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What Is the Car Insurance Cost for Drivers Across the U.S?

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Lucy Lazarony February 2, 2021

The average insurance cost of car insurance in the United States is about $1,134, according to the National Association of Insurance Commissioners. Is your policy higher or lower than that amount? Wondering where you can get low cost insurance for your cars? Start with the state where you live. Where you live has a big impact on your car insurance since every state has different regulations in terms of auto insurance. And the average insurance cost for car insurance in the most expensive states is much higher than the average car insurance cost in the cheapest state. According to U.S. News, the most expensive state’s average insurance cost for auto insurance is about three times the amount of the least expensive state. So the state where you live is a big factor on the car insurance that you will pay. Expensive states for car insurance include Michigan and Missouri and Louisiana and cheap states include Maine, New Hampshire and Idaho. If you live in one of the cheap states, consider yourself lucky. You have some of the lowest car insurance rates in the whole country. Where you live is far from the only factor impacting car insurance rates. Now, let’s look at more factors impacting the average insurance cost for car insurance.

Top Car Insurance Companies and Average Rates

Your car insurance company can have a big impact on the cost of the insurance that you pay.

Wondering about the average car insurance cost by company? SmartFinancial has you covered. Here are the average auto insurance rates offered per month by eight of the biggest car insurance companies. Liberty Mutual is the most expensive at $313, followed by Farmers at $282 and Allstate at $237. Nationwide is next at $213 and Travelers follows at $179. American Family is next at $171. State Farm follows at $162. And USAA has the cheapest rates at $121.

Need lower insurance rates? Here are the Top 10 Cheapest Car Insurance Companies from SmartFinancial. The top company is American National P&C with an average monthly rate of $51.54 per month. The second place company is Concord Group with an average monthly rate of $68.98 per month. In third place is Countryway Insurance with an average monthly rate of $76.65 per month. In fourth place is North Carolina Farm Bureau with an average monthly rate of $86.42. Bear River came in fifth place with a rate of $92.56. In sixth place is Buckeye Insurance with a rate of $92.70. Pekin Insurance is in seventh place with a rate of $96.75. Virginia Farm Bureau is close behind with a rate of $96.85. MMG Insurance Company is in ninth place with a rate of $97. Rounding out the top 10 is Utica National Insurance Group with a rate of $99.09.

All the top 10 companies had average monthly rates below $100 per month.

Your Credit Record and Car Insurance Rates

Another big factor affecting car insurance rates is your credit record. In most states, car insurance companies use credit-based insurance scores when setting rates for customers. How you pay your bills and your debt level has an impact on auto insurance rates. So if you have a squeaky clean credit record and low debt, you’re likely to land a good deal on your car insurance premium and scoop up low cost insurance. Got credit problems like late payments and high debt levels? You’ll pay more for your car insurance. To improve your credit, get current on all past due accounts, pay down debt and avoid taking on new debt. Those three things will help to boost your credit.

There are three states that ban auto insurance companies from using credit data when setting auto insurance rates. These three states are California, Massachusetts and Hawaii. If you have poor or no credit, you don’t have to worry about your credit record affecting your car insurance rates if you live in any of these three states.

Type of Car You Drive and Car Insurance Rates

The type of car you drive plays a factor in your auto insurance premium. For example, if you have a sports car, which many people like to drive faster, your average insurance cost will be higher. And your rate will go up even higher if you get a speeding ticket or if you should cause an accident with your sports car. So drive safely and obey the rules of the road in your sports car and you’ll save some money on your car insurance.

A luxury car is another type of car with higher car insurance rates. These cars have more expensive parts to replace and are costlier to repair if there should be a crash. Both these factors make a luxury car more expensive to insure.

Is your car popular with thieves? If so, you’ll pay a higher average insurance cost on your car. According to the National Insurance Crime Bureau, the 10 most stolen vehicles in the United States are the Ford Pick-Up, Honda Civic, Chevrolet Pick-Up, Honda Accord, Toyota Camry, Nissan Altima, Toyota Corolla, Dodge Pick-Up, GMC Pick-Up and Honda CR-V.

Your Driving History and Car Insurance Rates

If you have a clean driving record with no DUIs, no speeding tickets, no moving violations and no at-fault accidents and you stay that way for a number of years out on the road, you will save money on your car insurance. Having a good driving record leads to low cost insurance and there is even a good drivers discount that you will qualify for from your insurance company. Good drivers get low cost insurance.

But what happens if you get a speeding ticket? After a speeding ticket, your auto insurance rate goes up by about 25 percent. A speeding ticket can stay on your driving record from one to three years. So it is a good idea to shop around and find the best insurance rate possible for a driver with a speeding ticket on their record. Auto insurance companies view and price speeding tickets differently. You are looking for the best auto insurance deal you can find from an insurance company near you. SmartFinancial can help you find the best rate in your area.

Shopping around can make a big difference to finding a lower insurance rate. And you may want to shop again after one year or three years, when the speeding ticket will be off your record.

Your Gender and Car Insurance Rates

In many states, your gender plays a role in the average insurance cost that you pay for car insurance. For younger men and women drivers, the men tend to pay higher insurance rates. But come middle age, women tend to pay more on their auto insurance rates.

Six states have banned using gender to calculate auto insurance rates. Those six states are Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania and Michigan. In all the other states, gender may be used by insurance companies when setting auto insurance rates.

Your Age and Car Insurance Rates

Drivers who are under the age of 25 and over the age of 65 have more serious accidents and pay more for their car insurance. Drivers of the ages in-between pay less for car insurance. What age are you? Are you a young driver who will be paying less for car insurance in the next year or two? Keep that driving record clean. The last thing you want is to get a speeding ticket or have an accident just when you are set to pay less for your car insurance.

Your Coverage Choices and Car Insurance Rates

What auto insurance coverages are required by your state? Are you financing your car? Your lender will require that you carry both collision and comprehensive coverages. Are there optional coverages that you are purchasing such as new-car replacement coverage and gap coverage for your new car? Each coverage that you choose adds to the cost of your car insurance.

Looking for a way to lower that premium? Choosing a higher deductible will help to do the trick. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages on your car or losses. Choosing a higher deductible, say $1,000, will help to lower your car insurance premium. Both collision insurance and comprehensive insurance require deductibles. And choosing high deductibles will help to lower the costs of these two insurance coverages.

But if the car you are insuring is older, with low market value, you may want to pass on collision coverage and comprehensive coverage. 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 collision and comprehensive coverages any longer.

Your Marital Status and Car Insurance Rates

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 for auto insurance than singles. Did you get married in the past year? Be sure to let your auto insurance know. You’ll enjoy lower auto insurance rates.

Your Neighborhood and Car Insurance Rates

If you live in a neighborhood with high accident claims and high auto theft, you are going to pay more for your car insurance. If you live in a neighborhood with low accident claims and low crime, you will pay less on your car insurance. So choose a safe neighborhood and save on your auto insurance premium. A good neighborhood means low cost insurance for your car.

Owning a Home and Car Insurance Rates

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

Is your home insurance policy at the same insurance company as your auto insurance policy? Bundle the policies together and save money on both your premiums.

Annual Miles Driven and Car Insurance Rates

Want low cost insurance? Be a low-mileage driver. You’ll save money on your car insurance when you drive fewer miles during a year. People with heavy commutes that rack up the miles pay more for car insurance. Low-mileage drivers pay less and the average insurance cost of their premium is lower.

Maintaining Your Insurance Coverage

Sticking with your auto insurance coverage will save you money on your premium. If you have a break in coverage and go months or even years without auto insurance coverage, you will pay more for your premium when you begin insurance coverage again. So maintain your car insurance coverage year after year and save money on your car insurance.

Discounts and Car Insurance Rates

Here are some common discounts from auto insurance companies. Use as many as you can to lower that auto insurance premiums. Discounts are the way to low cost insurance. Each one that you snap up will lower your average insurance cost.

Pay Once or Twice A Year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. You’ll get a discount and you’ll pay a lower premium. So if your budget can handle that big payment, be sure to do it. You’ll pay less money for your auto insurance.

Snatch Up a Multi-Car Discount. Have more than one car to insure? Insure them with the same auto insurance company and save money with a multi-car discount. It is an easy way to get low cost insurance for your cars.

Research Memberships. Members of some professional organizations, alumni and affiliate groups get discounts for car insurance. So check your professional memberships and organizations and see if you are eligible for a discount. This is a simple way to get low cost insurance for your cars, trucks and SUVs. If your membership is covered by your insurance company, you are ready for your discount.

Students and Veterans. Are you a student or a veteran? Students and veterans may be eligible for discounts on car insurance. So ask your car insurance company about these discounts. If you are members of either of these groups, you may be due a discount on your car insurance. High school and college students with “B” averages and higher may be eligible for a good student discount. So if you’ve got the grades, be sure to let your car insurance company know. It may lead to low cost insurance for your car.

Check Car Safety and Anti-Theft Features. Having certain anti-theft or safety features on your car will lower your car insurance. So check the anti-theft and safety features on your car with your insurance company and see if they warrant a discount. Your insurance agent will know which features are covered. So be sure to reach out. This is another simple way to lower the average insurance cost of your car.

Prepare for an Auto Insurance Quote

Looking for low cost insurance for your car? Here are the things an insurance company will be asking of you. You’ll need to share personal information such as your address, date of birth, occupation, driver’s license and marital status.

You’ll need to give out information on your vehicle such as mileage, date of purchase, and vehicle identification number. And you’ll need to share your driving history including all claims, speeding tickets and at-fault accidents over the past five years.

Shop Around for the Best Car Insurance Deal

Want to get a low cost insurance deal for your car, truck or SUV? You can make your average insurance cost go lower simply by shopping around. You want to compare insurance prices from several insurance companies. And SmartFinancial can help you do just that. With SmartFinancial’s help you’ll be comparing auto insurance rates from companies near you in no time. And because SmartFinancial has access to more than 200 companies, you’re bound to find the coverage and the price that you want.

Get a Free Auto Insurance Quote Online Now.

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