The Cost of Car Insurance (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
Chloe Della Costa is a freelance copy editor and writer with a degree from Bard College. She specializes in copy editing and fact-checking content related to personal finance, insurance, and business.
The average car insurance cost is $1,976 a year, or $165 a month, for full-coverage car insurance. It’s $773 yearly, or $64 monthly, for minimum-coverage car insurance, according to LendingTree research.
The national average cost of car insurance offers a broad look at a topic with many factors influencing it. The state you live in, your age and your driving history, among other factors, also affect your car insurance quote. Having a good grasp of how these factors change your car insurance costs helps you get the cheapest price for the best coverage for your situation.
The average cost of car insurance
The national average rate for full-coverage car insurance is $1,976 a year, while the average cost of a minimum-coverage policy is $773 a year.
When you go to get an auto insurance quote, many factors determine your rate. These include:
- ZIP code
- The make and model of your car
- Annual mileage
- Driving record
- Insurance claim history
- The policy coverage limits and the deductible you choose
- Age
- Gender
- Marital status
- Credit history, in some states
Most companies offer the same coverage options for standard car insurance policies. Why do some policies cost more or less than others? The reason is that auto insurance companies put different risk weights on these factors when calculating your quote. One provider may consider your claim history a greater risk than another company does.
When looking for a policy, compare car insurance quotes from several companies with the same deductible and coverage limits. The more quotes you consider, the better the chances of finding the one that’s right for you.
Car insurance rates by state
What you pay for car insurance depends a lot on the state you call home. Some states, like Maine, have average car insurance rates that are far cheaper than the national average. Others, like Michigan, have rates that are higher.
Average cost of car insurance by state
| State | Annual full-coverage rate | Annual minimum-coverage rate |
|---|---|---|
| Alabama | $1,979 | $717 |
| Alaska | $1,635 | $663 |
| Arizona | $2,683 | $1,079 |
| Arkansas | $1,879 | $622 |
| California | $1,867 | $571 |
| Colorado | $2,542 | $897 |
| Connecticut | $2,346 | $1,088 |
| Delaware | $2,482 | $1,283 |
| Florida | $2,480 | $932 |
| Georgia | $1,832 | $790 |
| Hawaii | $1,643 | $609 |
| Idaho | $1,227 | $413 |
| Illinois | $2,109 | $848 |
| Indiana | $1,511 | $533 |
| Iowa | $1,663 | $444 |
| Kansas | $1,991 | $616 |
| Kentucky | $2,295 | $1,183 |
| Louisiana | $2,719 | $948 |
| Maine | $1,100 | $501 |
| Maryland | $2,051 | $1,093 |
| Massachusetts | $2,068 | $757 |
| Michigan | $4,638 | $1,849 |
| Minnesota | $1,884 | $743 |
| Mississippi | $1,796 | $662 |
| Missouri | $1,908 | $686 |
| Montana | $2,174 | $574 |
| Nebraska | $1,909 | $470 |
| Nevada | $2,958 | $1,368 |
| New Hampshire | $1,146 | $537 |
| New Jersey | $2,236 | $1,393 |
| New Mexico | $1,953 | $632 |
| New York | $2,030 | $1,059 |
| North Carolina | $1,305 | $532 |
| North Dakota | $1,858 | $522 |
| Ohio | $1,329 | $532 |
| Oklahoma | $2,119 | $656 |
| Oregon | $2,115 | $1,092 |
| Pennsylvania | $1,861 | $603 |
| Rhode Island | $2,631 | $1,224 |
| South Carolina | $1,808 | $803 |
| South Dakota | $2,016 | $351 |
| Tennessee | $1,554 | $505 |
| Texas | $1,833 | $696 |
| Utah | $2,261 | $989 |
| Vermont | $1,232 | $417 |
| Virginia | $2,110 | $923 |
| Washington | $1,534 | $651 |
| Washington, D.C. | $2,082 | $949 |
| West Virginia | $1,701 | $659 |
| Wisconsin | $1,540 | $503 |
| Wyoming | $1,437 | $370 |
Rates are for car insurance for a 30-year-old male with a clean driving record.
Factors that affect auto insurance rates in specific states include:
- Extreme weather trends
- The number of accidents on the road each year
- The number of uninsured drivers in the state
There is little to nothing you can do about these factors. You can try to counter them, though, by driving safely, staying current with your car insurance and keeping your premium low.
The cheapest states for car insurance
Maine is the cheapest state for full-coverage car insurance, with an average rate of $1,100 a year. New Hampshire is next at $1,146, followed by Idaho at $1,227.
Cheapest states for full-coverage car insurance
| State | Average annual rate | % difference from U.S. average |
|---|---|---|
| Maine | $1,100 | -44% |
| New Hampshire | $1,146 | -42% |
| Idaho | $1,227 | -38% |
| Vermont | $1,232 | -38% |
| North Carolina | $1,305 | -34% |
| Ohio | $1,329 | -33% |
| Wyoming | $1,437 | -27% |
| Indiana | $1,511 | -24% |
| Washington | $1,534 | -22% |
| Wisconsin | $1,540 | -22% |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record.
Full-coverage auto insurance usually bundles several types of coverage together:
Liability: Covers medical or repair bills tied to injuries or damage you cause to others in an accident.
Collision: Covers your own car repairs after an accident.
Comprehensive: Covers damage caused by perils other than a collision, such as theft, vandalism or falling ice.
For drivers looking for minimum-coverage car insurance, South Dakota has the lowest rate at $351 a year. Wyoming is next at $370, then Idaho at $413.
Cheapest states for minimum-coverage car insurance
| State | Average annual rate | % difference from U.S. average |
|---|---|---|
| South Dakota | $351 | -55% |
| Wyoming | $370 | -52% |
| Idaho | $413 | -47% |
| Vermont | $417 | -46% |
| Iowa | $444 | -43% |
| Nebraska | $470 | -39% |
| Maine | $501 | -35% |
| Wisconsin | $503 | -35% |
| Tennessee | $505 | -35% |
| North Dakota | $522 | -32% |
Rates are for minimum-coverage car insurance for a 30-year-old male with a clean driving record.
MMG Insurance, Concord and Erie have the cheapest average car insurance rates of the companies we surveyed. When comparing companies and their rates, know that some only serve a specific region. For example, MMG has the lowest rates overall, but it only sells policies in five states.
Average car insurance rates by company
| Company | Annual rate for full coverage | Annual rate for minimum coverage |
|---|---|---|
| AAA | $3,835 | $1,520 |
| Acuity | $1,361 | $478 |
| Allstate | $2,605 | $1,158 |
| American Family | $1,920 | $728 |
| Amica | $2,548 | $1,098 |
| Arbella | $1,629 | $720 |
| Auto-Owners | $1,690 | $516 |
| Co-Op | $1,635 | $437 |
| Concord | $977 | $478 |
| Country Financial | $1,600 | $623 |
| Erie | $1,289 | $505 |
| Farm Bureau | $1,939 | $551 |
| Farmers | $3,091 | $1,188 |
| Geico | $1,936 | $726 |
| Grange | $1,638 | $570 |
| Grinnell Mutual | $2,015 | $421 |
| Hanover | $1,372 | $336 |
| Island Insurance | $1,319 | $418 |
| Mercury | $1,596 | $511 |
| MMG | $902 | $375 |
| Nationwide | $2,271 | $980 |
| NJM | $3,382 | $3,125 |
| Nodak | $2,917 | $553 |
| Pemco | $1,483 | $464 |
| Plymouth Rock | $2,236 | $853 |
| Progressive | $2,028 | $789 |
| Safety | $1,392 | $571 |
| Safeway | $3,080 | $1,391 |
| Shelter | $1,927 | $762 |
| State Farm | $1,496 | $599 |
| Texas Farm Bureau | $1,036 | $401 |
| The Hartford | $2,688 | $1,007 |
| Travelers | $1,955 | $849 |
| Umialik | $1,602 | $598 |
| United Automobile | $2,205 | $1,034 |
| USAA | $1,207 | $413 |
| Westfield | $1,481 | $439 |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record.
How age affects car insurance rates
An 18-year-old driver pays $5,670 a year for full-coverage car insurance, on average, and $2,394 for minimum coverage. These average rates are more than twice what a typical 30-year-old driver pays for the same amount of coverage.
Average car insurance rates for 18-year-old drivers vs. 30-year-old drivers
| Policy type | 18-year-old | 30-year-old | % difference in average rate |
|---|---|---|---|
| Full coverage | $5,670 | $1,976 | 187% |
| Minimum coverage | $2,394 | $773 | 209% |
Rates are for car insurance for an 18-year-old and a 30-year-old male with a clean driving record.
Young drivers pay the highest car insurance premiums of any age group. This is mostly because providers see them as a high risk due to their lack of experience behind the wheel. Teen drivers should see their rates go down as they age and keep a clean driving history.
The cost of car insurance after a speeding ticket
Of the largest car insurance companies in the U.S., you see the cheapest annual rate of $1,625 for full coverage after a speeding ticket with State Farm. While this is still well under the national average without a speeding ticket of $1,976, you can expect your premium to carry this increase for three to five years.
Car insurance rate increase after a ticket by company
| Company | Average rate with clean record | Average rate with one ticket | % difference in cost |
|---|---|---|---|
| Allstate | $2,605 | $3,072 | 18% |
| Farmers | $3,091 | $4,252 | 38% |
| Geico | $1,936 | $2,488 | 29% |
| Progressive | $2,028 | $2,602 | 28% |
| State Farm | $1,496 | $1,625 | 9% |
Rates are for full-coverage car insurance for a 30-year-old male with one speeding ticket.
The cost of car insurance after an accident
The average rate for car insurance after an accident is $2,933 a year. This is 48% higher than the national average rate with a clean record. An accident stays on your record for three to five years, during which time you’ll likely pay higher car insurance rates.
Car insurance rate increase after an accident by company
| Company | Average rate with clean record | Average rate with one accident | % difference in cost |
|---|---|---|---|
| Allstate | $2,605 | $4,116 | 58% |
| Farmers | $3,091 | $4,598 | 49% |
| Geico | $1,936 | $3,341 | 73% |
| Progressive | $2,028 | $3,018 | 49% |
| State Farm | $1,496 | $1,853 | 29% |
Rates are for full-coverage car insurance for a 30-year-old male with one accident.
How a DUI affects car insurance rates
Progressive has the smallest rate increase for car insurance after a DUI, up 25% from $2,028 a year to $2,545.
Car insurance rate increase after a DUI by company
| Company | Average rate with clean record | Average rate with one DUI | % difference in cost |
|---|---|---|---|
| Allstate | $2,605 | $3,870 | 49% |
| Farmers | $3,091 | $4,758 | 54% |
| Geico | $1,936 | $4,584 | 137% |
| Progressive | $2,028 | $2,545 | 25% |
| State Farm | $1,496 | $4,306 | 188% |
Rates are for full-coverage car insurance for a 30-year-old male with one DUI.
After teen drivers, companies consider drivers with a DUI on their record to be the riskiest to insure. This is why drivers with DUIs pay much higher rates for car insurance than drivers with clean records do.
Also, a DUI can stay on your insurance record for three to five years, and you’ll probably pay higher rates the whole time.
If your license is suspended after a DUI, you’ll probably have to file an SR-22 form with the state. The SR-22 acts as proof that you carry the minimum amount of car insurance your state requires. You’ll need this to reinstate your license.
Your credit rating and car insurance
In states that use credit scoring as a factor to calculate auto insurance quotes, Farmers and Geico share the lowest increase of 37% for drivers with a poor credit score.
Car insurance rate increase with poor credit by company
| Company | Average rate with good credit | Average rate with poor credit | % difference in cost |
|---|---|---|---|
| Allstate | $2,605 | $4,179 | 38% |
| Farmers | $3,091 | $4,890 | 37% |
| Geico | $1,936 | $3,071 | 37% |
| Progressive | $2,028 | $3,435 | 41% |
| State Farm | $1,496 | $5,529 | 73% |
Rates are for full-coverage car insurance for a 30-year-old male with poor credit.
These states now ban the use of credit scores in calculating car insurance quotes:
- California
- Hawaii
- Massachusetts
- Michigan
- Oregon
- Utah
- Washington
Frequently asked questions
Nationally, the average rate for full-coverage car insurance is $165 a month. Minimum-coverage car insurance costs $64 a month, on average.
Michigan is the most expensive state for car insurance, with an average full-coverage rate of $4,638 a year. This is 135% higher than the national average rate of $1,976.
Michigan’s high rates are in part due to its no-fault car insurance laws, the state’s high rate of uninsured drivers and the number of personal injury lawsuits in the state.
Nevada comes in second, with an average full-coverage rate of $2,958 a year, and $1,368 for minimum coverage.