Car Insurance Rates

Average Car Insurance Rates By State

As of 2014, the average cost of car insurance across the United States is approximately $1,503 per year, or about $125 per month. Average car insurance rates vary by state due to many factors, such as state laws and minimum auto insurance requirements, population density, traffic conditions, number of car accidents, healthcare costs, the percentage of uninsured or under-insured drivers, auto theft, crime rates, natural disasters, and the number of auto insurance companies operating and competing in the state.

Average Car Insurance Rates

Average Car Insurance Rates By State

The figures below represent the average cost of car insurance from 6 of the largest auto insurance companies in the United States: Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm. The premiums assume the policyholder is a 40-year-old male buying full coverage and commuting 12 miles to work each day. The policy purchased is a 100/300/50 ($100,000 for individual injury liability, $300,000 total bodily injury per accident, and $50,000 for property damage), with a $500 deductible on collision and comprehensive coverage.

Here are the average car insurance rates by state, broken down into average monthly and annual premiums. Just remember that your actual car insurance payments will depend on your individual risk factors.

Rank
State
Monthly Rates
Annual Rates
1
Michigan
$213
$2,551
2
West Virginia
$210
$2,518
3
Georgia
$183
$2,201
4
Rhode Island
$168
$2,020
5
Montana
$168
$2,013
6
Louisiana
$164
$1,971
7
California
$163
$1,962
8
New Jersey
$159
$1,905
9
Florida
$153
$1,830
10
Maryland
$151
$1,810
11
North Dakota
$143
$1,710
12
Connecticut
$137
$1,638
13
Texas
$135
$1,620
14
Alaska
$134
$1,605
15
Massachusetts
$134
$1,604
16
Delaware
$132
$1,580
17
Oklahoma
$131
$1,568
18
Colorado
$130
$1,558
19
South Dakota
$130
$1,557
20
Wyoming
$128
$1,541
21
Alabama
$127
$1,529
22
Kentucky
$125
$1,503
23
Washington
$125
$1,499
24
Pennsylvania
$120
$1,440
25
Hawaii
$117
$1,400
26
Arkansas
$117
$1,399
27
Tennessee
$116
$1,397
28
Nevada
$116
$1,388
29
Mississippi
$115
$1,385
30
New Mexico
$114
$1,371
31
Illinois
$114
$1,370
32
Minnesota
$113
$1,360
33
Kansas
$113
$1,358
34
Oregon
$111
$1,333
35
Nebraska
$110
$1,317
36
South Carolina
$109
$1,316
37
Arizona
$102
$1,222
38
Missouri
$101
$1,207
39
Indiana
$100
$1,202
40
Utah
$99
$1,192
41
New York
$98
$1,173
42
Vermont
$96
$1,149
43
Virginia
$93
$1,114
44
Wisconin
$91
$1,087
45
North Carolina
$83
$1,060
46
Iowa
$88
$1,058
47
Idaho
$82
$1,053
48
New Hampshire
$82
$983
49
Maine
$80
$964
50
Ohio
$77
$926

To learn how to compare car insurance quotes and find the best coverage with the lowest rates, check out our guide.

How To Compare Car Insurance Quotes

All states have minimum car insurance requirements regarding liability coverage. Some states even require under-insured or uninsured motorist coverage as well as personal injury protection (PIP). Before you buy car insurance, review your state’s car insurance laws and then compare rates, policies and companies online to find the best coverage for your needs.

If you currently have car insurance, how do you know you have the best protection? This is why research is important. Learning about the different types of policies available, how to get cheap rates, and where to find the top insurance companies can guarantee you buy the right coverage the first time and eventually qualify for loyalty discounts in the future. It’s easy to compare car insurance quotes, but you will need to do some analysis when figuring out which policy is best.

Compare Car Insurance Quotes

Types of Car Insurance Coverage

The different types of car insurance coverage available include:

  • Liability car insurance for bodily injury and damage to property;
  • Comprehensive coverage for losses due to fire, theft or natural disasters;
  • Collision insurance to cover the repair or replacement of your own car after a collision with another car, object or structure;
  • Emergency roadside assistance and towing support in case of any breakdowns, tire issues or roadside problems;
  • GAP insurance, which is especially valuable for new cars, covers the difference between the purchase price and the current market value of your car in case of an auto accident

Once you have checked out the state minimum requirements (fortunately, companies already provide you the minimum), you must decide whether basic liability coverage will give you enough protection and peace of mind for potential losses. Having a car loan or lease will determine what type of coverage is non-negotiable for the driver, as most loans require that liability, collision and sometimes comprehensive coverage must be included.

Just remember that, the more insurance coverage you buy and the lower your deductibles are, the higher the premiums. Conversely, if you buy the minimum amount and increase your deductible to $1,000 or $1,500, you will get cheaper rates.

While it is important to keep cost considerations in mind, it is critical to weigh those costs against the risk of being under-insured. With the way healthcare and living costs have skyrocketed, state minimum car insurance is not enough to cover medical care and major vehicle repairs if you are at-fault in an auto accident.

How Insurance Claims Work

After a car accident, your insurance company will subtract your deductible, process your claim, and pay out to cover the assessed damages, but only up to the maximum levels you have purchased on your policy. Any damages, repairs, or litigation settlements beyond that amount will become out-of-pocket expenses, making you personally liable.

For this reason, the amount of car insurance coverage you decide to purchase is critical. Balancing between upfront premiums and future coverage requires families to compare car insurance quotes to see which company will offer the best coverage for the lowest rate.

Factors That Affect Car Insurance Rates

Car insurance companies consider many factors when calculating rates, and each factor affects your quotes differently. Basically, to sum up these factors, companies are looking to analyze the kind of coverage you want to buy, the risks you pose the company and the likelihood of a future payout on your behalf.

Risk factors that could affect your car insurance rates include:

Gender. Men tend to be more aggressive and faster drivers. Males also spend more time on the road because of the commute to and from work, making them more likely to be involved in accidents.

Age. Younger, less experienced drivers are considered high risk. Senior citizens, although they drive less, may have slower reflexes. For this reason, young, male students and teenagers tend to have the most expensive car insurance rates.

Marital Status. Statistics show married drivers tend to be more responsible and safe, resulting in fewer crashes than singles.

Driving History. Drivers with a clean driving record get the cheapest car insurance, while “high risk” drivers with multiple citations, tickets, or car accidents are likely to continue to cause collisions, and therefore warrant higher premiums. Ask for a copy of your Motor Vehicle Report (MVR) to see details on past accidents and moving violations.

Where You Live. Densely-populated urban areas with traffic congestion and higher rates of theft result in higher costs, while rural areas offer cheap quotes.

Type of Car, Make, and Model. Drivers of high performance sports or luxury cars are likely to drive faster. Expensive cars are costly to repair or replace, and therefore claims paid out will be higher to cover damages and repairs. How your car performs in crash safety tests can also increase or decrease your premiums.

Annual Mileage. The more you drive, the more likely you are to be involved in an accident, which is why insurance companies give “Low Mileage” discounts for policyholders who drive less often and/or for shorter distances than the average driver. If a particular vehicle is used only for joy-riding on Sundays, mention that to your carrier to get a reduced rate.

The best ways to lower car insurance rates are to change or improve the factors that are within a driver’s control. The cost of coverage is negotiable by changing deductibles and the amount of liability, comprehensive, collision, PIP, and medical coverage.

By removing extras such as roadside assistance and car rental insurance, paying off a car loan to avoid GAP Insurance, and cleaning up your credit history, a policyholder can find cheap quotes. Drivers should also review their driving report for any incorrect information.

Car Insurance Discounts

When you compare auto insurance rates, you will notice that certain risk factors may increase your rates, but other factors such as a safe car, a clean driving record, customer loyalty, lifestyle choices and payment preferences may entitle you to discounts. The following are ways to get cheap car insurance.

Vehicle Discounts

Vehicle discounts are savings associated with the make, model and type of car you drive (coupe, sedan, SUV, van, luxury, sports, etc.).

  • If your car has an alarm or anti-theft device, you could save up to 10%
  • If your vehicle is equipped with safety features such as airbags or anti-lock brakes, you’ll save up to 30%
  • Buying a “new” car, or one that is less than 2 years old, can save you up to 30%
  • A “green” vehicle, such as a hybrid, may reduce your premium by 10%

Driving/Driver Discounts

Lifestyle discounts are factors within your control and qualify you for affordable car insurance.

  • A “Defensive Driver” discount requires you to complete driver’s education courses or defensive driving classes while maintaining no violations or at-fault accidents, qualifying you to save up to 10%
  • A “Safe Driver” discount means you have a good, clean driving record and qualify for up to 30% off your premiums
  • “Low Mileage” means you drive significantly less than 12,000 miles per year, saving you 10%
  • A “Good Student” discount can save full-time students up to 20%

Policy Discounts

Policy discounts are determined by payment preferences and purchasing additional coverage through your carrier.

  • Get a “Multiple Policy” discount when you buy more than one insurance policy with your company
  • Save 10% when you pay your policy in full for 6 or 12 months
  • Go “Paperless” and view all your documents online to save up to 10%

Get All The Facts

Before you contact a company, think about how much time you could save by comparing multiple car insurance quotes online. Be prepared and have the following information ready:

  • Type and amount of coverage required, such as $100,000 liability car insurance
  • Personal details about each driver, including age, address, contact information, marital status, and current insurance
  • Vehicle details including year, make, model and even a VIN number may be helpful
  • List of primary and secondary drivers for each vehicle
  • List of discount options

Auto Insurance Quotes Online

Follow these steps to get your free online car insurance quotes:

  • Study the available coverage options and make your decision about what you require;
  • Identify the vehicles and family members to be covered;
  • Identify primary and other drivers for each vehicle, choosing the safest, lowest cost drivers as primaries;
  • Make sure all necessary personal information and vehicle documentation is available;
  • Prepare a list of possible discounts you qualify for;
  • Enter your zip code at MyCarInsurance123.com to find the best car insurance companies in your area offering free quotes; and
  • Choose an auto insurance company and begin the online quote process.

When completing your comparisons, make sure that you are comparing the same insurance coverage, amounts, deductibles, discounts, rates, terms of payment, and terms and conditions. Check your policy and payout terms, the fine print and exemptions very carefully.

Average Car Insurance Rates By Age

Age is one of the most important factors car insurance companies use when calculating car insurance rates. An auto insurance company uses age as an indication of driving experience and accident risk. Generally speaking, the older you get and the more experience you have driving, the less likely you are to get into an accident and submit an insurance claim. A quick analysis of car insurance rates by age will show that a 16 or 18 year old has much higher insurance costs than any other age group.

Average Car Insurance Rates By Age

Below, you will find a breakdown of average car insurance rates by age. As expected, premiums decrease significantly after the age of 25. Further research indicates that 15 to 20 year olds constitute about 6% of licensed drivers, but account for over 10% of fatal crashes. You will also notice that auto insurance costs start to trend upwards again as drivers become 60, 65, and 70 years old. This can be explained by poor vision and slower reflexes as a result of aging, leading to higher incidents of collision and claims.

Average Car Insurance Rates By Age

For your convenience, we’ve also included a table that demonstrates the average cost of car insurance by age:

Driver's AgeAverage Cost Per Year
16$8,226
18$6,456
21$3,620
25$2,374
30$2,078
35$2,028
40$1,973
45$1,929
50$1,855
55$1,845
60$1,867
65$1,956
70$2,131

Understanding how age affects auto insurance rates can help consumers compare quotes to find the best coverage with the cheapest car insurance company.

How Much Is Car Insurance?

Instead of asking “how much does car insurance cost”, drivers should really be asking themselves “how much should my car insurance cost?” Car insurance prices depend on many factors, and different companies assign different levels of importance to each. While only auto insurance quotes can help you find out exactly how much you’ll pay in monthly premiums, you can still compare average rates to get an idea of what to expect.

How Much Is Car Insurance

How Much Is Auto Insurance?

So, how much does car insurance cost per month? The table below can help you find the cost of auto insurance in your state. Afterwards, you can enter your zip code to find cheap quotes.

State
Monthly Premiums
Annual Premiums
Arizona
$102
$1,222
California
$163
$1,962
Florida
$153
$1,830
Georgia
$183
$2,201
Illinois
$114
$1,370
Indiana
$100
$1,202
Maryland
$151
$1,810
Massachusetts
$134
$1,604
Michigan
$213
$2,551
Missouri
$101
$1,207
New Jersey
$159
$1,905
New York
$98
$1,173
North Carolina
$83
$1,060
Ohio
$77
$926
Pennsylvania
$120
$1,440
Tennessee
$116
$1,397
Texas
$135
$1,620
Virginia
$93
$1,114
Washington
$125
$1,499
Wisconin
$91
$1,087

How Much Car Insurance Do I Need?

The amount of car insurance you need really depends on your specific financial circumstances. There are 2 ways to determine how much car insurance you need to buy:

State Minimum Car Insurance

First, you need enough auto insurance to drive legally. Because each state has minimum car insurance requirements, your company will automatically guarantee that you follow state laws and buy at least the minimum amount. However, buying the minimum amount of liability coverage to satisfy your state’s laws is not adequate for all drivers.

Amount of Car Insurance You Should Have

If you are a young family living on a budget but working hard to secure your financial future, then we recommend a 50/100/50 split. This means you should buy $50,000 in bodily injury liability, $100,000 of total liability protection per accident, and $50,000 as a property damage liability limit. This amount of car insurance coverage should sufficiently protect you and your family’s assets.

If you are a middle-class family with savings, equity in your home, retirement accounts, and a growing net worth, then most insurance experts recommend 100/300/100 coverage. Fortunately for you, the cost of liability car insurance does not increase linearly or exponentially. The cost of 100/300/100 coverage is not twice as much as 50/100/50. With a car insurance quote, you will see that, once you have purchased the basic levels of protection, additional liability coverage costs a few dollars more a month.

In the end, how much auto insurance you need to buy should be a balance between how much you can afford and how much you need to protect yourself from losing everything.

Car Insurance Discounts

One benefit of an auto insurance comparison is that consumers can make sure they are receiving all the discounts for which they qualify. A quick list of car insurance discounts to look for includes:

  • Multiple Policies – bundling car insurance with other policies
  • Multiple Vehicles – insuring more than one vehicle with a company
  • Anti-Theft – systems or devices that prevent auto theft
  • Safe Driver – having a clean driving record
  • Defensive Driver – taking a defensive driving course
  • Military Members – limited to active members of the armed forces
  • Full Payment – paying your 6 or 12-month policy upfront
  • Good Student – student drivers with good grades
  • Customer Loyalty – staying with a company for a certain length of time
  • Low Mileage – driving less per year
  • Affinity – belonging to a certain association, group, occupation, company or university

As you can see, there are a number of discounts that can help keep your costs low.

Factors That Affect The Cost of Car Insurance

Drivers who really want the cheapest car insurance can be proactive and take steps to keep their premiums low. Some of the factors that affect the cost of car insurance include:

  • Gender and Age
  • Marital Status
  • Where You Live
  • Occupation
  • Driving History
  • Type of Vehicle, Make and Model
  • Auto Safety Ratings
  • Amount of Driving Activity

Driving History and Habits

It’s an obvious one, but since your driving history may be one of the biggest factors affecting your car insurance rates, it’s worth discussing. Drivers with clean records get the lowest premiums since auto insurance companies believe history tends to repeat itself. If you have a history of speeding violations or car accidents, it makes sense that an insurance company charges you more.

Other drivers, specifically teenage or young drivers, may simply be considered high risk because of their age and inexperience. However, don’t worry if you’ve been involved in a collision or gotten a speeding ticket recently – all incidents will eventually fall of your driving record.

On the positive side, your driving habits can also benefit you. Drivers with no accidents or traffic tickets in more than 3 years may be eligible for a “Good Driver” discount. Additionally, if you drive less than the average American, you may even qualify for a “Low Mileage” discount.

Choose The Right Car, Make and Model

The type of car you want to insure can have a huge impact on your cost of car insurance. Generally, the most expensive vehicles to insure are sports cars or luxury vehicles.

The lure of sports cars is speed and handling, leading car insurance companies to think that drivers of these vehicles are more likely to drive irresponsibly and be involved in accidents. On the other hand, luxury cars have higher insurance costs because repairs and damages require larger claim payouts.

Meanwhile, the cheapest cars to insure include SUVs, crossovers, minivans, and family sedans from car companies such as Toyota, Honda, Ford, or Chevy (GM). For example, the Ford Escape, Honda Odyssey, Honda CR-V, Jeep Wrangler, Toyota Sienna, and Honda Accord made our list of cheapest cars to buy insurance for.

If you’re in the market to buy a new car, you may want to consider the cost of car insurance in addition to your monthly car loan payment.

Safety Options

Although the specific safety options may vary between insurers, safer cars have always helped drivers save money on car insurance prices by preventing accidents and auto theft. If your vehicle comes with air bags, anti-lock brakes, a traction control system, passive restraints, a collision avoidance system, an alarm system or anti-theft device, you may be entitled to a discount.

Credit Scores

Everyone knows that banks and credit card companies offer the best interest rates to individuals with good credit scores; however, fewer consumers know that insurance companies have also started checking credit scores. The idea is that, since a high credit score indicates that a person is responsible with money and responsible behavior tends to carry over into other areas like driving, consumers with good credit histories are lower risk.

Location – Where You Live and Park Your Car

Where you live and park your car can make a big difference when it comes to your insurance premiums. Areas of high crime, especially vehicle theft, are higher risk and can increase your costs. Additionally, the weather in your city can affect the way insurance companies calculate rates.

Comprehensive car insurance covers damage due to theft, vandalism, fire, arson, floods, hurricanes, and other weather-related damages. To get the best car insurance rates, park your car in a secure garage instead of on the street.

How Gender Affects Car Insurance

Statistically, women drivers have fewer traffic violations and accidents than men of the same age. This is believed to be, in part, because females typically drive fewer miles per year than males. Families can use this information to their advantage by insuring the most expensive family car under the wife or woman’s name and making her the primary driver. You can test which combination will yield the most affordable rates when you are completing your car insurance quotes online.

Defensive Driving Classes

You may be able to save up to 10% on your premiums for 3 years just by taking a defensive driving course. The courses are available online and at driving schools, take about 8 hours to complete and cost between $30 and $50. Considering you may be able to save hundreds of dollars, driver’s education classes are a great investment to get you cheaper monthly premiums. However, before taking the course, drivers should check with their insurer and state’s DMV office to see if the school of their choice is accredited.

Car Insurance Quotes

Since car insurance is an ongoing, mandatory expense in the United States, drivers should take the time once a year to review auto insurance policies, compare rates, get discounts and make certain their premiums are the cheapest possible. MyCarInsurance123.com can help you complete a car insurance comparison. Just enter your zip code, pick a company, and compare car insurance from different carriers.