- The average full coverage policy costs about $150 a month, while minimum insurance usually costs around $50
- Some of America's cheapest car insurance companies are USAA, Nationwide, GEICO, and Erie
- Car insurance companies use a variety of factors to determine your rates, with young drivers and people with DUIs paying the most for coverage
Getting an insurance quote is easier than ever with the help of online calculators and quote generators. However, understanding how an insurance company decides how much to charge you can be just as confusing as ever.
Finding cheap car insurance doesn’t have to be a challenge, though. Insurance companies use a variety of factors to determine how much you’ll pay each month, and quotes are unique to individual drivers. Read on to learn how much the average car insurance policy costs today, then explore your options with as many companies as possible to find the best price for you.
How much does auto insurance cost?
While many factors will change the price of your coverage, the average American pays nearly $150 for full coverage and about $50 for minimum insurance per month. However, you’ll probably see very different rates than the national average. Consider how much insuring a car costs per month for various situations:
- New drivers — $335
- Drivers with a DUI — $262
- Older drivers — $61
- Drivers with good credit — $125
This price difference is why comparing rates with as many companies as possible is essential. Companies use unique formulas to determine how much to charge you, and you’ll probably find cheaper rates with some companies over others.
An excellent place to start looking at quotes is by the amount of coverage you need. Whether you need full coverage or your state’s minimum insurance requirements, finding affordable rates doesn’t have to be a challenge.
How much does minimum car insurance cost?
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 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 levels of liability insurance, as well as 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.
How much does full coverage insurance cost?
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 be unique, you can get an idea of how much 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 vs. Florida has to consider unique risks for each state. So, Michigan comprehensive risks include snow and ice driving, while hurricanes are frequent problems for the Sunshine State.
What factors affect your insurance rates?
Car insurance rates are determined by complex formulas that take a lot of factors into account. Every insurance company is different, but most consider the following factors:
- Your age and driving experience
- Car make and model
- Driving record
- State requirements
- Amount of coverage
- Credit history
- ZIP code
- 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.### How much is car insurance by age and gender? Insurance companies keep careful track of claims for numerous demographics. Two of the most important are your age and gender. Statistically speaking, young, inexperienced drivers and men are more likely to engage in reckless behaviors and file claims.
Teen males see dramatically higher rates than their female counterparts, but the gap lessens with age.
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.
Why do 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 than 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.
More men drive under the influence of alcohol than women, a trend that has continued 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 a little more than men around 40 years old, though this is true in just a few states.
How much is car insurance by credit score?
While it’s easy to understand why an insurance company uses your age, gender, and location, one factor that frequently surprises drivers is credit scores.
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 prohibits using credit scores completely.
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 expire eventually.
Does being married affect your insurance rates?
Most insurance companies offer a discount for married couples who share a policy. Your insurance company isn’t giving you a late wedding present when they offer you and your spouse lower rates — there’s a specific reason behind the generosity.
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 allow the use of marital status to determine insurance rates. Hawaii, Massachusetts, Montana, and Maine residents see the same average monthly car insurance rates no matter their relationship status.
How does your driving record affect your car insurance rates?
If your riskiness is what insurance companies want to determine your rates, your driving history is a great way to get an idea of how you behave as a driver.
Traffic incidents can significantly raise car insurance rates, from car accidents to speeding tickets. Take a look below to see how some of the most common incidents can affect your rates.
Infractions raise your rates by different amounts, which usually depends on the severity of the incident. However, repeat offenses of even minor infractions can cause your rates to skyrocket.
Standard insurance companies might deny coverage if you have too many violations on your record. If you find yourself in this situation, you might have to find high-risk insurance until your record clears.
How much is car insurance after a DUI?
While running red lights and getting speeding tickets can increase your rates, being charged with a DUI can double how much you pay for insurance. It can also lead to hefty fines, license suspension, and even jail time.
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.
How much is car insurance by company?
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, GEICO, Erie, and Nationwide often offer low rates. How does the type of vehicle you drive change your car insurance rates? Although many additional factors determine your rates, a final important one is the type of car you drive.
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
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.
How to Find Affordable Car Insurance Rates
Inflation has recently increased the price of just about everything, and car insurance is not immune. If you’re looking to save money on your coverage, try the following tips:
- Look for discounts. Most insurance companies offer their customers ways to save by offering discounts. Ask an insurance representative to check if you’re eligible for discounts you don’t already have.
- Raise your deductible. The lower your insurance deductible is, the higher your monthly insurance rates will be. While raising your deductible will lower your rates, you’ll have to pay more after an incident before your insurance kicks in.
- Lower your coverage. Another option that comes with the financial risk of paying for your repairs is lowering your coverage to the minimum amount you need, but it can help you save.
- 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. Simply comparing quotes, taking advantage of discounts, and choosing the right amount of coverage can significantly help.
Find the Best Rates for Your Needs
Finding affordable car insurance might seem difficult, but it’s not a challenge when you know where to look. No matter if you have a low credit score or a speeding ticket on your driving record, you can find coverage that won’t break the bank.
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.
Frequently Asked Questions
Do you still have questions about how much insurance costs? Read on to learn more.
What is the difference between minimum insurance and full coverage?
Minimum insurance is the amount of coverage you have to buy before you can legally drive. Minimum insurance usually includes liability, which does not protect your car. Full coverage is a collection of insurance products, including liability, comprehensive, collision, uninsured/underinsured motorist, and personal injury protection or medical payments.
Does paying off your car loan make your insurance go down?
Typically speaking, your ownership status doesn’t play a role in your insurance rates. Insurance companies ask if you have a loan or lease on your car to help determine how much coverage you need.
How much is car insurance for a new driver?
New drivers pay some of the highest rates for car insurance because they don’t have the experience to navigate dangerous road situations. The average 16-year-old pays nearly $3,900 per year for full coverage, which is more than double what older adults pay.
Does car insurance decrease every year?
While your rates can decrease as you get older, improve your credit score, or incidents fall off your record, they don’t always go down. You’ll often get the unwelcome surprise that your rates have increased due to factors beyond your control. Increased claims in your area, more vandalism, or higher car thefts can increase your rates.
Which company offers the cheapest rates?
Your rates depend on your circumstances, but the overall cheapest companies are State Farm, USAA, Nationwide, and Erie.
How much more do you have to pay for full coverage car insurance?
Several factors affect your full coverage rates, but the average driver can pay up to double when buying more coverage.