How much does auto insurance cost?

Car insurance is mandatory in almost every U.S. state. However, whether you’re looking for high-risk auto insurance or a standard policy, your rates will vary for different reasons.

Most companies consider different factors when offering car insurance coverage. Comparing auto insurance quotes is a great way to learn which companies offer the coverage you want at a price that fits your budget.

How much is car insurance every month?

The average price for auto insurance in the U.S. is $148 per month. Still, rates vary for several reasons.

The average cost for a minimum coverage policy is around $545 annually, or $45 each month.

Some of the common car insurance options and their average monthly rates are listed below:

• Minimum coverage: $45
• Full coverage: $166
• Insurance for people with a moving violation: $75
• Insurance for young drivers: $201
• Insurance for senior drivers: $61

Remember that location, age, vehicle type, and driving history significantly impacts auto insurance rates.

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How much is car insurance based on coverage levels?

Most standard car insurance policies include $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $50,000 in property damage. If you’re leasing or financing a vehicle, your lender may require collision insurance, comprehensive insurance, and GAP insurance coverages.

For a top-tier full coverage auto insurance policy with Geico, you’ll pay around $102 per month. However, the same policy costs $178 with Allstate.

Average Full Coverage Annual Rates for the Top Auto Insurance Companies

A standard full coverage policy with Geico costs less, at $84 monthly. Still, the same policy is more expensive with Allstate, as the company charges $146 per month.

Average Minimum Coverage Monthly Rates for the Top Auto Insurance Companies

A minimum coverage policy with Geico costs significantly less, just $39 per month. The same policy costs $53 with Liberty Mutual and $37 with Nationwide.

Does age impact car insurance rates?

Age, among other factors, impacts car insurance prices. So while knowing the average rates in your area is helpful, you can’t count on that number to reflect what you’ll pay for coverage.

Auto insurance for teenage drivers is more expensive because young drivers are much more likely to get in an accident. As a result, insurers often charge them higher premiums for car insurance coverage.

Average Monthly Full Coverage Teenage Auto Insurance Rates for the Top Insurance Companies

As you can see, a 16-year-old driver pays just under $700 monthly on car insurance, while a 35-year-old driver pays only $174.

Annual Full Coverage Adult Auto Insurance Rates for the Top Insurance Companies

It’s also important to note that car insurance rates increase as people age. For example, a 50-year-old driver enjoys low rates for minimum coverage, but that same driver’s rates will increase as they get into their 60s and continue to drive. Auto insurance for older adults can get expensive.

Average Monthly Full Coverage Auto Insurance Rates for Senior Drivers

Companies see young and senior drivers as the two riskiest age brackets and often charge more for coverage to mitigate risks.

How much are car insurance rates by state?

Average car insurance costs vary from one state to the next. They also vary depending on the coverage types you have on your policy.

Full Coverage Auto Insurance Monthly Rates by State

As you can see, some states charge far more for coverage than others, and it’s difficult to know exactly why. For example, monthly rates for minimum coverage can cost as little as $36 for Wyoming auto insurance and as much as $230 for New York auto insurance.

States with the most expensive rates for car insurance include New York, Louisiana, Florida, Nevada, and Michigan. For example, New York car insurance rates are around 69% higher than the national average.

Still, there are also states with rates consistently lower than the national average, like Maine and Vermont.

If you buy a liability car insurance policy, you’ll pay low premiums because you don’t have as much coverage on your personal vehicle.

Your rates will increase as you add coverage options and purchase policies like a full coverage auto insurance policy.

You may find that rates in your state vary significantly from one policy type to another. The best way to know exactly how much you’ll pay for the coverage you want is to shop online and compare quotes.

Getting quotes gives you a better idea of how much you’ll pay for coverage and helps ensure you don’t overpay for insurance.

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Do rates vary from company to company?

On average, Erie auto insurance has the cheapest rates in the U.S. for minimum coverage. For a full coverage policy, Geico auto insurance and Auto-Owners auto insurance come with the cheapest rates.

Geico offers full coverage for $108 monthly, and Auto-Owners offers the same coverage for only $2 more. Erie’s full coverage rates come in third at $110 per month.

Knowing the average rates from several companies before buying a car insurance policy is vital. If you know your budget, you may want to avoid companies offering consistently higher rates.

Additionally, you’ll need to determine what types of car insurance you need and what you can afford. If you only want to meet the minimum auto insurance required by your state, you’ll probably be happy with many of the rates you receive.

If you’re looking for a full coverage policy, take your time to research and compare quotes before making any final decisions.

Does my car impact my rates?

Your vehicle impacts your car insurance rates. Car insurance companies pay attention to your car’s make and model, assessing how much repairs would be and how likely an accident might be based on the vehicle.

Insurers also use your vehicle identification number (VIN) to assess accident history, overall mileage, and more. 

Read more: How To Use a VIN To Save on Auto Insurance

How much does driving history impact rates?

Your driving history plays a large role in your car insurance rates. For example, if you have a traffic violation or accident on your driving record, expect to pay higher-than-average rates for coverage.

Most companies see traffic violations as a risk and charge you more to offset the financial risk of insuring you.

Average Monthly Auto Insurance Rates for the Top Insurance Companies for Drivers with a Traffic Ticket

A DUI will significantly impact your car insurance rates, causing you to pay up to 77% more on your car insurance. Some companies may refuse to offer you coverage for auto insurance after a DUI.

Average Monthly Rates for the Top Insurance Companies for Drivers with a DUI

Fortunately, high rates for a poor driving record don’t last forever. So as you maintain a clean driving record, you should notice cheaper rates with most companies.

Average Monthly Rates for the Top Insurance Companies for Drivers with an Accident

If you’ve never had a violation on your record, you may be curious about what constitutes a driving infraction.

Some of the most common violations include:

• Speeding ticket. If you get caught speeding and receive a ticket, expect your rates to increase. (For more information, read our “How many points do you get on your license after receiving a speeding ticket?“).
• At-fault accident. Many insurance companies increase your car insurance rates after an accident, especially if you’re at-fault. Once you file a claim, you could see an increase when your next payment is due.
• DUI conviction. A DUI is one of the most serious driving infractions, increasing your rates more than speeding tickets or accidents. Depending on where you live, a DUI could stay on your driving record for 10 years or more.

Insurance companies run background checks on policyholders, so expect your insurer to check your driving record annually to see if any changes occurred. If you have a new infraction, your rates will likely increase. 

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Does credit score impact car insurance rates?

Believe it or not, your credit score could significantly impact your auto insurance rates. Statistics suggest that people with poor credit scores are more likely to file auto insurance claims. Companies often assess each customer’s credit before offering a quote.

Full Coverage Auto Insurance Monthly Rates by Credit Score

As you can see, if you have excellent credit, your car insurance rates could be hundreds or even thousands of dollars cheaper than auto insurance for drivers with bad credit. 

Laws in California, Hawaii, Massachusetts, and Michigan don’t allow insurance companies to base auto insurance rates on a person’s credit score. However, all other states in the U.S. allow insurers to use a person’s credit as a factor in determining their costs. 

How much is car insurance based on different vehicle types? 

The car you drive impacts how much you pay for auto insurance. Vehicle make and model, difficulty finding parts and paint colors, and more are all factored into your rates. If you choose one of the cheapest cars to insure, your rates will be much lower.

Some vehicle makes and models are expensive to insure because they’re high-value cars or difficult to repair or replace.

High-End Vehicles

If you drive a high-end car, like a luxury or sports car, expect higher-than-average rates because your insurer knows repair costs would be expensive.

Sports cars can go faster than most other vehicles, and people who drive them are more likely to get speeding tickets and other minor moving violations. Since this poses a higher risk to an insurer, it could cost more money to cover the vehicle.

Vehicle Size

You could pay more for auto insurance if you drive a larger vehicle. For example, SUVs and pickup trucks are often more expensive to insure than sedans.

These vehicles carry more potential to do serious damage because of their size and weight. Drivers who own these vehicles could also have space to carry more passengers, which most companies see as an additional risk.

Common and Affordable Vehicles

While more common vehicles are often less expensive to purchase, they have their own risks when considering car insurance.

For example, common cars are more likely to get in accidents based on their sheer number, and they could be easier to break into or steal.

You may find that some insurance companies offer you more affordable coverage on your vehicle. The best way to learn how much companies will charge you for coverage is to shop online and compare quotes.

Some insurers could see your vehicle as a risk, while others may be willing to cover you for less. Compare car insurance costs and see who offers the coverage you want at a reasonable price.

How much do age and gender impact car insurance rates?

As previously discussed, your age can significantly impact your car insurance rates. Young drivers between 16 and 25 pay the most for car insurance on average.

Hawaii and Massachusetts have laws prohibiting insurers from charging higher rates based on a person’s gender. Still, every other state can use age to determine car insurance rates.

Rates can also vary based on your gender. For example, men see higher insurance rates than women on average. According to the Insurance Institute for Highway Safety, men are statistically more likely to get in an accident based on dangerous driving behaviors.

Not all U.S. states allow insurance companies to use a person’s gender as a factor when determining car insurance rates. Residents of California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania don’t have to worry about their gender impacting their car insurance premiums.

Men typically pay around 7% more for coverage than women.

Insurance companies often charge men higher rates because they:

• Drive more often
• Accrue more speeding tickets
• Get involved in more accidents
• Receive more DUIs

Infractions like DUIs are very serious. Since men are more likely to receive a DUI, they often see higher rates, particularly those between 16 and 26. Once men age out of this category, many insurers offer them rates comparable to a female with the same age and driving history. 

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What factors impact a person’s car insurance rates?

Several factors can impact car insurance rates — not every company considers them or weighs them the same, so it depends on the company you consider. 

Some of the most common factors impacting car insurance include:

• State minimum requirements. Depending on your state’s requirements, you may pay more or less for coverage. If your state only requires 25/50/20, you’ll pay less than you would in a state requiring 50/100/50 in liability coverage.
• Age. Age isn’t always a factor, but it matters if you’re a teen or young adult. Age also comes into play again if you’re over 65 and considered a senior driver. You’ll likely pay more for car insurance coverage in all of these cases.
• Car make and model. As stated previously, the car you drive impacts your rates based on how easy it is to find parts, how expensive it would be to repair, and how likely it is to get in an accident.
• Driving history. You don’t have to worry about paying too much for coverage if you have a clean history with no traffic violations. However, if you have accidents, tickets, or a DUI or DWI on your record, you’ll pay more than others for car insurance.
• Yearly mileage. You’re statistically more likely to get in an accident if you drive a lot. Car insurance companies offer low-mileage discounts to people who have relatively little annual mileage on their vehicles. 
• Credit history. Your credit score can impact car insurance rates in certain states. If you have a good or excellent score, you may get significantly cheaper rates than you would with a poor credit score. 
• ZIP code. Where you live matters because of the inherent risk it carries. Living in a more populated city makes you more likely to get in an accident and file a claim. So your rates may be higher.
• Marital status. If you’re married, you could pay less for coverage. Statistically, married people are less likely to file claims or get traffic tickets. (For more information, read our “How long does a ticket stay on your record?“).
• Gender. In some states, your gender could cause you to pay more for coverage. Certain companies may assume you’re more likely to get in a car accident if you’re a male. Fortunately, your gender won’t matter to insurers as you get older.
• Coverage selections. You’ll likely pay less for your car insurance if you choose a lower coverage level. However, this could leave you with more out-of-pocket expenses in certain instances.
• Insurance history. If you have a history of paying car insurance premiums on time, you could pay lower rates than if you’ve never owned an insurance policy before.

These factors can impact your car insurance rates, but you won’t know how much of a difference they’ll make until you compare quotes. Shop online to find and compare car insurance quotes from top companies in your area.

How can I get the cheapest car insurance?

There are a few things you can do to get cheaper rates on car insurance.

Some of the most common methods for finding cheap car insurance include:

• Comparing quotes. You could overpay if you only get rates from one or two companies. Instead, shop online to get quotes from multiple insurers to see who offers the best options.
• Getting discounts. Companies offer car insurance discounts for good students, safe drivers, and certain occupations. You could save up to 25% on your car insurance if you’re eligible for a discount. 
• Bundling. With some companies, bundling insurance policies can save you money. You could save on both coverages if you bundle a car insurance policy with a home insurance policy. 
• Combining policies. You can bundle car insurance policies to save money if you live in a household with multiple drivers. Combining policies is a good way to ensure everyone has proper coverage, but it could also save you up to 20% on your premiums.
• Reevaluate annually. You may have excellent rates for car insurance coverage. Still, you should reevaluate your rates yearly to ensure you’re not overpaying. If you find a company offering cheaper coverage, tell your existing company to see if it matches your rates before you switch.

Read more: Buying Annual Auto Insurance: What You Need To Know

The above tactics could help you save money on your car insurance rates. Still, you can consider choosing lower coverage levels or settling for a higher deductible if they don’t. These options should be your last resort, as they could cause you to pay more out of pocket if you’re ever in an accident.

Costs of Car Insurance: The Bottom Line

You’ll never know how much you’ll pay for car insurance until you shop online and compare quotes. Some companies could charge you much more than others based on specific factors. Still, you may be able to find cheap rates by focusing on discounts or combining car insurance policies.

Before making any final decisions on coverage, compare quotes from multiple insurers. Doing so can help you save money and ensure you have the coverage you want and need.

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