Tyron Jones
Personal Finance Expert
Updated: 02/2022
Tyron Jones is a finance expert who has operated within the auto insurance business for more than 10 years. He has written many other finance related articles for a number of prominent publications.
This article will help you understand how much car insurance is in different situations. You should use the information presented here to make informed decisions about the best insurance company for your needs.
Facts about the Average Cost of Car Insurance in America
Car insurance isn’t a fun topic. However, you need to have car insurance if you want to drive legally. You also need car insurance to protect yourself from unexpected disaster.
What you don’t need to do, however, is pay too much for car insurance. It can be difficult to understand car insurance prices. After all, insurance prices are set according to a complex web of factors. Moreover, each insurance company has their own systems for determining how much they charge someone for insurance.
As a result, one of the best ways to determine if you’re getting a good deal on car insurance or not is to understand the average cost of car insurance in different circumstances. This article will discuss the different prices that people get, on average, for car insurance. Use this information to help yourself better understand how car insurance prices are set and to make sure you’re getting the best deal possible on your insurance.
Which Companies are Most Affordable on Average?
One of the first ways to find affordable car insurance is to look at the average cost that companies charge for insurance. This helpful chart shows the average cost that customers pay at some of the most popular companies in the US.
As you can see, there are plenty of options available for people that are well below the national average. One of the key things to take away from this chart is that you should always make sure to engage in intensive comparison shopping before you sign on to a new car insurance policy or renew your old one.
However, looking at the average price paid by customers at different companies can only take you so far. Insurance companies can choose to work only with certain types of drivers. Some companies are only available in certain states. Additionally, the national average cost of car insurance includes all types of car insurance – from people that have never had an accident or a claim in their life to those that need specialized, expensive insurance products because of past mistakes while driving.
Another thing to keep in mind is that not all insurance companies offer insurance in all states. That might mean that the company that has the lowest average national cost isn’t the right company for you. Furthermore, insurance laws in different states mean that each company changes their prices in different states. As a result, a company that is generally below the national average price for car insurance can still be the highest price option where you live. This shows why it’s important to comparison shop for car insurance so that you can ensure you’re getting the best possible rates that are specific to you as a driver, rather than only relying on what the national averages are.
All of that means that you need to look at lots of different car insurance factors to determine whether or not you’re being offered a fair rate. One of the best predictors for car insurance costs are the age of the driver, so we’ll look at that next.
How does Age Affect Average Car Insurance Costs?
There are lots of different ways that age affects the cost of your car insurance. The first, and most obvious, way that insurance prices are impacted by the age of the driver is the amount of experience that someone has operating a car.
Teens and young adults that get their license for the first time don’t have as much experience driving a car. That means they’re more likely to get into accidents because their lack of experience prevents them from seeing the accident coming.
Another factor that has to do with age is impulsiveness. Teens and young adults are more likely to engage in reckless behavior, drive more aggressively, and take more unnecessary risks when driving. The result is that they are in more at-fault accidents. This means that younger drivers will pay more on average for car insurance.
Finally, younger drivers don’t have as much of a driving record as older drivers. This is important for the price of car insurance because it impacts the predictability that the insurance company has. Insurance companies make a profit by guessing the odds that they’ll have to pay a claim for a specific driver. They use these odds to set a price where they think they can make a profit.
When someone doesn’t have an extensive driving record, then insurance companies don’t have as much information to go on. The way they handle this is by assuming the worst to protect themselves from financial loss. This lack of predictability comes through in the form of higher prices for younger drivers until insurance companies can more accurately judge the risk of payout that those drivers create.
Source: https://www.thebalance.com/car-insurance-rates-by-age-4427974
As you can see in this chart, the price difference by age can be huge, with a 20-year-old driver paying almost twice as much for recommended comprehensive coverage per year than someone who’s only five years older.
Another thing that you can take way from this chart is that retired and older drivers can also expect to see their insurance premiums creep up as they get older. That’s because older drivers are more likely to have physical or mental conditions that increase the odds they’ll be in an accident. Once again, these are just the statistical averages, and an older driver with no accidents on their record shouldn’t expect to see a huge price increase just because they turn 75.
Keep in mind that there are lots of other factors that influence the cost of car insurance by age. For example, younger drivers can almost always get a discount on their car insurance for getting good grades. That’s because, statistically, students with good grades are less likely to be in an accident. Moreover, any accident they’re in is less likely to have huge damages. That means insurance companies can comfortably charge these drivers less money while still ensuring that they make a profit.
How Does Where You Live Affect Car Insurance Price?
Many people don’t realize how important your state of residence is to the price of your car insurance. However, where you live can actually have a huge impact on the cost you pay to stay safe and legal on the road.
The primary reason an insurance company will offer the same driver different rates in different states has to do with state laws. Insurance laws and driving laws are set at the state level. That means each state has different requirements for driver training. Each state can also have different requirements for insurance minimums.
These two factors impact the cost of car insurance in a big way. States with fewer requirements to get a license are more likely to have accidents. That means merely living in that state will raise the cost of your insurance because it raises the odds that you’ll be in an accident, whether it’s your fault or not.
Additionally, each state has different insurance minimums. These are the smallest amounts that you can be covered for by your insurance. States with higher minimums will have higher insurance prices because the insurance company will be on the hook for larger payouts than states with smaller minimum limits.
| Rank | Most expensive states | Average expenditure |
|---|---|---|
| 1 | New Jersey | $1,309.29 |
| 2 | Louisiana | 1,302.11 |
| 3 | New York | 1,301.64 |
| 4 | Michigan | 1,270.70 |
| 5 | Florida | 1,259.55 |
| 6 | D.C. | 1,246.80 |
| 7 | Rhode Island | 1,193.58 |
| 8 | Delaware | 1,159.86 |
| 9 | Massachusetts | 1,096.53 |
| 10 | Connecticut | 1,086.17 |
| Rank | Least expensive states | Average expenditure |
|---|---|---|
| 1 | Idaho | $599.77 |
| 2 | Iowa | 628.10 |
| 3 | North Dakota | 639.10 |
| 4 | South Dakota | 648.01 |
| 5 | Maine | 650.38 |
| 6 | Wyoming | 677.53 |
| 7 | Wisconsin | 688.32 |
| 8 | Vermont | 691.56 |
| 9 | Indiana | 692.29 |
| 10 | North Carolina | 699.91 |
Source: https://www.iii.org/fact-statistic/facts-statistics-auto-insurance
Even a quick glance at this chart will show you that the cost of insurance can change dramatically based on where you live.
However, this doesn’t only apply to the state where you live. Insurance companies thrive on information and statistics. That means the address where you live will have its own designation that influences the cost of your insurance. Places with more crime will cause your insurance prices to be higher. The same holds true for people that don’t have a garage to park their car in.
That means that you need to understand what the average cost of car insurance is in your state to give your insurance quote a fair evaluation. For example, it’s entirely possible to receive a quote that’s higher than the national average, but still lower than the average for your state. Taking these factors into account is the best way to evaluate the price you pay for car insurance.
Average Car Insurance Costs by Vehicle Type
The final factor that we’ll look at for the average cost of car insurance is vehicle type. It shouldn’t be any surprise that different vehicles cost a different amount to insure. That’s because different vehicles have different levels of performance, power, safety, and risk.
Once again, it’s important to keep in mind that insurance companies operate by using statistics to determine how likely they are to pay out a claim for a specific driver. They also use statistics to determine how much a claim is likely to cost. Cars that are fast and powerful with fewer safety features, like high-performance sports cars, are not only more likely to be in an accident, the accidents that these cars are in are also more likely to cost the insurance company a greater amount of money.
This is true for both liability only insurance and comprehensive coverage. Liability coverage is impacted by your car because of the damage that you can cause to others. Comprehensive coverage is impacted in the same way, but also needs to account for the cost of repairs or replacing your car.
Most and least expensive used cars to insure
Source: Insure.com
As you can see from this helpful chart, the cars that cost the least to insure are those that aren’t as likely to be in a high-speed accident. The cars with the lowest average cost to insure also have a ton of safety features that work to prevent accidents and to minimize the damage caused in any accident.
However, the cars that are most expensive to insure are the opposite. These cars have powerful engines, light frames, and minimum safety features. These cars are also more expensive to repair and replace, which means insurance companies will charge more to cover them.
How to use Average Cost of Car Insurance
Now that you understand how different factors influence the cost of car insurance and have the information about the average cost for insurance in different conditions, you’ll need to understand how to use this information to help you get the best deal on your insurance.
The best way to use information like this is by finding the category that you fit into for each of the average cost charts we’ve provided. You should also take into account your own driving history and record. This will let you guesstimate about how much a car insurance company will charge you for coverage in your situation.
For example, if you’re a 40-year-old who drives a family sedan and lives in a state with high driver training requirements and low minimums, then you should expect to pay much less than the national average cost of car insurance. However, if you’ve had lots of accidents or tickets, live somewhere with low driver training requirements, high minimum limits, or are very young, then you shouldn’t be surprised if even your best car insurance rates offer is higher than the national average cost for car insurance.
All of this shows that, while understanding the average cost of car insurance can be helpful, it’s important for you to…
Take Average Quotes with a Grain of Salt
While looking at various average prices of car insurance can be helpful, it’s important to remember just how complex car insurance pricing is. That means that car insurance average prices may or may not reflect the quotes that you’re offered.
As a result, we always advocate for a thorough comparison shopping experience whenever you’re considering changing car insurance companies or renewing your current car insurance. Getting individualized quotes is the best way to determine who’s really going to offer you the best cheap insurance. Average costs may be helpful at picking which companies to look at, but there’s no substitute for an individualized quote from multiple insurance companies to make sure you’re not paying more than you have to for insurance.
FAQ
How Much Is Car Insurance Generally
This section answers your general questions about how much car insurance is. Use this information to get a good foundation for more specific questions.
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How much is car insurance per month?
Lots of different factors go into determining your car insurance per month, like your state, driving record, car, address, and more. On average, Americans pay about $119 per month for car insurance.
How much is average car insurance?
The average monthly rate for car insurance is about $119, but this can change greatly depending on where you live, your driving record, and may even depend on your car insurance credit score though some say this doesn’t matter.
How much is full coverage car insurance?
That depends on where you live, you state’s minimum insurance laws, your car, and other factors. On average, US drivers pay about $119 per month for full coverage. We help you find cheap full coverage car insurance.
How much is liability car insurance?
Liability only car insurance is much cheater per month than full coverage. On average, liability only drivers pay about $94 per month for insurance.
How much is 6-month car insurance?
That depends on where you live, your car, your driving record, and other factors. On average, you should expect to pay about $713 for a 6-month policy.
How much is 1-day car insurance?
There’s not a lot of information about single-day car insurance policies. You’ll need to contact local insurance companies to see if they’ll even do a one-day policy.
How much is 7-day car insurance?
Most companies, if they’re willing to give you a seven-day policy, will charge much more than they would per day for a six-month policy. The pricing information on these kinds of policies isn’t readily available, so you’ll need to talk to an insurance agent.
How much is minimum car insurance?
That depends on the state where you live. Each state sets their own minimums, so the cost for minimum car insurance is different in each state. Related: How can I lower my car insurance premiums?
How much is car insurance for 2 cars?
That depends on lots of different factors, like your driving record, what kind of cars you have, and more. Generally, you’ll pay less per car for insurance than if you only insured one car.
How much is a comprehensive car insurance?
A comprehensive car insurance policy is what many people refer to as full coverage. On average, US drivers pay about $119 per month for full coverage.
How much is car fleet insurance?
The cost of car fleet coverage depends on what kind of cars you have, how big your fleet, is, and your state. You should contact your current insurance provider and see what kind of options you have.
How much is 3rd party car insurance?
The cost of third-party car insurance is set by your state. You’ll need to contact your DMV or Department of Insurance to see how much you need for third party insurance in your state.
How much is annual car insurance?
Assuming the average monthly rate of $119, drivers in the US pay an average of $1,428 per year. Related: Why does my auto insurance keep going up?
How much is no claim bonus for car insurance?
That depends on the terms of your car insurance policy. Most companies will give you back up to 5% of your premium cost.
How Much is Car Insurance by State
We’ll answer your questions about how much car insurance is in different states in this section.
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How much is car insurance in NY?
The average premium per year for car insurance in New York is $1,789. That’s one of the 10 highest rates in the country.
How much is car insurance in California?
California drivers pay an average of $1,849 per year for insurance, which is the 6th highest rate in the country.
How much is car insurance in Florida?
Florida drivers pay an average of $2,219 for car insurance each year. That’s the third highest rate in the country.
How Much is Car Insurance by Driver
This section answers your questions about how much car insurance is based on the driver of the car.
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How much is car insurance for a 18 year old?
Anyone in the 16-19 age range that’s getting their own policy should expect to pay around $2,999 per year for insurance.
How much is car insurance for a 16-year-old?
On average, a 16-year-old on their own policy and not on their parent’s policy will about $2,999 per year for car insurance. You may want to compare car insurance rates by zip code to see if your zip code is more or less than surrounding ones.
How much is car insurance for a 19-year-old?
A 19-year-old driver that’s on their own policy will pay an average of $2,999 per year for insurance.
How much is car insurance for a new driver?
That depends on lots of factors, like your specific age, what kind of car you drive, where you live, and so on. New teen drivers can expect to pay about $2,999 per year on their own policy. You may be able to save some money with a low mileage car insurance policy.
How much is car insurance for a 21-year-old?
A 21-year-old driver will, on average, pay $2,040 for car insurance each year.
How much is car insurance for someone under 25?
That depends on your age. If you’re between the ages of 16 and 19, then you will pay about $2,090. If you’re younger than that, then the average cost is about $2,999. Ask insurers about car insurance for college students if they offer it.
How much is car insurance for teens?
Teens, on average when they’re on their own policy, pay about $2,999 per year for car insurance. They will pay much less on a parent or guardian’s policy.
How much is car insurance for young female drivers?
There are lots of different factors that go into determining the exact rate a young female driver will get for car insurance, but on average, a driver ages 16 to 19 will pay about $2,999 per year for their own policy.
How much is car insurance for 28-year-old?
The average price of car insurance for a 28 year old is about $1,707 per year for US drivers.
How much is high risk car insurance?
The exact price of high risk car insurance depends on your driver record. You’ll need to talk to the specific insurance company you’re considering for an accurate quote.
How much is car insurance for teenage males?
A teenage driver, whether male or female, should expect to pay about $2,999 per year for car insurance if they are on their own policy.
How Much is Car Insurance by Car
We’ll help you understand how much car insurance is for different types of cars in this section.
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How much is insurance for a sports car?
There’s no specific information on the average cost of insuring a sports car, as there are lots of individual factors that come into play. You should expect to pay between 20-40% more, as these cars are more likely to be in accidents and more expensive to repair. This highlights the importance of shopping for auto insurance to secure the best rates.
How much is insurance on a leased car?
The cost of insurance for leased cars depends on the kind of car you’re leasing and your specific driving record. You will usually get the standard insurance rate as if you were financing the car.
How much is insurance for a 2-door sports car?
Insurance for a two-door sports car can change dramatically depending on the type of car and your driving record. On average, you should expect to pay 20-40% more for a sports car.
How much is car rental insurance per day?
The price of car rental insurance per day depends on where you’re getting your insurance from. Each rental company has their own pricing scheme. Your primary car insurance will usually cover rentals at no additional cost.
How much is collision insurance on a rental car?
The price you get quoted for collision insurance on a rental car depends on where you’re renting the car, your driving record, and the company’s own policies. Your primary insurance may cover collisions at no additional cost.
How much is dollar rental car insurance?
Dollar rental car insurance doesn’t list a specific price on their website, as the cost of insurance depends on the car you’re renting, the state you live in, and your driving record.
How much is insurance on an antique car?
The price of insuring an antique car, along with the different antique car insurance products on offer vary greatly. You’ll need to contact an insurance agent to get an accurate price and better idea of what options they offer.
How much cheaper is classic car insurance?
That depends on the type of car you’re insuring, how it’s used, how often it’s used, how it’s stored, your driving record, and more. You’ll need to talk to an insurance agent to get an accurate classic car insurance quote for your situation.
How much is insurance for a 100k car?
The cost of insurance for a $100k car can change a lot depending on how the car is used, how it’s stored, who’s driving it, how often they drive it, and so on. That means there’s no average information for this.
How much is car insurance for a SUV?
Depending on the particular car, your driving record, and your state, an SUV will, on average, cost between $1,784 and $1,338.
How much is commercial car insurance?
Commercial car insurance is difficult to price generically, as the specifics can change the cost a lot. Your best option is to contact your insurance agent to see how much they’d charge for someone in your situation and then comparison shop.
How much is gap insurance on a used car?
Gap insurance on a used car depends on the car itself and your specific financing arrangement. Most dealerships will charge between $500 and $1,500 for gap insurance, with insurance companies charging less which can make gap insurance worth it for some people.
How Much is Car Insurance by Company
This section covers the most popular questions about the price of car insurance by company.
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How much is Geico car insurance?
The cost for a Geico car insurance policy can change substantially based on things like the state you live in, your car, what kind of insurance you have, and so on. However, on average, Geico drivers pay about $747 for a 6-month policy.
How much is Enterprise car rental insurance?
Depending on your car and driving record, Enterprise insurance will cost between $11.99 and $16.99 per day.
How much is Progressive car insurance?
Progressive car insurance offers different prices depending on your state, your car, your driving record, and more. However, the average Progressive customer pays about $120 per month for insurance.
How much is courier car insurance?
Courier car insurance, like all commercial car insurance, is hard to give an average price for. There are lots of specific factors involved. You’ll need to talk to an insurance agent for more information on your situation.
How much is Tesla car insurance?
Industry experts say that the average annual premium for a driver with a Tesla costs about $3,300.
How much is USAA car insurance a month?
USAA weighs a lot of individual factors when it comes to setting their price for car insurance. You’ll need to contact them for a quote. However, they are usually the best-priced option for current and former military members. Ask them about auto insurance for bad driving record if that describes you.
How much is AAA car insurance?
AAA car insurance averages to about $110 per month, but it’s not clear if this price includes the annual membership you need to get the insurance. Compare AAA insurance quotes to other companies to see who is the lowest for you.
How much is insurance for a Smart Car?
The average cost of insurance for a Smart Car is very low – usually only around $600 per year.
How much is Nationwide car insurance a month?
On average, Nationwide drivers pay a 6-month premium of about $644, which is one of the cheapest average options. Keep in mind your price may be different depending on lots of specific factors.
Other Questions About How Much is Car Insurance
This section covers questions that don’t fit neatly into our other categories.
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How much is rental car insurance?
Rental car insurance can vary in price from as little as $1 per day to $20 per day, depending on the specifics.
How much car insurance is recommended?
You should get at least the state minimum limits for your auto insurance. After that, it’s a question of how much risk you’re willing to take to get a lower cost on your monthly premium.
How much is gap insurance for cars?
The price for gap insurance from a dealership averages between $500 and $1,500. Insurance companies usually charge less than this.
How much is a down payment for car insurance?
The down payment for car insurance is usually equal to your first month’s bill. These two things are usually one in the same. There is also no down payment car insurance available with some carriers.
How much is car insurance for Uber?
Uber provides its drivers with car insurance while they’re using the app. The cost of extra coverage from your insurance company depends on your specific situation.
How much is the cancellation fee for car insurance?
The cancellation fee for car insurance depends on your state’s insurance laws and the details of your policy, as well as why you’re canceling. You’ll need to check your specific policy agreement for more information.
How much is a car insurance deductible?
A car insurance deductible is set when you buy your policy, and you have a range of options. Most deductibles go from $0 to $2,000. The higher your deductible, the lower your monthly premium.
