2021 Average Car Insurance Rates in the U.S.

Fran
Lucy Lazarony
February 19, 2021

Curious about the average car insurance rates in the U.S? We’ve got plenty to discuss. There are the insurance costs for safe drivers and high-risk drivers, full coverage and minimum coverage insurance, the cheapest and most expensive states for car insurance, cheapest car insurance companies, car insurance after an accident, car insurance by credit risk, car insurance after a DUI, car insurance for teens and car insurance by make and model of your car.

2021 Average Car Insurance Costs in the U.S.

How expensive is the average car insurance? The average driver can expect to pay an average car insurance rate of $120.91 per month for car insurance, according to SmartFinancial data.

What kind of car insurance rate do you pay if you are a high-risk driver or maybe a driver with a clean driving record? In many instances, the good driver will pay less for car insurance than the high-risk driver. Let’s look at three examples.

In Alabama, a safe driver without prior tickets, accidents and DUIs pays an average car insurance rate of $108.63 per month. A high-risk driver pays $123.25.

In Arkansas, a safe driver pays an average car insurance rate of $110.00 per month and high-risk drivers pay $129.27 per month.

In Arizona, there is a smaller difference between rates. In Arizona, a safe driver pays an average car insurance rate of $111.51 and the high-risk driver pays $113.99. Seeing now what the ballpark figures are?

Now let’s look at the average car insurance rate based on two coverages, full coverage and liability only. Full coverage entails collision insurance and comprehensive insurance and the state minimum insurance requirements in your state such as liability coverage.

If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage up to your liability limit. Collision insurance helps to repair or replace your car if it is damaged in an accident with another vehicle or object, such as a fence, tree or guardrail. And comprehensive insurance covers events that aren’t covered by collision insurance. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

Liability only is as its name suggests, an insurance plan only with liability coverage.

It is no surprise that full coverage insurance costs more than a liability-only policy.

The average car insurance rate for full coverage is $2,400 per year. And the average cost for liability only policy is $730 per year, a considerable amount less.

Good drivers pay less for car insurance than drivers with a bad record. For example, the average car insurance rate for a good driver is $1,600 per year. But a driver with a bad driving record will pay much more. For instance after a DUI, a driver would pay $3,120 per year.

How Much Is the Average Car Insurance in My State?

There are some states where the average car insurance is very affordable. In these 10 states, monthly car insurance rates are below, sometimes way below, $100 a month. Where can you get the cheapest car insurance? According to SmartFinancial, Maine has the cheapest average monthly car insurance with $69.42, followed by Idaho with $72.57, North Carolina $80.62, Iowa $84.02 and Vermont $84.78.

The next five cheapest states from top car insurance companies are still pretty cheap. In Indiana, the average monthly car insurance rate is $86.75 followed by Ohio $87.10, Wisconsin $88.16, Nebraska $91.42 and Virginia $92.51.

Some states pay quite a bit more for car insurance. According to SmartFinancial, the top three most expensive states for car insurance are Florida, Louisiana and New York. Just how expensive are these top three? They all have monthly average car insurance rates of more than $200. Florida comes in as the most expensive with $218.57 followed by Louisiana with $208.89 and New York $205.64. The rest of the top 10 are well below $200, and in the 10th spot is Nevada with a reasonable $143.31.

Curious about the average car insurance rates in your state? Check out this overview from SmartFinancial. You’ll be able to click through to your home state.

If you are financing a car, your lender may require you to carry collision insurance and comprehensive insurance. By getting these insurance coverages and meeting the state required liability coverage in your state and you’ll have full coverage for your auto insurance. With a newer car, collision and comprehensive coverage makes a lot of sense. If anything happened to your new car, you would like to be able to fix it through your insurance coverage.

But full coverage on an older car with low market value may not be necessary. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry comprehensive insurance and collision insurance any longer.

Without collision insurance and comprehensive insurance you may just be left with liability insurance on your vehicle. Liability only covers “the other guy” if you’re at fault in an accident.

Full coverage is often double or more the cost of liability car insurance on average. Let’s look at some data from SmartFinancial.

The cheapest state for full coverage insurance is Maine with an average monthly rate of $73.25.

The most expensive state for full coverage insurance is Florida with an average monthly rate of $226.28

The cheapest state for minimum car insurance coverage is Iowa with an average monthly of $36.85

The most expensive state for minimum car insurance coverage is Florida with an average monthly rate of $134.20

Average Premiums for Full Coverage and Minimum Requirement Car Insurance

Looking for the cheapest car insurance companies? Here are the top 10 cheapest from SmartFinancial.

  1. American National P&C with a monthly rate of $51.54
  2. Concord Group with a monthly rate of $68.98
  3. Countryway Insurance with a rate of $76.65
  4. North Carolina Farm Bureau has a rate of $86.42
  5. Bear River comes in fifth with a rate of $92.56

Rounding out the top 10 are Buckeye Insurance Group with a monthly rate of $92.70, Pekin Insurance with a rate of $96.75, Virginia Farm Bureau with a rate of $96.85, MMG Insurance Company with a rate of $97 and Utica National Insurance Group with a monthly rate of $99.09.

These smaller insurance carriers offer great rates. SmartFinancial can compare them all for you.

Average Car Insurance Rates by State by Full Coverage

Here are the monthly average car insurance rates by state for full coverage car insurance with more great data from SmartFinancial.

  • Alabama $118.81
  • Alaska $136.17
  • Arizona $117.68
  • Arkansas $120.43
  • California $164.11
  • Colorado $148.16
  • Connecticut $144.32
  • Delaware $140.50
  • District of Columbia $183.28
  • Florida $226.28
  • Georgia $147.02
  • Hawaii $117.83
  • Idaho $76.58
  • Illinois $108.01
  • Indiana $91.20
  • Iowa $89.07
  • Kansas $122.73
  • Kentucky $134.68
  • Louisiana $225.65
  • Maine $73.25
  • Maryland $167.12
  • Massachusetts $121.10
  • Michigan $176.25
  • Minnesota $120.24
  • Mississippi $116.94
  • Missouri $118.12
  • Montana $114.78
  • Nebraska $99.47
  • Nevada $155.19
  • New Hampshire $101.69
  • New Jersey $175.19
  • New Mexico $126.99
  • New York $216.73
  • North Carolina $84.52
  • North Dakota $106.59
  • Ohio $91.54
  • Oklahoma $146.91
  • Oregon $111.58
  • Pennsylvania $123.38
  • Rhode Island $169.33
  • South Carolina $114.82
  • South Dakota $117.96
  • Tennessee $100.38
  • Texas $145.39
  • Utah $111.17
  • Vermont $92.24
  • Virginia $97.35
  • Washington $103.92
  • West Virginia $139.09
  • Wisconsin $92.79
  • Wyoming $133.92

Average Car Insurance Rates by State for Minimum Coverage

Here are the monthly average car insurance rates by state for minimum coverage car insurance There is quite a range of rates in this data from SmartFinancial.

  • Alabama $59.11
  • Alaska $69.89
  • Arizona $65.97
  • California $83.15
  • Colorado $65.83
  • Connecticut $93.61
  • Delaware $79.54
  • District of Columbia $101.20
  • Florida $134.20
  • Georgia $91.08
  • Hawaii $56.07
  • Idaho $39.52
  • Illinois $60.87
  • Indiana $43.81
  • Iowa $36.85
  • Kansas $49.38
  • Kentucky $65.70
  • Louisiana $133.93
  • Maine $38.81
  • Maryland $102.88
  • Massachusetts $60.33
  • Michigan $93.53
  • Minnesota $56.48
  • Mississippi $67.18
  • Missouri $56.72
  • Montana $47.29
  • Nebraska $38.52
  • Nevada $91.64
  • New Hampshire $52.90
  • New Jersey $121.17
  • New Mexico $68.03
  • New York $125.79
  • North Carolina $46.30
  • North Dakota $41.67
  • Ohio $46.69
  • Oklahoma $72.48
  • Oregon $67.90
  • Pennsylvania $55.20
  • Rhode Island $107.73
  • South Carolina $64.72
  • South Dakota $41.33
  • Tennessee $62.99
  • Texas $80.55
  • Utah $66.07
  • Vermont $42.62
  • Virginia $54.65
  • Washington $63.86
  • West Virginia $66.96
  • Wisconsin $43.46
  • Wyoming $41.07
As you can see, there are a range of car insurance rates among the 50 states and the District of Columbia. The average car insurance cost for drivers is impacted by state regulations.

Average Car Insurance Rates After an Accident

Let’s say you are paying $1,590 for your yearly car insurance premium and you cause a car accident, your insurance rates may increase all the way up to $2,440. That is quite an increase for one accident but it is typical if you are found to be at-fault in an accident. So in addition to paying for injuries and damages following an accident, you’ll be dealing with a higher car insurance bill as well.

What if you have minimum coverage for your car insurance? Let’s say you are paying $570 per year for your yearly car insurance and then you cause a rear-end collision. Your car insurance premium would go up to $880 per year.

Average car insurance rates vary by company and they vary by state as well. In California, Massachusetts and North Carolina, rates increase by as much as 70 percent after an accident.

The severity of the accident determines the rate hike. You will most likely lose your good driver discount after an accident.

If you have accident forgiveness and it’s your first accident, you may not see a rate hike.

Average Car Insurance Rates by Credit

Most states use credit scores to determine how risky a driver is.

Let’s look at an example. In Colorado, a driver with excellent credit pays an average monthly rate of $102.25. A driver with good credit pays $140.64. And a driver with bad credit pays $146.76. Good, especially excellent credit, means good auto insurance rates.

Only a few states do not use credit ratings for a car insurance quote. Those states are California, Hawaii, Massachusetts and Michigan.

If you have bad credit, you need to find a company that does not weigh credit so heavily.

SmartFinancial works with over 200 companies, big and small, to find you the right match.

Some insurers will rate credit very differently too. While National General does not have the cheapest rates overall, they offer great deals for people with bad credit.

Average Car Insurance Rates with a DUI on Your Record

On average, drunk driving will raise the average car insurance rate by more than 85 percent.

Let’s look at an example. Let’s say you are paying a yearly auto insurance rate of $1,451. Getting a DUI could increase your insurance premium to as much as $2,684.

While rates vary greatly by state, most insurance rates will increase by more than $500 or more after a DUI.

Average Insurance Rate for Young Drivers

Teens and young adults pay some of the highest average car insurance rates. Teens pay an average of $397 a month for an individual car insurance policy. The national average for car insurance is $120.91 per month so teen auto insurance policies are quite high. But the rates don’t stay high forever. The average car insurance rate for a 25-year-old driver is $1,775 per year. So if young drivers can hang in there, the rates do get better.

Another option is to stay on a parent’s insurance policy. This greatly reduces costs but it will raise the parent’s rate a bit but not as much as the teen having a stand alone policy. Parents who add a teen to their car insurance policy can expect to pay $187 more per month.

These statistics look at the cost of adding a teen to a parent’s full coverage policy for six months. At Erie, the policy would cost $1,270. At USAA, this type of policy would cost $1,300.

At Nationwide, you would pay $1,700. At Geico, it is just a little higher at $1,720.

Average Car Insurance Rates by Gender

It’s illegal to use gender as a factor for insurance ratings in seven states: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Younger men pay more on average in car insurance than young women by $100 per year.

However, the average car insurance rate for a 40-year-old woman is about $10 a year higher than a man’s.

Average Cost of Car Insurance by Vehicle

The make and model of your car impacts insurance rates. And the rates between models vary widely.

A Ford 150 pickup truck costs $1,084.17 a year to insure. A Kia Soul costs $1,557.73 And a Lincoln MKZ costs $2028 per year. What kind of car do you drive?

The age of your car also makes a difference. Newer cars cost more to insure. It makes sense that car insurance rates would be higher for someone with a new luxury car than someone with an eight-year-old sedan. Economical cars, like the Honda Civic, are stolen or vandalized for parts very often, so rates are higher on these cars. Electric cars can be costlier to insurance because they are expensive to repair. Battery replacement on an electric car can cost a fortune!

Luxury cars and sports cars are expensive to insure because they are worth more and are costly to repair. Check out how much your vehicle rates for car insurance.

Other Factors that Affect the Average Car Insurance Rate

Marital status. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less on auto insurance than singles.

Zip code. Your zip code makes a difference. If you live in a zip code with high accident claims and high auto theft, you will pay more for your car insurance. If you live in a zip code with few accident claims and low crime, you’ll pay less on your car insurance.

Being a Homeowner. Statistics show that people who own homes drive more safely. So let your car insurance company know that you own your home and enjoy savings on your car insurance.

Education level. Your education level is factored into determining risk for car insurance. Drivers with bachelor’s degrees and higher pay less than drivers with a high school diploma or those without a high school diploma or the equivalent.

Housemates You may be able to share insurance policy with a housemate, giving you both a break on premiums.

Affiliations. If you have the right affiliation, you may be able to save money on your car insurance. So check your memberships to see if you can save.

Car Safety Ratings. If your car is tops in car safety ratings, you will pay a lower price on your car insurance. The Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration offer car safety rankings.

Claims-free History. If you’ve been a good driver and gone claims-free for a number of years, you may be eligible for a discount on your car insurance.

Paying in full can save you big bucks. You’ll be rewarded with a lower premium price when you pay your auto insurance bill in full, rather than breaking it into monthly payments.

Bundling. Bundle your home insurance policy together with your auto insurance policy and you’ll save money on both your premiums.

Profession. What you do affects the price that you pay for auto insurance. Statistics show that drivers of certain professions file fewer accident claims and have fewer tickets and driving citations. For example, medical professionals pay less for car insurance as do law enforcement personnel. Teachers also get a break on car insurance.

How Can I Find Cheap Car Insurance?

Compare rates whenever there is a major change in life events like moving, getting married and buying a house. It’s a good idea to compare every once in a while too since rates do drop. You may be able to get a better rate elsewhere.

The best way to find the cheapest average car insurance quote is to compare rates from companies. SmartFinancial makes this easy to do. With SmartFinancial’s help, you’ll be comparing car insurance rates from companies near you in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the auto insurance you are looking for.

Average Car Insurance Rates by Company

Here is a roundup of the monthly average car insurance rates from eight of the biggest auto insurance companies.

Does it Affect Your Car Insurance Rate if You Have More than One Car?

Choosing to insure more than one car with the same insurance company makes good financial sense. You’ll get a discount on your premiums bringing your overall price lower. Yes, insuring two cars can be expensive but snapping up a discount for insuring the cars with the same company makes a difference and helps to lower your premiums.

Get a Free Auto Insurance Quote Online Now.

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