The average American driver pays $1,771 per annum for full-coverage car insurance. That’s approximately $148 per month, according to Bankrate 2022 analysis of the average quoted premiums from Quadrant Info Services. The average annual cost of minimum coverage is $545. Many factors influence car insurance rates. Knowing more about average auto insurance costs and cost-influencing factors could help you choose the right car insurance.
Bankrate’s editorial staff evaluated many factors to determine the average cost of car insurance. These factors included car insurance rates per state and insurance carrier. They also considered the driver’s gender, age, driving record, and gender (where permitted). These data can help determine which insurance companies best fit your needs and budget.
What is the cost of car insurance?
According to 2022 rate data, the average cost of car insurance in full coverage is $1,771. However, auto insurance premiums are determined by more than 12 rating factors. It means that each driver’s actual cost of car insurance will vary.
These are the key facts about car insurance rates:
The key takeaways
Car insurance with total coverage costs, on average, $1,771 per annum, while the minimum coverage costs $545 per annum.
USAA, Geico, and Erie offer the most affordable car insurance coverage. However, they are not available to all drivers.
A DUI or severe offence on your vehicle record can increase your car insurance premium by 93%.
On average, teen male drivers will pay $807 more to insure their car than teen female drivers.
What is the cost of car insurance in each state?
Car insurance costs an average of $1,771 per annum for full coverage and $545 for minimal coverage. The answer to “how much car insurance costs in my area” can be complicated because of many factors. Your location can influence individual ratings, claim reporting frequency, and labor costs.
Average car insurance cost by state
State
Average annual premium for full coverage insurance
Average annual premium for minimum coverage insurance
Alabama
$1,760
$443
Alaska
$1,770
$417
Arizona
$1,743
$579
Arkansas
$1,806
$437
California
$2,190
$619
Colorado
$2,019
$495
Connecticut
$1,533
$646
Delaware
$1,963
$747
District of Columbia
$1,948
$613
Florida
$2,762
$997
Georgia
$2,009
$642
Hawaii
$1,206
$338
Idaho
$1,065
$271
Illinois
$1,533
$475
Indiana
$1,242
$329
Lowa
$1,254
$227
Kansas
$1,802
$419
Kentucky
$1,954
$658
Louisiana
$2,864
$807
Maine
$876
$227
Maryland
$1,931
$836
Massachusetts
$1,296
$446
Michigan
$2,345
$946
Minnesota
$1,692
$600
Mississippi
$1,701
$450
Missouri
$1,893
$515
Montana
$1,795
$310
Nebraska
$1,538
$367
Nevada
$2,426
$846
New Hampshire
$1,182
$324
New Jersey
$1,891
$855
New Mexico
$1,489
$347
New York
$2,996
$1,339
North Carolina
$1,392
$431
North Dakota
$1,225
$268
Ohio
$1,902
$336
Oklahoma
$1,902
$408
Oregon
$1,371
$625
Pennsylvania
$2,002
$441
Rhode Island
$1,847
$569
South Carolina
$1,464
$518
South Dakota
$1,542
$274
Tennessee
$1,383
$372
Texas
$1,868
$551
Utah
$1,449
$544
Vermont
$1,000
$242
Virginia
$,347
$483
Washington
$1,313
$482
West Virginia
$1,527
$427
Wisconsin
$1,246
$363
Wyoming
$1,510
$262
The five most expensive states to insure a car.
Our research shows that drivers in New York and Louisiana, Florida, Nevada, Nevada, and Michigan have the highest annual costs for full coverage car insurance. It could partly be because of the high number of claims for expected losses in these areas, which makes it more challenging to ensure drivers overall.
New York: $2996 per annum — 69% more than the national average
Louisiana: $2864 per annum — 62% more than the national average
Florida: 2762 per annum — 56% more than the national average
Nevada: 2,426 per annum — 37% more than the national average
Michigan: 2,345 per annum — 32% more than the national average
The most expensive states for car insurance
State
Avg full coverage premium
% above the national average
New York
$2,996
69%
Louisiana
$2,864
62%
Florida
$2,762
56%
Nevada
$2,426
37%
Michigan
$2,345
32%
Top 5 states with the lowest car insurance rates
On average, drivers in Ohio, Maine, Vermont, and Idaho pay the lowest annual total coverage car insurance rates. These states could have lower premiums due to lower living costs, lower claims and accidents, and less congestion.
Maine: $876/year — 51% lower than the national average
Vermont: 1,000 per year — 44% lower than the national average
Idaho: $1.065 per annum — 40% lower than the national average
New Hampshire: $1182 per annum — 33% lower than the national average
Ohio: $1200 per annum — 32% lower than the national average
The cheapest states for car insurance
State
Avg full coverage premium
% below the national average
Maine
$876
51%
Vermont
$1,000
44%
Idaho
$1,065
40%
New Hampshire
$1,182
33%
Ohio
$1,200
32%
What is the cost of car insurance for each company?
Car insurance from the most reputable insurance companies in the country can cost anywhere from $1,200 to $2,500 per annum for full coverage. The cheapest is from USAA and Geico. However, each auto insurer has a unique underwriting system that will make car insurance costs vary among carriers. The coverage you select is essential for drivers searching for the best car insurance company. Average car insurance coverage costs 225% more than minimal coverage.
A Bankrate Score for each insurance company on a 5-point scale. The Scores are based on performance data, such as average prices, coverage options, discounts, third-party ratings, customer satisfaction, and financial strength. A higher Bankrate Score indicates a better ranking within the evaluated rating categories. Below is a table that shows the average monthly and annual premiums of some of the most prominent car insurance companies by market share.
The average cost of full coverage car insurance by the car insurance company
Insurance provider
Bankrate Score
Annual cost
Monthly cost
Allstate
4
$2,438
$203
American Family
4.3
$1,627
$136
Amica
4.5
$1,495
$125
Auto-Owners
4.5
$1,305
$109
Erie
4.6
$1,321
$110
Farmers
3.8
$1,524
$127
Geico
4.7
$1,297
$108
Mercury
4.2
$1,483
$124
Nationwide
4.4
$1,383
$115
Progressive
4.4
$1,561
$130
State Farm
4.7
$1,397
$116
The Hartford
3.8
$2,002
$167
Travelers
4.7
$1,447
$121
USAA
5
$1,209
$101
What is the cost of car insurance based on age and gender?
Insurers usually consider age when setting auto insurance rates. Young drivers pay the highest average premiums based on 2021 rates. Insurers use actuarial data to determine that teenagers and young adults are more likely to be involved in an accident. Therefore, the car insurance costs for these drivers are usually higher to compensate. Your age won’t affect your premium if your residence is in Massachusetts or Hawaii. State regulations prohibit auto insurance companies from using age as a rating factor.
In most states, your premium will also be affected by gender.
Typically insurers who are males charge more than those who are females. According to the Insurance Information Institute (Triple I), men are more likely to engage in dangerous driving behaviors than their female counterparts and are at higher risk of serious accidents. Some states do not allow gender to affect rates. Because of state regulations, the rate you pay for car insurance is not affected if you are from California, Hawaii, or Massachusetts.
Average full coverage car insurance cost by age and gender
Male
Female
Difference
The percent difference between rates
18-year-old
$5,694
$4,946
$748
14.1%
25-year-old
$2,196
$2,059
$137
6.4%
40-year-old
$1,778
$1,764
$14
0.8%
60-year-old
$1,612
$1,597
$15
0.9%
*Based on their policy, the 18-year-old driver rates reflect renters (not homeowners).
Why do rates differ?
According to crash rate fatalities data, men are statistically more likely than women to drive. That results in higher insurance premiums. The Insurance Institute for Highway Safety analyzed data from the U.S. Department of Transportation Fatality Analysis Reporting System and found that male drivers were responsible for 71% of all passenger vehicle driver deaths in 2019. Female drivers were responsible for 29%.
The IIHS also reported the following key findings:
Male drivers are more likely to be in fatal car crashes than other age groups.
Male drivers are more likely to be involved in alcohol-related accidents. In 2019, 32% of fatalities were due to male drivers with blood alcohol content at or above 0.08. Female drivers caused an estimated 21% of deaths.
Speeding-related fatalities are more common in male drivers than in female drivers (27% vs 24%).
Here are some things you should know about driving records
On average, drivers who have had an at-fault car accident pay 42% more for their car insurance than those with clean records. The average increase for drivers convicted of a DUI is 93%. That shows how the severity and risk factors can impact your insurance premium.
A driving record is the best way to calculate your average cost of car insurance.
Driving record
The annual cost of car insurance
The monthly cost of car insurance
Increase above the national average
Clean driving record
$1,771
$148
$0
Speeding ticket
$2,138
$178
$367
At-fault accident
$2,521
$210
$750
DUI conviction
$3,421
$285
$1,650
Speeding tickets: A speeding ticket conviction is one of the most frequent driving offenses. It can increase whole coverage premiums by an average of 21%.
At-fault accident: A record of an at-fault incident could increase your monthly car insurance premium from $148 to $210 and raise your total monthly coverage.
A DUI conviction: could increase your monthly full-coverage premium by nearly $300 and leave your driving record for ten years or longer.
What is the cost of car insurance based on credit scores?
Full coverage car insurance costs nearly 70% more to drivers with poor credit than those with good credit. In states that use a credit rating factor to rate a vehicle, insurers will review your insurance credit level. That is different from your Experian, TransUnion, or Equifax credit scores.
California, Hawaii, and Massachusetts have regulations prohibiting auto insurance companies from using credit as a rate-setting factor. Washington is still evaluating whether credit should be banned as a rating element but allows it to be used.
Annual Cost
Monthly Cost
Poor credit score
$3,002
$250
Average credit score
$1,907
$159
Good credit score
$1,771
$148
Excellent credit score
$1,556
$130
What is the cost of car insurance based on vehicle type?
Your car insurance premium will be affected by the type of vehicle that you drive. Cost of labor, availability, and price of parts, the statistical likelihood of accidents, and safety and crash prevention features can all impact the amount you pay for your coverage. The vehicle models listed in the table below suit various lifestyles and budgets.
Insurance companies may consider some vehicles and models more costly to insure. These features may include:
Luxury or sports cars, high-end vehicles: These vehicles come with more expensive parts and are subject to claims. They also have higher speeds than standard vehicles, which increases the chance of an accident.
Vehicle size Larger vehicles can weigh more and have more passengers. That could lead to more accidents than smaller vehicles.
More affordable, standard vehicles: While economy cars are more affordable, they can be vulnerable to theft and vandalism due to their lower security measures. That could increase the possibility of comprehensive claims.
Make and model
Annual cost
Monthly cost
BMW 330i
$2,270
$189
Ford F-150
$1,523
$127
Honda Odyssey
$1,542
$129
Toyota Prius
$1,924
$160
What are the factors that affect my car insurance prices?
Your auto insurance premium will be affected by several factors, including your state requirements, vehicle type, age (except in Hawaii or Massachusetts), driving record, gender, and other common rating factors. Car insurance companies can use these rating factors to understand your risk profile and how much it will cost to insure.
Other factors that impact car insurance rates
The coverage choices you make will have an impact on the rate. Your rates will be higher if you choose higher liability limits, lower deductible levels, or add optional coverage such as comprehensive and collision.
Your insurance history: If your driving record shows that you have had car insurance for as long as you can remember, you might be eligible to lower rates. If you don’t own a vehicle during this time, gaps in your insurance coverage can indicate high-risk behavior. That could increase your premium.
Annual mileage The more miles you drive, the more likely you will be in an accident. That is usually less than 7,500 miles per annum, but this could change by carrier. Low mileage policyholders are more likely to receive lower rates.
How to get the best car insurance rates
You don’t need to spend a lot to get car insurance. There are ways you can save. Your premium can be reduced by taking advantage of discounts. Most major car insurance companies offer discounts. These are the most popular insurance discounts available in the U.S.
No claims: Drivers with no past auto claims typically qualify for savings. That could be a claim-free discount or a safe driving discount.
Bundling insurance policies can reduce your auto insurance premium by bundling your car insurance policy and a homeowner’s insurance policy.
Excellent student discounts: Insuring a young driver can significantly increase your auto insurance premium. Numerous auto insurers offer discounts to young drivers with good high school and college grades.
Total payment: You might be eligible for a discount on car insurance if you can afford your premium monthly or quarterly.
Telematics Drivers want to be rewarded for safe driving habits. Many car insurance companies now offer Telematics Program that allows you to allow them to monitor your driving habits using an app or device. That could lead to potential savings.
Every auto insurance company offers different discounts, so speaking to your agent or company representative is an excellent way to find out about savings.
You can also compare rates by getting quotes from multiple car insurance companies. Every company has its pace, so different levels of coverage may cost you very differently with various providers. Comparing quotes can help you find the best price for the coverage you require.
