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.
Average Car Insurance Cost in the US and Influencing Factors
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.
Approximately $1,630 annually, or 136 per month, that’s the average insurance cost in the United States as of 2022. The numbers represent a drop from $2,646 annually or $211 per month in 2021.
The available data was based on the costs for all age and risk groups. Still, the cost depends on:
- insurance company
Average Auto Insurance Cost by State
One of the most significant determinants of car insurance prices is your home state.
Louisiana is the most expensive for full coverage car insurance, with an average yearly rate of $2,986, while Idaho is the cheapest at $1,027.
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.
When you compare auto insurance costs, you can see that your zip code is another significant factor. Based on our experience, densely populated cities with a high average income and frequent traffic jams have the highest car insurance prices.
For example, neighborhoods in Michigan, New York, and Louisiana are the most expensive places in the US. In detail, the residents in Detroit, Michigan, who live in the 48201 ZIP code, pay three times more ($30,350) for car insurance than the residents in Brooklyn, New York.
Top 10 States With the Highest Full Coverage Car Insurance Prices
1. Louisiana: $2,986 Full Coverage
Drivers in Louisiana pay the highest rates for full coverage car insurance in the US. That said, many factors influence this, one of them being the relatively poor roads in the state.
Moreover, the competition between the various insurance companies is weak. Also, there’s a high rate of uninsured drivers and a high rate of auto litigation. These factors keep prices high. As for minimum coverage, people pay $920.
2. Florida: $2,775 Full Coverage
Florida takes second place in terms of the highest full coverage car insurance average cost. Moreover, the minimum coverage in Florida is also the highest one in the country — $1,085.
The Sunshine State remains one of the areas with the highest number of uninsured drivers in the US. Furthermore, Florida has frequent car accidents, an increased number of senior drivers, and a no-fault system — not to mention significant medical claims expenses.
On top of that, Florida’s tropical storms often damage cars covered under comprehensive. Given all these factors, it’s not surprising that Florida’s insurance is so high.
3. Nevada: $2,489 Full Coverage
When looking at the highest average car insurance cost per month by age and state, we can conclude that Nevada belongs in this group.
The increasing frequency of car accidents and the booming population in this state (particularly in Las Vegas) have significantly contributed to the soaring car insurance rates. Furthermore, the minimum coverage amounts to $965.
Although Nevada is not known for harsh weather conditions, the state still experiences sandstorms that could lead to auto accidents.
4. Kentucky: $2,423 Full Coverage
Its minimum coverage is $859. Kentucky has a higher average insurance cost per month than the others because of its auto insurance laws.
Although the state doesn’t require its drivers to get underinsured coverage, their minimum auto insurance requirements include personal injury protection.
5. Michigan: $2,084 Full Coverage
The minimum coverage is $876. In general, two factors make the prices skyrocket in this state. Namely, the first is the mandatory PIP coverage with no maximum limit, and the second is the lack of strict regulations for medical care fees.
This enables medical providers to exploit the system and charge considerably more for PIP-related injuries than for regular ones.
6. Rhode Island: $2,065 Full Coverage
As for the minimum coverage, it’s $833. Rhode Island is on the list of states with the highest average price of car insurance because of two primary factors — the state’s considerable number of uninsured drivers and its costly repair facilities.
Furthermore, the average annual income in Rhode Island is above the US average. This makes the cost of running a business in the state higher, which in turn drives the rates up.
7. Delaware: $2,027 Full Coverage
Delaware takes seventh place in states with the most expensive full coverage insurance, which also translates to it being another state with the highest average auto insurance cost per month. Moreover, the minimum coverage is $918.
The car insurance in this state is so high because of Delaware’s small physical size leading to high population density, more crashes, and expensive repair prices.
8. New York: $2,008 Full Coverage
Regarding minimum coverage, it’s $934. NYC is the most populous city in the US and 6th overall by population density. In fact, it’s a densely populated state with many students and young drivers.
Given all these factors, it’s surprising that New York isn’t even higher on the list of states with the highest average cost of car insurance per month.
9. Maryland: $1,987 Full Coverage
The minimum coverage amounts to $908. The state is one of the densely populated states, too. So, the drivers get packed tightly on the road, raising the risk of crashes.
The reasons behind these costly insurance prices are the high minimum liability requirements and the high rate of uninsured drivers.
10. California: $1,967 Full Coverage
So the average full coverage car insurance cost in California is a little less than $2,000. Furthermore, its minimum coverage is $624.
All in all, the Golden State is a prosperous state with numerous high-end cars. In addition, it is on the US list in terms of population density. That’s why it’s no surprise auto insurance is expensive in this state.
So, we have prepared a separate article for you to learn which the best car insurance in California is.
Top 10 States With the Lowest Full Coverage Auto Insurance Cost
1. Idaho: $1,027 Full Coverage
Idaho has a very low percentage of uninsured drivers. Furthermore, it’s 99% rural land, which decreases the chances of auto accidents and vehicle theft. That’s why finding a bargain deal in this state shouldn’t be rocket science.
Moreover, its minimum coverage amounts to $330.
2. Ohio: $1,066 Full Coverage
Ohio is an at-fault state and provides the standard minimum insurance requirements, supporting the state’s affordable coverages. Add the highly competitive auto insurance market, and it’s no surprise Ohio is an inexpensive state. The state’s minimum coverage is $380.
3. Maine: $1,074 Full Coverage
It won’t surprise anyone that the average car insurance cost is relatively low in Maine, as the state is the 36th state in the US in terms of average income and 39th in terms of population density. In addition, the minimum coverage is $364.
4. Vermont: $1,074 Full Coverage
As for the minimum coverage, it’s $336. In general, Vermont has a low number of uninsured drivers and a low population density.
Furthermore, vehicle theft rates are lower than the US average. Consequently, these factors reduce claims expenses and enable insurers to offer very competitive prices.
5. Hawaii: $1,128 Full Coverage
When we compare auto insurance prices between states, we can see that Hawaii takes fifth place on the list of states with the cheapest full coverage car insurance. Furthermore, its minimum coverage is $365.
Like most states, Hawaii also maintains minimum car insurance laws, and you must carry car insurance coverage if you reside in the Aloha State.
6. Iowa: $1,131 Full Coverage
Iowa is an at-fault state with an annual income near the US average and a low number of uninsured drivers. That’s why it is not surprising that its insurance rates are also below the US average. In fact, the minimum coverage is $237.
7. Indiana: $1,133 Full Coverage
The minimum coverage amounts to $349. Car insurance prices in Indiana are generally low. However, premiums still vary from one insurance company to another, so it’s best to compare auto insurance rates in Indiana to get the lowest price possible.
Overall, driving safety isn’t so bad in this state either, and perhaps that’s one reason why insurance here is lower than the national average.
8. New Hampshire: $1,143 Full Coverage
New Hampshire is among the states that don’t require you to purchase car insurance. That said, the minimum coverage costs $389. Perhaps the main reason for low auto insurance prices in New Hampshire is the really low repair cost.
9. Massachusetts: $1,163 Full Coverage
The ninth place on the list of states with the cheapest full coverage car insurance rate is taken by Massachusetts. The minimum coverage policy there is $456. Both full and minimum coverage is below the national average for car insurance.
10. Winsonsin: $1,206 Full Coverage
The setting of That ‘70s Show, Wisconsin, stands at the end of the list of the ten cheapest states for full coverage car insurance. The minimum coverage policy is $354. Severe snow and tornadoes aren’t a rarity in Wisconsin, and during springtime, rising rivers often cause flooding.
Additionally, the state holds 25th place in terms of population density. All these factors indicate that car insurance prices should be near the US average. Perhaps it’s the intense competition among insurers that keeps rates in check.
Average Car Insurance Rates by Age and Gender
The rates vary significantly based on a driver’s age. A 16-year-old will likely pay over three times more than an experienced driver in their thirties.
Then again, the insurance prices are the lowest for drivers in their fifties. However, once a person hits their late seventies, the rates will start increasing again.
Since our table below doesn’t include that info, as you will soon notice, one might ask: “how much does car insurance cost for an 18-year-old?” For a driver of that age, an average full coverage car insurance costs around $616 a month.
Generally speaking, 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 $780 more annually than his female counterpart. Some states like California, Hawaii, and Massachusetts banned gender-based pricing. Here’s a list of average car insurance rates by age and gender:
|Age||Female Drivers||Male Drivers|
Car Insurance Rate by Vehicle
The make and model of your vehicle play an essential role in your insurance rate, too. In fact, insurers frequently charge higher rates for specific makes and models due to their high rates of theft, crashes, and insurance claims.
In fact, expensive makes and models cost more to replace or repair, so insurers often charge higher coverage premiums for them.
If you’re thinking of buying a new vehicle and considering a specific make and model, make sure you request several insurance quotes before buying. That is to say, the make and model affect car insurance due to several factors:
- theft rates
- engine size
- vehicle size and type
- vehicle cost
Average Car Insurance Cost by Company
In our search for the best car insurance company, we saw that price varies significantly based on the insurer. USAA, Nationwide, State Farm, and GEICO had the lowest full coverage car insurance cost (up to $1,400).
On the other hand, companies like Allstate, Travelers, American Family, Progressive, and Farmers have higher full coverage costs ($1,400+).
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 Yearly Cost (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 auto insurance quality.
As a matter of fact, you can check our ratings of all the major US insurance companies in our reviews about the average cost of car insurance. It will help you make a shortlist of the best insurance companies for your profile.
So, once you’ve done that, request a quote from at least five companies, compare auto insurance offers, and choose the one you like the most. That’s the road to finding the best car insurance—it’s that easy.
We requested a quote from all the major US companies for a 21-year-old, 40-year-old, and 70-year-old driver to calculate the car insurance average cost.
Moreover, we conducted our research in multiple states, like California, Florida, New York, New Jersey, and many others. In addition, our reference driver had a clean record and chose to purchase collision and comprehensive coverage with a $500 deductible.
People Also Ask
How much is car insurance for a 21-year-old?
The full coverage car insurance cost is considerably lower than that for 16-year-olds. In other words, a 21-year-old female driver pays $3,100, and male drivers in that age group should pay $3,536 for full coverage car insurance.
As people get older, up until they are 70, their car insurance rates drop. However, after the age of 70, the rates increase again.
Is full coverage car insurance worth it?
Yes, full coverage insurance is generally a wise choice. It provides considerably more protection than liability-only coverage. For example, it reimburses your medical bills and the damage to your vehicle regardless of fault.
Additionally, it protects you against drivers with no or insufficient insurance. There’s no top-quality car insurance without protection plans that make up full coverage.
All in all, the only circumstance when you should drop comprehensive and collision coverages is if your car is old enough that it is relatively cheap to repair or replace.
Who has the most affordable car insurance?
There’s no clear-cut answer to this question. Therefore, we always advise comparing quotes from various insurers to determine the cheapest company for your profile. Because a myriad of factors influences the prices, that’s the only way to find a tailored-made bargain deal.
Nonetheless, GEICO, USAA, Nationwide, and State Farm usually stand out as the most affordable options in our studies.
Is GEICO the cheapest car insurance?
Based on multiple quote comparisons we did on our state-wide studies, GEICO is really among the cheapest companies in the United States. As a matter of fact, it has some of the lowest rates for drivers with poor credit, those with a clean record, and teen drivers.
In addition, USAA, Nationwide, and State Farm are other deserving candidates for budget-conscious drivers.
What is the cheapest car insurance?
As we have already mentioned, GEICO, USAA, Nationwide, and State Farm provide the most affordable full coverage car insurance.
Nevertheless, the cheapest insurance is not always the best. Therefore, we advise purchasing a policy with higher limits and studying insurance rankings to discover which company provides the best customer service and financial strength.
At what age does car insurance get cheaper?
Typically, at the age of 20, premiums start to decline rapidly. For instance, in our study on auto insurance for new drivers, the full coverage insurance cost for a 16-year-old was $6,408 for females and $7,188 for male drivers. Then again, for 20-year-old drivers, it was $3,100 for females and $3,536 for males. However, from the age of 70, the average car insurance cost jumped again.