Updated: August 7, 2025
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Car insurance rates are influenced by factors both within and outside your control, including your driving record, age and ZIP code.
Insurance companies reassess your risk level during policy renewal, checking for changes in your driving behavior, credit score and other factors. This is when you'll often see rate changes.
You can save on car insurance by bundling policies, increasing your deductible and maintaining a good driving record.
Car insurance costs continue to rise in 2025, driven by ongoing industry challenges. These factors include more accidents and greater severity, higher costs for parts and labor and slim profit margins for insurers. Inflation and risky driving behaviors contribute to higher legal costs, increasing insurance premiums.
After a brief decline during the pandemic, both the number and severity of car accidents have increased. This includes a rise in deadly collisions, leading insurers to raise premiums to cover higher claim payouts.
Fixing vehicles has become more expensive. Auto parts are harder to source and labor costs have surged, especially for high-tech cars. These increased costs force insurers to adjust their rates.
Risky driving behaviors, such as speeding and impaired driving, have contributed to more accidents and lawsuits. Legal expenses tied to severe claims are pushing insurance costs higher.
General inflation affects everything from vehicle prices to repair bills. As the cost of claims rises, insurance companies must charge more to stay financially sound.
Even after significant rate hikes in 2023 and 2024, many insurers still aren't seeing strong profits. In 2025, rates continue to rise, though slower, to help insurers recover from years of high claim costs.
Natural disasters like hailstorms and floods, along with increasing vehicle thefts in some regions, are contributing to insurance losses and rate hikes.
Rate changes are common when it's time for policy renewal.
Your insurer reassesses your risk level by checking records with the Department of Motor Vehicles (DMV) for insurance lapses, tickets or moving violations. Your insurer also reviews your credit score; a decline since your last assessment could result in higher premiums.
While some factors are out of your control, like state laws, you can maintain a good driving record or improve your credit score to lower future premiums.
Your driving record directly impacts what you pay for car insurance. Drivers with clean records pay around $1,506 per year for full coverage with a $1,000 deductible. Speed 11–15 mph over the limit and that jumps to $1,880 annually. Get into an at-fault accident and you're looking at $2,180 per year. A DUI hits hardest, pushing rates to $2,665 annually, which is $1,159 more than clean drivers pay.
| Clean | $126 | $1,506 |
| Not At Fault Accident ($1000-$1999 Prop Dmg) | $133 | $1,598 |
| Speeding 11-15 MPH over limit | $157 | $1,880 |
| Texting While Driving | $159 | $1,903 |
| At Fault Accident ($1000-$1999 Prop Dmg) | $182 | $2,180 |
| DUI - BAC >= .08 | $222 | $2,665 |
Car insurance costs vary significantly by state due to factors like population density, minimum insurance requirements, repair costs and weather-related risks such as hurricanes or hail.
Even within states, rates differ. The average cost of car insurance in New York varies by borough, depending on where you park your car overnight.
The table below shows annual and monthly premiums for each state.
| 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 |
Insurance rates vary by state, and much of this variation depends on the insurer. A provider offering the cheapest rates in one state could be the most expensive option in another. Each state also has its own insurance requirements. For instance, carrying car insurance isn't required by law in New Hampshire and Virginia.
Insurance companies assess the risk of everyone on your policy, including household members who could drive your car.
Adding a teen or high-risk driver will bump up your rates. If there's someone you don't want driving your car, ask your insurer about listing them as an “excluded driver.” Your policy won't cover them, but it won't affect your rates either.
Adding a teen to your family policy costs more upfront, but it's still the cheapest way to insure them, as shown in the table below. Rates drop as your teen gains experience and keeps a clean record.
Shop around yearly for the best teen driver rates; you could save hundreds of dollars.
Your car's make and model affect your premiums. Adding or switching to a new car can increase your insurance rate because certain models, such as those with rare parts, are more expensive to insure.
| Subaru Outback | $1,203 | Cheap to insure |
| Honda CR-V | $1,249 | Cheap to insure |
| Honda Fit | $1,251 | Cheap to insure |
| Honda Odyssey | $1,252 | Cheap to insure |
| MINI Cooper | $1,254 | Cheap to insure |
| Subaru Forester | $1,261 | Cheap to insure |
| Jeep Wrangler | $1,267 | Cheap to insure |
| Ford F-150 | $1,280 | Cheap to insure |
| Ford Escape | $1,287 | Cheap to insure |
| Jeep Patriot | $1,288 | Cheap to insure |
| Toyota Tacoma | $1,293 | Cheap to insure |
| Dodge Grand Caravan | $1,295 | Cheap to insure |
| Mazda CX-5 | $1,322 | Cheap to insure |
| VW Tiguan | $1,323 | Cheap to insure |
| Toyota Highlander | $1,324 | Cheap to insure |
| Toyota Sienna | $1,326 | Cheap to insure |
| Chevy Equinox | $1,334 | Cheap to insure |
| Toyota RAV4 | $1,334 | Cheap to insure |
| Kia Soul | $1,338 | Cheap to insure |
| Chevy Silverado | $1,340 | Cheap to insure |
| Honda Pilot | $1,343 | Cheap to insure |
| Honda HR-V | $1,354 | Cheap to insure |
| Ford Explorer | $1,355 | Cheap to insure |
| Dodge Journey | $1,358 | Cheap to insure |
| VW Beetle | $1,376 | Cheap to insure |
| Nissan Rogue | $1,380 | Cheap to insure |
| Ford Focus | $1,384 | Cheap to insure |
| Nissan 350Z | $1,386 | Cheap to insure |
| Subaru Legacy | $1,387 | Cheap to insure |
| Subaru Impreza | $1,388 | Cheap to insure |
| Ford Taurus | $1,389 | Cheap to insure |
| Nissan Frontier | $1,401 | Moderate |
| Toyota Prius | $1,401 | Moderate |
| Honda Ridgeline | $1,402 | Moderate |
| Chevy Tahoe | $1,406 | Moderate |
| Acura MDX | $1,408 | Moderate |
| Honda Accord | $1,417 | Moderate |
| MINI Electric | $1,417 | Moderate |
| Jeep Grand Cherokee | $1,418 | Moderate |
| Nissan Juke | $1,423 | Moderate |
| Nissan Versa | $1,423 | Moderate |
| Mazda3 | $1,424 | Moderate |
| Honda Insight | $1,431 | Moderate |
| VW Passat | $1,431 | Moderate |
| Jeep Cherokee | $1,433 | Moderate |
| Toyota Camry | $1,434 | Moderate |
| Nissan Pathfinder | $1,435 | Moderate |
| Toyota Tundra | $1,438 | Moderate |
| Nissan LEAF | $1,444 | Moderate |
| Honda Passport | $1,452 | Moderate |
| Toyota Corolla | $1,453 | Moderate |
| Chevrolet Cruze | $1,455 | Moderate |
| VW Golf | $1,455 | Moderate |
| Hyundai Elantra | $1,457 | Moderate |
| Ford Expedition | $1,464 | Moderate |
| Kia Soul EV | $1,471 | Moderate |
| VW Jetta | $1,481 | Moderate |
| Honda Civic | $1,482 | Moderate |
| Chevy Malibu | $1,490 | Moderate |
| Nissan Sentra | $1,491 | Moderate |
| Hyundai Kona | $1,492 | Moderate |
| Kia Niro | $1,518 | Moderate |
| Ram 2500 | $1,524 | Moderate |
| BMW X3 | $1,535 | Moderate |
| Chevrolet Camaro | $1,538 | Moderate |
| Audi A3 | $1,542 | Moderate |
| Jeep Gladiator | $1,544 | Moderate |
| Subaru WRX | $1,549 | Moderate |
| Nissan Altima | $1,551 | Moderate |
| Audi Q5 | $1,566 | Moderate |
| Chevy Bolt | $1,584 | Moderate |
| Mercedes GLA 250 | $1,586 | Moderate |
| Chevrolet Camaro SS | $1,587 | Moderate |
| Ford Mustang | $1,587 | Moderate |
| Nissan 370Z | $1,597 | Moderate |
| Ford Mustang Mach E | $1,603 | Moderate |
| Volvo XC40 | $1,627 | Moderate |
| Ram Rebel | $1,636 | Moderate |
| Ford Mustang Ecoboost | $1,669 | Moderate |
| Nissan Maxima | $1,676 | Moderate |
| Dodge Charger | $1,677 | Moderate |
| VW ID.4 | $1,682 | Moderate |
| Audi Q7 | $1,690 | Moderate |
| Subaru BRZ | $1,701 | Moderate |
| Dodge Challenger R/T | $1,707 | Moderate |
| BMW 3 Series | $1,708 | Moderate |
| BMW 1 Series | $1,725 | Moderate |
| BMW I3 | $1,729 | Moderate |
| Audi A4 | $1,729 | Moderate |
| Hyundai Ioniq | $1,729 | Moderate |
| Mercedes C-Class | $1,749 | Moderate |
| Mercedes CLA 250 | $1,782 | Moderate |
| Chevrolet Corvette | $1,783 | Moderate |
| BMW X5 | $1,845 | Expensive to insure |
| Toyota 86 | $1,853 | Expensive to insure |
| BMW 5 Series | $1,874 | Expensive to insure |
| Dodge Challenger | $1,887 | Expensive to insure |
| Kia Stinger | $1,937 | Expensive to insure |
| BMW 4 Series | $1,970 | Expensive to insure |
| Audi E Tron | $1,982 | Expensive to insure |
| Chevrolet Camaro ZL1 | $2,020 | Expensive to insure |
| Mercedes AMG C 63 | $2,104 | Expensive to insure |
| Tesla Model 3 | $2,117 | Expensive to insure |
| Tesla Model Y | $2,207 | Expensive to insure |
| Dodge Challenger SRT Hellcat | $2,270 | Expensive to insure |
| BMW X7 | $2,426 | Expensive to insure |
| BMW 7 Series | $2,482 | Expensive to insure |
| Nissan GT-R | $2,499 | Expensive to insure |
| Tesla Model S | $2,919 | Expensive to insure |
| Tesla Model X | $3,041 | Expensive to insure |
| Audi R8 | $3,112 | Expensive to insure |
| Porsche Taycan | $3,200 | Expensive to insure |
| BMW i8 | $3,212 | Expensive to insure |
Changes in your credit score affect car insurance rates. If your credit score drops, your insurer may increase the cost of your policy. However, some states, such as California, Hawaii and Massachusetts, prohibit using credit scores for rating.
| Excellent | $58 | $697 |
| Good | $62 | $740 |
| Fair | $89 | $1,070 |
| Below Fair | $112 | $1,340 |
| Poor | $147 | $1,759 |
Your location plays a key role in determining car insurance premiums.
Even within the same state, rates vary by ZIP code. Insurance companies consider collective risk: if your area has high accidents and violations or more people in your ZIP code have filed claims, you're more likely to face higher insurance costs. Changes to accident and violation rates in your area can lead to premium adjustments.
Qualifying for car insurance discounts can help you save substantially. However, you may no longer be eligible for discounts at policy renewal.
For example, a college student who has graduated and returned home may no longer be eligible for a distant student discount. A driver who has recently been in an accident may also lose their safe driver discount.
Always check with your insurer to see if you still qualify for discounts and inquire about new car insurance discounts.
Age and gender affect how much you're likely to pay.
Young drivers, particularly males under 25, usually pay more due to a higher perceived risk of accidents. After 25, gender has less influence on your rates. Car insurance rates don't drop at a specific age. Instead, as you get older, your rates are more affected by your driving history and experience.
Rates generally decrease with age, reaching their lowest around 50. However, both teenagers and seniors often face higher rates because they're considered riskier drivers.
If your car insurance rates increase, you can talk to your insurer, adjust your coverage or even switch providers to lower your costs.
Start by understanding why your rates have gone up. Check your policy details and consult your insurer for clarification.
Sometimes, a simple phone call can explain why your rates increased. You can also inquire about any new discounts you may now qualify for.
If your lifestyle has changed, maybe you're working from home now and driving less, you might not need as much coverage as you did before. Consider usage-based insurance programs.
You can often lower your premium by agreeing to pay a higher deductible when you file a claim.
If you have multiple insurance policies, bundling them with a single insurer can result in a discount.
You might be eligible for new discounts, like a good driver discount if you've been accident-free for a certain period or discounts related to a new job or retirement.
Some insurers offer a discount for paying your premium in a lump sum rather than monthly installments.
Features like rental car coverage or roadside assistance are often optional. Removing them can lower your premium.
If you're having trouble finding a better rate on your own, a broker can help you navigate the market.
If you believe the rate increase is unjustified and discussions with your insurer haven't resolved the issue, you can file a complaint with your state's insurance department.
You can always switch to a different insurer offering better rates. Just make sure to understand any fees associated with canceling your current policy.
Car insurance rates increase due to personal factors like accidents, driving violations and credit changes, plus external factors such as rising repair costs and area-wide claim frequency. The biggest rate increases come from violations: speeding tickets increase rates by 24.7%, accidents cause a 46.2% increase and DUIs result in a 76.6% spike.
To fight rising rates, maintain a clean driving record, shop around annually and take advantage of discounts like bundling policies or increasing deductibles. Contact your insurer about rate reductions when positive changes occur.
Understanding the factors affecting car insurance rates can help you understand why your car insurance rates are expensive. MoneyGeek answered frequently asked questions about insurance rate changes.
Car insurance rates don't go up for no reason. Insurance providers consider factors affecting insurance risk when calculating premiums. However, sometimes insurance companies simply revise their rates.
Car insurance rates go up for several reasons. Factors you can control include driving behavior, where you live, credit score, marital status, vehicle and drivers on your policy. Factors you cannot control include the number of accidents, violations and claims in your area, your age and gender and the loss of discounts.
No. Different factors determine car insurance rates. You may end up with lower premiums. For instance, adults pay lower rates than teenagers. Being eligible for discounts can also decrease insurance costs.
Yes, it's normal for car insurance rates to increase due to changes in insurance risk. For example, higher rates of accidents and violations can lead to rate increases in an area.
Higher insurance rates at renewal may be due to various factors. Usually, it's because of auto accidents and violations. However, some reasons are out of the policyholder's control, like age. Ask your insurance provider about the specific reason for your rate change.
Our Research Approach
Our analysis covers 22,848 quotes from six providers across 100 ZIP codes, using data from state insurance departments and Quadrant Information Services. This scope captures both national trends and regional differences that affect your actual costs.
Why our methodology matters for age-based rates: Insurance companies adjust premiums based on risk patterns that emerge at specific ages. By using a consistent driver profile across all age groups, we isolated the impact of age alone, without factors like vehicle type or driving record affecting the results.
Sample Driver Profile
We used this standard profile to calculate average annual costs:
We modified this profile by location, coverage type and limits to show average costs for different driver situations across the United States.
Coverage Levels We Analyzed
Your deductible is the amount you pay before insurance covers the rest of a claim. Full coverage combines liability insurance with comprehensive and collision coverage to provide financial protection for you and your vehicle.
For national averages, we used 100/300/100 full coverage:
For state-specific data, we used 50/100/50 full coverage:
Important: Liability coverage doesn't have deductibles. The $1,000 deductible applies only to comprehensive and collision coverage.
Why these coverage levels: The 100/300/100 reflects what most financial experts recommend for adequate financial protection, while 50/100/50 shows costs closer to what many states require. This dual approach shows you both budget-conscious and comprehensive coverage scenarios.
Rates vary by location, driving record and other factors.
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.
