How much is car insurance? (2024)
How much is car insurance depends on a number of factors, including your age, location, vehicle make and model, and driving history. The average cost of full coverage car insurance is $119 per month, while minimum liability coverage averages $45 per month.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Oct 18, 2024
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Oct 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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While most U.S. states require drivers to carry insurance, there is no denying that it’s a high expense for most people. So the first step in reducing your rates is learning what you can expect to pay for car insurance in the first place, which includes determining the average cost of car insurance.
When an insurance company determines your premium for coverage, a variety of factors are used including age, location, vehicle make and model, and driving history.
This guide will help you learn how much car insurance is by explaining the average cost of car insurance for several different scenarios.
- Age is one of the biggest factors affecting car insurance rates; the younger a driver is, the more expensive their premiums will be
- Rates also vary depending on where you live; cities and states with higher crime and traffic congestion tend to have more expensive rates
- Insurance companies take into account a variety of other factors such as driving history, credit score, and type of vehicle when calculating premiums
Why is car insurance so expensive?
Car insurance can be expensive, especially for younger drivers and those in high-risk areas. High insurance rates are due to various factors, such as the risk associated with covering certain types of drivers, the cost of repairs, and medical costs related to injuries or property damage.
Read more: Drivers Education Car Insurance Discount
Additionally, car insurance companies raise their rates to account for the increased chance that an accident might occur when driving in certain areas or at certain times of the day.
Insurance companies also factor other elements when calculating rates, such as credit score, gender, marital status, and occupation. Often, insurers use these variables to determine how likely someone is to file a car insurance claim or get in an accident, affecting how much they’ll pay for auto insurance.
Finally, some states require drivers to have certain minimum levels of coverage, which can increase the cost even further. All these factors lead to the high prices associated with car insurance.
Unfortunately, there’s no single method for reducing your car insurance costs. The best thing you can do is shop around, compare different companies, and look into discounts or loyalty programs that may be available.
Additionally, maintain a good driving record, take defensive driving courses, and raise your deductible to get the best possible rates.
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How much is car insurance per month on average?
On average, full coverage car insurance is approximately $119 per month, or $1,428 annually. Minimum coverage costs an average of $540 each year.
Since many different factors can affect your auto insurance rates, it may be helpful to learn more about the typical cost of car insurance and how those factors influence your premiums.
Various individual characteristics can greatly affect what you pay for your car insurance policy.
Our study looked at quotes from across the United States and revealed that rates could differ significantly depending on age, state of residence, driving history, and other criteria.
Let’s look at the average monthly cost for each category:
- Minimum coverage: $45
- Full coverage: $119
- Drivers with a ticket: $147
- Teen drivers: $592
- Senior drivers: $116
Read more: Senior Driving Class Car Insurance Discount
By understanding the average costs and variance among groups, you may be able to find car insurance that fits your budget.
How much is car insurance by coverage type?
The average auto insurance policy typically includes liability coverage with limits of $50,000/$100,000 for bodily injury and $50,000 for property damage. Furthermore, comprehensive and collision car insurance deductibles are usually set at $500.
If you’re leasing or financing your vehicle, your lender may also require gap insurance. Again, different levels of coverage will affect the cost of your car insurance premium, so make sure you review all options to find the best policy for your needs.
How much is car insurance by age?
Age is one of the biggest factors in determining your car insurance premium. Generally speaking, at what age do you get a discount on car insurance? Your insurance premiums generally decrease as you age, until you reach your 70s when they begin to increase again.
Teenagers, new drivers, and young adults are more likely to be involved in accidents than their more experienced and middle-aged counterparts, so insurers tend to quote them higher rates to cover the additional risk.
Read more: Car Insurance Discounts for Teenagers
Monthly Full Coverage Teenage Auto Insurance Rates by Gender for the Top 10 Insurance Companies
| Insurance Company | 16-Year-Old Male With a Clean Record | 16-Year-Old Female With a Clean Record | 18-Year-Old Male with a Clean Record | 18-Year-Old Female with a Clean Record |
|---|---|---|---|---|
| Allstate | $637 | $608 | $518 | $448 |
| American Family | $480 | $390 | $390 | $287 |
| Farmers | $742 | $777 | $603 | $573 |
| Geico | $311 | $297 | $253 | $219 |
| Liberty Mutual | $778 | $716 | $632 | $527 |
| Nationwide | $476 | $410 | $387 | $302 |
| Progressive | $813 | $801 | $661 | $590 |
| State Farm | $349 | $310 | $284 | $229 |
| Travelers | $896 | $708 | $729 | $522 |
| National Average | $609 | $557 | $495 | $411 |
How much is car insurance for a 16-year-old?
Our data shows that the average 16-year-old driver received rates over three times as expensive as the average 30-year-old driver.
Even though it may seem like teenage drivers can’t afford car insurance, there are ways to reduce costs, such as taking advantage of discounts or combining insurance plans with family members.
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How much is car insurance by state?
Every state in the U.S. has its own rules and regulations regarding car insurance, which can affect auto insurance premiums.
Factors influencing what drivers pay for their coverage include driving laws, minimum coverage requirements, and the number of insurance companies available in each state.
Car Insurance Monthly Rates by Coverage Level & State
| States | Minimum Coverage | Full Coverage |
|---|---|---|
| Alabama | $39 | $83 |
| Alaska | $47 | $91 |
| Arizona | $50 | $92 |
| Arkansas | $37 | $85 |
| California | $47 | $93 |
| Colorado | $52 | $98 |
| Connecticut | $62 | $106 |
| Delaware | $71 | $110 |
| Florida | $79 | $118 |
| Georgia | $60 | $106 |
| Hawaii | $39 | $76 |
| Idaho | $33 | $65 |
| Illinois | $41 | $80 |
| Indiana | $35 | $69 |
| Iowa | $28 | $65 |
| Kansas | $33 | $78 |
| Kentucky | $48 | $86 |
| Louisiana | $77 | $135 |
| Maine | $31 | $63 |
| Maryland | $58 | $104 |
| Massachusetts | $53 | $100 |
| Michigan | $74 | $126 |
| Minnesota | $40 | $78 |
| Mississippi | $42 | $91 |
| Missouri | $40 | $82 |
| Montana | $35 | $80 |
| Nebraska | $34 | $76 |
| Nevada | $68 | $106 |
| New Hampshire | $35 | $72 |
| New Jersey | $77 | $121 |
| New Mexico | $46 | $87 |
| New York | $73 | $124 |
| North Carolina | $31 | $69 |
| North Dakota | $25 | $68 |
| Ohio | $36 | $71 |
| Oklahoma | $41 | $90 |
| Oregon | $55 | $85 |
| Pennsylvania | $44 | $88 |
| Rhode Island | $71 | $121 |
| South Carolina | $53 | $94 |
| South Dakota | $27 | $72 |
| Tennessee | $38 | $79 |
| Texas | $51 | $106 |
| Utah | $47 | $81 |
| Vermont | $31 | $69 |
| Virginia | $39 | $76 |
| Washington D. C. | $55 | $89 |
| West Virginia | $43 | $89 |
| Wisconsin | $34 | $67 |
| Wyoming | $29 | $78 |
| U.S. Average | $50 | $94 |
For example, drivers in California tend to have higher rates than other states due to the high concentration of vehicles on the road. On the other hand, New Hampshire doesn’t require liability coverage, so rates are usually much lower than average.
Read more: New Hampshire Car Insurance Discounts
Additionally, insurers may also offer discounts depending on ZIP code or city location. As such, it’s important to research and compare different companies before purchasing a policy to get the best rate possible.
Learn more about what states require car insurance.
How does vehicle model affect car insurance rates?
The type of car you drive can also affect how much your auto insurance policy costs. Generally, luxury and sports cars tend to be the most expensive vehicles to insure because they have higher repair costs, faster acceleration rates, and are more attractive targets for thieves.
On the flip side, older or discounted models with fewer features may cost less to insure since they’re less expensive and require fewer repairs. Additionally, many insurers provide discounts for vehicles equipped with anti-theft devices or other safety features that reduce the risk of theft or accident-related damages.
Researching different companies is essential if you want to get the best car insurance rates.
Finally, it’s important to remember that individual circumstances will always play a role in determining the cost of your policy. For example, your driving record and credit history may affect car insurance rates.
How much are average car insurance rates by driving history?
Your driving history is a significant factor influencing your auto insurance premiums. Insurers will review your record when calculating rates, and any tickets or violations you’ve had in the past can lead to considerably higher premiums.
For example, a DUI conviction could increase your policy costs by up to 40%. Likewise, reckless driving convictions or multiple speeding tickets may cause insurers to charge more for coverage.
However, some companies offer discounts for drivers who have maintained a clean record for several years.
In addition, getting a speeding ticket may be one of the most common causes of a rise in auto insurance premiums. Depending on how fast you were going, the period your insurance company applies a surcharge could last longer and remain on your record for an extended time.
An at-fault accident usually impacts your car coverage unless it’s covered by an insurer’s accident forgiveness program, which protects you from increased rates after the first incident.
Car Insurance Monthly Rates for Clean Record vs. One Accident by Provider
| Insurance Company | Clean Record | One Accident |
|---|---|---|
| Allstate | $318 | $415 |
| American Family | $224 | $310 |
| Farmers | $288 | $376 |
| Geico | $178 | $266 |
| Liberty Mutual | $397 | $517 |
| Nationwide | $228 | $283 |
| Progressive | $282 | $398 |
| State Farm | $235 | $283 |
| Travelers | $287 | $357 |
| USAA | $161 | $209 |
The amount of time an at-fault accident impacts your driving record depends on the severity of the crash and state laws.
Those convicted of DUI face even bigger consequences as this serious moving violation will almost always result in higher car insurance premiums that may stay on file for up to 10 years or potentially a lifetime depending on state regulations. Learn more about how long a DUI stays on your record.
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How much is car insurance by credit score?
Your credit score is another important factor to consider when calculating your insurance premiums. Many insurers use credit-based insurance scoring to determine rates, and those with higher scores may be eligible for discounts or lower premiums.
Generally speaking, a higher credit score indicates that you’re more likely to pay your bills on time and be less of a liability for the insurer in terms of potential losses from claims. On the flip side, those with lower credit scores are seen as having greater risks and could pay significantly more for their auto coverage.
Additionally, some states have laws prohibiting insurers from using an individual’s credit score when determining rates, including:
- California
- Hawaii
- Maryland
- Michigan
- Massachusetts
However, in states where credit-based insurance scoring is allowed, it’s important to review your score and make sure there are no errors that could negatively affect your premiums.
Doing this can ensure you get the most competitive rates on auto coverage and save money in the long run.
How much are average car insurance rates by gender and age?
Gender and age play a role in determining car insurance rates, as insurers view young male drivers as high risk compared to other groups. In many states, males aged 16 to 25 are charged substantially more for coverage than other demographics. Turning 25 is often associated with reduced car insurance rates, as insurance companies may provide a 25 year-old car insurance discount to reward drivers for their increased experience and maturity behind the wheel.
Insurers also consider whether the driver has a clean driving record, which can offset some additional costs associated with being a younger male. That said, premiums remain much higher for this demographic even when they have no violations or tickets on their record.
Insurance companies typically see women as lower-risk drivers due to their tendency to drive less and more cautiously than men.
As such, they often pay significantly lower rates on auto insurance. The same applies to older drivers, who usually have lower premiums because of their experience and fewer claims.
What is the average cost of car insurance by marital status?
Marital status is another factor that car insurance companies consider when determining rates. Generally, married couples pay lower premiums as insurers see them as more responsible and stable than single drivers.
Typically, insurers offer a car insurance discount for married couples of up to 25% on auto coverage for married individuals. Insurance companies see marriage as an indicator of financial stability and responsibility, making the driver less likely to file claims or get in an accident.
Even if one spouse has a bad driving record or poor credit score, they may still qualify for discounts if the other partner has a clean driving history.
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What are additional factors that will affect your premiums?
Before making a purchase decision, consider these factors that could increase your premium:
- Vehicle: The type of car you drive and the class it falls into is a major factor. Luxury vehicles cost more to insure but so do sports cars with higher-than-average horsepower ratings or modified parts.
- Location: Where you live and park your vehicle can also affect your premiums. Areas with high crime rates or natural disaster threats may require higher premiums due to the increased risk of damage.
- Driving history: Insurance companies look at your driving record and past claims when deciding on a premium amount. If there are any blemishes on your record, such as speeding tickets, accidents, or DUIs, they could all increase the price of your insurance policy.
- Discounts: The good news is that plenty of car insurance discounts can help lower your premiums. Look for incentives such as safe driver discounts, multiple-policy discounts, and good student discounts when shopping around for the best deal.
- Credit score: Some insurers look at credit scores when determining premiums. A good score could lead to lower rates, while a low one might result in higher prices.
- Gender: Young men tend to pay more for their insurance than women of the same age due to statistics that suggest they’re more likely to get into an accident.
- Age: Generally speaking, younger drivers will have higher premiums because insurers consider them a higher risk on the road. As you age, your premiums can decrease if you maintain a clean driving record.
- Mileage: If you drive a lot, your premiums may be higher than those who don’t. The more miles you drive, the higher your risk of an accident.
- Coverage selections: Your coverage selection also affects your premiums. Higher levels of coverage, such as comprehensive and collision, will cost more than basic liability.
- Insurance history: If you’ve had a coverage lapse or multiple insurance claims in the past, your premiums could be higher than someone with a clean record.
How Much is Car Insurance: Final Words
Car insurance costs can vary widely depending on a variety of factors. Understanding these factors and how they affect your premiums is the key to getting the best deal.
Before making any decisions, research various insurers and compare quotes to ensure you get the most coverage for your money.
Be sure to look into all available discounts to reduce your premiums further. With some effort, you can find an affordable policy that offers the protection you need.
Frequently Asked Questions
What’s the difference between full coverage and liability insurance?
Minimum coverage is the bare minimum of insurance required by law, usually consisting of liability insurance that pays for damage you cause to other people. Full coverage typically includes comprehensive and collision, which covers your own car in case of an accident.
Do your car insurance rates decrease once you pay your car off?
Yes, once you pay off your car loan and no longer owe money on the vehicle, the lender’s interest in the car gets eliminated, resulting in a rate decrease.
How much does car insurance cost for a beginner?
The cost of car insurance for a beginner will depend on several factors, including the type of vehicle, location, driving history, and discounts available. Generally speaking, younger drivers tend to pay more due to their higher risk profile.
What is the cheapest car insurance company?
The cheapest car insurer will depend on the individual’s age, driving history, vehicle type, and location. Shop around to compare policies and get the best deal that suits your needs.
Does car insurance decrease every year?
No, in most cases, car insurance premiums remain the same year after year. However, some insurers may offer discounts or rewards for being a loyal customer over time.
How much is full coverage insurance a month?
Full coverage car insurance can be more expensive than basic liability, depending on the type of coverage purchased. Generally speaking, higher levels of coverage cost more but can also offer greater protection against unexpected circumstances. On average, full coverage car insurance costs $119 per month.
What are the factors that affect the cost of car insurance?
There are several factors that can affect the cost of car insurance, including your age, driving record, type of vehicle, location, and coverage options.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.