Auto Insurance
Average Cost of Car Insurance (September 2023)
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On average, car insurance costs $74 per month or $884 per year across the U.S., according to MoneyGeek's proprietary analysis. Your average cost may vary based on the insurance company, coverage type, location or driver profile. Getting an estimate with these factors considered will give you a rate that closely reflects how much you’ll pay for insurance.
What We're Geeking Out On
- How Much Does Car Insurance Cost?
- Average Cost for Major Insurers
- Average Cost for Midsized Insurers
- Average Cost by State
- Compare Average Costs by Coverage
- How Much Is Car Insurance for You?
- Average Car Insurance Cost by Age
- Average Cost by Car Model
- Average Cost After a DUI
- Average Cost After a Ticket
- Average Cost After an Accident
- Average Cost by Credit Score
- Other Factors That Impact Cost
- Expert Advice
Compare Auto Insurance Rates
Ensure you are getting the best rate for your car insurance. Compare quotes from the top insurance companies.
How Much Does Car Insurance Cost?
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.
A snapshot of how much car insurance costs for different drivers includes:
- Average U.S. Driver With Full Coverage: $884 per year, $74 per month.
- Average U.S. Driver With Liability-Only Coverage: $694 per year, $58 per month.
- Average Cost With Good Credit: $884 per year, $74 per month.
- Average Cost With Bad Credit: $1,536 per year, $128 per month.
- Average Cost With a Speeding Ticket: $1,236 per year, $103 per month.
- Average Cost With an Accident: $1,467 per year, $122 per month.
- Average Cost With a DUI: $1671 per year, $139 per month.
The average car insurance costs shown 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.
Average Cost of Car Insurance by Company: Major Insurers
Car insurance costs vary widely across companies and locations. Of the companies widely available across the country:
- State Farm is the cheapest car insurance company for a full coverage policy, with an average rate of $883 per year.
- Nationwide offers the lowest average rate for a liability-only policy at $506 per year.
While USAA is the least expensive for full coverage ($679 per year) and liability-only policies ($357 per year), it is only available to current or former active-duty military, veterans and their eligible family members.
Use the table below to review the national average rates for one of two options: full coverage car insurance with 100/300/100 coverage or liability-only insurance with 100/300/100 coverage.
Average Coverage Costs for National Providers
Average Car Insurance Costs by Company: Midsized Insurers
Among regional insurance companies, PEMCO (available in Washington and Oregon) has the lowest average rate for full coverage car insurance at $533 per year, while American National P&C is the cheapest for liability-only insurance, at $292 per year.
Although many midsized insurers don’t have national availability, they still make up a large share of the car insurance market for the states in which they’re available.
Browse the national average rates for a full coverage policy with 100/300/100 coverage or a liability-only policy with 100/300/100 coverage in the table below. If you are responsible for an accident, both policy types will cover the other driver up to $100,000 for bodily injury per person, up to $300,000 for bodily injury per accident, and up to $100,000 for personal property damage to the other vehicle. Full coverage, which includes comprehensive and collision coverage, will provide the same liability benefits along with coverage for your own vehicle for damage unrelated to an accident and for damage or injury related to an accident, no matter who was at fault.
Average Coverage Costs for Midsized Insurers
Average Car Insurance Cost by State
The average cost of car insurance differs between states due to varying requirements and coverage types. Select a state in the table below to see its average rates for full and minimum coverage policies to get an idea of how much car insurance may cost for you in your state.
Average Costs by State
Average Car Insurance Cost Comparison by Coverage
Liability-only car insurance coverage offers protection against the cost of damage or injuries for the other driver when you are at fault. Full coverage includes liability insurance and comprehensive and collision coverage, covering non-collision incidents and damages to your vehicle.
Liability-only coverage is cheaper, but full coverage provides the best financial protection. A liability-only policy for a 40-year-old driver costs an average of $582 per year, while a full coverage policy costs $1,105 per year.
Choosing your coverage level wisely can help you find the best car insurance for your particular needs and circumstances.
Because minimum car insurance requirements vary by state, we used an average to present the national average of state minimum coverage rates.
Average Premiums for Full Coverage and Liability-Only Policies
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:
- Gather your personal information
- Decide how much car insurance you need
- Ask the provider and apply for any car insurance discounts that are available to you
- Compare quotes across insurers
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.
Auto Insurance Calculator
See how the Average Annual Auto Insurance Rates vary with the options chosen.
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Average Car Insurance Cost by Age
Age is a significant factor affecting car insurance costs. Young drivers often have more expensive premiums due to a lack of experience on the road and higher rates of accidents. Drivers from 16 to 19 account for 8.9% of drivers in all crashes and 6% of drivers in fatal crashes.
Car insurance rates tend to decrease as a driver ages. However, premiums may slightly increase for those over the age of 65. For instance, a full coverage policy costs roughly $5,486 per year for 16-year-olds, $1,220 per year for 40-year-olds and $1,252 per year for 70-year-olds.
Average Full Coverage Premium by Age
MONEYGEEK EXPERT TIP
While a driver's age may play a role in car insurance rates in most states, Hawaii and Massachusetts do not allow insurers to use age as a rating factor. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
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.
Auto Insurance Cost by Car Model
Model | Average Annual Premium |
|---|---|
$3,096 | |
$1,414 | |
$1,269 | |
$1,266 | |
$1,172 |
Explore Costs of Car Insurance by Make and Model
Auto Insurance
Average Cost of Car Insurance After a DUI
If you have a DUI (DWI or OWI in some states) on your driving record, that can significantly increase your rates, as insurance companies take it as a sign that you are high risk.
- The average cost of a 100/300/100 full coverage policy with a $1,000 deductible for a DUI driver is $1,671 per year.
- The average cost for the same policy for someone with a clean record is $884. That means a DUI can increase premiums by 89%.
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. Additionally, having a DUI on your record may mean you are required to file an SR-22 or financial responsibility form (FR-44).
The table below presents the national average rates for drivers with a DUI for a full coverage policy from major car insurance companies.
Average Full Coverage Premiums for Drivers With a DUI
Average Car Insurance Costs With Tickets
Your moving violation history is another factor insurance companies consider when setting rates.
- A driver with a traffic ticket on their record pays an average of $1,091 per year for a 100/300/100 full coverage policy with a $1,000 deductible.
- A driver with a clean record owes an average of $884 per year for the same policy. That means a traffic citation can increase your rates by 23%.
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.
Average Full Coverage Premiums for Drivers With Tickets
TIPS FOR DRIVERS WITH A TICKET OR AN ACCIDENT
You can take some actions that can combat increases or lower car insurance costs after a ticket or 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.
Average Cost of Car Insurance After an Accident
How much you’ll pay for car insurance can be significantly affected by your accident history.
- The average cost of a 100/300/100 full coverage policy with a $1,000 deductible is $1,467 per year for a driver with an at-fault accident on record.
- The same policy costs an average of $884 per year for a driver with a clean record. This shows that an accident on your record can increase your rates by 67%.
The table below provides the national average rates for a full coverage policy with an accident on record from major car insurance companies.
Average Full Coverage Premiums After an Accident
MONEYGEEK EXPERT TIP
Accident forgiveness coverage will help you avoid a premium surcharge after your first at-fault accident. While accident forgiveness isn't available in every state and from every insurer, these programs can help you save in the event of an accident. Accident forgiveness typically only applies to one accident per policy, even if there are multiple drivers on the policy. – Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Average Cost of Car Insurance by Credit Score
In most states, your credit history can impact your auto insurance rates. The exceptions to this rule are Hawaii, Massachusetts, Michigan and California, which don’t allow this practice. But for those who live elsewhere in the U.S., even having average credit can increase your costs as, according to the National Association of Insurance Commissioners, insurers use your credit information to determine your risk and the appropriate premium.
Raising your credit score can help you get lower car insurance rates and other benefits. It’s something to consider if you’re planning on taking out a new policy soon. For example, a full coverage policy for a driver with poor credit costs an average of $1,536 per year. But having a good credit score can decrease your rate by roughly 74% to $884 per year.
Average Car Insurance Premiums by Credit Score
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 factors 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. Generally, men tend to pay more for auto insurance, especially drivers in their 20s, 30s and 40s. However, six states — California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania — do not allow gender to be used as a factor in insurance pricing.
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 densely populated 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. California and Michigan, however, do not allow location as a rating factor for auto insurance pricing.
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 for optional comprehensive and collision coverage. 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
Car 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 on your record is better for getting a lower rate.
Number of Drivers in Household and Marriage Status
Having more drivers in your household will increase your total premium, but you can also lower your rates per driver if your insurer offers a multi-driver discount. Similarly, being a homeowner can reduce your premiums if you bundle your policies. Marital status also impacts your rates as single people tend to pay more than married drivers. Three states — Hawaii, Massachusetts and Michigan – ban the use of marital status as a rating factor.
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.
Expert Advice: Factors That Influence the Cost of Auto Insurance
- Why does the average cost of car insurance change so much depending on what state you live in?
- My insurance rates seem much more expensive than average. What factors could be driving that?
- Insurance companies give me very different quotes. Why is the average cost of car insurance so different between insurance companies?
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sources
- National Safety Council. "Age of Driver." Accessed January 19, 2023.