Updated: May 23, 2023
Written by: Daniel Robinson, Writer
Edited by: Rashawn Mitchner, Senior Editor
What’s the average cost of car insurance in the United States? In this article, we at the MarketWatch Guides Team will explain average car insurance costs by state and how to keep your rates low. We also recommend three of the best car insurance companies worth considering in the sections below.
Key Takeaways:
- The national average cost of a full-coverage car insurance policy is $1,730 per year or $144 per month.
- Michigan has the highest average car insurance rates, while Maine has the cheapest.
- Comparing quotes from multiple providers, exploring discount opportunities and taking advantage of usage-based programs are all good ways to lower your car insurance premiums.
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- How Much Does Car Insurance Cost?
- How Much Is Car Insurance in Your State?
- Car Insurance Cost by Age
- Car Insurance Cost by Provider
- Car Insurance Cost by Driver Profile
- Car Insurance Cost by Vehicle Type
- Auto Insurance Pricing
- Car Insurance Cost Changes
- How To Lower Car Insurance
- Car Insurance Discounts
- Car Insurance Cost: The Bottom Line
- Average Cost of Car Insurance: FAQ
- Our Methodology
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How Much Does Car Insurance Cost?
The average cost of full-coverage insurance is $1,730 per year or $144 per month, while minimum-liability coverage averages $635 per year or $53 per month. However, what you pay for auto insurance coverage varies based on your personal information. This is because insurers consider factors like your location, driver profile, vehicle and desired coverage when calculating premiums.
Full Coverage vs. Minimum Coverage
There are good reasons for the wide price difference between full-coverage car insurance and minimum-liability coverage. Liability insurance has two components: bodily injury and property damage. It’s required in most states and covers other drivers’ injuries and vehicle damage when you cause an accident.
Full-coverage car insurance goes beyond state-minimum coverage by adding collision and comprehensive coverage to liability protection. Collision coverage pays for damage to your vehicle no matter who causes an accident. Comprehensive coverage protects your car against damage from natural disasters, theft, fire and vandalism.
How Much Is Car Insurance in Your State?
All states set their own car insurance regulations and requirements. Factors like driving conditions also vary by state, which can impact the cost of car insurance.
Car Insurance Cost by State
We collected average car insurance costs from Quadrant Information Services to give you some idea of what drivers in each state pay for average annual premiums. Auto coverage costs vary by state due to a variety of factors, including the frequency of accidents and claims. The cost of parts and labor can also lead to higher rates in one part of a state versus another.
The cost estimates in the table below include estimates for minimum-coverage and full-coverage car insurance for a 35-year-old driver with good credit and a clean driving record.
| State | Average Annual Minimum-Liability Premium | Average Annual Full-Coverage Premium |
|---|---|---|
| Alabama | $472 | $1,479 |
| Alaska | $425 | $1,400 |
| Arizona | $670 | $1,754 |
| Arkansas | $428 | $1,525 |
| California | $627 | $2,089 |
| Colorado | $575 | $1,860 |
| Connecticut | $1,503 | $2,999 |
| Delaware | $941 | $2,169 |
| District of Columbia | $644 | $1,903 |
| Florida | $1,343 | $2,947 |
| Georgia | $673 | $1,617 |
| Hawaii | $625 | $1,819 |
| Idaho | $328 | $1,069 |
| Illinois | $527 | $1,347 |
| Indiana | $428 | $1,332 |
| Iowa | $283 | $1,181 |
| Kansas | $500 | $1,471 |
| Kentucky | $651 | $1,779 |
| Louisiana | $932 | $2,783 |
| Maine | $346 | $964 |
| Maryland | $972 | $1,818 |
| Massachusetts | $873 | $2,647 |
| Michigan | $1,604 | $3,785 |
| Minnesota | $605 | $1,632 |
| Mississippi | $439 | $1,434 |
| Missouri | $579 | $1,734 |
| Montana | $456 | $1,938 |
| Nebraska | $417 | $1,622 |
| Nevada | $1,015 | $2,149 |
| New Hampshire | $459 | $1,349 |
| New Jersey | $1,032 | $2,037 |
| New Mexico | $441 | $1,449 |
| New York | $1,472 | $2,783 |
| North Carolina | $503 | $1,368 |
| North Dakota | $377 | $1,366 |
| Ohio | $347 | $1,027 |
| Oklahoma | $443 | $1,726 |
| Oregon | $736 | $1,334 |
| Pennsylvania | $463 | $1,647 |
| Rhode Island | $804 | $1,848 |
| South Carolina | $626 | $1,665 |
| South Dakota | $290 | $1,652 |
| Tennessee | $415 | $1,281 |
| Texas | $642 | $1,752 |
| Utah | $681 | $1,507 |
| Vermont | $282 | $1,056 |
| Virginia | $490 | $1,142 |
| Washington | $578 | $1,438 |
| West Virginia | $517 | $1,537 |
| Wisconsin | $431 | $1,219 |
| Wyoming | $307 | $1,767 |
Most Expensive Car Insurance by State
Here are the top five most expensive states for full-coverage car insurance:
| State | Annual Cost Estimate | Difference from National Average |
|---|---|---|
| Michigan | $3,785 | 119% |
| Connecticut | $2,999 | 73% |
| Florida | $2,947 | 70% |
| New York | $2,783 | 61% |
| Louisiana | $2,783 | 61% |
States With the Cheapest Car Insurance
And here are the five least expensive states for full-coverage car insurance:
| State | Annual Cost Estimate | Difference from National Average |
|---|---|---|
| Maine | $964 | -44% |
| Ohio | $1,027 | -41% |
| Vermont | $1,056 | -39% |
| Idaho | $1,069 | -38% |
| Virginia | $1,142 | -34% |
The best way to see how much car insurance would cost for your vehicle is by comparing free quotes from providers in your state.
Car Insurance Cost by Age
Age is one of the most important factors in setting car insurance rates. Teen drivers and those in their early 20s can pay thousands more per year than people with more experience behind the wheel. This is because young drivers are more likely to be involved in a car accident. Insurance companies charge higher premiums to help offset the risk of insuring these inexperienced motorists.
Here’s a look at average full-coverage auto insurance costs for various age groups:
| Age | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| 16 | $576 | $6,912 |
| 17 | $468 | $5,612 |
| 18 | $413 | $4,958 |
| 19 | $309 | $3,708 |
| 21 | $232 | $2,786 |
| 25 | $168 | $2,019 |
| 30 | $153 | $1,831 |
| 35 | $149 | $1,785 |
| 40 | $146 | $1,755 |
| 45 | $144 | $1,730 |
| 50 | $138 | $1,658 |
| 55 | $134 | $1,609 |
| 65 | $137 | $1,648 |
| 75 | $159 | $1,912 |
Car Insurance Cost by Provider
Car insurance costs also vary widely depending on your provider. Here are a few national and regional companies that offer rates lower than the national average for full-coverage car insurance:
Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
USAA | $88 | $1,054 |
Erie Insurance | $103 | $1,238 |
Nationwide | $107 | $1,281 |
Geico | $109 | $1,308 |
State Farm | $123 | $1,481 |
Progressive | $134 | $1,610 |
USAA typically offers the lowest car insurance rates in all regions of the U.S., but its policies are only available to active military, veterans and their immediate families. Erie Insurance is another affordable option if you live in one of the 12 states the company serves.
Car Insurance Cost by Driver Profile
Auto insurers have to weigh the risk factors in every driver’s record. If you have one or more speeding tickets, at-fault accidents or other violations in your driving history, you’ll pay higher premiums than those with clean records. Here’s a look at how average rates change for 35-year-old males when they commit driving violations:
| Driving Record | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| Clean | $151 | $1,816 |
| Speeding ticket (1-5 mph over limit) | $185 | $2,225 |
| Speeding ticket (16-20 mph over limit) | $193 | $2,313 |
| Speeding ticket (21-25 mph over limit) | $205 | $2,464 |
| DUI | $273 | $3,277 |
| At-fault accident | $224 | $2,689 |
| 2 at-fault accidents | $313 | $3,761 |
| 3 at-fault accidents | $453 | $5,436 |
High-Risk Driver Coverage Rates by Provider
Every car insurance company weighs risk factors differently. The following sections provide rate estimates for various driver profiles from leading insurers.
Car Insurance Cost for Drivers With a Recent Accident
Having a recent at-fault accident on your record typically leads to elevated auto coverage rates. USAA and Erie Insurance offer the lowest average rates for these drivers.
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| USAA | $137 | $1,647 |
| Erie Insurance | $153 | $1,832 |
| State Farm | $157 | $1,882 |
| Nationwide | $172 | $2,063 |
| Geico | $197 | $2,364 |
| Progressive | $235 | $2,822 |
Car Insurance Cost for Drivers With a Recent Speeding Violation
Speeding can also lead to higher car insurance premiums. Here are some average rates for drivers with a recent speeding violation for going 16-20 mph over the limit. USAA and Erie Insurance again lead the way with the cheapest rates.
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| USAA | $118 | $1,413 |
| Erie Insurance | $129 | $1,549 |
| Nationwide | $138 | $1,656 |
| State Farm | $150 | $1,794 |
| Geico | $155 | $1,856 |
| Progressive | $193 | $2,311 |
Car Insurance Cost for Drivers With a Recent DUI
As you would expect, a DUI violation significantly increases car insurance rates. State Farm has the lowest rates for drivers with a recent DUI, with USAA, Erie Insurance and Progressive close behind.
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| State Farm | $182 | $2,180 |
| USAA | $186 | $2,236 |
| Erie Insurance | $194 | $2,326 |
| Progressive | $194 | $2,328 |
| Nationwide | $239 | $2,867 |
| Geico | $281 | $3,376 |
Car Insurance Cost by Vehicle Type
The type of vehicle you drive plays a key role in setting your car insurance rates. The cost of parts and repairs, the likelihood of accidents and the vehicle’s safety features all contribute to how much you pay for auto coverage. Here are a few types of vehicles that tend to be more expensive to insure:
- Large SUVs: Because of their large size and capacity for more passengers, these vehicles often cause more damage and injuries during accidents.
- Sports cars: Vehicles built for speed and performance are at higher risk of causing accidents. Sports car also tend to have higher costs for replacement parts
- High-end luxury cars: As with sports cars, replacement parts for luxury vehicles are more expensive than for standard daily drivers. The high purchase price also leads to greater insurance premiums.
- Hybrid and electric vehicles: Parts and labor for these vehicles can be pricey, which means you’ll pay higher premiums for full-coverage policies for hybrids and EVs.
More affordable, standard-sized cars with modern safety features are typically the cheapest to insure. As a bonus, features like anti-lock brakes, anti-theft systems and passive restraint systems can even earn you extra discounts from some insurers.
Auto Insurance Pricing
Car insurance costs are determined based on a number of factors. How heavily each factor impacts your final premiums can vary from provider to provider, which is why it’s important to compare average car insurance rates from multiple insurers.
Factors That Affect Car Insurance Rates
The table below contains the primary factors that generally determine the cost you will pay for auto insurance:
Factor | Impact on Car Insurance Premiums |
|---|---|
Age | Drivers typically see the highest rates between ages 16 and 25. Rates gradually decrease and see a slight increase again around 65. |
Gender | Insurers may set rates based on your gender, except in the states of California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania, where insurers have been banned from using gender as a rate factor. |
Credit History | Drivers with good credit are often offered lower rates. In California, Hawaii, Massachusetts, Michigan and New Jersey, insurers are not allowed to set rates based on credit score. |
Marital Status | Married drivers sometimes receive cheaper car insurance rates compared to single drivers. |
Location | Both your city and state impact the cost of your car insurance premium. If you live in an area with especially high crash or theft rates, you may see higher rates for insurance. |
Type of Car | If your car model has high theft or crash rates — as do many sports cars — your insurance premium may be higher. Your car’s value is also used to determine the cost of comprehensive and collision premiums. |
Driving Record | Maintaining a clean driving record is one of the biggest ways to save on car insurance. Those with a history of speeding tickets, at-fault accidents, traffic violations or DUIs are charged more for insurance. A violation will stop affecting your rates after it falls off your record, which typically happens after three years. |
Driving Habits | Driving less often can mean lower rates. Many insurers offer usage-based discounts to reward low-mileage drivers. |
Coverage Level | Each state sets its own minimum insurance requirements, but you can get additional coverage if you want to be fully protected. Shopping for full coverage insurance with higher policy limits will increase your car insurance quotes. |
Deductible | Collision and comprehensive insurance policies typically include a deductible. Choosing a higher deductible will result in a lower premium and vice versa. |
Discounts | The discounts for which you are eligible affect your rate. Common car insurance discounts include a homeowner’s discount, military discount, multiple policy discount and pay-in-full discount. |
Car Insurance Cost Changes
You may find that your car insurance premiums change slightly every six months or every year. Your premiums are actually part of a regional insurance pool that’s sometimes impacted by changes to state regulations and the total amount of claims in a given time period. Your rates may be affected by things like natural disasters that drive up the number of claims or by legislation that targets certain insurance products.
In our recent survey of 1,000 car insurance customers, we found that 41% of respondents experienced a rate increase without an apparent cause. That should tell you that the average cost of car insurance is susceptible to some unforeseen fluctuations.
How To Lower Car Insurance
If you’re shopping around for car insurance online and are receiving quotes that are outside your budget, here are several strategies to save money on car insurance:
- Shop around: It is worth comparing rates from several insurers, especially if something that might impact your rates has recently changed. For example, after you get married, purchase a house or if your credit score improves, you should see if you can get a lower car insurance premium.
- Bundle Plans: Bundling your home and auto insurance policies typically results in premium discounts. You can also save money for insuring multiple vehicles under the same car insurance policy.
- Pay upfront: Most insurers offer a pay-in-full discount. If you are able to pay your entire premium at once, it’s often a more cost-effective option.
- Take a class: Every state offers state-approved driver safety programs. Depending on the state, these classes are around six or eight hours long. Most insurers offer discounts for the completion of these programs.
- Use a monitoring app: Several providers offer usage-based discounts or usage-based insurance programs. After signing up, you’ll monitor your driving habits through an app that tracks things like braking distance, average speed and driving times and rewards you for good behavior on the road.
- Reduce coverage: As your vehicle ages, you may no longer need comprehensive and collision insurance policies. The rule of thumb is that you should drop coverage when your annual premium exceeds 10% of your vehicle’s total value.
Car Insurance Discounts
Car insurance companies offer various discounts to help customers save on their coverage premiums. These are some of the common discounts you’ll find from most providers:
- Multi-policy: Having a homeowners, renters, life or other type of insurance policy with your auto coverage provider often earns discounted rates.
- Multi-vehicle: Many companies offer discounts for adding multiple cars to your auto insurance policy.
- Good driver: Going a certain period of time without an accident or claim can unlock savings on car insurance premiums.
- Good student: Having a student with a “B” average on your policy is another way to save money.
- Teen driver: Many providers offer discounts if you have a teen driver on your policy.
- Defensive driving: Completing a defensive driving course is often an easy way to save on your car insurance premiums.
- Safety features: Having a newer car with updated safety features can earn you a discount.
- Military: Most major auto insurers give discounted rates to active military.
- Usage-based: Through either a mobile app or a plug-in device, many large insurers offer programs that track your driving and reward your safe habits with discounts.
Special Discount Programs
Some of our top-rated car insurance providers offer unique discount opportunities:
USAA Discounts
USAA offers some discounts that are especially attractive to its military customer base. The company offers a 60% discount for policyholders who store their vehicles in a secure location. This comes in handy during a deployment. USAA also offers a discount of 15% for garaging a vehicle on a military base.
State Farm Discounts
State Farm offers a unique training app for young drivers called Steer Clear®. This program includes driving coursework and quizzes. Those who successfully complete Steer Clear can earn a discount of up to 20%.
Progressive Discounts
Progressive makes it easy to earn discounts. You can lower your premium by doing things as simple as getting a quote online, signing documents online, opting for electronic statements and setting up automatic payments with a checking account or credit card.
Geico
Geico is well known for offering a host of discounts. Federal employees and members of over 500 corporate and alumni groups can save on their Geico premiums. You can also save up to 23% on a comprehensive coverage policy simply by having an anti-theft system installed in your vehicle.
Car Insurance Cost: The Bottom Line
After conducting in-depth industry research, our team found that the average full-coverage policy costs $1,730 per year on average. This is higher than minimum liability coverage because it incorporates liability, comprehensive and collision insurance.
To find the best car insurance price, we recommend shopping around and comparing car insurance rates from reputable insurance providers.
Best Price Car Insurance: Recommended Providers
The cost of car insurance is an important thing to consider when choosing a provider. Of course, you’ll also want to pick a reputable insurer that offers good coverage and has a simple claims process. There are several insurers that fit that description in the U.S.
To find the best option for you, request and compare car insurance quotes from a few companies.
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State Farm: Editor’s Choice
Affordable rates, a variety of coverage options and excellent customer service combine to make State Farm our Editor’s Choice. The company offers all the standard insurance products you’d expect (liability, collision, comprehensive, underinsured/uninsured motorist coverage, personal injury protection and medical payments), along with the following optional types of protection:
- Roadside assistance
- Rental car reimbursement
- Rideshare insurance
- Travel expense (up to $500 for food and lodging when you break down 50 miles or more from home)
Learn more about the provider in our complete State Farm insurance review.
Geico: Affordable for Most Drivers
Geico offers low premiums across the country. When conducting our insurance cost research, we often found Geico to be the cheapest insurer. The company also has a good customer service reputation — it is accredited and has an A+ rating from the Better Business Bureau (BBB).
Geico offers the six standard types of auto insurance, as well as the following add-on coverage options:
- Emergency roadside service
- Rental reimbursement
- Mechanical breakdown insurance
- Rideshare insurance
Learn more about the provider in our complete Geico car insurance review.
Progressive: Low Rates for High-Risk Drivers
Progressive doesn’t have the same service reputation as Geico, but it is nonetheless a well-regarded national insurer. According to our research, Progressive is a particularly good option for high-risk drivers such as young drivers, elderly drivers and drivers with a DUI on record. We found that Progressive tends to offer the most competitive rates for these types of drivers, who will often find insurance policies quite expensive.
Progressive sells all standard insurance policies as well as the following add-on coverages:
- Loan/lease payoff
- Rental car reimbursement
- Custom parts and equipment value coverage
- Rideshare coverage
- Roadside assistance
Learn more about the provider in our complete Progressive car insurance review.
Average Cost of Car Insurance: FAQ
Below are frequently asked questions about the average cost of car insurance.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.