Getting an insurance quote is easier than ever with the help of online calculators and quote generators. However, understanding how an insurance company determines your premium can be just as confusing as ever.

Finding the cheapest car insurance companies is easier than you think. Monthly rates vary based on individual factors, so quotes differ for each driver. Learn about the average car insurance costs today and explore multiple companies to discover the best prices for your needs.

Stop overpaying for car insurance. Our free quote comparison tool allows you to shop for quotes from the top providers near you by entering your ZIP code above.

Understanding Auto Insurance Costs

The average cost of car insurance per month can vary significantly based on several factors, including coverage selections, vehicle type, and the driver’s history. For those opting for full coverage insurance, the cost can be higher, typically reflecting the inclusion of collision insurance cost per month.

Generally, monthly auto insurance rates hover around $150, with the average monthly premium influenced by driving record, including any speeding or traffic tickets. The typical monthly car insurance payment may be lower for those with a clean record than for individuals with incidents such as at-fault or one-car accidents.

When considering monthly auto insurance costs, it’s important to note that many drivers choose to pay monthly to manage their budgets more effectively. Overall, understanding these variables can help individuals navigate the typical cost for car insurance and make informed decisions about their coverage.

Explore monthly rates across insurance companies, highlighting the difference between minimum and full coverage options and the importance of comprehensive coverage. For instance, minimum coverage ranges from $22 to $68, while full coverage typically costs $58 to $174.

Insurance Company	Minimum Coverage	Full Coverage
	$61	$160
	$44	$117
	$33	$87
	$22	$58
	$53	$139
	$30	$80
	$68	$174
	$44	$115
	$39	$105
	$33	$86

Understanding these monthly rates can help you make informed decisions about the level of protection that best suits your needs.

Cost of Minimum Car Insurance

Nearly every state requires a minimum amount of insurance before you can drive your car on a public street or register it with the DMV. Although you have to meet your state’s requirements, it’s your cheapest option for insurance.

The amount you pay for minimum insurance depends on a variety of factors, but one of the most important is the state you live in. Check below to see the average minimum car insurance rates by state.

You might notice that some states have much higher rates than others. States with higher average rates usually require more insurance. States like Florida and Michigan require high liability insurance limits and personal injury protection coverage. The more insurance you need, the higher your rates usually are.

However, that’s not the only reason a state might have higher insurance rates. Louisiana has one of the highest rates in the country because of dense population centers, high theft rates, and exposure to natural disasters.

Full Coverage Insurance Costs Explained

No state requires full coverage, but a car loan or lease usually does. Full coverage refers to a bundle of insurance products that includes liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection.

You’ll probably benefit from full coverage even if you don’t need it, as long as it fits your budget. While your full coverage rates will vary, you can get an idea of what you might pay below.

Car insurance costs can double or even triple when you opt for full coverage over your state’s minimum requirements. However, it can save you thousands in repair costs and medical expenses after an accident.

Just like minimum insurance, full coverage rates are affected by your location. For example, car insurance in Michigan versus Florida must account for unique risks in each state. Michigan’s primary risks include snow and ice driving, while hurricanes are frequent in the Sunshine State.

How Insurance Rates Are Affected by Various Factors

Car insurance rates are determined by complex formulas that consider many factors. Every insurance company is different, but most consider the following factors:

• Your Age and Driving Experience
• Car Make and Model
• Driving Record
• State Requirements
• Credit History
• Yearly Mileage
• Marital Status
• Gender

The use of these factors is why it’s essential to shop around for quotes. For example, Geico offers some of the cheapest average car insurance in America, but you might find a different company that is better suited for you. Insurance companies closely track claims across multiple demographics.

Research shows that young, inexperienced drivers and male drivers tend to engage in riskier behaviors, increasing the likelihood of filing claims, which is important to consider when determining when to file a car insurance claim.

The average cost of car insurance for teen drivers is so high that it can sometimes be prohibitively expensive. A parent or guardian can cut insurance rates for new drivers in half by adding them to an existing policy.

The Reasons Men Pay More for Car Insurance Than Women

It might not seem fair that men pay more for insurance than women, but it all comes down to money. Insurance companies base your rates on the risk you represent, and men are statistically riskier than women.

According to the Insurance Institute of Highway Safety (IIHS), men are twice as likely to die in a car accident as women. In addition to traffic fatalities, consider the following:

Men — especially men between the ages of 30 and 59 — are involved in more fatal car accidents. Male drivers are more likely to speed, engage in aggressive behavior like tailgating, or make reckless decisions.

How long does a DUI stay on your record? Historically, more men than women have driven under the influence of alcohol, a trend observed since at least 1982.

Although men typically pay more for car insurance, the gap lessens with age. For example, an 18-year-old male pays about $800 more for insurance than a female, but a 60-year-old might pay only $20 more. In some cases, women pay slightly more than men around age 40, though this is true in only a few states.

Car Insurance Costs Based on Credit Score

While it’s clear why insurance companies consider factors such as age, gender, and location, many drivers are surprised by how their credit score affects their insurance premiums.

There are two reasons why insurance companies look at credit scores. The first is a matter of financial responsibility — they figure that having a higher score means you are more likely to pay your bills on time consistently.

The second reason is that people with low credit scores are statistically more likely to file claims. If your credit score is low, it’s vital that you compare quotes from multiple companies, as some charge much higher rates.

Using your credit score to determine your rates is not legal in all states; California, Massachusetts, and Hawaii prohibit its use entirely.

Four states have reduced insurance companies’ ability to use your credit score to renew your policy or increase your rates, including Maryland, Michigan, Oregon, and Utah. Washington temporarily banned using credit scores due to the COVID-19 pandemic, but that will eventually expire.

The Impact of Marital Status on Insurance Rates

Many insurance companies provide discounts for married couples sharing a policy. This isn’t just a wedding gift; there’s a solid reason for the reduced rates. For more insights, check out the best car insurance companies for married couples.

Married couples are statistically less likely to file a claim than single people. While the difference isn’t usually much, you can save a little by having a special someone.

Progressive, Geico, and State Farm are excellent places to start your search for affordable insurance when you’re married.

However, not all states permit using marital status to determine insurance rates. Residents of Hawaii, Massachusetts, Montana, and Maine see the same average monthly car insurance rates regardless of relationship status.

Driving Record and its Effect on Car Insurance Rates

If your riskiness is what insurance companies use to set your rates, your driving history is a great way to gauge how you behave as a driver.

Traffic incidents can significantly raise car insurance rates, from car accidents to speeding tickets. See below how common incidents can affect your rates.

Infractions increase your rates by varying amounts, typically based on the severity of the incident. However, repeat offenses of even minor infractions can cause your rates to skyrocket.

Insurance providers may refuse coverage if you have multiple violations on your record, making it important to understand what is considered a clean driving record. If you find yourself in this situation, you may need to seek high-risk insurance until your record improves.

Car Insurance Costs Following a DUI

Receiving speeding tickets or running red lights can raise your insurance rates, but a DUI charge can significantly increase your costs—often doubling your premium.

Additionally, a DUI can result in severe penalties, including hefty fines, license suspension, and potential jail time. For those seeking cheap car insurance for drivers with a suspended license, it’s essential to explore options that cater to high-risk drivers.

If you get a DUI, shopping for insurance is integral to finding affordable insurance. While DUI insurance rates will always be higher than the average price of insurance, some companies are a little more forgiving than others.

Although these are the average monthly car insurance rates, some states see much higher DUI quotes than others. States with the highest car insurance rates after a DUI include Michigan, North Carolina, and Rhode Island.

Car Insurance Pricing Across Different Companies

While you can break down rates by different factors, a simpler way to decide where to start your search for car insurance is by company. Although your factors determine your rates, some companies are simply more expensive than others.

USAA often tops the list of the most affordable insurance companies, but its membership requirements are strict. Only active or retired military members or their families are eligible for coverage.

For non-military drivers, companies like Geico, Erie, and Nationwide frequently provide competitive rates. While various factors influence your premiums, the type of vehicle you drive is also a key consideration. If you’re exploring options, check out “Military Car Insurance: Best Companies and Discounts” for potential savings.

Insurance companies favor cars with high safety ratings, reliability, low maintenance costs, and lower price tags. When you’re in the market for a new car, you should consider how much insurance will cost.

Sports and luxury cars are some of the most expensive vehicles to insure because they come with higher repair costs. Drivers also tend to engage in speeding and other risky driving behaviors more than people with slower cars.

On the other hand, regular-sized pickup trucks, affordable SUVs, and sedans with good safety ratings tend to have some of the lowest average car insurance.

Average Insurance Rates for Popular Cars

When evaluating the estimated monthly car insurance costs, it’s crucial to grasp the different types of coverage, including “Liability vs. Full Coverage: Differences in car insurance policies,” as these factors significantly affect your overall expenses. For instance, the liability car insurance cost per month can range from $30 to $80, depending on state requirements and individual risk factors.

Knowing that certain types of vehicles come with higher or lower car insurance rates can give you a general sense of costs, but you can also look at specific models to get a better idea. Here are the average insurance rates for some of America’s most popular vehicles.

Expensive cars like the Tesla Model S and BMW 330i have higher-than-normal rates, while popular vehicles like the F-150 and Honda Civic see lower prices. In low-cost states, drivers may find that their average monthly car insurance is significantly lower than the national average, which typically hovers around $150.

On the other hand, if you’re looking into full coverage, you might wonder, “How much is full coverage car insurance a month?” This typically ranges from $100 to $300. For those seeking comprehensive insurance, the cost per month generally falls between $30 and $100.

Conversely, if you’re on a tight budget, understanding how much basic car insurance per month costs is crucial, as it can provide the minimum required coverage at a lower rate. Ultimately, evaluating the various options for auto insurance monthly is vital to finding a plan that fits your needs and budget.

How to Find Affordable Car Insurance Rates

Inflation has recently driven up prices across the board, and car insurance is no exception. If you’re looking to save money on your coverage, try the following tips:

• Look for Discounts: Most insurance companies offer customers ways to save through discounts. Ask an insurance representative to check if you’re eligible for discounts you don’t already have.
• Raise Your Deductible: The lower your deductible, the higher your monthly insurance rates will be. While raising your insurance deductible will lower your rates, you’ll have to pay more after an incident before your insurance kicks in.
• Lower Your Coverage: Another option is to reduce your coverage to the minimum you need, which can help you save. However, it carries the financial risk of paying for repairs.
• Keep Your Record Clean: One of the simplest ways to keep insurance rates down is to avoid adding incidents to your record. Drivers with clean records pay much less for their insurance.
• Compare Rates: You’ve seen how the average price of car insurance can vary greatly between companies. One of the easiest ways to find affordable insurance is to shop multiple companies.

No matter what your situation is, finding affordable insurance doesn’t have to be complicated.

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— Clearsurance (@clearsurance) March 31, 2022

Simply comparing quotes, taking advantage of discounts, and choosing the right amount of coverage can significantly help.

Find the Best Rates for Your Needs

Our guide for understanding car insurance reveals that securing affordable coverage isn’t as hard as it seems. Whether you have a low credit score or a speeding ticket on your record, there are options available that won’t strain your budget. Knowing where to search makes all the difference.

While there are many ways to save, exploring different companies is the easiest way to find low rates. Comparing as many quotes as possible will help you find the best price for your coverage.

Our free online comparison tool allows you to compare cheap car insurance quotes instantly — just enter your ZIP code to get started.