How Much Does Car Insurance Cost?

How Much Does Car Insurance Cost?

If you own or lease your car, having it insured is not only the law, but it’s also a vital expense that protects you from liability if you’re involved in a collision. That legal requirement isn’t free, however, so how much does car insurance cost per month?

Understanding the Average Cost of Car Insurance

Nearly all states require that drivers maintain an active auto insurance policy by law, but this isn’t the only reason to invest in solid coverage. Car insurance provides valuable financial protection should you have an accident. Naturally, this financial safety comes at a price. Understanding the average cost of car insurance a month will help you pinpoint the best policy and budget accordingly for this ongoing expense that comes with every car.


Factors Impacting Car Insurance Premiums

How Much Does Car Insurance Cost?
How Much Does Car Insurance Cost?

Several components determine your car insurance premium. Here are some of the most important factors considered by insurance agents when preparing a quote for auto insurance products:

  1. Demographics: Age and gender heavily determine how much car insurance costs.
  2. Marital Status: Single drivers have the highest rates, with divorced drivers coming in close behind. Married drivers have the lowest rates.
  3. Vehicle Type, Make, and Model: The vehicle you’re driving is an important factor. Sports cars, for example, are notoriously expensive to insure. Car insurance is lower for new vehicles and those with certain safety features or anti-theft features.
  4. Driving History: The average car insurance cost is lower for a safe driver than for someone with a history of speeding tickets or car accidents. Maintaining a clean driving record is the best way to lower your auto insurance rates.
  5. Credit Score: In some states, your auto insurance company can retrieve information from your credit report to determine the cost of insurance.
  6. Driving Habits: Telematics programs may lower your rates by tracking your driving habits, rewarding you for safe habits, and considering factors like the time of day you drive, your average mileage, and how quickly you brake or accelerate.
  7. Location: Different states and cities have their own average cost of car insurance a month. Urban areas with heavy traffic and a higher risk of accidents often have higher insurance rates.
  8. Coverage Selection: The amount and type of coverage you select will impact your rates. State minimum coverage is the cheapest option, but it’s essential to consider whether it provides adequate protection for your needs.
  9. Deductible Amount: Opting for a higher deductible amount on your policy for collision and comprehensive coverage can lower your premium.

If you receive a significantly higher or lower quote than the average cost of auto insurance, one or more of these factors are likely influencing the rate. Discuss your rates in detail with your insurance agent to see if any adjustments can be made to secure a lower price.

Location’s Impact on Auto Insurance Rates

How Much Does Car Insurance Cost?
How Much Does Car Insurance Cost?

Each state regulates car insurance differently, and your ZIP code can translate to a higher rate. For example, Michigan and Louisiana are among the most expensive states to insure a vehicle, while Maine is the cheapest. Additionally, insurance rates can vary within a state based on risk factors in specific locations, such as frequency of collisions, crime rates, or weather conditions.

Available Discounts for Auto Insurance

Car insurance companies offer various discounts for drivers who demonstrate responsible habits or belong to certain professions or organizations. Some common discounts include:

  • Military Discount
  • Good Grades Discount
  • Teacher or First Responder Discount
  • Organization Membership Discount
  • College Student Away-from-Home Discount
  • Home Ownership Discount

Explore the discount options from different providers to see if you qualify for a special rate.

Average Cost of Car Insurance by Company

Comparing the average cost of car insurance per month across different companies can help you find the best rates. Below is the average annual cost of full coverage car insurance by company for a 30-year-old woman with a good driving record:

  • USAA: $1,141
  • Nationwide: $1,154
  • Geico: $1,237
  • State Farm: $1,486
  • Erie: $1,499
  • Travelers: $1,533
  • Auto-Owners: $1,632
  • Progressive: $1,844
  • Allstate: $2,206
  • Farmers: $2,277

For minimum coverage car insurance, the average annual cost by company is:

  • USAA: $322
  • Auto-Owners: $356
  • Geico: $358
  • Erie: $427
  • State Farm: $463
  • Nationwide: $483
  • Allstate: $617
  • Progressive: $635
  • Travelers: $643
  • Farmers: $830

Remember that insurance costs can vary significantly depending on your driving habits, vehicle, and demographics. Obtain quotes specific to your situation to find the right insurance plan for your needs.

Average Cost of Car Insurance by Coverage Level

Your level of coverage and the maximum amount the insurance company will pay on a claim affect your insurance premium. Minimum coverage is the least expensive policy, while full coverage provides more protection for your vehicle. If you’re financing or leasing your car, GAP insurance may also be required.


Average Cost of Car Insurance by Age and Gender

How Much Does Car Insurance Cost?
How Much Does Car Insurance Cost?

Age is a significant factor impacting car insurance premiums, with younger drivers typically facing higher costs. Male drivers also tend to pay more than female drivers, but this gap decreases with age. However, it’s essential to note that several states now ban gender-based pricing for auto insurance.


Determining the average cost of car insurance a month depends on various factors. To find the most accurate rates, request quotes from multiple insurance providers and explore all your options to ensure the insurance plan you choose fits your budget, needs, and lifestyle.


Leave a Reply

Your email address will not be published. Required fields are marked *