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How Much Average Car Insurance Costs In US? Get Instant Quotes

Cost Of Average Car Insurance

There are times when it’s better to drive an average car. Insurance for this category is not considered high risk. This is because it doesn’t cost more to repair or replace parts on an average car. The reason for this is that more average cars are manufactured each year than high-performance cars.

Insurance companies know that repairing the average car when it’s involved in an accident doesn’t cost an inordinate amount of money. If the car is stolen, it doesn’t cost as much as a high performance car to replace.

According to WalletHub’s 2022 analysis, the average cost of auto insurance is $716 per year, or about $60 per month for drivers with minimum coverage and a clean record. Individual tariffs may vary depending on factors such as driver’s license, age, vehicle type and credit history.

Average Car Insurance Rates

Average car insurance rates between drivers vary depending on each driver’s individual circumstances. For example, if you have a bad driving record, your rate will likely be higher than a person with a good driving record, all other things being equal. Your age, gender, location and vehicle type can also affect your car rates.

Average Car Insurance
Average Car Insurance

Average vehicle rates for younger people will be higher than for older people. Those under the age of 25 are considered risky to insure, making their car insurance rates higher. If you have a good driving license, your insurance premiums will be significantly cheaper from the age of 25.

Your location could also affect average car insurance premiums. For example, average insurance rates for people living in a congested metropolitan area like New York City will be higher than for people living in rural areas. Of course, with less traffic in rural areas, there is less chance of an accident.

Additionally, the type of car you drive can help increase or decrease average car insurance premiums. For example, a sports car with a powerful engine is considered a risk to be insured because it allows you to drive so fast. Conversely, a car with a small engine is considered less risky. In return, the car insurance rates are cheaper.

Average Cost Of Car Insurance By Category

  • Minimum insurance: $60 per month
  • Average Full coverage Car Insurance Cost : $166 per month
  • Drivers with a violation: $75 per month
  • Young drivers: $201 per month
  • Senior Drivers: $61 per month

The cost of average car insurance can be a good indication of how much a driver should expect for coverage.

Average Monthly Car Insurance Cost By Company

Each insurance company has its own algorithm for calculating premiums, so the same driver can get different premiums from different insurers. For this reason, drivers should always obtain quotes from at least three different insurers before purchasing a policy.

CompanyMonthly Cost for Minimum CostMonthly Cost for Full Coverage
Geico$42$140
AAA$48$177
USAA$53$167
Progressive$54$168
Travelers$58$199
Liberty Mutual$73$230
State Farm$77$218
Allstate$80$194
Nationwide$84$245
Farmers$89$243
Monthly Car Insurance Cost By Company

Average Car Insurance Rates By Age

Your age can affect your car insurance rates, as younger drivers with less driving experience tend to have more accidents than older, more mature drivers. As a result, they also pay more for car insurance.

Premiums typically decrease by 12% to 20% when a driver turns 25. After that, the average driver quota will gradually decrease over time until they reach 70. At this point, the cost increases again due to the increased risk posed by older drivers.

AgeAverage Annual Premium
16 Years$3,341
25 Years$862
45 Years$716
65 Years$734
Annual Insurance Cost By Age

Car Insurance Average Cost By Car Type

Sports cars are the most expensive to insure, followed by trucks. In general, the faster a car can go or the more expensive it is to repair or replace, the more it costs to insure.

Car Insurance Cost By Car Type
Car Insurance Cost By Car Type

Drivers often assume that a more expensive car will automatically cost more to insure than a cheaper car. However, this is not always the case. WalletHub’s analysis found that only 22% of the difference in insurance premiums for cars in the same category is due to the cost of the car. The remaining 78% depends on other factors such as body type, make and age of the car, which affect how much damage a car can do and how much it costs to repair.

Type Of CarAverage Annual Premium
Crossover / SUV$2,474
Sedan$2,734
Truck$2,804
Coupe$3,058
Average Car Insurance Cost By Car Type

Average Car Insurance Cost Per Month By Category Of Person

Because average car insurance per month are based on the driver’s expected level of risk for auto insurance and the likelihood of reporting damage, certain drivers will pay more than others. Students and youth tend to pay more for insurance due to their lack of experience, while married people are considered more stable and less willing to take risks, resulting in lower premium costs.

Seniors pay slightly more for car insurance than middle-aged drivers because, statistically speaking, seniors are more likely to be involved in serious road accidents.

CategoryAverage Monthly Premium
Seniors$61
Married Person$58
Single Person$60
Student$95
Teenager$215
Monthly Insurance Cost By Person Category

Average Cost For Car Insurance For Drivers With Bad Credit

Another factor auto insurance companies use to determine auto insurance premiums is your credit rating. In general, the better your credit score, the lower your auto insurance premiums. For drivers with bad credit, the national average rates are $2,524.

Although USAA is often the leader, Geico actually has the cheapest rates for drivers with bad credit. In fact, they’re more than $700 less than the national average. Nationwide, USAA, American Family Insurance, and Travelers also offer average rates that are below the national average.

CompanyAverage Cost For Bad Credit
Geico$1,810
Nationwide$1,837
USAA$1,869
American Family Insurance$2,233
Travelers$2,434
Average$2,757
Progressive$2,696
Farmers$2,960
Allstate$3,227
State Farm$3,654
AAA$4,854
Insurance Cost For Drivers With Bad Credit

Best Car Insurance Rates For Seniors

Car insurance rates for older drivers in their early 60s can go down a bit, but not always. The national median rates for seniors are $1,245 for women and $1,282 for men. USAA’s prices are the lowest, but for those who are not eligible, Geico’s prices may be the lowest.

The average premium for female drivers is $262 below the national average. Male drivers who choose Geico can save about $280. Female drivers can also find competitive prices at Nationwide, while male drivers should consider State Farm.

CompanyRate For 60 Year Old FemaleRate For 60 Year Old Male
USAA$853$856
Geico$1,049$1,085
State Farm$1,120$1,120
Travelers$1,165$1,211
American Family Insurance$1,205$1,214
Nationwide$1,080$1,161
Progressive$1,240$1,265
Farmers$1,668$1,754
Allstate$1,827$1,869
AAA$2,110$2,116
Average$1,331$1,365
Car Insurance Rates For Seniors

Average Cost Of Car Insurance Per Month In Your State

Car insurance rates vary based on several factors, including where you live. Average car insurance cost Florida has the most expensive plans with an average monthly rate of $199 and annual rate of $2,393, while New Hampshire has the cheapest plans with an average monthly rate of $78 and annual rate of $940.

Cost Of Average Car Insurance
Cost Of Average Car Insurance

The table below contains the average car insurance costs for each state and the District of Columbia. Keep in mind that these rates give a general idea of ​​what to expect but may not reflect what you are actually paying for your own car insurance.

The best way to find out how much you will pay for insurance for average car is to obtain and compare at least three car insurance quotes. Aside from estimating the cost of a policy, shopping locally can also help you find the cheapest coverage for you.

Average Price Of Car Insurance

According to the Insurance Information Institute (III), the average car insurance cost per month by age and state in 2018 was $1,057.

Average Car Insurance Rates By Coverage Level

Average Monthly Car Insurance Cost When it comes to protecting your car, we know everyone’s needs are different. That’s why we offer different types of car insurance. Full coverage helps you stay safe on the road. This is also one of the reasons why the average cost of car insurance varies from customer to customer.

In general, the higher your coverage limits, the higher your auto insurance premiums. For example, a policy that pays up to $50,000 for property damage will have a higher premium than one that only pays up to $25,000 for repairs.

Average Car Insurance Rates By State

The average car insurance rate varies by state. According to the Insurance Information Institute (III), Iowa has some of the cheapest auto insurance in the country at $674, while Louisiana had some of the most expensive at $1,443. That means your monthly premium will likely be somewhere in between, but that will depend on factors like your:

  • Government Required Insurance
  • Postal code
  • Frequency on the road

Average Car Insurance Rates By Age

Average Car Insurance Rates by Age and Gender Your car insurance rates also vary by age group. For example, auto insurance companies often view young drivers, such as teenagers, as a greater risk behind the wheel. This is partly because they have less driving experience.

In addition, car insurance tends to be more expensive for men than for women. 3 The longer you drive and the older you get, the cheaper car insurance rates are.

Additional Factors

Your insurance value and driving history also affect your average car insurance cost. For example, if you have a clean driving record, you’re likely to pay a lower monthly cost for insurance coverage.

To learn more, speak to our experts at 888-413-8970. Let us help you with the factors that determine your car insurance rate. You can also get a car insurance quote online today. Getting started is easy, all you have to do is enter your zip code.

Frequently Asked Question (FAQs)

How do I find the best car insurance rates?

Looking around is the best way to find the best car insurance rates. Be sure to compare offers from different insurance companies. You can also keep car insurance cheaper by maintaining a good credit history and clean driving record.

Will my car insurance cost be close to the average car insurance cost?

Although our study found average car insurance prices for a variety of customer groups, there are many individual factors that can make your rates lower or higher than those shown here. Our US News auto insurance guide can help you learn more about shopping to find the cheapest rates, discounts, and other cost-cutting opportunities.

Why should you trust us?

At U.S. News & World Report, we rank the best hospitals, best colleges and best cars to guide readers through some of life’s most complicated decisions. Our 360 Degree Reviews team uses the same unbiased approach to review insurance companies and agencies. The team does not keep samples, gifts or loans of products or services that we review. In addition, we maintain a separate business team that has no input into our methodology or recommendations.

What age group pays the most for car insurance?

Insurance companies typically charge more for drivers under the age of 25. If you are 50 years or older, you meet the minimum age requirements for AARP membership and may apply for coverage with The Hartford. Since 1984, The Hartford has helped nearly 40 million AARP members get the auto insurance they need through special benefits and discounts.