The average car indemnity cost in 2021 is $ 2,646 per year, which breaks down to approximately $ 221 per calendar month. That ‘s the overall modal, but it can change quite a bit depending on a variety of factors, including old age, drive record, and location. How much of an shock do those factors have on a driver ‘s car insurance rates ? The Ascent, a Motley Fool service, pulled the most late data to find out. Keep read for a detail look at what drivers are paying across the nation .
Key findings
- Americans pay an average of $2,646 in annual auto insurance premiums.
- Standard coverage ($2,915) costs almost four times as much on average as minimum coverage ($764).
- The Mid-Atlantic has the highest regional average for car insurance ($3,016). The non-mainland states have the lowest ($1,631).
- Michigan has the highest average car insurance premiums across the board, while Hawaii has the lowest average for car insurance at $1,096
- Drivers with poor credit pay over twice as much for car insurance as drivers with excellent credit in states that allow carriers to use credit history when setting rates.
- Young drivers pay much higher car insurance premiums, with an average annual cost of $5,988 for 18-year-olds.
- GEICO and USAA have the cheapest auto insurance rates among major providers.
National average cost of car insurance
|
National average car insurance paid annually |
National average car insurance paid twice per year |
National average car insurance paid monthly |
|---|---|---|
|
$2,646 |
$1,323 |
$221 |
Data reference : quadrant data Services.
Americans pay an modal car policy monetary value of about $ 221 per calendar month. Since that ‘s an overall average, it includes everyone, from drivers with immaculate records to those who have had accidents, a hapless credit history, or early issues. Drivers with good credit and clean drive records can frequently qualify for cheap car insurance. however, this besides depends on where they live and the type of coverage they want .
National average cost of car insurance by coverage type
|
Coverage type |
Average annual auto insurance premium |
Average monthly auto insurance premium |
|---|---|---|
|
Minimum coverage |
$764 |
$64 |
|
Standard coverage |
$2,915 |
$243 |
minimum coverage provides policy equal to the minimum sum required by the country where the driver lives. Each state has its own requirements. There are two states, New Hampshire and Virginia, where drivers are n’t required to have car indemnity. They do have minimum coverage requirements for drivers who choose to purchase insurance. A standard coverage insurance policy broadly includes three different types of car indemnity coverage :
- Liability coverage for medical and repair costs sustained by other parties if the driver is responsible for an accident.
- Collision coverage for the cost of repairing or replacing the driver’s vehicle in the event of a collision with another vehicle or an object.
- Comprehensive coverage for repair or replacement costs that aren’t related to a collision.
Average cost of car insurance by region
|
Region |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Mid-Atlantic (DC, DE, MD, NJ, NY, PA, VA, WV) |
$3,016 |
$251 |
|
Southeast (AL, AR, FL, GA, LA, MS, NC, SC, TC) |
$2,745 |
$229 |
|
Southwest (AZ, CO, NM, OK, TX, UT) |
$2,670 |
$223 |
|
Midwest (IA, IL, IN, KS, KY, MI, MN, MO, ND, NE, OH, SD, WI) |
$2,511 |
$209 |
|
West (CA, NV) |
$2,433 |
$203 |
|
Northeast (CT, MA, ME, NH, RI, VT) |
$2,433 |
$203 |
|
Northwest (ID, MT, OR, WA, WY) |
$2,136 |
$178 |
|
Non-mainland (AK, HI) |
$1,631 |
$136 |
Data generator : quadrant data Services .
The Mid-Atlantic has the most expensive car policy rates, and it ‘s the alone region with an average higher than $ 3,000. Auto indemnity is much more low-cost in the non-mainland states of Alaska and Hawaii .
Average car insurance cost by state
|
State |
Average annual car insurance rate |
Average monthly car insurance rate |
|---|---|---|
|
Alabama |
$2,482 |
$207 |
|
Alaska |
$1,758 |
$147 |
|
Arizona |
$2,668 |
$222 |
|
Arkansas |
$2,671 |
$223 |
|
California |
$2,346 |
$196 |
|
Colorado |
$2,602 |
$217 |
|
Connecticut |
$3,435 |
$286 |
|
Delaware |
$3,175 |
$265 |
|
District of Columbia |
$3,040 |
$253 |
|
Florida |
$3,997 |
$333 |
|
Georgia |
$2,736 |
$228 |
|
Hawaii |
$1,096 |
$91 |
|
Idaho |
$1,901 |
$158 |
|
Illinois |
$2,183 |
$182 |
|
Indiana |
$1,778 |
$148 |
|
Iowa |
$1,728 |
$144 |
|
Kansas |
$2,428 |
$202 |
|
Kentucky |
$3,413 |
$284 |
|
Louisiana |
$4,312 |
$359 |
|
Maine |
$2,340 |
$195 |
|
Maryland |
$2,880 |
$240 |
|
Massachusetts |
$1,972 |
$164 |
|
Michigan |
$4,894 |
$408 |
|
Minnesota |
$2,652 |
$221 |
|
Mississippi |
$2,411 |
$201 |
|
Missouri |
$2,646 |
$221 |
|
Montana |
$2,583 |
$215 |
|
Nebraska |
$2,492 |
$208 |
|
Nevada |
$2,870 |
$239 |
|
New Hampshire |
$2,386 |
$199 |
|
New Jersey |
$3,720 |
$310 |
|
New Mexico |
$2,018 |
$168 |
|
New York |
$3,909 |
$326 |
|
North Carolina |
$1,595 |
$133 |
|
North Dakota |
$2,620 |
$218 |
|
Ohio |
$1,567 |
$131 |
|
Oklahoma |
$2,763 |
$230 |
|
Oregon |
$2,143 |
$179 |
|
Pennsylvania |
$2,491 |
$208 |
|
Rhode Island |
$3,063 |
$255 |
|
South Carolina |
$2,712 |
$226 |
|
South Dakota |
$2,560 |
$213 |
|
Tennessee |
$2,272 |
$189 |
|
Texas |
$2,785 |
$232 |
|
Utah |
$2,398 |
$200 |
|
Vermont |
$1,947 |
$162 |
|
Virginia |
$2,220 |
$185 |
|
Washington |
$2,001 |
$167 |
|
West Virginia |
$2,479 |
$207 |
|
Wisconsin |
$2,023 |
$169 |
|
Wyoming |
$2,405 |
$200 |
Data beginning : quadrant information Services .
Michigan is the country with the most expensive car policy by a wide margin. At $ 4,894, its average rate is over $ 500 higher than second-place Louisiana. Florida, New York, and New Jersey beat out the top five. On the other end of the list, Hawaii has the cheapest price of cable car policy at $ 1,096. It ‘s followed by Ohio, North Carolina, Iowa, and Alaska. Why do average car indemnity premiums by state vary indeed much ? here are the chief factors that cause car policy to cost more or less :
- Accident rates
- Crime rates
- Percentage of uninsured drivers
- Population density
State average car insurance cost by coverage type
|
State |
Average annual (monthly) rate for minimum coverage |
Average annual (monthly) rate for standard coverage |
|---|---|---|
|
Alabama |
$617 ($51) |
$2,748 ($229) |
|
Alaska |
$440 ($37) |
$1,946 ($162) |
|
Arizona |
$910 ($76) |
$2,919 ($243) |
|
Arkansas |
$591 ($49) |
$2,968 ($247) |
|
California |
$643 ($54) |
$2,590 ($216) |
|
Colorado |
$603 ($50) |
$2,888 ($241) |
|
Connecticut |
$1,206 ($101) |
$3,754 ($313) |
|
Delaware |
$1,114 ($93) |
$3,469 ($289) |
|
District of Columbia |
$933 ($78) |
$3,341 ($278) |
|
Florida |
$1,417 ($118) |
$4,366 ($364) |
|
Georgia |
$958 ($80) |
$2,990 ($249) |
|
Hawaii |
$376 ($31) |
$1,199 ($100) |
|
Idaho |
$476 ($40) |
$2,104 ($175) |
|
Illinois |
$627 ($52) |
$2,405 ($200) |
|
Indiana |
$478 ($40) |
$1,964 ($164) |
|
Iowa |
$348 ($29) |
$1,925 ($160) |
|
Kansas |
$534 ($45) |
$2,698 ($225) |
|
Kentucky |
$1,112 ($93) |
$3,742 ($312) |
|
Louisiana |
$1,167 ($97) |
$4,761 ($397) |
|
Maine |
$643 ($54) |
$2,583 ($215) |
|
Maryland |
$974 ($81) |
$3,152 ($263) |
|
Massachusetts |
$520 ($43) |
$2,180 ($182) |
|
Michigan |
$1,909 ($159) |
$5,321 ($443) |
|
Minnesota |
$864 ($72) |
$2,908 ($242) |
|
Mississippi |
$595 ($50) |
$2,670 ($223) |
|
Missouri |
$686 ($57) |
$2,925 ($244) |
|
Montana |
$470 ($39) |
$2,885 ($240) |
|
Nebraska |
$454 ($38) |
$2,783 ($232) |
|
Nevada |
$1,099 ($92) |
$3,123 ($260) |
|
New Hampshire |
$599 ($50) |
$2,641 ($220) |
|
New Jersey |
$1,328 ($111) |
$4,061 ($338) |
|
New Mexico |
$472 ($39) |
$2,239 ($187) |
|
New York |
$1,491 ($124) |
$4,254 ($355) |
|
North Carolina |
$454 ($38) |
$1,758 ($147) |
|
North Dakota |
$482 ($40) |
$2,926 ($244) |
|
Ohio |
$417 ($35) |
$1,732 ($144) |
|
Oklahoma |
$616 ($51) |
$3,069 ($256) |
|
Oregon |
$827 ($69) |
$2,331 ($194) |
|
Pennsylvania |
$542 ($45) |
$2,769 ($231) |
|
Rhode Island |
$952 ($79) |
$3,364 ($280) |
|
South Carolina |
$419 ($35) |
$2,866 ($239) |
|
South Dakota |
$891 ($74) |
$2,972 ($248) |
|
Tennessee |
$540 ($45) |
$2,520 ($210) |
|
Texas |
$712 ($59) |
$3,081 ($257) |
|
Utah |
$731 ($61) |
$2,637 ($220) |
|
Vermont |
$445 ($37) |
$2,161 ($180) |
|
Virginia |
$641 ($53) |
$2,446 ($204) |
|
Washington |
$611 ($51) |
$2,200 ($183) |
|
West Virginia |
$658 ($550 |
$2,739 ($228) |
|
Wisconsin |
$448 ($37) |
$2,248 ($187) |
|
Wyoming |
$362 ($30) |
$2,697 ($225) |
Data informant : quadrant information Services .
In accession to having the highest overall average cost of car indemnity, Michigan is besides the most expensive country for minimal coverage and standard coverage. There were some deviations from the overall averages. For example, Wyoming has the second-cheapest minimal coverage, flush though it did n’t even make the acme 20 for cheap car indemnity overall. But for the most part, minimum and standard coverage costs fell in line with a state of matter ‘s overall average .
National average cost of car insurance by credit history
|
Credit history |
Average annual auto insurance rate |
Average monthly auto insurance rate |
|---|---|---|
|
Excellent credit |
$1,703 |
$142 |
|
Poor credit |
$3,622 |
$302 |
Data informant : quadrant information Services .
In most states, a car indemnity company can use a driver ‘s credit history to set their car indemnity rates. When this is allowed, drivers with excellent credit save a set of money. They pay less than half of what drivers with poor people credit do for car insurance. It ‘s a good reason to increase your recognition score if it is n’t in the excellent stove so far.
here are the states that do n’t allow car policy companies to base rates on a driver ‘s credit history :
- California
- Hawaii
- Massachusetts
- Michigan
National average cost of car insurance by gender
|
Gender |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Female (with clean driving record) |
$2,182 |
$182 |
|
Male (with clean driving record) |
$2,208 |
$184 |
Data source : quadrant information Services .
These averages are taken from drivers with blank drive records. They do n’t include drivers with tickets or accidents, which is why both of them are less than the overall national modal. female drivers pay a little less than male drivers for car insurance because they ‘re a lower hazard. Statistics show that male drivers are more probably to speed, drive under the influence of alcohol, and not break seatbelts. They ‘re besides often involved in more severe crashes .
National average cost of car insurance for younger and older drivers
|
Age |
Average annual rate |
Average monthly rate |
|---|---|---|
|
18 years old |
$5,988 |
$499 |
|
65 years old |
$1,979 |
$165 |
Data source : quadrant data Services .
Younger drivers have much higher cable car insurance premiums than any other group due to the risk they present. Because they ‘re inexperienced and more likely to drive recklessly, they ‘re besides more probable to be involved in accidents. The adept newsworthiness for adolescent drivers is that insurance rates drop well every class for a few decades — at least for those who avoid negative marks on their tug records. There are besides indemnity companies that offer relatively bum car insurance for teens and young drivers. The fifties and sixties tend to be when drivers pay the lowest car policy rates. By that point, most people have decades of driving experience. indemnity rates can start to rise once drivers hit their seventies. Slower reaction times, vision loss, and earshot personnel casualty are all park among senior citizens and star to an uptick in policy rates .
National average cost of car insurance by driving record
|
Driving record |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Clean record |
$2,551 |
$213 |
|
One speeding ticket |
$2,766 |
$231 |
|
One accident |
$3,092 |
$258 |
Data source : quadrant information Services .
It pays to have a cleanse drive record. Those who do score rates about $ 18 per month less than drivers with a travel rapidly tag and about $ 45 per month less than drivers who have been in an accident .
National average cost of car insurance by provider
|
Insurance company |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Allstate |
$2,912 |
$243 |
|
American Family |
$1,955 |
$163 |
|
Erie Insurance |
$2,021 |
$168 |
|
Farmers |
$2,831 |
$236 |
|
GEICO |
$1,758 |
$147 |
|
Nationwide |
$2,214 |
$185 |
|
Progressive |
$2,325 |
$194 |
|
State Farm |
$2,147 |
$179 |
|
Travelers |
$2,362 |
$197 |
|
USAA |
$1,871 |
$156 |
Data source : quadrant information Services .
These averages are proof that drivers do n’t constantly flock to the indemnity carrier with the lowest prices. state farm, Allstate, and Progressive are the largest car insurance companies by market share. Of the three, State Farm is the only matchless that makes the exceed five when it comes to low average rates. Allstate comes in end with annual rates over $ 250 greater than the national average. GEICO and USAA offer the least expensive car insurance on average. Editor’s note: Our data included the average car insurance rates for dozens of companies, but we went with 10 of the largest providers in the country for this list. You may be able to get a better deal with a smaller local provider, so be sure to get insurance quotes from multiple insurers.
Read more: Best car insurance companies for 2022
How to reduce your car insurance costs
There are several ways to cut your car indemnity premiums. here are some tips that can help you save :
- Shop around at least once per year to compare rates with the best car insurance companies. Most let you get a quote online.
- Look for discounts. Insurers may offer discounts for installing antitheft devices in your vehicle, taking a defensive driving course, driving a low number of miles per year, and more.
- See if you can pay less overall by bundling your car insurance with your homeowner’s insurance.
- Adjust your coverage. It may be worth raising your deductible if you have a solid emergency fund or reconsidering how much car insurance you need if you have an older vehicle.
- Improve your credit. A high credit score can help you pay less for auto insurance in most states.
Most importantly, practice safe, defensive drive habits. If you have a fairly drive record, it can help you qualify for the lowest policy rates for your age group and placement .
Sources
The datum found on this page is a combination of publicly available quote data obtained directly from the carrier vitamin a well as indemnity rate data from Quadrant Information Services. These rates were publicly sourced from the top ten ( 10 ) to fifteen ( 15 ) carrier wave markets, within each state, based on annual written premium and should be used for relative purposes alone — your own quotes may be different .