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How much are car insurance rates on average? It depends…

  • Auto Insurance
  • Renee Martin
  • 6 minutes

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The average car insurance rate in the United States is roughly $140 a month. However, a lot depends on where you live, the type of driver you are, and how long you’ve had your license.

Almost all states in the country require drivers to carry car insurance. But how much does car insurance cost on average? According to the data compiled by our analysts, we found that it costs around $1,680 a year, or $140 a month, for full coverage car insurance.

Minimum coverage, on the other hand, costs around $570 a year on average. However, because car insurance rates vary based on several factors, including your age, your location, the sort of car you drive, and your driving record, you may spend more or less than the average.

We assessed car insurance rates based on state, company, vehicle manufacturer, age, driving record, and gender (in states that allow gender as a rating factor) to find the country’s average cost of car insurance. 

The car insurance quotes listed here may assist you in determining the cost of your car insurance coverage. This information could also assist you in finding an insurance company that is within your budget. Let’s get started, shall we?

How much is car insurance on average by state?

Car insurance premiums vary significantly by state. Your ZIP code is one of the most crucial elements in deciding how much you’ll pay, along with your age and driving history. This is why most car insurance calculators online, including Way.com, require your zip code to obtain free car insurance quotes.

There are several reasons why your location is so important when it comes to car insurance prices. If your area is highly inhabited, crime rates are high, or natural catastrophes are common, there will be more claims, which will result in higher rates.

Top 5 most expensive states for car insurance

State Average annual cost
Michigan $5,740
Florida $2,361
Kentucky $1,549
Rhode Island $1,375
New York $1,373

 Top 5 cheapest states for car insurance

State Average annual cost
Iowa $408
Wyoming $410
South Dakota $424
Maine $445
North Carolina $445

Just because you reside in one of the more costly states for car insurance doesn’t mean you’ll have to pay exorbitant rates. Tap on the banner below to let our team of analysts at Way.com find the best car insurance quotes for you. You could then use this information to compare quotes and coverage options before picking a policy that meets your needs.

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How much is car insurance based on coverage?

The type of coverage included in your car insurance policy will influence the cost of your monthly or yearly payments. In addition to liability, a full coverage auto insurance policy includes comprehensive and collision coverage.

Liability coverage is the backbone of your car insurance policy. It covers costs if you injure someone or damage their property with your car. Collision coverage, on the other hand, covers damage to your own car after an accident, even if you caused it. Comprehensive coverage covers damage that isn’t caused by a car accident, such as if a hailstorm destroyed the roof and windshield of your car.

Type of coverage Average annual cost
Liability ~$650
Collision ~$380
Comprehensive ~$170

How much is car insurance based on vehicle type?

The type of vehicle you drive can also affect your car insurance rate. Various studies done over the last few years have concluded that a small SUV is cheaper to insure than a small sedan. Listed below are the average annual costs of insuring a vehicle based on body type.

Body type Average annual cost
Small SUV $1,090
Medium SUV $1,117
Minivan $1,110
Hybrid $1,220
Large Sedan $1,270
Electric $1,240
Medium Sedan $1,250
Pickup $1,255
Small Sedan $1,356

How much does car insurance cost based on age?

Although some states prohibit car insurance companies from using gender as a factor in determining your car insurance rate, it can have an impact on your premiums.

Your age is probably the biggest factor that affects car insurance rates after your location and driving history. Younger, inexperienced drivers pay a higher premium since they are more likely to be involved in an accident and submit a claim.

Age  Gender Average annual cost
16 Male $7,210
Female $6,353
18 Male $5,273
Female $4,565
21 Male $2,892
Female $2,573
25 Male $2,001
Female $1,731
30 Male $1,719
Female $1,701
35 Male $1,675
Female  $1,659
45 Male $1,589
Female  $1,588
55 Male $1,500
Female $1,459
60 Male $1,450
Female $1,440
65 Male $1,526
Female $1,500

Average cost of car insurance based on driving violations

For an insurance company, a clean driving record is the mark of a safe driver. If you have a clean driving record, the chances are you are getting the best car insurance rates possible. 

The more accidents and claims on your record, the more you will pay for coverage. Let’s take a look at how driving offenses such as a DUI or speeding ticket could affect your car insurance rates.

Violation Average annual cost
Hit-and-run $3,203
DUI $3,175
Driving with a suspended license $3,120
Reckless driving $3,015
At-fault accident $2,565
Driving with an open container $2,491
Speeding ticket $2,230
Improper passing $2,163
Illegal turn $2,131
Running a red light $2,132
Driving with expired registration $2,074
Not-at-fault accident $1,831

Car insurance costs based on your credit score

Studies have shown that a driver with a good credit score is less prone to car accidents.  Hence, a lower credit score often means you will have to pay more on car insurance. Fortunately, some states do not allow car insurance companies to use credit scores as a factor in assessing your car insurance rates. They include California, Maryland, Michigan, Massachusetts, Hawaii, Oregon, and Utah.

Credit Score Average annual cost
Excellent $1,431
Very Good $1,572
Good $1,723
Fair $2,112
Poor $3,115

Tips to save money on car insurance

There are several methods to save money on auto insurance. Even if you have a car insurance policy at the moment, there are several things you can do to reduce your annual rates.

Bundle your house and auto insurance plans: You can save a lot of money by combining multiple policies (such as your home and auto insurance) with the same company.

Ask for car insurance discounts: Check with an agent to see if you’re eligible for any discounts, such as those for having certain safety features installed in your vehicle or taking a defensive driving course.

Reduce your coverage limits: Not every driver requires the most comprehensive coverage. By decreasing your coverage limits, you can save a few bucks on your annual car insurance premium.

Raise your deductible: Lower premiums are associated with a greater comprehensive or collision deductible (the amount you must pay out of pocket per claim). Just keep in mind that you may be required to pay that amount when you file a claim.

Shop around: Even if you’re satisfied with your current car insurance policy, shopping around once every year using our car insurance calculator can help you find better deals and plenty of savings. Tap the banner below to get started. We can not only help you save money but also ensure you’re not overpaying for the coverage you require.

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