Average Cost of Car Insurance (July 2021)
Average Cost of Car Insurance (July 2021)
Car insurance costs may vary by hundreds, or even thousands of dollars, depending on your unique circumstances. Compare rates to find the best savings.
The average cost of a car insurance policy is $876 per year, or $73 per month, for a policy that meets the minimum requirements of each state. But the price of your policy will be unique to your situation.
Find Cheap Auto Insurance Quotes in Your Area
Because quotes vary for every individual, comparing rates is often the best way to find savings on car insurance. Our analysis — based on hundreds of thousands of quotes collected nationwide — backs that up.
We always recommend getting quotes from multiple auto insurers in order to find the rate most favorable to you. Get a quote now by clicking above, or read on to see how much average car insurance costs break down for you.
We compare average auto insurance rates by company, location, age and gender, vehicle make and model, accident history, DUI record, credit score and marital status. To find out how much car insurance costs by each of these attributes, make a selection from the drop-down menu.
How much does car insurance cost by company
Here we've listed average rates for full-coverage auto insurance and minimum-coverage auto insurance by company.
State Farm is the cheapest widely-available car insurance company for both minimum and full coverage.
Allstate is the most expensive on average for both policy types.
A minimum-coverage policy is the cheapest policy you can buy. As its name suggests, it only meets the minimum requirements for an auto insurance policy in any given state.
A full-coverage policy usually adds comprehensive and collision coverage to a minimum-coverage policy. It's not as cheap as minimum coverage, but provides you with more protection for your car. In this case, we've used full-coverage policies with extra liability coverage over state minimums, with details provided in the methodology.
Average costs increase by more than 174%, and rankings change slightly if you're looking for a full-coverage auto insurance policy.
Find Cheap Auto Insurance Quotes in Your Area
In the table below, you can see how average annual rates for 13 of the biggest auto insurers in the country compare based on online quotes we obtained for a sample 30-year-old driver.
Click on a company name to read our full review.
Rank | Company | Full-coverage rate | Minimum-coverage rate |
|---|---|---|---|
| 1 | USAA | $1,288 | $447 |
| 2 | Erie | $1,612 | $390 |
| 3 | State Farm* | $1,623 | $617 |
| 4 | Farm Bureau Mutual | $1,742 | $502 |
| 5 | Geico* | $2,017 | $780 |
| 6 | American Family | $2,135 | $773 |
| 7 | Auto-Owners Insurance | $2,192 | $1,027 |
| 8 | Nationwide* | $2,201 | $931 |
| 9 | Progressive* | $2,321 | $789 |
| 10 | MetLife* | $2,379 | $906 |
| 11 | Travelers* | $3,002 | $1,246 |
| 12 | Farmers* | $3,582 | $1,107 |
Insurers with an asterisk offered quotes in at least 20 states.
Average car insurance rates by state
Location is an important factor in determining auto insurance rates. Insurance is regulated at the state level, and even within a state, drivers in different ZIP codes can be priced differently.
Consult the following table for the average annual cost of insurance in your state — and how it compares to other states — for both full-coverage policies and policies that only meet minimum state requirements.
How much auto insurance costs in each state
Rank | State | Full coverage | Min coverage | Difference |
|---|---|---|---|---|
| 1 | Michigan | $9,071 | $5,740 | $3,332 |
| 2 | Rhode Island | $3,589 | $1,375 | $2,215 |
| 3 | Louisiana | $3,546 | $1,128 | $2,418 |
| 4 | Florida | $3,230 | $2,361 | $869 |
| 5 | Colorado | $3,120 | $865 | $2,256 |
| 6 | Arizona | $3,071 | $1,234 | $1,837 |
| 7 | Nevada | $3,061 | $1,033 | $2,029 |
| 8 | Kentucky | $2,907 | $1,549 | $1,357 |
| 9 | Delaware | $2,883 | $1,200 | $1,683 |
| 10 | New Jersey | $2,809 | $812 | $1,997 |
| 11 | New York | $2,777 | $1,373 | $1,404 |
| 12 | Connecticut | $2,753 | $1,165 | $1,588 |
Rates are the average annual premium for a policy across insurers.
Cheapest states for minimum-coverage car insurance
State | Cost per year | Cost per month |
|---|---|---|
| Iowa | $408 | $34 |
| Wyoming | $410 | $34 |
| South Dakota | $424 | $35 |
Most expensive states for minimum-coverage car insurance
State | Cost per year | Cost per month |
|---|---|---|
| Michigan | $5,740 | $478 |
| Florida | $2,361 | $197 |
| Kentucky | $1,549 | $129 |
Shoppers who want greater protection against property damage to their vehicle may consider purchasing full-coverage auto insurance.
Cheapest states for full-coverage car insurance
State | Cost per year | Cost per month |
|---|---|---|
| Maine | $1,285 | $107 |
| Indiana | $1,485 | $124 |
| North Carolina | $1,506 | $126 |
Most expensive states for full-coverage car insurance
State | Cost per year | Cost per month |
|---|---|---|
| Michigan | $9,071 | $756 |
| Rhode Island | $3,589 | $299 |
| Louisiana | $3,546 | $296 |
How much car insurance rates cost by age and gender
For example, an 18-year-old driver pays more than twice as much as a 25-year-old driver for auto insurance with all other factors held equal. Average rates gradually decrease with each year at young ages.
Auto insurance quotes also vary depending on the driver's age and their years of experience. Young and inexperienced drivers tend to be more dangerous behind the wheel, which is why insurance companies charge them higher auto insurance rates.
Annual Full Coverage Car Insurance Quotes by Age
Average annual car insurance costs can decrease significantly between the ages of 18 and 25, as insurers tend to evaluate older drivers as both less risky and likely to file a claim.
Among drivers that are 30 or older, auto insurance rates vary little by gender. But among younger drivers, males can be charged 10% or more than their female counterparts.
Driver profile | Annual auto insurance premium |
|---|---|
| 18-year-old female | $7,030 |
| 18-year-old male | $7,762 |
Why is this the case? Insurance companies look at data trends showing that in comparison to young women, young men tend to:
- Drive more often
- Receive more speeding tickets
- Be involved in more accidents
- Receive more DUI convictions
Because of the increased likelihood that the car insurance company will have to pay out for a claim by insuring these drivers, they often charge young men more for coverage.
These differences in rates do not hold true in all states, however. The following states preclude insurers from using gender when setting auto insurance rates.
- California
- Hawaii
- Massachusetts
- Parts of Michigan
- Montana
- North Carolina
- Pennsylvania
This means that males and females in the state will pay the same amount for car insurance in those locations, provided all other factors affecting rates are equal.
How much is the average cost of car insurance by vehicle make and model?
Car insurance costs can differ based on vehicle make and model.
We found that rates for the latest Mazda, the 2021 Mazda MX-5 Miata Club, was the cheapest when compared to the most recent base models of the country's top-selling vehicles.
Model | Average annual rate | MSRP |
|---|---|---|
| 2021 Ford F-150 XL | $3,263 | $28,940 |
| 2021 Honda Civic EX | $3,245 | 21,250 |
| 2021 Toyota RAV4 LE | $3,093 | $26,250 |
| 2021 Mazda MX-5 Miata Club | $3,083 | $30,290 |
| 2021 Dodge Grand Caravan GT | $3,168 | $32,595 |
| 2021 Nissan Rogue S | $3,257 | $25,750 |
| 2021 Kia Niro EX | $3,344 | $24,690 |
| 2021 Toyota Camry L | $3,384 | $24,970 |
| 2021 Tesla Model 3 | $4,407 | $37,490 |
Rates are the average annual premium for a full coverage policy.
Cars and trucks with higher Manufacturer Suggested Retail Prices (MSRPs) can have higher costs to insure than cheaper cars, but this is not universally the case. As our data shows, the Ford F-150 has the cheapest annual insurance premium, despite having a higher MSRP than many other vehicle models. Superior safety features and a lower chance of a total loss may be contributing factors in making bigger, more expensive cars cheaper to insure.
Average cost of car insurance before and after an accident
Insurance companies price their policies based on risk, and a driver who has a history of accidents may be charged higher rates.
Among our sample insurers, insurance rates rose by 42% on average after an accident.
MetLife saw the largest increase in insurance rates, with premiums going up by almost 70% for a driver with one at-fault accident on his record. Conversely, Travelers penalized drivers the least after one crash. Its rates increased by only 20% for our sample driver.
Drivers who have a history of accidents or traffic violations should take special care to shop around for auto insurance policies. Your combination of accident history, vehicle, location and other factors may be priced entirely differently with another insurance company, and switching to an equivalent policy with a rival insurer has the potential to save you hundreds of dollars per year.
Company | Clean record | One accident | Percentage increase |
|---|---|---|---|
| Erie | $1,612 | $2,010 | 25% |
| State Farm* | $1,623 | $2,020 | 24% |
| Farm Bureau | $1,742 | $2,325 | 33% |
| Geico* | $2,017 | $3,194 | 58% |
| American Family | $2,135 | $3,260 | 53% |
| Auto-Owners | $2,192 | $2,750 | 25% |
| Nationwide* | $2,201 | $3,292 | 50% |
| Progressive* | $2,321 | $3,569 | 54% |
| MetLife* | $2,379 | $4,003 | 68% |
| Travelers* | $3,002 | $3,610 | 20% |
| Farmers* | $3,582 | $5,031 | 40% |
| Allstate* | $3,585 | $5,488 | 53% |
Rates are an annual average for our sample driver with a full-coverage policy.
Average cost of auto insurance for drivers with a DUI on their record
Insurers generally charge drivers with a DUI history higher rates due to the increased risk of accidents associated with such behavior.
Drivers with a DUI history pay 72% more on average for car insurance compared to drivers with a clean record. Applied to our national average, this means drivers with a DUI pay $1,823 more per year for car insurance.
In our analysis, North Carolina saw the largest relative increase in insurance rates, with premiums going up by almost 300% for a driver with a DUI on his record. Conversely, Florida penalized drivers the least after a DUI. Its rates increased by only 27% for our sample driver.
Drivers who have a history of driving under the influence or while intoxicated should consider comparing quotes from multiple carriers. Your record may be assessed differently across insurers, so getting several rates can help you find savings.
State | Clean record | DUI on record | Percentage increase |
|---|---|---|---|
| Michigan | $9,071 | $27,120 | 199% |
| Rhode Island | $3,589 | $7,550 | 110% |
| North Carolina | $1,506 | $6,020 | 300% |
| Hawaii | $1,763 | $5,652 | 221% |
| Connecticut | $2,753 | $5,553 | 102% |
| Louisiana | $3,546 | $5,183 | 46% |
| California | $1,817 | $5,153 | 184% |
| Nevada | $3,061 | $4,897 | 60% |
| Kentucky | $2,907 | $4,874 | 68% |
| Texas | $2,653 | $4,565 | 72% |
| Colorado | $3,120 | $4,509 | 45% |
| New Jersey | $2,809 | $4,488 | 60% |
Rates are an annual average for our sample driver with a full-coverage policy.
How much does car insurance cost for drivers with good credit?
Drivers with good credit are considered lower risk by insurance companies and, as a result, can receive substantial savings on their auto insurance policies.
We found that if our sample driver had an excellent credit history, he received an average discount of 49% on his annual premium compared to if he had poor credit history, across our sample insurers.
Company | Poor credit | Very good credit | Discount |
|---|---|---|---|
| USAA | $1,937 | $997 | 49% |
| Geico | $2,386 | $1,445 | 39% |
| Farm Bureau Mutual | $2,452 | $1,368 | 44% |
| Nationwide | $2,665 | $1,679 | 37% |
| State Farm | $2,679 | $953 | 64% |
| American Family | $2,706 | $1,556 | 43% |
| Auto-Owners Insurance | $2,834 | $1,326 | 53% |
| Erie | $2,984 | $1,116 | 63% |
| Progressive | $3,222 | $1,613 | 50% |
| Farmers | $3,567 | $2,196 | 38% |
| Allstate | $3,853 | $2,275 | 41% |
| Travelers | $3,994 | $1,570 | 61% |
Rates are an annual average for our sample driver with a full-coverage policy.
State Farm gave our sample driver the biggest discount for excellent credit, more than halving his quote, while Nationwide had the smallest discount, and as a consequence ranked as the most expensive insurer for our sample driver with excellent credit.
How much does marital status affect average auto insurance costs?
Insurers usually charge single drivers more for car insurance than married individuals. Married drivers are often seen as more financially stable and risk averse, and are therefore charged lower rates than single drivers.
In the 10 largest U.S. states, single drivers tended to pay $123 more for full-coverage auto insurance per year compared to married drivers.
Annual full-coverage car insurance quotes by marital status
State | Single | Married |
|---|---|---|
| Michigan | $9,071 | $9,071 |
| Rhode Island | $3,589 | $3,454 |
| Louisiana | $3,546 | $2,968 |
| Florida | $3,230 | $3,071 |
| Colorado | $3,120 | N/A |
| Arizona | $3,071 | $2,776 |
| Nevada | $3,061 | $2,891 |
| Kentucky | $2,907 | $2,768 |
| Delaware | $2,883 | $2,828 |
| New Jersey | $2,809 | $2,710 |
| New York | $2,777 | $2,723 |
| Connecticut | $2,753 | $2,626 |
Rates are the average annual premium for a full-coverage policy.
What else can affect average car insurance rates?
We've discussed how the following factors affect your car insurance premiums:
- Company
- State of residence
- Policy coverage
- Age
- Vehicle type
- Accident and credit history
But there are even more factors that can affect how much your car insurance costs:
- Driving experience
- Location within a state
- Insurance and claims history
- Mileage
- Discounts
If you're a 30-year-old who's held an insurance policy and been licensed since they were 16, you're likely to get a cheaper rate than another 30-year-old who just took up driving.
Driving experience: Age affects car insurance rates, but so does the number of years you've been insured.
Location within a state: Auto insurance is regulated differently in each state, leading to average prices for a full-coverage policy ranging from just under $1,300 (Maine) to over $8,700 (Michigan). But even within a state, insurers considered certain locations — or territories, in insurance terms — to be higher risk.
If you live in an area an insurer considers higher risk due to its rate of crashes, weather or crime, you may be subject to a higher rate than an equivalent driver living elsewhere.
Insurance and claims history: If you've maintained continuous auto insurance coverage, your insurer will be more confident that you've protected yourself and will usually charge a lower rate. Likewise, if you have a history of holding auto insurance policies without filing claims, you'll get cheaper rates than someone who has filed claims in the past.
Mileage: Cars that are driven less frequently are less likely to be involved in a crash or other damaging event. Vehicles with lower annual mileage may qualify for slightly lower rates.
Discounts: Auto insurance companies offer a variety of discounts for those who take steps to become safer drivers or demonstrate responsible behavior. For example, adults can take defensive driving lessons, while young adults can qualify for good student discounts.
Forget the averages, how much does auto insurance cost for me?
Our estimates are a good starting point, but the only way to find the cheapest — and best-fitting — car insurance for you is to obtain quotes and shop around for options, either with your own research or by talking to an agent or broker. How expensive or cheap your policy will be depends on how your profile fits the factors we've discussed.
To find the best car insurance for you, you should:
- Comparison shop online, or
- Talk to an insurance agent or broker.
You can shop for car insurance yourself online, but be sure to keep track of the coverages selected by you and offered by insurers to make a fair comparison.
Alternatively, you can talk to an insurance agent or insurance broker who can help you find the best combination of price and fit. You should be aware, however, that agents and brokers operate on commission paid by the insurers themselves. Independent agents work for multiple insurance companies and can compare among them, whereas captive agents work for only one insurance company.
Given the different rating methodologies and factors used by insurers, no single insurance company will be best for everyone. To get a better understanding of your typical car insurance cost, spend some time comparing quotes across companies with your chosen method.
Methodology
We collected quotes across 50 states and the District of Columbia for 51 insurance companies. Although 51 insurance companies were included in the analysis, insurance company rates were only included in our company lists if their policies were available in at least five states.
Our base driver was a 30-year-old male who drove a 2015 Honda Civic EX, and quotes were drawn from all available ZIP codes in each state. The driver was profiled as having no credit history, which makes him equivalent to a driver with below-fair to poor credit, according to our data source, Quadrant Information Services.
When our driver had a full-coverage policy, we gave him coverage limits slightly above any one state's minimum requirements.
Full-coverage policy
Coverage type | Study limits |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Property damage liability | $25,000 per accident |
| Uninsured/underinsured motorist BI | $50,000 per person/$100,000 per accident |
| Comprehensive and collision | $500 deductible |
| Personal injury protection | Minimum, when required by state |
Our rates for minimum-coverage policies represent the average cost of a policy that meets any state's minimum required auto insurance coverage.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.