Get privileged access to our best financial tools and content. June Sham is an insurance writer for Bankrate. Before joining the team, she worked for almost three years as a licensed producer writing auto, property, umbrella and earthquake policies. Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on giving consumers a better understanding of insurance.
Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We have maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the following actions. Our insurance team is made up of agents, data analysts and customers just like you. They focus on the points that matter most to consumers: price, customer service, policy features, and savings opportunities, so you can be sure which provider is right for you.
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Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial team is objective, objective and not influenced by our advertisers. To find the average cost of car insurance, Bankrate's editorial team evaluated a variety of factors. These include car insurance rates by state, insurance company, and vehicle manufacturer, as well as the driver's age, driving history, gender (where permitted), among other factors.
This data could help you estimate how much your car insurance policy might cost based on your area and personal profile, and identify which auto insurance companies best fit your budget and coverage needs. Save on car insurance with quotes from trusted providers like Are you overpaying for car insurance? When determining, “How much does car insurance cost? , the answer can be complicated, as premiums vary based on multiple factors. In addition to individual qualifying factors, location and the state in which you live are important. Traffic volumes, accident and claim reporting rates, as well as theft and vandalism rates vary by city.
The cost of living can also affect car insurance premiums. When it comes to repairing a vehicle, the expense of labor and parts can cause repair costs to skyrocket, further increasing premiums in some places compared to others. Each car insurance company has its own underwriting rating system, so the cost of car insurance varies from company to company. To find the best car insurance company for your needs, get quotes from several auto insurers to compare rates and features.
The table below shows the average annual and monthly premiums of some of the country's largest auto insurance companies by market share. We also calculated a Bankrate Score on a five-point scale for each insurance company. Scores reflect performance data with respect to average prices, coverage offers, discounts and third-party ratings, including customer satisfaction and financial strength. A higher Bankrate score reflects a better ranking in the grading categories evaluated.
In addition, gender affects your premium in most states. Usually, men cost more than women. This is because men generally engage in riskier driving behaviors than women and have a higher accident severity rate, according to the Insurance Information Institute (Triple-I). However, not all states allow gender to be a factor in rates.
If you live in California, Hawaii, Massachusetts, Michigan, North Carolina, or Pennsylvania, your gender doesn't affect the amount you pay for car insurance because of state regulations prohibiting this rating factor. Statistically, drivers with bad credit file more claims and have a higher severity of claims than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit score, the lower your premium. Your insurance credit level is determined by each car insurance provider and is based on several factors; it probably doesn't exactly match your Experian, TransUnion, or Equifax scores, since it's a credit-based insurance score, not a credit score.
The following table shows how the credit may affect your annual premium for fully covered auto insurance. California, Hawaii, Massachusetts and Michigan regulations prohibit auto insurers from using credit as a factor in setting rates. Washington State continues to assess whether or not credit will be banned as a rating factor, but currently allows its use. The type of vehicle you drive has a significant impact on your car insurance premium.
The price and availability of parts, the cost of labor, the statistical likelihood of accidents, and the vehicle's safety and crash prevention features could influence how much you pay for coverage. The vehicle makes and models in the table below are suitable for a variety of lifestyles and budgets. In addition to state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving history, and gender (in most states), other common qualifying factors will affect your auto insurance premium. By looking at these rating factors, auto insurance companies can get an idea of your risk profile and what it could cost to insure you.
Your auto insurance coverage options have a significant effect on your rate. If you select higher liability limits, choose lower deductible levels, or add optional types of coverage, such as comprehensive and collision coverage, your rates are likely to be higher. If you have had continuous car insurance during the time you were a licensed driver, you may pay lower rates. Lapses in your insurance coverage (unless you didn't own a car during that time) can be an indication of high-risk behavior and may increase your premium.
The more you drive, the more likely you are to have an accident. Policyholders who drive fewer miles per year often qualify for lower fares (typically less than 7,500 miles per year, but may vary by airline). Buying car insurance doesn't have to mean bankrupt—there are ways to save. Discounts are one of the best ways to lower your premium.
Most major auto insurers offer discounts. Here are some of the most common insurance discounts in the U.S. UU. Because each auto insurer offers a different set of discounts, talking to your insurance agent or company representative may be the best way to learn about savings opportunities.
In addition, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost very different amounts with different providers. Comparing quotes can help you find the lowest price for the coverage you need. Every State Has Minimum Coverage Requirements for Auto Insurance.
This usually refers to liability for bodily injury and property damage, but some may also require personal injury protection (PIP) or uninsured motorist coverage. While buying minimum coverage may result in a cheaper premium, it also means that drivers can have minimal financial protection in an accident. For this reason, insurance professionals generally recommend considering car insurance with full coverage. While there is no industry standard for full coverage, it usually involves higher liability limits with collision coverage and comprehensive coverage to insure your vehicle, which may be required by your lender if your vehicle is leased or financed.
You can also add medical payment coverage for you and the passengers in your vehicle, as well as reimbursements for towing and renting each vehicle. These additional types of coverage may have an additional cost, but they offer more financial protection in various claim scenarios. Whether or not your car is financed does not factor into your auto insurance premium. Instead, because your lender may require comprehensive and collision coverage, including these coverage options in your policy will affect your cost.
Once you pay off your loan, you can choose to eliminate full coverage and have a liability only policy, which would likely lower your premium. However, consider consulting your insurance agent first. Full coverage may be a good idea, even if you are the absolute owner of your car, to offer stronger financial protection. Teen drivers have accident rates almost four times higher than more experienced drivers.
To offset this risk, auto insurance companies often charge teen drivers more. In fact, teenagers are one of the most expensive age groups to insure. Car insurance rates, on average, decline steadily as you get older, until around age 70, when they start to slowly rise again. However, your car insurance may not decrease every year, as car insurance rates are based on several factors, including your geographic location, vehicle make and model, and driving history.
If you have been involved in an accident or have been charged with DUI, you may see significant increases in premium when you renew your policy. Even if your personal characteristics and policy details don't change, your premium may fluctuate depending on the frequency of accidents and severity rates in your area, as well as theft and vandalism data. Insurers submit new rates to insurance departments in the states in which they serve from time to time, so your premium may be subject to increases or decreases that reflect these new rates. When buying car insurance, knowing the average cost of car insurance, both nationally and within your state, can be useful for comparing quotes.
Ultimately, your various individual rating factors, such as your driving history, where you live, and the type of vehicle you drive, directly influence what you'll actually pay. Each company has a different method of weighing factors and calculating rates, so by requesting quotes from more than one company, you will be able to assess what a reasonable premium range looks like for you and which company offers you the best price and coverage for your needs. These are sampling rates and should only be used for comparison purposes. Save 50% or more on life insurance You can save on home insurance Protection for you and your stuff See our partners' auto insurance quotes We don't sell your information to third parties.
Managing Editor & Auto Insurance Expert Senior Editor & Licensed Auto Insurance Expert Learn more about our editorial review process. Licensed Property & Casualty Insurance Expert Policygenius Policygenius Content follows strict guidelines for accuracy and integrity. Learn about our editorial standards and how we make money. How much does car insurance cost in each state? The Most Expensive States for Car Insurance The Cheapest States for Car Insurance How much does car insurance cost by company? Average Car Insurance Costs by Type of Coverage How much does auto insurance cost by age? How much does auto insurance cost by gender? Average car insurance costs per driving violation Average car insurance costs by credit rating What additional factors affect my car insurance rate How to save money on car insurance The amount you will pay for car insurance will depend on your age, driving history, the amount of coverage you buy and more.
Let's discuss how each of these factors can affect the final cost of auto insurance. Our experienced team of data specialists and insurance experts analyzed hundreds of thousands of rates across the country to find the most accurate cost of car insurance. When determining the average cost of coverage, we take into account how the driver's location, accident and penalty history, age, vehicle, and credit score would affect what they would pay for auto insurance. This way, we made sure that the costs we got aligned with what the typical driver might expect to pay.
Calculate the cost of your car insurance Enter your zip code to see the average car insurance rate. We've compiled costs by different factors so you can understand how much car insurance actually costs (and compare car insurance rates based on your needs). There are a few reasons why location is so important when it comes to car insurance rates: if your area is densely populated, crime rates are high, or natural disasters are frequent, that means more claims, which means higher rates. So where does car insurance cost the most and least? Below is a breakdown of the average annual cost of auto insurance by state, according to our analysis.
Average Car Insurance Rates by City Florida, Louisiana, Michigan, New Jersey and New York are the states with the most expensive average car insurance rates. Just because you live in one of the most expensive states for car insurance doesn't mean you have to automatically pay very high rates. Comparing quotes from multiple insurance companies through Policygenius can help you choose the coverage that best fits your budget. North Carolina, Ohio, Wisconsin, Idaho and Vermont are the states with the cheapest average car insurance rates, according to our analysis.
While auto insurance companies use many of the same factors to establish your rate, including your location, age, and driving history, not all companies evaluate these factors in the same way. That's why average rates can vary by thousands of dollars a year from one car insurance company to another. In our analysis, USAA has the cheapest average car insurance rates among other companies. However, since USAA is only one option for people in the military, GEICO most often has the most affordable average car insurance rates for most people.
Smaller insurers, such as Erie Insurance, or even local companies, may also have cheap rates. The specific types of auto insurance coverage that make up your policy will also help determine the price of your monthly premiums. The so-called full coverage auto insurance policy includes comprehensive and collision coverage, in addition to civil liability. Liability coverage, which is the backbone of a policy, covers costs if you injure someone or damage their property with your car, while collision coverage covers damage to your own car after an accident, even if you caused it, and comprehensive coverage covers uncaused damage by car accidents, such as if a heavy branch of a tree falls on your car.
Along with your location and driving history, age is one of the most important factors when it comes to car insurance rates. Drivers under 25 tend to pay much more for coverage because of their age and inexperience behind the wheel. Your driving record is another important factor in determining your car insurance rates: more accidents or violations on your record means you'll pay more for coverage. But not every dent in your driving record will cost the same, more serious violations usually lead to higher rate increases.
A lower credit score often means higher rates and vice versa. However, in some states, auto insurance companies can't use your credit score to calculate your rates, so if you live in California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, or Utah, your credit score won't matter when it comes to car insurance. From the moment you start looking for car insurance, there are several ways you can save. Even if you already have an existing car insurance policy, there are still some steps you can take to lower your premiums.
Drivers with cheaper cars tend to pay less for coverage. You should have relatively high liability limits, even if your car is a disaster, because you could cause thousands of dollars worth of damage in an accident. But if your car is worth less than a typical comprehensive or collision deductible and you'd be fine paying it out of pocket to replace it in the event of a theft, you can limit your coverage to only civil liability and save by not paying compensation or collision. Car insurance rates are often based on your age, but sometimes they're actually based on your years of driving experience.
That means that a 40-year-old recently graduated would pay the same as a recently graduated 16-year-old (which is a lot). The good news is that inexperienced drivers will see their fares drop over time, as long as they maintain a clean driving record. Everyone in your household must be listed on your auto insurance policy, unless they are specifically excluded from your coverage. This means that if you and your spouse share ownership of the same car, both must be listed on the policy; otherwise, you risk not being covered in an accident.
In some cases, additional coverages were added when required by the state or insurer. Some airlines may be represented by subsidiaries or subsidiaries. The rates provided are a sample of the costs. Your age can affect your car insurance rates because younger drivers with less experience on the road tend to have more accidents than older, mature drivers.
Average costs increase by more than 159% if you're looking for an auto insurance policy with full coverage. To better understand the typical cost of your car insurance, spend some time comparing company quotes to your chosen method. We found that drivers with excellent credit histories received an average 20% discount on annual car insurance rates compared to drivers with an average credit history. Insurance companies set the price of their policies based on risk, and a driver with a history of accidents may be charged higher rates.
Average annual car insurance costs can drop significantly between ages 18 and 25, as insurers tend to evaluate older drivers as less risky and likely to file a claim. In general, men pay more for car insurance than women in states where it is allowed, because they are more likely to cost insurers money. The most expensive state for insurance is Michigan, and its average premiums are well above the national average. Policygenius has analyzed the car insurance rates provided by Quadrant Information Services for each zip code in the 50 states plus Washington, D.