Average car insurance cost

The average car insurance cost is $1,548 per year. That is $774 per six month policy or $129 per month. LOWA is the cheapest and LOUSIANA is the most expensive state for average car insurance.Car insurance quotes vary widely based on individual factors of rating. Here’s how your insurance may differ depending on some factors like the type of your car, your age and even where you live.

Car Insurance

  • Car insurance is mandatory by law in the USA and in the presence of various cheap car insurance companies, one should always go for a car insurance policy to cover the accidental damage to his car.
  • Don’t worry at all if you are a new driver and have a fear that there may be any damage to your car. You can go for the car insurance policy for new drivers, to be on safe side if any loss happens to your car because of less experience on roads.

Related articles:
1- How much is car insurance?
2- car insurance policy?

National Average Cost Of Car Insurance

These rates are for full coverage policies, including liability, comprehensive, collision, uninsured motorist protection / uninsured and any additional coverage required by the state.

  • $ 1,427 for good driver with good credit.
  • $ 1,781 after a speeding ticket.
  • $ 2,146 after an accident at fault.
  • $ 2,506 for a good driver with bad credit.
  • $ 2,531 after a DUI.
  • $ 2106 for 50-year-old married couple with two cars.
  • $ 3,906 for a married couple plus one teen driver, with two cars.

For the required minimum coverage average car insurance rates are:

  • $ 755 after a speeding ticket.
  • $ 910 after an at-fault accident.
  • $ 1,078 for a good driver with bad credit.
  • $ 1,079 after a DUI.

How Much Average Car Insurance Cost In My State?

Your living place can have a huge impact on auto insurance rates because each state has different standards for auto insurance. Average prices in the highest states are three to four times higher than those of the cheapest.

The amount of insurance you have also matters: car insurance full coverage is more than twice the price of minimum coverage, on average, according to our analysis. This is what our analysis of the state-by-state insurance rates 2020 shows cars for drivers with good credit and no recent accidents:

  • Maine is the cheapest state for full coverage car insurance with an annual average of $ 916 rate, followed by Idaho and Virginia.

  • Louisiana is the most expensive state for auto insurance coverage total $ 2,971 per year on average, followed by Florida and Michigan.

  • Lowa is the cheapest state required minimum coverage, at an average annual insurance auto $ 309, followed by South Dakota and Vermont.

  • For minimum coverage required, Michigan is the most expensive at $ 1,285 state per year, on average, followed by Florida and Louisiana.

State :star: Full coverage Minimum coverage Annual difference
National average $1,427 $606 $821 :heavy_check_mark:
Alabama $1,401 $558 $843 :heavy_check_mark:
Alaska $1,180 $456 $724 :heavy_check_mark:
Arizona $1,409 $581 $828 :heavy_check_mark:
Arkansas $1,427 $558 $869 :heavy_check_mark:
California $1,627 $636 $991 :heavy_check_mark:
Colorado $1,570 $636 $934 :heavy_check_mark:
Connecticut $1,683 $854 $829 :heavy_check_mark:
Delaware $1,559 $839 $720 :heavy_check_mark:
District of Columbia $1,527 $755 $772 :heavy_check_mark:
Florida $2,352 $1,188 $1,164 :heavy_check_mark:
Georgia $1,594 $690 $904 :heavy_check_mark:
Hawaii $1,176 $487 $689 :heavy_check_mark:
Idaho $937 $362 $575 :heavy_check_mark:
Illinois $1,163 $437 $726 :heavy_check_mark:
Indiana $994 $409 $585 :heavy_check_mark:
Iowa $997 $309 $688 :heavy_check_mark:
Kansas $1,306 $434 $872 :heavy_check_mark:
Kentucky $2,161 $983 $1,178 :heavy_check_mark:
Louisiana $2,971 $1,150 $1,821 :heavy_check_mark:
Maine $916 $367 $549 :heavy_check_mark:
Maryland $1,595 $800 $795 :heavy_check_mark:
Massachusetts $1,299 $550 $749 :heavy_check_mark:
Michigan $2,331 $1,285 $1,046 :heavy_check_mark:
Minnesota $1,280 $579 $701 :heavy_check_mark:
Mississippi $1,385 $513 $872 :heavy_check_mark:
Missouri $1,339 $505 $834 :heavy_check_mark:
Montana $1,252 $395 $857 :heavy_check_mark:
Nebraska $1,181 $420 $761 :heavy_check_mark:
Nevada $1,881 $902 $979 :heavy_check_mark:
New Hampshire $1,056 $415 $641 :heavy_check_mark:
New Jersey $1,759 $994 $765 :heavy_check_mark:
New Mexico $1,241 $484 $757 :heavy_check_mark:
New York $1,962 $1,026 $936 :heavy_check_mark:
North Carolina $1,075 $411 $664 :heavy_check_mark:
North Dakota $1,235 $400 $835 :heavy_check_mark:
Ohio $1,051 $463 $588 :heavy_check_mark:
Oklahoma $1,595 $583 $1,012 :heavy_check_mark:
Oregon $1,228 $639 $589 :heavy_check_mark:
Pennsylvania $1,167 $413 $754 :heavy_check_mark:
Rhode Island $1,684 $820 $864 :heavy_check_mark:
South Carolina $1,458 $656 $802 :heavy_check_mark:
South Dakota $1,245 $312 $933 :heavy_check_mark:

SEE ALSO :point_down:
Cheapest car insurance in Michigan
cheap car insurance companies in Ireland
Car insurance florida

The Average Car Insurance Cost By Company

Each insurance company treats each factor differently. If you have bad credit, an insurer could charge 10% more for politics, while another might charge 40% more. A discount for being free advertising in recent years could get a discount of 20% with a company and 5% in another.

All this results in very different rates from one person to the next. This is why the company that gives your super low rates friend might not be the cheapest for you. Here are the annual rates of many of the largest insurers in the country, for a total and minimum coverage.

Company :star: Full coverage Minimum required coverage
21st Century $1,588 $776
Allstate $1,834 $784
American Family $1,233 $601
Amica $1,183 $458
Automobile Club Group $1,468 $606
Auto Club of SoCal $1,610 $633
Auto-Owners $1,357 $519
Country Financial $1,136 $405
CSAA $1,710 $543
Erie $835 $295
Farmers $1,865 $926
Geico $1,198 $478
Kemper $1,557 $531
Liberty Mutual $1,778 $900
Mercury $1,675 $639
MetLife $1,679 $826
National General $1,067 $414
Nationwide $1,349 $682
NJM $1,301 $644

Related Searches :point_down:

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1-The average car insurance cost after a speeding ticket

A clean driving record helps auto insurance rates keep low, but one speeding ticket can not hurt their rates as much as you think. On average, you can expect that auto insurance rates are about 25% higher after a speeding ticket for going 16 miles above the limit, the analysis found.

For a driver with a ticket recent excess speed, average insurance rates car are:

  • $ 1,781 per year for full coverage.
  • $ 755 per year for minimum coverage

2-The average car insurance cost after an accident at fault

Causing an accident raises auto insurance rates around twice a speeding ticket. After an accident, the average auto insurance rates for a driver who was at fault are:

  • $ 2,146 per year for full coverage.
  • $ 910 per year for minimum coverage.

On average, auto insurance rates are 50% higher for a driver who has caused an accident that no one has.

3-The average cost of auto insurance for good and bad credit

Having bad credit has a surprisingly large impact on auto insurance rates in most states. On average, auto insurance rates for drivers with bad credit are more than 75% higher than for people with good credit.

The average car insurance rates for a driver with bad credit are:

  • $ 2,506 per year for full coverage.
  • $ 1,078 per year for minimum coverage

4-Average rates of car insurance after a DUI

Get caught drinking and driving will mean significantly higher prices for car insurance. On average, auto insurance rates up around 77% for a driver of a DUI recent analysis found.

For a driver 40 years of age, auto insurance rates average after a DUI are:

  • $ 2,531 per year for full coverage.
  • $ 1,079 per year for minimum coverage

5-The average car insurance cost for young drivers

Insurers are less experienced drivers as a larger and typically charge them heavier price risk. On average, auto insurance rates are more than $ 200 to the highest year for a driver of 25 years old, 40 years old, our analysis found.

A driver for 25 years with good credit and a clean driving record, insurance rates average cars are:

  • $ 1,663 for full coverage.
  • $ 682 for the minimum required coverage.

But young drivers number or credit history less than perfect driving is likely to pay more for car insurance.

6-Average car insurance cost according to age

Age Average cost
20’s $1036
30’s $832
40’s $692
50’s $600
60’s $687

see also :point_down:
cheap car insurance for young drivers

7-The average car insurance rates for couples and families

Two cars are more expensive to insure than one, especially when a teen driver adds to the mix. For a 50-year-old married couple with two vehicles, average annual auto insurance rates are:

  • $ 2,106 for a husband and wife.
  • $ 3,906 for a couple and a driver of 18 years old.

If the teen driver is male, our hypothetical family will have to pay more. In the eyes of insurance companies, young male drivers are at particularly high risk because they are more likely to cause accidents than other drivers.

8-The average cost of auto insurance, by gender

On average, auto insurance costs differ slightly by gender compared to the differences we see by the company, the state, the credit score and driving record. That does not mean that a difference in cost because of their gender would be negligible, just not a factor pricing well illustrated by national statistics.

Pricing based on gender it is prohibited by law in seven states: California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania and parts of Michigan.

In states where the practice is allowed, an average of the rates for men and women separately and found that on average:

  • At age 25, men pay about $ 51 more women per year.
  • At age 40, women pay around $ 37 M per year than men.

9-How much is the average cost of car insurance per month?

Even with the understanding of the above variables it is impossible to define auto insurance quotes for any individual driver without assessing their full profile and that’s why comparing auto insurance is so significant.

Each car insurance company has a different formula for risk assessment, and the only way to find the best auto insurance rates is to speak with several suppliers.

However, there are average car insurance rates quoted by some sources that can help you get a rough idea of what to expect to pay for car insurance. :point_down:

10-The average cost of auto insurance by vehicle

In other analyzes, we used a 3-year-old Toyota Camry (the most popular sedan in the US for sales in recent years) to show how rates vary according to personal history and demographics. However, the make and model of your vehicle will certainly affect rates.

Insurers charge more to cover certain cars, including:

  • Sports cars, which have higher maximum speeds. People tend to drive faster, increasing the likelihood of an accident or violation. If you get a ticket for speeding, insurers believe will be more likely to cause an accident, increasing rates further.

  • Luxury cars because they tend to have the pieces and details that are more expensive to replace if it is damaged in an accident expensive.

  • Electric vehicles, which have the most expensive parts replacement engine, especially the batteries, which can cost thousands each.

Cars that have been stolen often, they tend to have higher rates of insurance, you pay when your car is stolen or damaged by something unrelated to traffic, such as floods, fires and vandalism. Comprehensive insurance is usually optional unless you have a loan or lease.

Rank Average annual insurance premium
1. Subaru Outback $1,429 :oncoming_automobile:
2. Jeep Wrangler $1,455 :oncoming_automobile:
3. Honda CR-V $1,474 :oncoming_automobile:
4. Jeep Compass $1,497 :oncoming_automobile:
5. Ford Escape $1,503 :oncoming_automobile:
6. Subaru Forester $1,537 :oncoming_automobile:
7. Chevrolet Equinox $1,551 :oncoming_automobile:
8. GMC Sierra 1500 $1,563 :oncoming_automobile:
9. Toyota Tacoma $1,571 :oncoming_automobile:
10. Jeep Cherokee $1,579 :oncoming_automobile:
11. Toyota Highlander $1,603 :oncoming_automobile:
12. Toyota RAV4 $1,606 :oncoming_automobile:
13. Nissan Rogue $1,611 :oncoming_automobile:
14. Ford Explorer $1,628 :oncoming_automobile:
15. Ram 1500 $1,645 :oncoming_automobile:
16. Ford F-150 $1,654 :oncoming_automobile:
17. Honda Accord $1,660 :oncoming_automobile:
18. Chevrolet Silverado 1500 $1,665 :oncoming_automobile:
19. Hyundai Elantra $1,732 :oncoming_automobile:
20. Honda Civic $1,743 :oncoming_automobile:
21. Ford Fusion $1,746 :oncoming_automobile:
22. Toyota Camry $1,758 :oncoming_automobile:
23. Nissan Sentra $1,797 :oncoming_automobile:
24. Toyota Corolla $1,797 :oncoming_automobile:
25. Nissan Altima $1,853 :oncoming_automobile:

:open_file_folder:Summary:Each car insurance company sets rates based on dozens of factors, including your driving history, location, vehicle and demographics. They are making an educated guess about how likely you are to file a lawsuit in the future and setting its price accordingly.

Customer Reviews:

:memo:Porcelain:For cheap car insurance, you have to choose the least amount of coverage that is legally required. This “skeleton” coverage usually involves liability insurance to lower legal limits. I found this $ 24 / month Insurance Panda. If you cause an accident, which pays for damage to property of others and medical bills and that’s all. For more coverage, you have to increase the limits and purchase optional coverages, which bring the highest price much safer.I found this guide very informative to me.

:memo: Justin Cheung;Now I know more about how to calculate the cost of my car insurance. Thanks for the info.

:memo: john:very informative guide.

Frequently asked questions:

Car insurance quotes vary widely based on individual factors of rating. This equates to a rate of average car insurance about $ 119 per month for 40 years, drivers with good credit and a clean driving record. However, average costs vary widely for other types of drivers.People also ask for

1-What is average cost of car insurance?

If you have a car, you’re going to need car insurance but find the average price of insurance is difficult because everyone agrees. According to the Association of British Insurers (ABI), the average cost of car insurance in the UK for full hedging costs £ 485 per year.

According Statista.com, the average cost of auto insurance for people in their 20’s were
highest in the age groups, with an average of £ 1,035.

The average age for the lowest car insurance UK was for those in their fifties with the average cost of £ 600. This does not mean that the older we get less for your insurance, however, obtained the price goes up again once you hit your 60’s.

2-Why do I need car insurance?

Insurance is a contract,represented by a policy,in which an individual or entity receive financial protection.Here is the reason of why do i need car insurance.The law says you need at the least third party insurance to drive your car on roads in the UK. Your car also needs to be secured if you are parked on the street or on your property.

3-How much the average person spend on car insurance?

Through 2020 as a result of COVID-19 lockdown. Your premiums may differ, however, as prices vary dramatically by factors such as car make and model.
In late June 2020, the average cost of car insurance was £ 460 per year, but prices vary considerably from one person to another depending on their age.

4-How much is cheap car insurance?

The cheapest car insurance can be found for almost £ 100 a year, but the cheaper policies could offer very little coverage of their needs. Cheap, comprehensive car insurance decent quality usually starts from around £ 400 per year in the UK, but prices vary dramatically by factors such as age and the car.

The average cost of car insurance per month is around £ 43.25 a month in the UK. This means you pay an APR of 22.9% on a political calculation costs £ 460 per year, which is the average annual cost of car insurance.

5-How much car insurance have gone up?

After dropping for some time, the auto insurance premiums rose at the end of 2019, rising a little more than 1% from end 2018 to end 2019; But no premiums auto insurance have fallen about 5% in 2020 so far. If your renewal seems too high, you can compare quotes with our insurance partner QuoteZone car in less than 2 minutes and get the prices of some of the largest auto insurance companies in the UK.

6-What factors effect on car insurance?

There are many factors that affect the cost of car insurance, including details about yourself (such as your age, driving experience, driving record, occupation and place of residence), your car (eg, value, age the size of the engine) and how to use your car (for example, annual mileage, driving reason and where your car is stored at night).

Conclusion

From all of the above scenario of average car insurance cost we concluded that the amount payable depends on many things, including the above reasons, but prices are rising substantially in all areas.But there are many ways to lower your insurance cost and make it cheap. To follow all rules and step-by-step guides then you will get the affordable car insurance. Several companies provide car insurance at different rates.

  • $ 100,000 of liability coverage for bodily injury per person.
  • $ 300,000 liability coverage for bodily injury per accident.
  • $ 50,000 property damage liability coverage per accident.
  • $ 100,000 uninsured motorist bodily injury coverage per person.
  • $ 300,000 insured motorist coverage injury accident.
  • Collision coverage deductible of $ 1,000.
  • Comprehensive coverage with $ 1,000 deductible.

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AVERAGE CAR INSURANCE COST

The average cost of car insurance is $1,548 per year. That’s $774 per six-month policy or $129 per month. Auto insurance quotes vary widely based on individual rating factors.

What is Car Insurance?

Vehicle insurance/Auto is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. The majority of websites on the internet suggest the best insurance for cars which is $1,548.

How to do Car Insurance?

If you’re not sure where to start, here are the steps to buying and choosing car insurance coverage :

  1. Decide how you want to buy car insurance.
  2. Determine how much car insurance coverage you need.
  3. Fill out an application for car insurance quotes.
  4. Get your quotes.
  5. Compare your car insurance quotes.

Now in the modernized technology world, Car insurance can easily be done online. There many websites that offer car insurance facilities such as Smart Choice, Easy Insurance and more other websites.

Types of Cars Insurances

There are 3 types of cars which can cost up to average insurance which includes :

Luxury Cars: Because car insurance is designed to protect your vehicle, the high price of a luxury car inevitably leads to higher insurance costs. For the models included in our survey, the average annual insurance premium for a luxury car was about 18% higher than the cost of insuring a moderately priced sedan. Luxury cars are directly related to the utmost comfort. If not comfort, then they certainly score high on the style quotient. For some, owning a luxury car is a relentlessly-pursued and achieved dream. For some, it might be another prerequisite of being born with a silver spoon. Whichever the case, a luxury car is a status symbol. These cars are expensive, to say the least, and damage to such cars can result in a massive repair bill. This is where luxury car insurance comes into the picture. Read ahead to know all about luxury car insurance.

Sports Cars: If you’re looking to buy sports car auto insurance, you should know it is usually more expensive than your average sedan or SUV. Sports car insurance, like the Ford Mustang, has an average rate of $166 per month. Average performance vehicles, like a Toyota Camry, costs around $104 per month. Auto insurance companies consider any vehicle with higher performance specs and higher than average value a sports car. Although sports cars are expensive to insure, you can still find affordable sports car insurance quotes. Sports car insurance costs are even higher for younger drivers. If you want to buy cheap sports car insurance for young drivers: sports car insurance for under 25-year-old drivers, 19-year-olds, and especially 16-year-old drivers, don’t buy the first sports car insurance policy you are quoted.

Electric Cars: Electric car insurance is more expensive than conventional insurance, due to the need for specialist parts and servicing. Currently, it does cost more to insure an electric car than an ICE vehicle. The insurance industry generally applies a higher group rating to electric cars compared to traditional ICE vehicles, this is because servicing and parts for electric vehicles are currently more specialized. As electric cars operate differently to (and are less common than) traditional ICE vehicles, they do present some unique issues for insurers such as:

  • Costs of specialized parts.
  • Repairs by specialist mechanics.
  • Expensive batteries.

At present, this means electric car insurance policies are slightly more expensive than an equivalent ICE vehicle. As more electric vehicles become available and with the government’s ban on new petrol and diesel cars coming into force in 2040, the cost of insurance will reduce and eventually become cheaper than their ICE counterparts.

There is a huge amount of car insurance competitive in the world. Here is a table which shows the current sequence of car insurance.

1 Michigan $3,141 $1,855 $1,286
2 Louisiana $2,601 $771 $1,830
3 Nevada $2,402 $717 $1,685
4 Kentucky $2,368 $669 $1,699
5 DC $2,188 $839 $1,349
6 Florida $2,162 $828 $1,334
7 California $2,125 $606 $1,519
8 New York $2,062 $867 $1,195
9 Rhode Island $2,040 $738 $1,302
10 Connecticut $2,036 $891 $1,145
11 New Jersey $1,993 $846 $1,147
12 Montana $1,963 $447 $1,516
13 Colorado $1,948 $553 $1,395
14 Delaware $1,921 $843 $1,078
15 Georgia $1,865 $684 $1,181
16 Texas $1,823 $538 $1,285
17 Maryland $1,816 $853 $963
18 Oklahoma $1,815 $418 $1,397
19 Missouri $1,798 $546 $1,252
20 Arizona $1,783 $578 $1,205
21 Wyoming $1,782 $328 $1,454
22 Arkansas $1,763 $449 $1,314
23 Alabama $1,713 $498 $1,215
24 Pennsylvania $1,700 $502 $1,198
25 Kansas $1,689 $464 $1,225
26 Mississippi $1,684 $413 $1,271
27 West Virginia $1,654 $541 $1,113
28 South Carolina $1,653 $617 $1,036
29 South Dakota $1,643 $323 $1,320
30 Washington $1,620 $537 $1,083
31 Minnesota $1,619 $614 $1,005
32 New Mexico $1,604 $479 $1,125
33 Hawaii $1,589 $485 $1,104
34 North Dakota $1,577 $423 $1,154
35 Alaska $1,560 $412 $1,148
36 Illinois $1,538 $493 $1,045
37 Nebraska $1,500 $393 $1,107
38 Oregon $1,496 $674 $822
39 Tennessee $1,493 $462 $1,031
40 Utah $1,492 $565 $927
41 Massachusetts $1,466 $520 $946
42 North Carolina $1,425 $438 $987
43 Vermont $1,410 $398 $1,012
44 Iowa $1,352 $326 $1,026
45 Wisconsin $1,335 $401 $934
46 Idaho $1,285 $377 $908
47 Indiana $1,266 $430 $836
48 Virginia $1,196 $380 $816
49 Ohio $1,191 $406 $785
50 New Hampshire $1,086 $424 $662
51 Maine $1,080 $355 $725

Many people want to buy a car that costs less to insure. Well, here you go. A list of cars that costs less to insure.

Cheapest cars to insure among popular models
Rank Average annual insurance premium Starting MSRP

1. Subaru Outback $1,429 $26,345
2. Jeep Wrangler $1,455 $28,045
3. Honda CR-V $1,474 $24,350
4. Jeep Compass $1,497 $21,845
5. Ford Escape $1,503 $24,105
6. Subaru Forester $1,537 $24,295
7. Chevrolet Equinox $1,551 $23,800
8. GMC Sierra 1500 $1,563 $29,600
9. Toyota Tacoma $1,571 $25,850
10. Jeep Cherokee $1,579 $25,490
11. Toyota Highlander $1,603 $31,680
12. Toyota RAV4 $1,606 $25,500
13. Nissan Rogue $1,611 $25,020
14. Ford Explorer $1,628 $32,365
15. Ram 1500 $1,645 $33,190
16. Ford F-150 $1,654 $28,155
17. Honda Accord $1,660 $23,720
18. Chevrolet Silverado 1500 $1,665 $28,300
19. Hyundai Elantra $1,732 $14,950
20. Honda Civic $1,743 $19,450
21. Ford Fusion $1,746 $22,840
22. Toyota Camry $1,758 $24,095
23. Nissan Sentra $1,797 $17,890
24. Toyota Corolla $1,797 $18,700
25. Nissan Altima $1,853 $24,000

Car Insurance Restrictions

Eligibility

You must have a valid driver’s license to obtain an auto insurance policy, you need to have a valid license. If you intend to list any other drivers on the policy, they will also need to have a valid driver’s license.

Past losses or convictions

Eligibility is also based on things like prior accident records as an example and will vary depending on whether you are looking for a new car insurance policy or wish to renew an existing policy. Other restrictions may arise from past convictions and can vary depending on when your last conviction occurred and the nature of the conviction. Here are the restrictions that may prevent you from getting car insurance:

Customization or modifications

If you have altered your vehicle to enhance its performance or appearance, insurance companies would need to assess the vehicle to determine if they would insure it. Tip: If you plan to modify your vehicle, call us first! We’ll let you know if the changes could have an impact on your policy.

Legal issues

If you have been convicted of auto insurance fraud in the last 10 years or were involved in any fraud or misrepresentation, this could affect the likelihood of your obtaining insurance. Please note that your policy may be nullified (voided) and your claim payment denied if:

Other issues

There are a number of other factors that can prevent an insurer from issuing a policy:

  • Your automobile has substantial unrepaired damage or is unfit or unsafe
  • Your automobile is rented or leased to others
  • Your automobile is used for racing or competition

In case of a discrepancy between the information provided on this website and your insurance policy, your insurance policy prevails. Remember, the exclusions and limitations specified in your policy apply in all circumstances.

The information and examples provided in this section are intended as general information only. This does not constitute legal or insurance advice, nor does it pertain to the determination of fault. In all cases, you should speak to an insurance advisor before acting. Your insurance policy contains limitations and restrictions which vary by province and may affect your coverage and/or determine whether or not benefits will be payable.

The Average Car Insurance cost by Companies

If you’re in the market for your next car insurance policy, it’s important to understand all the factors that can go into the price you’ll pay for coverage. Car insurance policies have lots of moving parts, and your premium, or the cost you’ll pay for coverage, is just one of them. Insurance is regulated at the state level, and laws on required coverage and auto insurance pricing are different in every state. Insurance companies take into account many different factors, including the state and area where you live, as well as your gender, age, driving history, and the level of coverage you’d like to have. The cost of full coverage car insurance varies from carrier to carrier. Although some providers are known for offering cheaper rates, their levels of coverage may also be less than other providers who offer more expensive rates on average.

Insurance Provider Average Annual Premium
Allstate $1,896
Farmers $1,540
Geico $1,260
Nationwide/Allied $1,533
Progressive $1,910
State Farm $1,681
Kemper $1,557
Liberty Mutual $1,778
Mercury $1,675
MetLife $1,679
National General $1,067

Average car insurance cost by state

The average annual premium varies by location. Different states have different rates, and even your zip code can influence your costs. Premiums are affected by local factors including the amount of traffic and accidents in the area and crime rate.

State Average Rate – Full Coverage Average Rate – Minimum Coverage
Alabama $1,513 $435
Alaska $1,388 $467
Arizona $1,517 $482
Arkansan $1,749 $458
California $1,974 $611
Colorado $1,720 $510
Connecticut $1,782 $790
Delaware $1,730 $839
District of Colombia $1,675 $678
Florida $2,587 $948
Georgia $1,746 $640
Hawaii $1,234 $354
Daho $1,055 $337
Illinois $1,400 $462
Indiana $1,187 $372
Lowa $1,122 $274
Kansas $1,567 $468
Kentucky $1,850 $738
Louisina $2,351 $765
Maine $831 $312
Maryland $1,787 $858
Massachusetts $1,399 $478
Michigan $2,105 $1,219
Minnesota $1,622 $625
Mississippi $1,719 $482
Missouri] $1,955 $688
Montana $1,365 $316
Nebraska $1,329 $389
Nevada $1,903 $836
New Hampshire $1,137 $427
New Jersey] $1,763 $912
New Mexico] $1,374 $370
New York $2,498 $1,295
North Carolina $1,378 $444
North Dakota $1,211 $349
Ohio] $998 $320
Oklahoma $1,741 $445
Oregon $1,281 $578
Pennsylvania $1,372 $374
Rhode Island $2,066 $790
South Carolina $1,568 $537
South Dakota $1,597 $314
Tennessee $1,281 $358
Texas $1,974 $708
Utah $1,301 $536
Vermont $1,123 $314
Virginia $1,136 $398
Washington $1,305 $408
West Virginia $1,631 $518
Wisconsin $1,049 $330
Wyoming $1,335 $264

When deciding the amount of coverage you want, you can opt for liability coverage that meets your state’s minimum standards, or you can select full, comprehensive coverage. Liability coverage pays for all damages you cause to others but does not cover damages to you or your vehicle caused by others. Comprehensive or full coverage includes paying for the damages you cause to others, as well as damages to you or your car. The laws surrounding auto insurance change quite a bit from state to state, so check local legislation when shopping for car insurance.

Additional factors that determine your rate

Your car insurance coverage options have a significant effect on your rate. However, it’s important to consider the other factors that can impact the cost of your annual premium. Car insurance providers look at a variety of different factors related to your car’s value and the likelihood of you being involved in an accident. Some of these factors include:

  • Geographic location: The area you live in plays a significant role in determining the price of your car insurance. Living in certain cities and even neighborhoods can impact the cost of coverage significantly. For example, in New York, Brooklyn neighborhoods see the highest average premiums because of their high population density, increased risk of car break-ins and theft, and a higher number of commuters. Meanwhile, Manhattan drivers pay less because more people in the borough use public transportation to get around.

  • Type of car: The type of car you drive can impact the cost of your car insurance policy because it’s based, in part, on the value of your car. If you have a brand new, expensive sports car, it will cost more to replace or repair it, so your premium will likely cost more. On the other hand, if you have an older car, you may pay less. The premium can also vary based on the vehicle’s safety, theft ratings, and mileage.

  • Driving history: One of the easiest ways to see your car insurance premium skyrocket is by getting into car accidents or accumulating traffic tickets. These incidents indicate to your insurance carrier that you are a higher-risk driver.

  • Credit score: The statistics show that drivers with poor credit file more claims, and more expensive claims, than drivers with good credit.

  • Age: Age is a particularly important factor in determining your car insurance premium, especially if you’re a young driver. Data shows that teenage drivers are more reckless and become involved in more accidents than any other age group. Therefore, young drivers face much higher premiums when compared to older drivers.

  • Gender: Though only relevant for those drivers under the age of 25, gender can play a role in how much you pay for car insurance. Male drivers 24 and younger pay an average of $10 less per year for their car insurance than their female counterparts.

How to save money on car insurance

Most car insurance carriers provide discounts that can lower the cost of your insurance premium. The exact discounts vary among insurance providers, but there are a handful of savings that are standard. When you buy an insurance policy, make sure to ask an agent about all the discounts you qualify for. Here are some of the most common insurance discounts:

  • Safe driver discounts: Most car insurance providers offer safe driver discounts for drivers who have completed an eligible safety course within the past couple of years.

  • Claims-free: Drivers who have no claims on their record from the past several years usually
    qualify for savings.

  • Multi-car discounts: If your household has multiple vehicles, consider placing them all on one insurance policy to qualify for multi-car discounts.

  • Bundling insurance policies: You can often score better insurance premiums overall when you bundle your car insurance policy with a life or home insurance policy.

  • Good student discounts: Many insurance carriers offer discounts for young drivers with good grades in school. For example, Nationwide extends its good student discount to those drivers aged 16-24 enrolled full-time in high school or college who sustain a B average. You’ll need to provide academic evidence in the form of an up-to-date grade report or a form signed by a school administrator.

  • Paying in full: If you can afford to pay your annual car insurance premium in full, you’ll likely save money. Many insurance companies provide a discount for those drivers willing to pay upfront because it is more convenient and requires less processing for them.

  • Safety features: If your car has common safety features, like airbags, an anti-theft device, or anti-lock brakes, some insurance companies will deduct money from your rate.

Frequently asked questions

What discounts are available for car insurance?

There are a lot of discounts available for car insurance. Some examples are taking a safe driving course, bundling your insurance policies, having an anti-theft device in your car, and paying your premium in full. Ask your carrier about the insurance discounts\ they offer to see how you can qualify.

Is full-coverage liability worth it?

Full-coverage liability is worth it, especially if you drive often, have a car loan, or if your car is worth a lot of money. The only time it’s worth buying the minimum amount of coverage is if the car is paid off in full and its current value is not worth the annual premium.

How can I find the best rate for my car insurance premium?

To find the best rate for car insurance, shop around for personalized quotes from different auto insurance providers. By comparing quotes from different providers, you’ll be able to choose the cheapest policy for the amount of coverage you need.

CONCLUSION

Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. The average cost of car insurance is $1,548 per year. That’s $774 per six-month policy or $129 per month. Auto insurance quotes vary widely based on individual rating factors.
National average car insurance rates are:

  • $1,427 for a good driver with good credit.
  • $1,781 after a speeding ticket.
  • $2,146 after an at-fault wreck.
  • $2,506 for a good driver with poor credit.
  • $2,531 after a DUI.
  • $2,106 for a 50-year-old married couple with two cars.
  • $3,906 for a married couple plus a teen driver, with two cars.

These rates are for full coverage policies, which include liability, comprehensive, collision, uninsured/underinsured motorist protection, and any additional state-mandated coverage.

For minimum required coverage, national average car insurance rates are:

  • $606 for a good driver with good credit.
  • $755 after a speeding ticket.
  • $910 after an at-fault wreck.
  • $1,078 for a good driver with poor credit.
  • $1,079 after a DUI.

That’s about $51 per month for a 40-year-old driver with good credit and a clean driving record, ranging up to $90 per month for a driver with a recent DUI for minimum coverage car insurance.

But averages don’t say much about your own car insurance rates. A number of personal factors, of both within and outside of your control, inch rates up or down until your price is totally personalized.