Key Takeaways:
- The average cost of car insurance is $968 a year, or $81 a month, for a minimum-coverage policy.
- Full-coverage car insurance, on average, is $1,949 a year, or $162 a month.
- Age impacts the cost of car insurance the most, with a driver in their 30s paying almost 75% less for car insurance than a 16-year-old driver.
We will help you understand the variables that are involved in how much you pay for car insurance, including:
Average cost of car insurance by state
The cost of car insurance varies from state to state. This is due to differences in state coverage requirements, the number of uninsured drivers and accident rates. It will also differ depending on if you get a minimum- or full-coverage auto insurance policy.
To get your cheapest rate despite these factors, compare auto insurance quotes from several companies.
What is the average cost of minimum-coverage car insurance?
Overall, the average cost of minimum-coverage car insurance is $968 a year, or $81 a month.
South Dakota has the cheapest average rate of $29 a month for minimum-coverage car insurance, which is also known as liability-only car insurance. Michigan has the highest average minimum-coverage rate of $237 a month.
How much does minimum-coverage car insurance cost where you live? Check out the table below to see average rates for all 50 states.
| State | Annual rate | Monthly rate |
|---|---|---|
| U.S. average | $968 | $81 |
| Alabama | $956 | $80 |
| Alaska | $824 | $69 |
| Arizona | $1,173 | $98 |
| Arkansas | $668 | $56 |
| California | $834 | $70 |
| Colorado | $1,273 | $106 |
| Connecticut | $1,305 | $109 |
| Delaware | $1,423 | $119 |
| Florida | $1,109 | $92 |
| Georgia | $1,002 | $84 |
| Hawaii | $724 | $60 |
| Idaho | $495 | $41 |
| Illinois | $903 | $75 |
| Indiana | $615 | $51 |
| Iowa | $521 | $43 |
| Kansas | $600 | $50 |
| Kentucky | $1,151 | $96 |
| Louisiana | $1,520 | $127 |
| Maine | $495 | $41 |
| Maryland | $1,264 | $105 |
| Massachusetts | $1,071 | $89 |
| Michigan | $2,842 | $237 |
| Minnesota | $857 | $71 |
| Mississippi | $769 | $64 |
| Missouri | $900 | $75 |
| Montana | $750 | $63 |
| Nebraska | $678 | $57 |
| Nevada | $1,760 | $147 |
| New Hampshire | $561 | $47 |
| New Jersey | $1,246 | $104 |
| New Mexico | $849 | $71 |
| New York | $1,571 | $131 |
| North Carolina | $549 | $46 |
| North Dakota | $522 | $44 |
| Ohio | $1,023 | $85 |
| Oklahoma | $985 | $82 |
| Oregon | $1,658 | $138 |
| Pennsylvania | $847 | $71 |
| Rhode Island | $1,615 | $135 |
| South Carolina | $1,065 | $89 |
| South Dakota | $351 | $29 |
| Tennessee | $785 | $65 |
| Texas | $967 | $81 |
| Utah | $991 | $83 |
| Vermont | $409 | $34 |
| Virginia | $1,026 | $85 |
| Washington | $1,129 | $94 |
| Washington, D.C. | $783 | $65 |
| West Virginia | $740 | $62 |
| Wisconsin | $762 | $63 |
| Wyoming | $458 | $38 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
It's also important to point out that particular states do not have cheaper or more expensive car insurance rates for the same reasons. For example, New York has an average monthly rate of $280 a month. This is largely due to the extensive minimum-coverage requirements New York drivers need. Michigan has a fairly similar average rate of $294 a month. Its high premiums are due to the large number of uninsured drivers in the state.
Find cheap car insurance where you live
What is the average cost of full-coverage car insurance?
The average cost of full-coverage car insurance is $1,949 a year, or $162 a month. Vermont has the cheapest average rate for full-coverage insurance at $85 a month. Michigan has the most expensive average rate of $399 a month.
| State | Annual rate | Monthly rate |
|---|---|---|
| U.S. average | $1,949 | $162 |
| Alabama | $2,116 | $176 |
| Alaska | $1,733 | $144 |
| Arizona | $2,054 | $171 |
| Arkansas | $1,477 | $123 |
| California | $1,880 | $157 |
| Colorado | $2,285 | $190 |
| Connecticut | $2,568 | $214 |
| Delaware | $2,498 | $208 |
| Florida | $2,949 | $246 |
| Georgia | $1,987 | $166 |
| Hawaii | $1,659 | $138 |
| Idaho | $1,041 | $87 |
| Illinois | $1,860 | $155 |
| Indiana | $1,290 | $107 |
| Iowa | $1,338 | $111 |
| Kansas | $1,500 | $125 |
| Kentucky | $2,168 | $181 |
| Louisiana | $3,206 | $267 |
| Maine | $1,046 | $87 |
| Maryland | $2,185 | $182 |
| Massachusetts | $2,499 | $208 |
| Michigan | $4,787 | $399 |
| Minnesota | $1,682 | $140 |
| Mississippi | $1,521 | $127 |
| Missouri | $2,010 | $167 |
| Montana | $1,795 | $150 |
| Nebraska | $1,717 | $143 |
| Nevada | $2,981 | $248 |
| New Hampshire | $1,100 | $92 |
| New Jersey | $2,129 | $177 |
| New Mexico | $1,827 | $152 |
| New York | $2,835 | $236 |
| North Carolina | $1,061 | $88 |
| North Dakota | $1,508 | $126 |
| Ohio | $1,783 | $149 |
| Oklahoma | $2,018 | $168 |
| Oregon | $2,774 | $231 |
| Pennsylvania | $2,060 | $172 |
| Rhode Island | $2,925 | $244 |
| South Carolina | $1,992 | $166 |
| South Dakota | $1,370 | $114 |
| Tennessee | $1,777 | $148 |
| Texas | $1,882 | $157 |
| Utah | $1,742 | $145 |
| Vermont | $1,019 | $85 |
| Virginia | $1,903 | $159 |
| Washington | $1,789 | $149 |
| Washington, D.C. | $1,575 | $131 |
| West Virginia | $1,583 | $132 |
| Wisconsin | $1,755 | $146 |
| Wyoming | $1,582 | $132 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
No state requires you to carry full-coverage car insurance, but your lender may require it if you lease or finance your car. Liability coverage only provides coverage for others injured and their damaged property in the event of an accident you're responsible for. In order to have your injuries or damages covered, you need full coverage. It combines liability coverage with collision and comprehensive car insurance, hence the higher cost.
Average cost of car insurance by company
Of the car insurance providers we looked at, Allied has the lowest average monthly minimum-coverage auto insurance rate of $41 a month. Alfa has the highest average rate of $130 a month for minimum coverage. This table shows how each company's minimum- and full-coverage car insurance rates compare.
| Company | Full coverage | Minimum coverage | |
|---|---|---|---|
| Alfa | $3,845 | $1,557 | |
| Allied | $1,068 | $497 | |
| Allstate | $2,584 | $1,275 | |
| American Family | $1,498 | $868 | |
| Amica Mutual | $2,821 | $1,513 | |
| Auto Club | $2,292 | $1,044 | |
| Auto-Owners | $1,591 | $706 | |
| Citizens | $2,043 | $654 | |
| Country | $1,860 | $1,008 | |
| Erie | $1,468 | $699 | |
| Farm Bureau | $1,691 | $764 | |
| Farmers | $2,561 | $1,406 | |
| GEICO | $2,224 | $1,034 | |
| Hanover | $417 | $154 | |
| Hartford | $2,570 | $1,537 | |
| Mercury | $1,972 | $751 | |
| Nationwide | $2,149 | $1,157 | |
| Progressive | $1,991 | $943 | |
| Safety | $1,143 | $577 | |
| State Farm | $1,566 | $838 | |
| Travelers | $2,553 | $1,374 | |
| USAA | $1,110 | $516 | |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||
There may be some restrictions when looking for the right provider. Some of these companies only underwrite car insurance in certain regions, such as Arbella and Erie. USAA only offers car insurance for military members. When looking for car insurance quotes, make sure to compare quotes from as many companies as you can. This is the best way to get the best policy at the best price.
Compare auto insurance quotes from top companies
What is the average cost of car insurance by age?
What you pay for car insurance can change drastically as you age. For example, a typical 18-year-old driver pays $667 a month for full-coverage car insurance, on average, while a 30-year-old driver pays just $243 a month. Your average 60-year-old driver, on the other hand, pays $220 a month for a full-coverage policy.
There are several reasons car insurance rates decrease -- or increase -- as you age. Your experience behind the wheel and your risk of getting into an accident are two of them. This is why teen drivers pay the highest car insurance rates of any age demographic. It's also why the cost of car insurance usually decreases from your late teens until your mid-60s, and then increases around age 65.
The graph below shows the average cost of car insurance for drivers between the ages of 16 and 65.
Teen drivers can reduce their car insurance rates by getting added to a car insurance policy with their family, as well as by taking advantage of any available insurance discounts.
Car insurance rates for new drivers
If you're just getting behind the wheel, your car insurance rates as a new driver will probably be higher than others in your age range, regardless of how old you are. If you're in your 30s or oldhigher, odds are your car insurance premium will be comparatively high. Still, you should see lower rates than if you have a driving infraction on your record. If you keep a clean driving record for a while, however, you should see lower rates.
How infractions affect your car insurance rate
If you are responsible for a traffic accident or violation, odds are it is going to increase your auto insurance rates. An accident, speeding ticket or a DUI puts you as a high insurance risk in the eyes of providers. Your insurer will charge a higher rate in order to offset this risk.
Fortunately, many infractions do not stay on your record beyond a limited time, depending on what state you live in. In a lot of cases, if you keep your driving record clean for a few years, the infraction will drop off your insurance record. This table shows the average national rates after an accident, DUI or speeding ticket.
| Infraction | Annual rate | Monthly rate |
|---|---|---|
| Accident | $4,672 | $389 |
| DUI | $4,932 | $411 |
| Speeding | $4,023 | $335 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Other factors that affect your car insurance rates
There are other factors that can increase or decrease your rates beyond those involving the state you're registered to drive in and your insurance history. These include:
The vehicle you drive
If you own a luxury car or custom-modified vehicle, you will probably pay higher rates for car insurance. With both types of vehicles, parts can be costly to replace. This leads to higher premiums.
Credit score
Your credit score may be a factor in the calculation of your car insurance quote. A driver with an excellent credit score will probably see a much lower rate than a driver with a poor score. There are some states that have banned the use of credit scores in the calculation of car insurance rates.
Gender
On average, young men pay higher rates for car insurance than young women. This is largely due to young men being more likely to be in an accident or get a speeding ticket. As women get older, however, it is more likely for them to get higher insurance rates. The reasons for this change is unknown.
Mileage
More time behind the wheel means more chances of being in an accident. This naturally leads to higher rates. Some car insurance companies even offer a low-mileage discount for infrequent drivers.
Methodology
Rates shown in this analysis are based on non-binding quotes for minimum-coverage and full-coverage car insurance obtained from Quadrant Information Services.
Unless otherwise noted, the typical driver is a 35-year-old male who drives a 2014 Honda LX for an average of 13,500 miles a year.
Full-coverage car insurance includes the following coverages, limits and deductibles:
- Bodily injury liability: $100,000 per person/$300,000 per year
- Property damage liability: $100,000
- Collision: $500 deductible
- Comprehensive: $500 deductible
- In states where uninsured/underinsured motorist coverage and personal injury protection are required, the minimum limits required by law are included in the quoted policy.
Prior incidents include the following types of accidents or violations:
- An at-fault accident resulting in $2,000 or more in property damage
- A conviction of DUI for driving with blood alcohol content of 0.08% or greater
- A speeding ticket for exceeding the speed limit by an unspecified amount
Price comparisons are based on an analysis of rates available from the largest insurance companies in each state and Washington D.C.
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