64 monthly gap that adds up to $768 annually for the same policy.Learn more about individual insurers through our detailed company reviews: State Farm review, Progressive review and Nationwide review.
Data filtered by:
100/300/100 Full Cov. w/$1,000 Ded.
| Travelers | $97 | $-39 | -29% |
| State Farm | $121 | $-15 | -11% |
| Progressive | $125 | $-11 | -8% |
| Nationwide | $127 | $-9 | -6% |
| Farmers | $152 | $16 | 12% |
| Allstate | $161 | $26 | 19% |
The gap between Travelers and Allstate is not a pricing error. They have different business model that result in different pricing. Travelers and GEICO run direct to consumer operations with lower overhead and pass those savings into the premium. Farmers and Allstate distribute through agent networks with higher operational costs built into every policy. Neither model is wrong, but knowing which one you are paying for helps explain why two carriers can quote such different numbers for the same driver.
Regional carriers not shown in this table frequently undercut national companies in the states where they operate. If your state table shows a regional carrier at the top, that rate is worth adding to your quote comparison before assuming one of these nationals is your cheapest option.
Average Car Insurance Cost by Age
Car insurance costs vary by age group. Young drivers aged 19 to 25 pay $537 monthly for full coverage or 150% more than adult drivers who pay $215 monthly. Seniors pay $270 monthly, about 26% more than middle-aged adults.
Data filtered by:
100/300/100 Full Cov. w/$1,000 Ded.
| Adult Drivers | $215 | $2,575 |
| Senior Drivers | $270 | $3,236 |
| Young Drivers | $537 | $6,442 |
Young drivers aged 16 to 19 have crash rates nearly four times higher per mile driven than drivers 20 and older. They're more likely to speed, drive distracted and make risky decisions due to inexperience and brain development factors. This risk translates to higher insurance costs, with teenage insurance costs can add $322 monthly to a family policy. For affordable coverage for young drivers, see our guide to the cheapest car insurance for new drivers.
Senior drivers see rate increases after age 70 due to age-related changes including slower reaction times, vision changes and medication effects that increase accident risk. Learn more about when car insurance rates go down as you age and the average cost of car insurance for 16-year-olds.
Your age is one of the biggest factors in what you pay. See a full breakdown of car insurance rates by age to find where your age group falls compared to the national average.
Rates may vary even more when you combine age and location. Our cost by age and state analysis shows how the same driver profile pays different rates depending on where they live.
Average Cost of Car Insurance by Credit Score
Credit score creates one of the largest rate gaps in car insurance, with monthly premiums ranging from $120 for drivers with excellent credit to $313 for drivers with poor credit. That $193 monthly difference equals $2,316 in extra premiums annually for identical coverage. If you're concerned about credit checks, explore our list of insurance companies that don't check credit scores.
Data filtered by:
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 |
Insurers use credit scores for two reasons. First, data shows that drivers with lower credit scores file more claims on average. Second, insurers worry that drivers with poor credit are more likely to miss payments or let their policy lapse. Both factors increase risk for the carrier, and that risk gets priced into your premium. It is not a personal judgment. It is how insurers predict the likelihood of a future claim or a missed payment.
California, Hawaii, Massachusetts and Michigan do not allow insurers to use credit scores when setting rates. If you live in one of those four states, your credit history has no effect on what you pay. The table above does not reflect pricing in those markets.
Average Car Insurance Costs by Vehicle Type
Auto insurance rates differ based on the vehicle you drive, with annual premiums ranging from $1,291 for minivans to $3,006 for luxury sports cars. Vehicle type affects costs because repair expenses, replacement values and theft rates differ between vehicle categories. For truck owners specifically, see our guide to the best car insurance for pickup trucks.
| 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 |
Where your vehicle lands in this table comes down to three things: what it costs to repair, how often that model gets stolen, and how it performs in crash tests. If you drive a luxury or electric vehicle, expect to pay more on all three counts. If you are shopping for a new car and insurance cost matters, a compact SUV or pickup gives you the most vehicle for the least insurance premium.
New vehicles cost more to insure than used ones. See how much new cars cost to insure broken down by make and model.
Car Insurance Rate Trends: Why Costs are High and How They've Changed (2020-2025)
Average car insurance rates jumped 51% since late 2019, putting financial pressure on drivers nationwide. Modern vehicles with advanced technology cost far more to repair. A replacement bumper with sensors costs $3,000 compared to $500 for older cars. Repair costs increased over 10% annually since 2022 compared to 3% to 5% pre-pandemic.
Medical expenses for injury claims keep rising, and extreme weather events intensify. The U.S. experienced over $92 billion in climate-related damages in 2023. Average rate increases show recent moderation. Car insurance inflation dropped from a peak of 23% in April 2024 to 5.3%. Rate increases in 2025 hit 7.5% compared to 16.5% in 2024.
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 with advanced technology and more expensive parts to repair or replace, driving up insurance costs. While repair expenses rose by 3% to 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 reshaped the insurance industry. In 2023, the U.S. experienced more than $92 billion in damage from climate-related disasters, putting immense pressure on insurance companies. |
Life changes | Major life changes can shift your premium unexpectedly. See how insurance costs change after divorce and what steps to take to avoid overpaying during the transition. |
Dozens of variables shape your premium. See the complete list of factors that affect car insurance rates and which ones you can control.
Car Insurance Cost: FAQ
How much is car insurance per year?
The average annual cost of car insurance for U.S. drivers is $1,202 for minimum coverage and $2,575 for full coverage. These averages vary based on location, driving history and vehicle type. Your actual cost depends on your specific driver profile—young drivers pay $6,442 annually while clean-record adults pay $2,575.
Who pays most for car insurance?
Young drivers (19-25) pay the most for car insurance at $537 monthly, followed by drivers with DUIs at $377 monthly. Drivers with poor credit pay $313 monthly, while those with at-fault accidents pay $310 monthly. Clean-record adults with good credit pay the least at $120-$215 monthly depending on age. For affordable options, see our guide to cheap car insurance for young adults.
Is car insurance higher for expensive cars?
Yes, car insurance costs more for expensive cars. Luxury sports cars cost $3,006 annually to insure, while minivans cost $1,291 annually—a $1,715 difference. Expensive vehicles cost more to repair or replace after accidents, and they're often targeted for theft. Higher replacement values mean insurers face greater financial risk with total-loss claims. Check out our guide to the cheapest car insurance for sports cars for affordable coverage options.
What factors most impact car insurance costs?
Four factors create the biggest rate differences: location (Vermont $75/month vs. Florida $243/month), driving record (clean $215/month vs. DUI $377/month), credit score (excellent $120/month vs. poor $313/month) and age (adults $215/month vs. young drivers $537/month). Your vehicle type, coverage choices and deductible amounts create additional variations.
How can I lower my car insurance costs?
Compare quotes from at least three insurers, as rates vary by $50-$100 monthly for identical coverage. Increase your deductible from $500 to $1,000 to save 10-15% on comprehensive and collision coverage. Apply all available discounts. Bundle your auto and home insurance for discounts of 15-25%. Maintain a clean driving record, improve your credit score and ask about good driver, good student and low-mileage discounts. For more savings tips, explore our guide to finding cheap full coverage car insurance
How long do traffic violations impact car insurance costs?
Most traffic violations affect your car insurance rates for three to five years. Minor violations like speeding tickets typically impact rates for three years, while major violations like DUIs affect rates for five to ten years depending on your state. The rate increase diminishes over time—you'll pay more immediately after the violation, with the surcharge gradually decreasing as years pass.
Here's how different violations affect monthly full coverage costs:
- Speeding 11-15 MPH over: $268 monthly (+$53)
- At-fault accident: $310 monthly (+$95)
- DUI: $377 monthly (+$162)
Why do state insurance requirements affect costs?
State insurance requirements affect costs because mandatory coverage types vary by state. States requiring personal injury protection (PIP) or uninsured motorist coverage have higher minimum premiums than states requiring only basic liability. Michigan's comprehensive first-party benefits system creates some of the nation's highest rates, while states with lower liability limits allow cheaper minimum coverage policies. Learn more about what liability car insurance coverage includes in your state.
Beyond mandated coverages, states with higher claim frequencies, weather patterns or vehicle theft rates see higher premiums. Urban density, medical costs and litigation environments also drive regional rate differences.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights — on products ranging from car, home and renters insurance to health and life insurance — have been featured in The Washington Post, The New York Times and NPR among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to analysis of the personal insurance market. He's also a five-time Jeopardy champion!
Sources
- Insurance Information Institute. "Senior Driving Safety and Insurance Tips." Accessed July 24, 2025.
- National Safety Council. "Age of Driver." Accessed July 24, 2025.