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
- The average cost of car insurance by state ranges from $196 per month in Michigan to $28 per month in South Dakota.
- Auto-Owners is the cheapest car insurance company, with an average rate of $36 per month for minimum coverage.
- Teen drivers have the highest rates, with 18-year-olds paying more than twice as much as 25-year-olds.
- Rates increase by an average of 49% if you cause a car accident and by 83% after a DUI.
- 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. 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- 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
- Vermont: $92 per month
- Maine: $93 per month
- Idaho: $99 per month
Most expensive states for full-coverage car insurance
- 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 quotes for both minimum- and full-coverage car insurance.
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A minimum-coverage policy is the cheapest policy you can buy. It only meets the minimum requirements for an auto insurance policy in that state.
A full-coverage auto insurance policy costs 156% more than minimum coverage. But full coverage includes liability protection (to pay for property damage to other cars and injuries to other people) and comprehensive and collision coverage (to pay for damage 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 because rates are based on the driver's age and years of experience.
New 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 drop quickly between the ages of 18 and 25, as insurance companies see older drivers as both less risky and less likely to file a claim. Average insurance rates drop slowly each year between age 25 and 55.
Full coverage car insurance costs by age
Average car insurance costs by gender
For drivers who are 30 or older, auto insurance rates vary little by gender. But among younger drivers, men pay 13% more than women. Nonbinary drivers pay slightly more than women.
Monthly full-coverage insurance rates
Driver | Monthly rate |
|---|---|
| Woman | $126 |
| Nonbinary | $129 |
| Man | $142 |
Rates are based on a 20-year-old driver
Why do men have more expensive car insurance?
Insurance companies often charge young men higher rates than young women because they're more likely to file claims. Insurance companies have stats that show young men are more likely to:
- Drive more often
- Get more speeding tickets
- Get in more accidents
- Get more DUIs
A few states prevent insurance companies from using gender when setting auto insurance prices. This means that male, female and nonbinary drivers in these states will pay the same rates for car insurance, if all other factors 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 can change widely based on the vehicle's 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 usually cost more to insure than cheaper cars. But there are exceptions. The Ford F-150 has the second-cheapest annual insurance rate, despite costing more than many other vehicle models.
Better safety features and a lower chance of a total loss may make some big or expensive cars cheaper to insure.
Average cost of car insurance after an accident
The average insurance rate after you cause a car accident is $220 per month. That's an increase of 49% compared to a clean driving record.
With State Farm, rates increase by only 26% after a crash. Geico has the biggest cost increase, 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 tickets should compare car insurance quotes from multiple companies. Your combination of accident history, vehicle, location and other factors will be priced differently by each company. By switching companies, you could keep the same amount of coverage and still save hundreds of dollars per year.
Average cost of auto insurance for drivers with a DUI
Drivers with a DUI on their records pay 83% more on average for car insurance compared to drivers with clean records. That's $1,484 more per year.
North Carolina has the largest increase in rates, with prices going up by more than 255% after a DUI. For Pennsylvania drivers, rates only increase 48% after a DUI.
Insurance companies generally charge drivers with a DUI history higher rates because of the higher chance of causing an accident.
Drivers with a history of drunk driving should consider getting free car insurance quotes from multiple companies. Your record may be rated differently by each company, so getting several rates can help you save.
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.
If you have good credit, State Farm offers the best overall rate and best discounts.
If you have poor credit, consider Geico, which has cheap prices, and avoid Farmers, which has high rates.
Drivers with good credit have a lower risk of filing claims, according to insurance companies. As a result, they can get cheaper auto insurance rates.
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?
Whether you're married has a small impact on the cost of car insurance. Single drivers tend to pay $8 more for full-coverage auto insurance per month compared to married drivers.
Married drivers are often seen as more financially stable and risk averse, which is why they get cheaper car insurance.
Monthly full-coverage car insurance for single vs. married drivers
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 factors that have the biggest impact on your car insurance rates are:
- Company
- State
- Policy coverage
- Age
- Vehicle type
- Accident and credit history
Other factors that can affect your car insurance costs are:
- 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 started driving.
Location within a state: Within a state, insurance companies consider certain locations to be higher risk. If you live in an area that has more car crashes, weather damage or crime, you may pay more than the same driver living elsewhere.
Insurance history: If you've had continuous auto insurance coverage, your insurance company will usually charge a lower rate.
Claims history: A clean driving record means you'll get cheaper rates than someone who has filed auto insurance claims in the past.
Mileage: Cars that are driven less often 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 discounts if you take steps to become a safer driver or demonstrate responsible behavior. For example, adults can take defensive driving lessons, while teen drivers can qualify for good student discounts.
How much does auto insurance cost for me?
You can start by using a free online car insurance calculator. But the only way to find the cheapest and best car insurance for you is to shop around for options and get prices.
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 get a commission from the insurance companies when they send a new customer. 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, or $693 per year, for minimum coverage. 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. State Farm is widely available and a good choice for most people. Auto-Owners and Erie are only available in certain states. USAA is often the cheapest, but it's only available to those in the military and their families.
How much more expensive is full-coverage car insurance?
Depending on your car and driving history, full-coverage insurance is typically twice 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.
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 can drop comprehensive and collision coverage. This will lower your rates, but you'll have less coverage if your car is damaged.
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 who are on their parents' insurance will pay less than that.
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 with good credit who drives a 2015 Honda Civic EX.
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.