What Is the Average Cost of Car Insurance in the U.S.?

The national average cost of car insurance is around $1,718 per year for full coverage and $488 per year for minimum coverage.^[1] However, factors such as where you live, your driving record, personal information, the make and model of your car and the types of coverage you buy can all affect your premium.

Keep reading to learn more about these cost-determining factors, including the breakdown of auto insurance average costs by state and carrier.

What Is the Average Cost of Car Insurance in the U.S.?

The average annual cost for full coverage car insurance is $1,718, roughly $143 a month and is $488 for minimum coverage, roughly $41 per month.^[1] Minimum coverage refers to a policy that meets only your state’s minimum insurance requirements, while full coverage includes state-mandated coverage plus collision and comprehensive insurance.

What Factors Determine the Cost of Car Insurance?

Factors that affect your likelihood of filing a car insurance claim will influence the cost of car insurance and can include the following:

• Location
• Accident history
• Moving violations history
• Annual mileage
• Coverage limits
• Buying optional add-ons
• Age
• Gender 
• Car make and model
• Marital status
• Application of car insurance discounts

• Market factors like inflation and cost of repair labor

Keep in mind that some states, like California and Hawaii, have prohibited or limited using certain factors such as gender and credit score, when determining someone’s premium rates.^[3][4]

To get an idea of how factors can affect how much you pay for auto insurance, let’s look at how much your rates can increase after getting a speeding ticket, a DUI conviction, being responsible for a car accident and for having poor credit.^[1]

Insurers generally won’t alter your rates until you renew your policy and will typically inform you ahead of time. For example, insurers in Maryland must inform policyholders at least 45 days before any premium increases.^[2]

What Is the Average Cost of Car Insurance by Carrier?

Since car insurance companies use different underwriting methodologies, you will find that carriers charge different rates even for the same level of coverage. Here’s a breakdown of the average cost to insure a car from a few national carriers:^[1]

You may also have the option of smaller regional insurers offering cheaper rates than their national counterparts. However, they may not be available in all states or locations, so check with several insurance companies before making a final decision.

Average Cost of Car Insurance by State in the U.S.

Where you live can directly affect your insurance costs since states enforce their own minimum requirements. For example, in California, you must buy $15,000 of bodily liability insurance per person but this requirement is double the amount in Maryland.^[5][6] Below is a breakdown of the average cost of auto insurance between each state plus Washington, D.C.:^[1]

Which States Have the Cheapest Car Insurance?

Drivers who live in Wyoming pay the cheapest rates on average for either a minimum liability policy or a full coverage policy. The five below states quoted the cheapest monthly rates for a policy that meets only the state’s minimum insurance requirements:^[1]

• Wyoming: $15
• Iowa: $22
• South Dakota: $23
• Vermont: $26
• Idaho: $27

Meanwhile, the monthly rates for a policy with full coverage were the cheapest on average in these states:^[1]

• Wyoming: $81
• Vermont: $90
• New Hampshire: $93
• Idaho: $97
• Ohio: $101

Which States Have the Most Expensive Car Insurance?

If you live in the states listed below, expect to pay the highest rates on average for minimum coverage:^[1]

• Rhode Island: $75
• Louisiana: $74
• Delaware: $72
• Texas: $70
• Maryland: $69

Full coverage policies were the most expensive on average in the five states listed below:^[1]

• Florida: $256
• Louisiana: $253
• Texas: $214
• Rhode Island: $201
• Kentucky: $200

How To Shop for the Best Car Insurance Rates

You’ll want to compare quotes between auto insurers to ensure you get the best deal. Try getting quotes from three to five car insurance companies to determine the best plan for your goal and budget. You’ll need to offer information on your car’s model, alongside personal information such as your age and location, to each insurer, which can become tedious and repetitive to give one at a time.

Fortunately, you can compare rates faster by using an insurance marketplace like SmartFinancial. After answering a few brief questions, we can set you up with a licensed insurance agent to help you find the best policy to fit your needs. Compare auto insurance rates at no cost to you today.