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.
Average minimum-coverage car insurance rate by state 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.
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.
Average full-coverage car insurance rate by state 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.
Average annual minimum- and full-coverage car insurance rate by company 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.
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.
Average car insurance rates after an infraction 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.
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided “as is” and “as available” for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.
