Average Cost of Car Insurance (2023)
Average Cost of Car Insurance (2023)
The average cost of car insurance is $58 per month, or $693 per year, for a minimum-coverage policy.
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Key factors for car insurance costs
- Michigan is the most expensive state for car insurance, at $196 per month for minimum coverage. South Dakota has the cheapest average rate, at $28 per month.
- Auto-Owners is the cheapest major company for car insurance, with an average rate of $36 per month for minimum coverage. State Farm is the cheapest nationally, at $41 per month.
- Young men pay 13% more for car insurance than women, while 18-year-olds pay more than twice as much as 25-year-olds.
- An at-fault accident will raise your insurance rates by an average of 49%, and a DUI will raise rates by 83%.
- Married drivers pay about $8 less per month for auto insurance than single drivers.
Average cost of car insurance by state
Michigan has the most expensive auto insurance quotes, while South Dakota has the cheapest minimum-coverage policies.
Your location is an important factor for auto insurance rates. Your cost can change depending on your state, city and ZIP code. The average monthly car insurance rates vary by state for both full-coverage policies and minimum-coverage policies.
How much auto insurance costs in each state
State | Liability only | Full coverage |
|---|---|---|
| South Dakota | $28 | $148 |
| Wyoming | $31 | $126 |
| Vermont | $32 | $92 |
| Idaho | $34 | $99 |
| Iowa | $34 | $127 |
Cheapest states for full-coverage car insurance costs
- Vermont: $92 per month
- Maine: $93 per month
- Idaho: $99 per month
Most expensive states for full-coverage car insurance costs
- Michigan: $399 per month
- Florida: $238 per month
- Rhode Island: $229 per month
How much does car insurance cost by company?
Minimum-coverage car insurance costs $36 per month from Auto-Owners, the cheapest widely available car insurance company.
Farmers has the most expensive car insurance prices for both minimum- and full-coverage car insurance.
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A minimum-coverage policy is the cheapest policy you can buy because it only meets the minimum requirements for an auto insurance policy in that state.
A full-coverage auto insurance policy includes comprehensive and collision coverage in addition to liability. Full-coverage insurance costs 156% more but covers you for nearly anything that could happen to your car.
Monthly car insurance costs by company
Minimum coverage
Full coverage
Company | Monthly rate | |
|---|---|---|
| Auto-Owners | $36 |
| Erie | $39 |
| State Farm | $41 |
| Farm Bureau Insurance | $43 |
| Geico | $52 |
Minimum coverage
Company | Monthly rate | |
|---|---|---|
|
| Auto-Owners | $36 |
|
| Erie | $39 |
|
| State Farm | $41 |
|
| Farm Bureau Insurance | $43 |
|
| Geico | $52 |
Full coverage
Company | Monthly rate | |
|---|---|---|
|
| State Farm | $99 |
|
| Erie | $101 |
|
| Auto-Owners | $120 |
|
| Farm Bureau Insurance | $134 |
|
| Geico | $140 |
How much car insurance costs by age
Young drivers will pay more for car insurance, as auto insurance quotes are based on the driver's age and years of experience. Men also tend to pay more than women for coverage.
Young and inexperienced drivers tend to get in more accidents behind the wheel, which is why they have higher auto insurance rates.
An 18-year-old driver pays more than twice as much for auto insurance as a 25-year-old driver.
Average annual car insurance costs can decrease significantly between the ages of 18 and 25, as insurance companies tend to evaluate older drivers as both less risky and less likely to file a claim. Average insurance rates gradually decrease each year until a driver reaches age 55.
Full coverage car insurance costs by age
Average car insurance costs by gender
Among drivers who are 30 or older, auto insurance rates vary little by gender. But among younger drivers, men can be charged 13% higher insurance rates than women. Nonbinary drivers pay slightly more than women.
Monthly full coverage insurance rates
Driver | Monthly rate |
|---|---|
| Woman | $126 |
| Nonbinary driver | $129 |
| Man | $142 |
Rates are based on a 20-year-old driver
Why do men have more expensive car insurance?
Insurance companies look at data trends showing that in comparison to young women, young men are more likely to:
- Drive more often
- Have more speeding tickets
- Get in more accidents
- Receive more DUIs
Insurers often charge young men more for coverage because these drivers could be more likely to file claims.
A few states prevent insurance companies from using gender when setting auto insurance prices. This means that male and female drivers in the state will pay the same rates for car insurance in those locations, if all other factors affecting rates are equal.
- California
- Hawaii
- Massachusetts
- Michigan
- Montana
- North Carolina
- Pennsylvania
How much is the average cost of car insurance by car make and model?
The Honda CR-V is the cheapest car model to insure among the country's top-selling cars. Your car insurance costs will differ considerably based on your vehicle make and model.
Full coverage insurance rates by model
Model | Monthly rate | MSRP |
|---|---|---|
| Honda CR-V | $156 | $26,800 |
| Ford F-150 | $164 | $31,520 |
| Ford Escape | $167 | $27,185 |
| Ford Bronco | $167 | $28,815 |
| Toyota RAV4 | $172 | $27,575 |
Cars and trucks with higher values or MSRPs can have higher insurance costs than cheaper cars, but this is not universally the case. The Ford F-150 has the second-cheapest annual insurance rate, 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 after an accident
The average insurance rate after an at-fault accident is $220 per month, an increase of 49% compared to a clean record.
State Farm penalizes drivers the least after one crash, with only a 26% rate increase. Geico has the largest increase in insurance rates, with premiums going up by 70% for a driver with one at-fault accident on their record.
Car insurance prices are based on risk, and a driver with a history of accidents typically pays more for car insurance.
Monthly full coverage car insurance quotes after an accident
Company | Accident |
Increase
| |
|---|---|---|---|
|
| State Farm | $125 | 26% |
| USAA | $125 | 37% |
|
| Erie | $128 | 27% |
|
| Auto-Owners | $154 | 28% |
|
| Farm Bureau | $177 | 32% |
Drivers who have a history of accidents or traffic violations should shop around for auto insurance quotes. Your combination of accident history, vehicle, location and other factors may be priced differently with another insurance company, and switching to an equivalent policy with a different company has the potential to save you hundreds of dollars per year.
Average cost of auto insurance for drivers with a DUI
Drivers with a DUI pay 83% more on average for car insurance compared to drivers with a clean record. That's $1,484 more per year for car insurance.
North Carolina has the largest relative increase in insurance rates, with premiums going up by more than 255% for a driver with a DUI. Pennsylvania insurance companies penalize drivers the least after a DUI, where rates increase by only 48%.
Insurance companies generally charge drivers with a DUI history higher rates due to the increased risk of accidents associated with such behavior.
Drivers with a history of driving under the influence or while intoxicated should consider getting free car insurance quotes from multiple companies. Your record may be assessed differently across insurers, so getting several rates can help you find savings.
Monthly full coverage car insurance costs with a DUI
State | DUI |
Increase
|
|---|---|---|
| Pennsylvania | $183 | 48% |
| Colorado | $249 | 48% |
| Nebraska | $212 | 49% |
| Oklahoma | $247 | 52% |
| Arizona | $245 | 53% |
How much does car insurance cost for drivers with good credit?
The average car insurance cost is 42% less for drivers with a good credit history compared to drivers with poor credit.
State Farm offers the best overall rate and best price break for drivers with good credit. Farmers has the highest rates for drivers with poor credit, while Nationwide has the smallest discount for those with good credit.
Drivers with good credit have a lower risk of filing claims, according to insurance companies. As a result, they can receive substantial savings on their auto insurance costs.
Full coverage car insurance costs by credit score
Company | Poor credit | Good credit | Discount |
|---|---|---|---|
| State Farm | $241 | $99 | 59% |
| Auto-Owners | $290 | $120 | 59% |
| Erie | $232 | $101 | 56% |
| Travelers | $268 | $146 | 46% |
| USAA | $162 | $91 | 44% |
How much does marital status affect average car insurance costs?
Single drivers tend to pay $8 more for full-coverage auto insurance per month compared to married drivers.
Insurers usually charge single drivers more for car insurance than married drivers. Married drivers are often seen as more financially stable and risk-averse and therefore are charged lower rates than single drivers.
Monthly full coverage car insurance by relationship status
State | Single | Married | Discount |
|---|---|---|---|
| Virginia | $118 | $106 | 11% |
| Arkansas | $138 | $124 | 11% |
| Missouri | $154 | $139 | 11% |
| California | $146 | $132 | 11% |
| South Carolina | $136 | $123 | 11% |
A few states, including Hawaii, Massachusetts and Montana, do not allow marital status to factor into insurance rates.
What other factors can affect average car insurance costs?
The primary factors that have the biggest impact on your car insurance rates include:
- Company
- State
- 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
- Address and ZIP code
- Insurance and claims history
- Annual mileage
- Discounts
Driving experience: Age affects your car insurance cost, but so does the number of years you've been insured and driving. A 30-year-old who's had an insurance policy and been licensed since they were 16 should get cheaper car insurance prices than a 30-year-old who just took up driving.
Location within a state: Auto insurance is regulated differently in each state, leading to average monthly prices for a full-coverage policy ranging from just $92 (Vermont) to nearly $400 (Michigan). But even within a state, insurance companies consider certain locations — or territories, in insurance terms — to be higher risk.
If you live in an area that's considered to be higher risk due to car crashes, weather or crime, you may have a higher rate than an equivalent driver living elsewhere.
Insurance history: If you've maintained continuous auto insurance coverage, your insurance company will be more confident that you've protected yourself and will usually charge a lower rate.
Claims history: You'll get cheaper rates than someone who has filed auto insurance 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.
How much does auto insurance cost for me?
You can start with personalized car insurance calculators, but the only way to find the cheapest and best car insurance for you is to get prices and shop around for options, either with your own research or by talking to an agent or broker. The cost of your policy will depend on factors like your car, age, gender and location.
To find the best car insurance for you, you should comparison shop online or talk to an insurance agent or broker.
When you shop for car insurance online, make sure you're comparing the same amount of coverage and the same features to make an apples-to-apples comparison between companies.
Alternatively, you can talk to an insurance agent or insurance broker who can help you find the best combination of price and fit. Agents and brokers operate on commissions paid by the insurance companies themselves. Independent agents work for multiple insurance companies and can compare among them, while captive agents work for only one insurance company.
Frequently asked questions
What's the average cost of car insurance per month?
The national average cost of insurance is $58 per month for minimum coverage, or $693 per year. Your rate will vary based on where you live, what kind of coverage you have and your driving history.
What is the cheapest car insurance company?
The cheapest major insurance companies are Auto-Owners, Erie, State Farm and USAA. USAA tends to have the best prices, but it's only available to people who have served in the military and their families. State Farm is more widely available and also has affordable rates, while Auto-Owners and Erie are regional options available in certain states.
How much more expensive is full-coverage car insurance?
Depending on your car and driving history, full-coverage insurance is typically more than two times the cost of liability-only coverage. This includes collision coverage, which pays for damage to your car in a crash, and comprehensive coverage, which covers other forms of damage like hail.
How much does a car cost per month including insurance?
The monthly cost of your car, including insurance, will vary based on your car's gas mileage and the cost of repairs. The average cost of insurance is $58 per month for minimum coverage and $148 for full coverage, but that will also vary depending on your vehicle, driving record, background and location.
Is $200 a lot for car insurance?
Yes, $200 per month is a lot for car insurance. Only four states have average rates for full coverage higher than $200 per month, and no state has average rates that high for minimum coverage.
Does my car insurance cost go down after my car is paid off?
No. Your car insurance rates are not determined by how much you still owe on your car. However, once your car is paid off, you are free to drop comprehensive and collision coverage, which will lower your rates but also means you'd have less coverage after an accident.
How much does car insurance cost for a beginner?
A 16-year-old driver pays an average of $584 per month for full coverage for their own policy. Young drivers will usually pay less than that, as they are often on their parents' insurance.
Methodology
We collected quotes across all 50 states and the District of Columbia for 37 insurance companies. Quotes are for a 30-year-old man who drives a 2015 Honda Civic EX with good credit.
Unless otherwise specified, rates are for a full-coverage policy, with limits above any one state's minimum requirements.
Full-coverage policy
Coverage | Limit |
|---|---|
| Bodily injury (BI) liability | $50,000 per person/$100,000 per accident |
| Property damage (PD) 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 |
Rates for young drivers and by gender are from every ZIP code in Illinois, Pennsylvania, Texas and Georgia. Rates by car model are from Texas.
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.