What is the Average Cost of Car Insurance in the U.S.

Full coverage auto insurance runs about $1,730 a year on average. However, some individual characteristics, including as your driving record, will affect your costs.

What is the Average Cost of Car Insurance in the U.S.
What is the typical price of auto insurance in the US? We will discuss average vehicle insurance costs by state in this post, along with tips on how to keep your premiums low. In the sections below, we also give our recommendations for the top two auto insurance providers.

How Much Does Car Insurance Cost?

Full coverage insurance often costs $1,730 year, or $144 monthly, while minimum liability insurance typically costs $635 annually, or $53 monthly. However, depending on your own personal details, the cost of your individual vehicle insurance may differ. This is because while determining prices, insurers take into account things like your location, driver’s history, car, and desired coverage.

How Much Is Car Insurance in Your State?

Each state has its own rules and standards for auto insurance. Additionally, driving conditions vary from state to state, which might affect how much vehicle insurance costs.
What is the Average Cost of Car Insurance in the U.S.

Car Insurance Cost by State

We gathered information from the Quadrant Information Services and calculated the average cost of auto insurance by state in order to give you an idea of what motorists in each state pay for typical yearly premiums. Cost estimates for both basic coverage and full coverage auto insurance are included in the table below.

State Average Annual Minimum Liability Premium Average Annual Full Coverage Premium
Alabama $472 $1,479
Alaska $425 $1,400
Arizona $670 $1,754
Arkansas $428 $1,525
California $627 $2,089
Colorado $575 $1,860
Connecticut $1,503 $2,999
Delaware $941 $2,169
District of Columbia $644 $1,903
Florida $1,343 $2,947
Georgia $673 $1,617
Hawaii $625 $1,819
Idaho $328 $1,069
Illinois $527 $1,347
Indiana $428 $1,332
Iowa $283 $1,181
Kansas $500 $1,471
Kentucky $651 $1,779
Louisiana $932 $2,783
Maine $346 $964
Maryland $972 $1,818
Massachusetts $873 $2,647
Michigan $1,604 $3,785
Minnesota $605 $1,632
Mississippi $439 $1,434
Missouri $579 $1,734
Montana $456 $1,938
Nebraska $417 $1,622
Nevada $1,015 $2,149
New Hampshire $459 $1,349
New Jersey $1,032 $2,037
New Mexico $441 $1,449
New York $1,472 $2,783
North Carolina $503 $1,368
North Dakota $377 $1,366
Ohio $347 $1,027
Oklahoma $443 $1,726
Oregon $736 $1,334
Pennsylvania $463 $1,647
Rhode Island $804 $1,848
South Carolina $626 $1,665
South Dakota $290 $1,652
Tennessee $415 $1,281
Texas $642 $1,752
Utah $681 $1,507
Vermont $282 $1,056
Virginia $490 $1,142
Washington $578 $1,438
West Virginia $517 $1,537
Wisconsin $431 $1,219
Wyoming $307 $1,767

Most Expensive Car Insurance by State

Here are the top five states with the highest full coverage auto insurance rates:

State Annual Cost Estimate Difference from National Average
Michigan $3,785 119%
Connecticut $2,999 73%
Florida $2,947 70%
New York $2,783 61%
Louisiana $2,783 61%

States With the Cheapest Car Insurance

The five states with the cheapest full coverage auto insurance are shown below:

State Annual Cost Estimate Difference from National Average
Maine $964 -44%
Ohio $1,027 -41%
Vermont $1,056 -39%
Idaho $1,069 -38%
Virginia $1,142 -34%

Comparing free quotes from carriers in your state is the best approach to determine how much auto insurance would cost for your vehicle.

Auto Insurance Pricing

The price of auto insurance is controlled by a variety of variables. It’s crucial to compare typical auto insurance prices from several insurers because the degree to which each aspect affects your ultimate charges might differ from one provider to another.
What is the Average Cost of Car Insurance in the U.S.

Factors That Affect Car Insurance Rates

Below are the primary factors that affect the rates of auto insurance in US.

  • Age – The greatest rates are often seen among drivers between the ages of 16 and 25. Rates progressively drop, then start to rise again about age 65.
  • Gender – Except in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania, where it is illegal for insurers to base prices on a person’s gender, insurers are permitted to do so.
  • Credit History – Rate reductions are frequently given to drivers with good credit. Insurance companies are prohibited from basing premiums on credit scores in California, Hawaii, Massachusetts, Michigan, and New Jersey.
  • Marital Status – Occasionally, married drivers pay less for auto insurance than unmarried ones.
  • Location – Your state and locality both have an influence on the price of your auto insurance. It’s possible that your insurance will cost more if you reside in a location with very high collision or theft rates.
  • Vehicle Type – Your insurance rate can be greater if your automobile model has a high risk of theft or accidents, which many sports cars do. The price of comprehensive and collision insurance is also based on the worth of your automobile.
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    Driver’s License – One of the largest methods to reduce the cost of auto insurance is to have a spotless driving record. Insurance costs increase for anyone with a history of speeding tickets, at-fault accidents, traffic infractions, or DUIs. Once a violation is removed from your record, which usually takes three years, it no longer affects your rates.

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    Driving Habits – Less frequent driving may result in reduced rates. To encourage low-mileage drivers, several insurance companies provide usage-based discounts.

  • Level of Coverage – Each state establishes its own minimum insurance standards, but if you want to be completely secured, you may get supplementary insurance. The cost of your automobile insurance will go up if you go for full coverage insurance with greater policy limits.
  • Deductible – Most comprehensive and collision insurance plans have a deductible. Lower premiums are obtained by selecting bigger deductibles, and vice versa.
  • Discounts – Your pricing is impacted by the reductions for which you are qualified. A homeowner’s discount, a military discount, a discount for having several policies, and a discount for paying in full are all common vehicle insurance discounts.

How To Lower Car Insurance

Here are some methods for lowering your auto insurance rates if you’re looking around for coverage online and finding quotes that are too expensive:
  1. Compare prices from several insurers: It pays to shop around, especially if anything that might affect your premiums just changed. You should check to see whether you may receive a cheaper auto insurance rate, for instance, when you get married, buy a house, or if your credit score rises.
  2. Package Deals: Usually, you may get premium savings when you combine your vehicle and house insurance plans. By insuring more than one vehicle under the same auto insurance policy, you may also save money.
  3. The majority of insurers provide a discount for advance payment. It’s frequently a more economical choice if you have the ability to pay your complete payment all at once.
  4. Attend a course: State-approved driver safety programs are available in every state. These seminars last between six to eight hours, depending on the state. The majority of insurers provide discounts for finishing these programs.
  5. Use a monitoring app: Many carriers provide usage-based insurance packages or discounts. After registering, you’ll use an app to track your driving behavior and earn prizes for safe driving. The app measures factors like braking distance, average speed, and driving durations.
  6. Reduced coverage. You could find that your comprehensive and collision insurance coverage are no longer necessary as your car matures. As a general guideline, you should discontinue coverage when your yearly premium equals or surpasses 10% of the entire market value of your car.

Conclusion

When picking a provider, it’s crucial to take the cost of auto insurance into account. Naturally, you’ll also want to choose a reputed insurer with strong coverage and an easy claims procedure. Insurers that meet that definition are numerous in the United States.

The best insurance option will always be the one that is affordable, but still incorporates liability, comprehensive and collision insurance. We advise browsing around and contrasting auto insurance prices from trustworthy insurance companies to discover the best deal. You can sign up to our newsletter to get notified every time we make any post on Toolslaza, who knows…you might end up receiving a newsletter about updated list of cheap and best insurance for your vehicle.

 

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