Average Car Insurance Cost

What Is the Average Cost of Car Insurance?

Have you ever wondered about the nitty-gritty of car insurance costs? Well, it's a must-have in most states, but let's break it down for you. So, how much is car insurance?

On average, the full coverage auto insurance in the good ol' USA is around $1557 a year or $141 per month. If you're looking for the basics with minimum coverage, it's roughly $570 a year.

The real deal here is that these are just averages. Your actual costs can swing like a pendulum based on where you live, the wheels you're rolling in, and how clean or not-so-clean your driving record is.

We did some digging, factoring in state rules, your choice of wheels, age, driving history, and yes, even gender, where it's considered. The result? A range of car insurance quotes to give you the lowdown on what you might pay.

So, next time you're pondering "How much does car insurance cost?" or looking for the average cost of car insurance, let these numbers be your guide.

Car Insurance Companies with the Lowest Monthly Rates

If you're searching for the best deal, getting quotes from different companies is smart. This way, you can compare features and rates, finding the perfect fit for your needs.

Here's the lowdown: the cost varies between insurance companies.

Car Insurance Rates by States

You'll need to change your car insurance every time you move. Each state sets car insurance rates and depends on your ZIP code.

The five least expensive states are:

• Ohio
• New Hampshire
• Alaska
• Idaho

The five most expensive states are:

• Florida
• Louisiana
• Kentucky
• Rhode Island

Here is a list of the places where car insurance is most and least expensive -

Car Insurance Rates by Age

Age is a big factor in how much car insurance costs. Based on information about road safety, age is a good way to measure how dangerous driving is. For instance, teens who drive tend to pay much more than older, more experienced drivers.

The link between age and car insurance rates is shown below.

Car Insurance Rate by Coverage Level

Your premium will change based on the amount of coverage you choose. The standard car insurance plan includes liability insurance for $50,000 to $100,000 for bodily injury and $50,000 for property damage, as well as $500 deductibles for both collision and comprehensive. Depending on whether you lease or finance your car, you may also need gap insurance.

We divided coverage levels into best, good, and basic. We also included the average rates for a six-month policy from the best insurance companies.

The best coverage is full coverage with liability amounts of 100/300/100 and a $500 deductible for collision and comprehensive coverage. In our business, 16% of people choose the best coverage.

Damage limits of 50/100/50 and a $1,000 deductible for accident and comprehensive coverage make this offer good. This amount of auto insurance is what 30% of our customers choose.

At every level of coverage, USAA was the cheapest insurance company. If you can't get coverage through USAA, Nationwide is also a good choice. Remember that USAA members are the only ones who can get USAA car insurance.

Premiums for "Best" Full Coverage Car Insurance Coverage Level

If you want to protect your assets, have more than one driver on your insurance (especially teens), drive a high-performance or luxury car, or are leasing or financing a car, you should get full coverage. This type of coverage usually costs the most because it protects your car physically and has the highest liability limits (at least 100/300/100).

Car Insurance Premium by Driving Record

Getting any violation, even a small one, can significantly affect your rate. When someone was at blame in an accident, rates went up an average of $335 per six-month policy or $670 per year. Most insurance companies will raise rates three to five years after a violation, ticket, or claim. One of the best ways to save money on car insurance is to drive safely and keep your record clean.

Check out the table below to see how much a certain ticket or violation can raise your rate over six months.

Car Insurance by Credit Score

Only in a few places, like California, Massachusetts, Michigan, and Hawaii, does your credit score not play a big role in how much you get.

The Federal Trade Commission (FTC) says that drivers with bad credit make more claims and pay more for those claims. So, credit can be used to guess how bad a claim will be. 33% of our customers have "fair" credit, meaning their insurance costs an average of $1,104 for six months.

Car Insurance Rates by Gender

The insurance rates for men and women are the same in California, Hawaii, Massachusetts, Pennsylvania, North Carolina, and Montana. In some places, the difference in car insurance rates between men and women is small. There is less than a 0.5% difference in rates across the country.

Many people think that men and women pay very different amounts for car insurance, but that's not the case when you look at the bigger picture. The rates for young drivers do vary based on gender, however. Teenage boys between 16 and 19 make about $600 more yearly than girls.

Car Insurance Rates by Vehicle

It goes without saying that your car's value affects your insurance's cost. A premium will be given for each car based on its vehicle identification number (VIN). Insurance companies use the VIN to determine how much your rate will be based on your car's mileage, accident history, and other factors.

It's hard to say how much car insurance costs on average for each type of vehicle. Here are some national statistics.

How Car Insurance Premiums are Calculated

It's hard to come up with an "average rate" because so many things affect a driver's car insurance premium. In general, renters tend to pay less for car insurance. On top of that, your driving record plays a big role. People with a DUI record are more likely to pay much higher insurance rates.

Car insurance is tailored to each driver and is priced accordingly, based on how much of a danger they pose to an insurer—the price of a car insurance quote changes by the company and the driver. There may be a significant price difference between the least expensive and most expensive companies. This is because each insurance company looks at a policy's assessment in its own way.

Why Is Car Insurance Getting More Expensive?

It used to cost $742 a month for a six-month contract, but now it costs up to $880. There has been a big price rise, which you may have seen. We already said that car insurance rates depend on many things. There are some that you can control and some that you can't. Here are a few reasons why car insurance rates have been going up all over the country.

Weather

Many places can get hit by bad weather, and insurance companies worry about natural disasters. In Florida, for example, car insurance can be very pricey because of the chance of storm damage.

In some places, insurers have to consider the risk of bad weather. As storms happen more often and cost more, these extra costs are passed on to cars in those dangerous places.

Number of Drivers

For example, just because you're a safe driver with almost no claims doesn't mean that everyone else around you is, too. Many towns have between 25% and 35% of drivers who don't have insurance. You and your insurance company are both taking on more risk. Even though it slightly raises your rates, you should look into coverage to protect yourself against drivers who don't have insurance (UMBI/UMPD).

There are more road drivers, which makes sense since many cities and areas have grown over the last few years. Of course, this means there are more accidents, which raises risk and, by extension, insurance prices. You can expect to pay more if you live in an area with lots of people than if you live in a country area with fewer people driving.

Costs of Doing Business

Sometimes, costs go up for no reason and have nothing to do with driving. Just think about how the prices of many things we use and buy increase yearly. This is also true for insurance. The cost of doing business is generally higher in places where people live because of the high cost of living. Most of the time, these higher costs are passed on to drivers by charging them more.