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How much is car insurance?

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Drivers in the U.S. pay an average of $1,655 per year for full coverage car insurance, or about $138 per month, according to Bankrate’s analysis of 2022 average quoted premiums from Quadrant Information Services. Minimum coverage costs an average of $480 per year. Since many factors are involved in car insurance rates, learning more about the average cost of auto insurance and cost-influencing factors might help you find the best car insurance for you.

How much is car insurance
How much is car insurance

Credit-based insurance scores are a rating factor used in most states to help determine car insurance premiums. Statistics show that drivers with poor credit tend to file more claims and be involved in more severe incidents compared to drivers with good credit.
Bankrate’s insurance editorial team analyzed car insurance rates by state, insurance carrier and vehicle manufacturer, as well as the driver’s age, driving record, gender (where allowed) and other common rating factors to determine the average cost of car insurance. These car insurance prices might help you understand how much your auto insurance policy could cost, which may be beneficial when looking for an auto insurer that fits your budget and coverage needs.
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How much is car insurance?
The average cost of car insurance is $1,655 per year for full coverage, according to 2022 rate data. But because auto insurance premiums are based on more than a dozen individual rating factors, the actual cost may vary for every driver.

Here are some key facts about car insurance rates:

Bankrate insight
Louisiana, Florida and Kentucky are the three most expensive states for car insurance on average.
American Family, Amica and Auto-Owners offer some of the cheapest full coverage car insurance, but do not operate in every state.
Having a severe infraction like a DUI on your motor vehicle record could increase your car insurance premium by 88% on average.
Teen male drivers may pay $807 more for car insurance on average compared to teen female drivers.
How much does car insurance cost by state?
Answering, “How much does car insurance cost?” is a bit complicated, as it varies based on multiple factors, including the state where you live. In addition to individual rating factors, location is important. Traffic volumes, accident and claim reporting rates, as well as theft and vandalism rates, vary in every city.

Cost of living can also impact 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 locations compared to others.

Based on Bankrate’s analysis of 2022 data from Quadrant Information Services, the five most expensive and cheapest states for full coverage car insurance, on average, include the following:

Top 5 most expensive states for car insurance

Louisiana: $2,712 per year — 64% above national average
Florida: $2,588 per year — 56% above national average
Kentucky: $2,177 per year — 32% above national average
Nevada: $2,122 per year — 28% above national average
Michigan: $2,120 per year — 28% above national average
Top 5 cheapest states for car insurance

Maine: $884 per year — 47% below national average
Vermont: $1,011 per year — 39% below national average
Idaho: $1,100 per year — 34% below national average
Ohio: $1,164 per year — 30% below national average
New Hampshire: $1,166 per year — 30% below national average

 

Average cost of full coverage car insurance

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How much does car insurance cost by company?
Each auto insurance company has its own proprietary underwriting rating system, so the cost of car insurance varies from carrier to carrier. To find the best car insurance company for your needs, get quotes from several auto insurers to compare rates and features.

The table below showcases the average annual and monthly premiums for some of the largest car insurance companies in the nation by market share. We’ve also calculated a Bankrate Score on a scale of 0.0 to 5.0 for each insurance company. The Scores reflect performance data in regards to average prices, coverage offerings, discounts and third-party ratings, including customer satisfaction and financial strength. A higher Bankrate Score reflects a better ranking in the assessed rating categories.

 

Average cost of full coverage car insurance by car insurance company
Insurance provider Bankrate Score Annual cost Monthly cost
Allstate 4 $2,390 $199
American Family 4.3 $2,537 $211
Amica 4.5 $1,430 $119
Auto-Owners 4.5 $1,312 $109
Erie 4.6 $1,233 $103
Farmers 3.8 $2,000 $167
Geico 4.7 $1,304 $109
Mercury 4.2 $1,400 $117
Nationwide 4.4 $1,301 $108
Progressive 4.4 $1,533 $128
State Farm 4.7 $1,381 $115
The Hartford 3.8 $2,302 $192
Travelers 4.7 $1,325 $110
USAA 5 $1,272 $106
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How much does car insurance cost by age and gender?
Insurers typically consider age as a significant factor in setting auto insurance rates, with young drivers paying the highest premiums on average. Auto insurers use actuarial data to determine that teens and young adult drivers — as well as the elderly — are more likely to get in an accident, so the car insurance costs that these drivers pay are typically higher to compensate for the greater risk. Note that your age will not affect your premium if you live in Hawaii or Massachusetts, as state regulations prohibit auto insurers from using age as a rating factor.

Additionally, gender impacts your premium in most states. Men typically cost more to insure than women. This is because men generally engage in riskier driving behaviors than women and have a higher rate of accident severity, 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 does not affect how much you pay for car insurance because of state regulations prohibiting this rating factor.

Average annual full coverage car insurance premium by age and gender

*18-year-old driver rate reflects renters (not homeowners) calculated on their own policy.

Why rates vary (insights box): Men are statistically riskier drivers than women — as supported by crash rate fatalities data from 1975 to 2019 — resulting in higher insurance premiums on average. Based on data from the U.S. Department of Transportation’s Fatality Analysis Reporting System, the Insurance Institute for Highway Safety (IIHS) found that in 2019, male drivers accounted for 71% of passenger vehicle driver deaths, while female drivers accounted for 29%.

Other key IIHS report findings include:

Male drivers have more frequent fatal accidents. Male drivers between the ages of 30-59 were involved in the most fatal vehicle crashes in 2017 compared to all age and gender demographics.
Male drivers have more alcohol-involved accidents. 32% of driver fatalities in 2019 were connected with male drivers with a blood alcohol level at or above .08. Female drivers accounted for an estimated 21%.
Male drivers have more speeding-related accidents. Male drivers accounted for 27% of driver fatalities caused by speeding, compared to female drivers at 24%.
What you need to know about driving records
After a moving violation, you may be deemed a high-risk driver by your insurer, and your premium could increase accordingly. The severity of your infraction and how many incidents you have on your MVR will impact how much your car insurance premium increases. For example, the average full coverage premium increases by over $1,400 per year after a DUI conviction but only by $388 annually for a speeding ticket.

Average cost of full coverage car insurance by driving record

Speeding ticket: Receiving a speeding ticket conviction may be one of the most common ways that your car insurance rate can be affected. The length of time your insurance may be surcharged and how long it stays on your driving record may depend on the speed at which you were traveling.
At-fault accident: Being involved in an at-fault accident will have an effect on your car insurance. The amount of time it will stay on your driving record depends on the severity of the accident and state regulations.
DUI conviction: As one of the most serious driving incidents, receiving a DUI conviction typically increases your car insurance premium more than an at-fault accident or speeding ticket. This also may stay on your driving record for as long as ten years.
How much does car insurance cost by credit score?
Statistically, drivers with poor credit file more claims and have higher claim severity than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on various factors; it probably won’t exactly match the scores from Experian, TransUnion or Equifax as it is a credit-based insurance score, not a credit score. The table below showcases how credit can affect your annual full coverage car insurance premium.

Regulations in California, Hawaii, Massachusetts and Michigan prohibit auto insurers from using credit as a factor when setting rates. The state of Washington continues to evaluate whether or not credit will be banned as a rating factor, but currently allows its use.

Average cost of full coverage car insurance by credit score
Poor Average Good Excellent
National average $3,873 $1,865 $1,674 $1,487
How much does car insurance cost by vehicle type?
The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are the five most popular vehicles in the U.S.

Some vehicle makes and models are considered more expensive to insure by insurance companies. These shared features can include:

High-end vehicles, like luxury or sports cars: The high price tag of these vehicles often come with expensive parts and specialized knowledge to repair in the event of a claim. Sports cars also have higher speed maximums, which insurance companies may deem more expensive to insure because of the increased risk of accidents or harm.
Vehicle size: Larger vehicles, such as an SUV or pickup truck, can be more expensive to insure than sedans. In an accident, their increased size and weight may create more damage to other drivers and property. Most drivers who own a larger vehicle may also have space for more passengers, which also poses a higher risk in accidents.
Common, more affordable vehicles: Though these economy cars may be easier on a budget, their popularity and sheer number of them on the road contribute to the statistical likelihood that they will be involved in more accidents. They may also be easier for thieves to break into and steal, raising the cost of comprehensive claims that an insurance company would need to pay out.
Average cost of full coverage car insurance by make and model
Make and model Annual cost Monthly cost
Ford F-150 $1,442 $120
Chevrolet Silverado $1,682 $140
Ram 1500 $1,697 $141
Toyota RAV4 $1,510 $126
Honda CR-V $1,369 $114
Additional factors that affect car insurance rates
In addition to your state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving record and gender (in most states), several other common rating factors will impact your auto insurance premium.

Coverage selections

Insurance history

Annual mileage

How to find the best car insurance rates
Buying car insurance doesn’t have to mean breaking the bank; there are ways to save. Discounts are one of the best ways to lower your premium. Most major car insurance carriers offer discounts. Here are some of the most common insurance discounts in the U.S.

Claims-free: Drivers who have no auto claims on their record for the past several years typically qualify for savings.
Bundling insurance policies: You can often reduce your auto insurance premium when you bundle your car insurance policy with a home insurance policy or another type of policy offered by your insurer, earning discounts on both policies.
Good student discounts: Many auto insurers offer discounts for young drivers who earn good grades in high school or college.
Paying in full: If you can afford to pay your car insurance premium in full, versus monthly or quarterly, it may reduce your premium.
Telematics: Most car insurance companies offer telematics programs where you can allow them to track your driving habits with an app or device for possible savings.
Because every auto insurer offers a different suite of discounts, speaking with your insurance agent or company representative may be the best way to learn about savings opportunities.

Additionally, 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 vastly different amounts with different providers. Comparing quotes might help you find the lowest price for the coverage you need.

Frequently asked questions

What’s the difference between minimum and full coverage?

Is full coverage insurance worth it?

Does your car insurance go down after your car is paid off?

How much does car insurance cost for a beginner?

Does car insurance decrease every year?

Methodology
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
*2021 rates for 16-year-old are based on a driver of this age added to their parents’ policy.
*2021 rates for 18-year-old are based on a driver of this age that is a renter (not a homeowner) and on their own policy.

Model: To determine the cost by vehicle type, we evaluated our 2021 base profile with the following vehicles applied: Ford F-150, Chevrolet Silverado, Ram 1500, Toyota RAV4, Honda CR-V and Toyota Camry (base).

Incidents: Rates were calculated by evaluating our 2021 base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.

Credit-Based Insurance Scores: These 2021 rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit insurers from using credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan. Washington State currently permits credit as a rating factor, but a ban on its use is currently on hold in the courts.

Bankrate scores
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

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