Average Auto Insurance Cost
The average auto insurance cost varies by state. According to the National Association of Insurance Commissioners, the national average for full coverage auto insurance is $1,030 per year or $86 per month. However, auto insurance rates can be more expensive, depending on the company and several other factors determining car insurance. In this guide, we'll show you how different factors change the cost of auto insurance. Read on to learn more.
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UPDATED: Dec 2, 2020
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- Liability auto insurance is usually more expensive than collision and comprehensive coverage.
- A clean driving record and good credit score could save you hundreds on auto insurance.
- The type of vehicle you drive can determine your auto insurance rate.
- Teens and young adults pay the most for auto insurance.
You're on your way to purchase a car, but you want to know the average auto insurance cost before you make your final decision. We're here to help. The average auto insurance cost varies by state, vehicle, age, and gender.
Our guide will break down all the factors that determine auto insurance reveal the average cost of each. You'll see rates from the best auto insurance companies and the average cost of essential auto insurance coverage.
If you want to see auto insurance quotes specifically for you, enter your ZIP code in the FREE comparison tool above.
Average Auto Insurance Cost
Although we don't have a car insurance cost calculator, we have some reliable research you can use when you're shopping for insurance. Each year, the National Association of Insurance Commissioners (NAIC) compiles data of the latest insurance rates from participating insurance companies. Within that data, we calculated the national average for auto insurance. Here's a review of the average auto insurance cost in the United States.
|Coverage Types||Average Annual Coverage Rates||Average Monthly Coverage Rates|
Liability, on average, is more expensive than collision and comprehensive coverage. When liability, collision, and comprehensive coverage combined, they're known as full coverage. Some auto insurance companies may not call it full coverage.
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Factors that Determine Auto Insurance
Average Auto Insurance Cost by State
So how do we find the national average from NAIC's data? Here are the average annual rates of essential coverages of each state.
|States||Average Annual Liability Rates||Average Annual Collision Rates||Average Annual Comprehensive Rates||Average Annual Full Coverage Rates|
|District of Columbia||$663||$471||$231||$1,364|
Idaho has the cheapest auto insurance in the United States, while Louisana has the most expensive auto insurance rate. The average car insurance cost in California is less expensive than the average auto insurance cost in Michigan.
Average Auto Insurance Cost by Company
The company you're with can determine the average cost of car insurance. Some companies have auto insurance rates that are thousands of dollars more expensive than NAIC's national average and even higher than the state national average.
Auto insurance discounts can save you hundreds and bring your car insurance rates down to the average you see from NAIC.
Let's look at the cost of car insurance by the top companies in the United States.
|Companies||Average Annual Auto Insurance Rates|
USAA, Geico, and State Farm are the cheapest auto insurance companies you can choose. However, these car insurance companies have car insurance rates that vary by state.
Average Auto Insurance Cost by Age and Gender
Before we move on with this section, watch this video on tips on how you can get cheaper car insurance for teens.
As of 2020, only 43 states in the USA allow auto insurance to be based on gender. The states that have banned gender-based car insurance rates are:
- Michigan (added in 2020)
- North Carolina
It's still good to know how much you'll pay for auto insurance based on age and gender, which we've pulled together. Here are the average auto insurance rates.
|Age, Gender, and Marital Status||Average Annual Auto Insurance Rates|
|Married 60-year-old female||$2,243|
|Married 60-year-old male||$2,308|
|Married 35-year-old male||$2,446|
|Married 35-year-old female||$2,449|
|Single 25-year-old female||$2,703|
|Single 25-year-old male||$2,889|
|Single 17-year-old female||$7,559|
|Single 17-year-old male||$9,028|
Teen drivers have the most expensive rates, while seniors pay the least for auto insurance rates. Married drivers have affordable rates and can save even more with discounts from a company.
Average Auto Insurance Cost Based on Driving Record
Your driving record can save you hundreds, or it could cost you hundreds. Driving records is one of the main factors that determine the level of risk to insure a driver. Let's examine the average auto insurance cost based on the driving record.
|Driving Record||Average Annual Auto Insurance Rates|
|Clean Driving Record||$3,124|
|With One Speeding Ticket||$3,669|
|With One Accident||$4,100|
|With One DUI||$4,920|
A clean driving record is the fastest way to affordable car insurance. Speeding tickets don't carry a massive increase, but accidents and DUI convictions do.
Average Auto Insurance Cost Based on Credit History
According to the Federal Trade Commission, businesses often give cheaper rates to consumers with a good credit history. Auto insurance companies issue more affordable rates to customers with a good credit history because there's a correlation between a credit score and chances of filing a claim.
Let's look at the auto insurance rates based on credit history.
|Credit History||Average Annual Auto Insurance Rates|
Customers with a poor credit history pay a lot more for car insurance than those with good credit and fair credit. When you combine this factor with discounts, you can save even more.
Average Auto Insurance Cost Based on Coverage Level
Coverage levels are based on the coverage limits you have for auto insurance. For instance, the minimum coverage limit for car insurance in South Carolina is 25/50/25.
The coverage limit, or coverage rule, means $25,000 for bodily injury for one person, $50,000 for bodily injury for multiple people, and $25,000 for property damage.
According to the Insurance Information Institute, coverage rules vary by state. The minimum coverage limit is the lowest coverage level. An example of medium coverage limits is 50/100/50, while high coverage limits can be 100/300/100 or more.
Here's the average auto insurance cost based on coverage level.
|Auto Insurance Coverage Level||Average Annual Auto Insurance Rates|
The higher your coverage level, the more you'll pay for auto insurance. The average cost of car insurance is always changing, so keep an eye on your auto insurance policy each month.
Average Auto Insurance Cost Based on Annual Commute Mileage
When you get an auto insurance quote, you'll notice an option that asks if your car is used for work commute or pleasure commutes. Work commutes is another way of saying general driving use, while pleasure commutes is a fancy way of saying that you don't drive your vehicle much.
These selections estimate the number of miles you'll travel during the policy. Do you pay more when you drive more? Let's review the cost of auto insurance based on annual commute mileage.
|Commute Distance||Average Annual Auto Insurance Rates|
|10 Miles Commute|
6,000 Annual Mileage
|25 Miles Commute|
12,000 Annual Mileage
As expected, you will pay more for driving more. Some auto insurance companies won't issue higher rates. For those that do, you can negate higher prices with discounts.
Average Auto Insurance Cost by Vehicle Make and Model
The value of a vehicle is a significant factor in auto insurance. You can determine the value of a vehicle by looking at the Manufacturer's Suggested Retail Price (MSRP) or the Fair Market Price. Let's examine the average auto insurance cost of popular vehicles.
|Rank||Vehicle Make and Model||Average Annual Auto Insurance Rates||MSRP||Insurance as a % of MSRP|
The cheapest vehicles to insure are the Subaru Outback, Jeep Wrangler, and the Honda CR-V.
We included insurance as a percentage of MSRP to compare the cost of insurance to the value of each vehicle. Each average annual rate is affordable and is subject to change depending on the state, age of the driver, and other factors that determine car insurance cost.
Average Auto Insurance Cost: The Bottom Line
The average auto insurance cost gives you an idea of how much you can spend on insurance. The best way to learn how much you can pay for car insurance is to get a direct quote. In other words, you'll need to get a quote based on your personal information and specific vehicle information, such as a Vehicle Identification Number (VIN).
Start comparing cheap auto insurance quotes in your area by entering your ZIP code in the FREE comparison tool below.
Frequently Asked Questions: Average Auto Insurance Cost
Did we miss something? For the final section of this guide, we'll answer frequently asked questions that appear on search engines across the internet. Continue reading to learn more.
#1. How much is auto insurance for a 16-year-old driver?
The average cost for a 16-year-old driver is $554 per month.
#2. How much does auto insurance cost for an 18-year-old driver?
Eighteen-year-old drivers pay less than 16-year-olds. They can pay at least $400 per month for car insurance.
#3. How much is auto insurance for a 21-year-old driver?
A 21-year-old driver could pay $371 per month for car insurance.
#4. What is the average cost of monthly auto insurance?
According to the NAIC, the monthly car insurance $86 per month for full coverage and $46 per month for liability-only coverage.
#5. How much does the cheapest auto insurance cost?
The cheapest auto insurance is liability-only car insurance, which is about $46 per month. The price varies with different companies, different states, and other factors that determine auto insurance.
#6. Who has the cheapest car insurance for seniors?
Many consumers say Allstate is the best for seniors. However, the data we've collected shows that Geico and State Farm are better options for seniors.