Average Cost of Car Insurance (2024)
Minimum-coverage car insurance costs $772 yearly, or $64 monthly, on average.
What you pay for car insurance depends on several rate factors, including the car you drive as well as your driving history, age, gender and more. Car insurance rates vary widely by state and insurance company, too.
How much is car insurance?
State Farm charges an average rate of $1,496 a year, for example. This is the cheapest rate of the largest auto insurance companies we surveyed.
USAA is cheaper if you or a family member have military ties. Its average rate is $1,207 a year.
You may get an even lower rate from regional or local car insurance companies like Erie, Farm Bureau or MMG.
Average car insurance cost by company
| Company | Full coverage | 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 |
With different companies offering such different rates, it’s important to compare car insurance quotes from several companies before you decide which one is the best for you.
Comparing quotes side by side is one of the best ways to get the cheapest car insurance rate for the coverage types and amounts you need.
Car insurance cost by state
South Dakota drivers pay the lowest car insurance rates for minimum coverage at an average of $351 a year, for example. Maine’s average rate for full-coverage car insurance is the cheapest in the U.S., at $1,100 a year.
Michigan drivers pay the highest car insurance rates, on average, with minimum coverage costing $1,849 a year and full coverage costing $4,638 a year.
Even within these states, though, what you pay for car insurance can be higher or lower than the average cost due to other rate factors.
Average cost of car insurance by state
| State | Full coverage | Minimum coverage |
|---|---|---|
| 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 |
- How many claims are filed in a state or city
- How much those claims cost them
- Population density
- Accident and crime rates
- Likelihood of severe weather
A state’s car insurance requirements also impact the average price of a policy. Some states require a lot less coverage than others, and that can help drivers there get a cheaper rate than they would in other states.
Although there’s nothing you can do about the factors listed above, you can counter them by driving safely, avoiding claims and comparing quotes from several companies at least once a year.
Cheapest states for car insurance
Cheapest full-coverage car insurance by state
| State | 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% |
Full-coverage auto insurance usually includes liability, comprehensive and collision coverage types.
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 or events other than a collision, such as theft, vandalism or falling ice.
South Dakota is the state with the cheapest liability car insurance, with rates averaging $351 a year. Wyoming is next at $370, then Idaho at $413.
Cheapest liability insurance by state
| State | 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% |
Car insurance cost by age
We found that 18-year-old drivers pay $2,433 a year for minimum car insurance, on average. And they pay an average of $5,824 a year for full-coverage car insurance.
These average rates are more than twice what a typical 30-year-old driver pays for the same amount of coverage.
Car insurance cost for 18-year-olds vs. 30-year-olds
| Policy type | 18-year-old | 30-year-old | % difference |
|---|---|---|---|
| Full coverage | $5,670 | $1,976 | 187% |
| Minimum coverage | $2,394 | $773 | 209% |
Young drivers pay the highest car insurance premiums of any age group. This is mostly because insurers see them as a high risk due to their lack of experience behind the wheel. Teen drivers usually see their rates go down as they age and keep a clean driving history.
Car insurance cost after a speeding ticket
State Farm is the company with the cheapest car insurance after a speeding ticket, charging an average rate of $1,625 a year. This is just 9% higher than what the company charges the average driver with a clean record.
| Company | Clean record rate | Speeding ticket rate | % difference |
|---|---|---|---|
| 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% |
Car insurance cost after an accident
State Farm has the cheapest car insurance for drivers with an accident on their records, at an average rate of $1,853 a year.
| Company | Clean record rate | Accident rate | % difference |
|---|---|---|---|
| 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% |
An accident stays on your record for three to five years, and during this time you’ll likely pay higher car insurance rates.
Car insurance cost with a DUI
Progressive is the best company for cheap car insurance with a DUI, charging an average of $2,545 a year. It’s also the company with the smallest average rate increase after a DUI. Progressive charges drivers with clean records $2,028 a year, which means its DUI rate is just 25% more.
| Company | Clean record rate | DUI rate | % difference |
|---|---|---|---|
| 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% |
After teen drivers, car insurance 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 proves that you carry the minimum amount of car insurance your state requires. You’ll need this to reinstate your license.
Car insurance cost by credit score
If you have poor or bad credit, get a quote from Geico to see what it will charge you. We found Geico to have the cheapest car insurance for bad credit, at $3,071 a year, on average. This is just 37% higher than the average rate it charges drivers with good credit.
| Company | Good credit rate | Poor credit rate | % difference |
|---|---|---|---|
| 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% |
- California
- Hawaii
- Massachusetts
- Michigan
- Oregon
- Utah
- Washington
Factors that impact your car insurance cost
Other factors that determine your car insurance rate include your:
- Annual mileage
- Driving record
- Insurance claim history
- Policy coverage limits and deductible
- Age
- Gender
- Marital status
- Credit history (in some states)
Car insurance companies weigh these rate factors differently when setting your quote. One company may see your age or claim history as being a greater risk than another company, for example, and charge you more as a result.
This is why car insurance quotes can differ so much between companies. It’s also why comparing car insurance quotes from multiple companies can help you get the cheapest rate for the coverage you need.
How to lower your car insurance costs
Get discounts
Qualifying for one or more car insurance discounts can save you a lot of money. Some of the most common discounts reward people who:
- Bundle multiple insurance policies with one company
- Insure more than one vehicle
- Drive safely
- Get good grades
- Go paperless
- Pay up front and in full
Increase your deductible
Raising your car insurance deductible lowers your overall rate. Since your deductible is what you pay out of pocket when you file a claim, make sure you can afford that amount before you change it.
Compare quotes
Comparing car insurance quotes from a number of companies side by side lets you see which one offers the best price for the coverage you need. Use the same info for each quote so you can make the most accurate comparison.
Frequently asked questions
The average cost of car insurance is $772 a year if you buy minimum coverage. For full-coverage car insurance, the average cost is $1,970 a year.
If you buy minimum coverage, the average cost of car insurance per month is $64. The average cost of full-coverage car insurance per month is $164.
Michigan is the most expensive state for car insurance. Its drivers pay the highest average rate for minimum coverage ($1,849 a year) and full coverage ($4,638 a year)
New Jersey is the next-highest state for minimum-coverage car insurance ($1,393 a year), while Nevada is next for full coverage ($2,958 a year).
South Dakota and Maine are the cheapest states for car insurance.
South Dakota drivers pay the cheapest rates for minimum car insurance ($351 a year). Maine drivers pay the cheapest full-coverage car insurance rates ($1,100 a year).
Wyoming is next-cheapest for minimum coverage ($370 a year), while New Hampshire is next for full coverage ($1,146 a year).