What's Average Cost of Car Insurance in the U.S - 2019

(Research & Study by Experts)

Looking for the average cost of car insurance? We at Carsurance have you covered. We’ve conducted detailed research to get you the most accurate results on the web. Want to know the lowest and the highest rates in your location? Check out our interactive map.

And if you don’t want to miss all of the astonishing facts on car insurance rates, check out the infographic below. It’s a fun way to understand how insurance companies rate their risks.

Once you master that, you will know how to become the most desirable customer for any insurer. By doing so, you will qualify for various discounts and pay the lowest car insurance premium.

↓ Jump to infographic

What’s the Average Cost of Car Insurance in the US?

$1,429 annually and $730 per six months—that was the average price in the United States in 2018 according to the study by Carsurance.net. This number is based on the costs for all age and risk groups. Rates have experienced a 20% inflation since 2011. This increase wasn’t evenly spread across the US. Some states saw a huge 62% rise, while others experience a negligible 1% hike.

↓ Jump to infographic

What is the Average Car Insurance Cost by state ?

One of the most significant determinants of car insurance prices is your home state. Michigan is the most expensive, with an average yearly premium of $2,241, while Vermont is the cheapest at $934. The main culprits for high prices in any state are the presence of a no-fault insurance system, a high population density, and frequent car accidents. Additionally, a high theft rate or a significant potential for natural disasters increases comprehensive coverage.

Your zip code is another significant factor. Based on our experience, densely populated cities, with a high average income and frequent traffic jams tend to have the highest car insurance prices. For example, State Farm charges $261 monthly for a 40-year-old driver with a clean record in Los Angeles. The same driver pays only $186 for in San Diego.

↓ Jump to infographic

Hover the map to find the cost of car insurace in that State

Average cost of car insurance Placeholder
Average cost of car insurance

How Much Are You Paying for Car Insurance?
The Average Cost of Car Insurance in the US

It turns out car insurance is the third biggest expense when owning a vehicle, behind loan payments and gas. We assume that insurance might even be the second highest expense for folks with electric or hybrid vehicles.

Average Cost of Car Insurance by Age

The rates vary significantly based on a driver’s age. A 16-year-old will likely pay four times more than an experienced driver in their thirties. The insurance prices are the lowest for drivers in their fifties. Once a person hits their late seventies, the rates will start increasing again.

Average Monthly Car Insurance Premiums in CA

Cost of Car Insurance by Gender

Men and women pay almost the same for auto insurance. The difference in most states is 1% on average. However, there is a noticeable difference in average auto insurance prices for younger drivers. A male 16-year-old is expected to pay around $770 more annually than his female counterpart. The statistics justify this pricing strategy. Women cause only 22% of all fatal accidents, they are 10% less likely to get a speeding ticket, and they represent only 24% of individuals with DUI charges. Nonetheless, some states like California, Hawaii, and Massachusetts banned gender-based pricing.

Auto Insurance Cost by Vehicle

The vehicle type can influence the final rates by up to 25%. Vans are the cheapest vehicles to insure, with an average yearly premium of $1,487. Sedans and Luxury cars, such as Tesla’s or Acura’s models, are the most expensive, costing $1,729 and $2,017 annually. The more lavish the interior, the higher the actual cash value of the car. Insurance companies have to take this into account to protect their profits.

Your car make and model obviously have a significant influence on the automobile insurance cost. The more expensive vehicles, like Mercedes and Porches, will automatically command higher premiums if you choose collision coverage. Furthermore, insurance companies have detailed information on the reliability and safety ratings of all vehicle models, and they adjust their rates based on this.

Cost of Car Insurance by Company

Car insurance price of the cheapest companiesIn our search for the best car insurance company, we saw that price varies significantly based on the insurer. Progressive, Geico, Auto-Owners, and USAA constantly had the lowest average cost of car insurance per month. On the other hand, companies like State Farm, American Family, Farmers, and Nationwide tend to have higher premiums. If you want to be sure that you are getting the cheapest coverage, request quotes from the most affordable companies only. Furthermore, there’s no compromise in opting for a budget option. We found no correlation between the price and the quality of insurance.

How to Get the Best Car Insurance Prices (Expert tips) 

Check out the infographic to find more interesting facts on car insurance prices. It will help prepare you when you start shopping for the best auto insurance. However, the cheapest coverage isn’t always the best. Other factors, like the quality of customer service, the company’s financial strength, and the number of optional coverages and discounts all determine the quality of auto insurance.

You can check our ratings of all the major US insurance companies in our auto insurance reviews. It will help you make a shortlist of the best insurance companies for your profile. Once you’ve done that, request a quote from at least five companies, compare auto insurance offers, and choose the one that you like the most. That’s the road to finding the best car insurance—it’s that easy.

Our Methodology:

To calculate the car insurance average cost, we requested a quote from all the major US companies for a 21-year-old, 40-year-old, and 70-year-old driver. We conducted our research in multiple states, like California, Florida, New York, New Jersey, and many others. Our reference driver had a clean record and chose to purchase collision and comprehensive coverage with a $500 deductible.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy