What Is the Average Cost of Auto Insurance?

Byadinsurecar

Feb 20, 2022

car indemnity rates vary based on many factors such as localization, drive record and even credit rating score. different insurers will weigh certain aspects more heavily than others. That ’ second why it ’ south always a well idea to get at least two to three quotes from insurance carriers to weigh your options more accurately. MoneyGeek ‘s analysis of car policy rates across the area highlights that well drivers pay an average of $ 1,424 per year for a policy with 100/300/100 indebtedness policy and comprehensive and collision coverage. individual rates may vary significantly depending on your level of coverage, vehicle and other factors. Loading …

Average Cost of Auto Insurance Summary

Reading: What Is the Average Cost of Auto Insurance?

The average costs of car insurance depend, in part, on how you pay : per annum or monthly. The figures below are based on the modal annual agio, but be aware that drivers may pay more if they opt for monthly payments. This is because there ’ s normally a dismiss for paying in full. That ’ randomness why it ’ south all-important to compare car policy rates to understand your options amply.

Average Car Insurance Rates

Average Car Insurance Costs by Company – Major Insurers

One of the most authoritative factors determining the monetary value of car policy is the average by company. Of the companies widely available across the country :

USAA is the cheapest, costing $883 per year on average.
MetLife, the most expensive: It costs $1,686 per year on average for the same driver.

The price difference shows the importance of getting quotes from multiple insurers.

The Average Cost of Major Insurers – From Cheap to Expensive

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caller company average
1 .USAA $ 883
2 .GEICO $ 1,047
3 .State Farm $ 1,235
4 .Nationwide $ 1,341
5 .Allstate $ 1,351
6 .Progressive $ 1,381
7 .Travelers $ 1,525
8 .Farmers $ 1,578
9 .MetLife $ 1,686

Average Car Insurance Costs by Company – Midsized Insurers

Certain insurance companies don ’ t have national handiness, but hush make up a bombastic share of the car insurance marketplace for the states in which they ’ ra available. These mid-sized insurance companies range from low-cost — such as Erie, which costs an average of $ 934 per year — to expensive, such as Allied Insurance, a Nationwide subordinate which costs an average of $ 1,633 per year.

The Average Cost of Midsized Insurers – From Cheap to Expensive

Average Car Insurance Costs by State

The requirements and coverage types for car insurance vary by state, which can impact the costs. Michigan — the highest-cost state ( $ 5,471 per annum ) — recently required drivers to carry at least $ 20,000 in liability protective covering for bodily wound ( a maximal of $ 40,000 per incident ) and $ 10,000 for place price. On July 1, 2020, the state enacted sweeping changes to its car insurance requirements, which may serve to lower costs for car indemnity there. In Maine — the lowest-cost state ( $ 607 per annum ) — the minimal required for indebtedness coverage is $ 50,000 per person, $ 100,000 per accident for bodily injury and $ 25,000 for property price.

Average State Premiums

How Average Car Insurance Rates by State Have Changed Over Time

At a home charge, car policy rates have been fairly stable over the last half ten. From 2015 to 2021, median car insurance rates have alone increased by 2.7 % ; in other words, less than $ 50. In fact, in the final year car insurance rates have fallen by 2.2 %. But changes in car insurance rates are not uniform, and certain states have seen large changes over the last five years. The five states that have seen the biggest decrease in car policy rates in late years are New Jersey, Arkansas, Illinois, Oregon and Connecticut. All five of these states saw modal cable car indemnity rates fall by at least 23 %.

States With the Biggest Decreases in Rates – Last Six Years

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state % Rate Decrease ( 2015-2021 )
New Jersey

-30%
Arkansas

-25%
Illinois

-25%
Oregon

-24%
Connecticut

-23%

conversely the states with the largest addition in indemnity rates over the last six years are Montana, Louisiana, Florida, Nevada and Missouri. All of these states saw their average insurance rates increase by 19 % or more.

States With the Biggest Increases in Rates – Last Six Years

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department of state % Rate Increase ( 2015-2021 )
Montana

37%
Louisiana

34%
Florida

25%
Nevada

23%
Missouri

19%

Average Car Insurance Costs by Age

Age is another factor that can impact the monetary value of indemnity. For example, a less experience adolescent driver could cost american samoa a lot as $ 5,318 per class to insure by themselves. The average monetary value of cable car policy greatly decreases from historic period 16 to 30, at which charge car indemnity rates tend to remain regular until slenderly rising in a driver ’ south senior years.

Average Car Insurance Premiums by Age

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long time individual agio
16
$5,318
17
$4,621
18
$3,997
19
$2,789
20
$2,465
21
$1,957
22
$1,818
23
$1,648
24
$1,543
25
$1,402
30
$1,267
40

$1,246
50
$1,179

Average Costs by Coverage Type – Full Coverage vs. Liability-Only

The sum of coverage you decide on will depend on the express you live in and your unique needs. typically, more coverage is more expensive .

Liability-only insurance costs an average of $898 per year.
A full coverage policy with the same liability limits costs an average of $1,311 per year.

Liability-only car policy coverage tends to cost the least, but getting only the minimum comes with risks. For exemplar, you won ’ thyroxine be covered for damage to your fomite with liability-only coverage — you ’ d only be covered for any damage that you do to another person ’ s car. That ’ s why fully coverage ( comprehensive examination and collision ) is broadly a better option for many drivers.

Car Insurance Premiums by Coverage Level

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payment hertz 50/100/50 Liability-only 50/100/50 w/ Comprehensive and Collision 100/300/100 w/ Comprehensive and Collision
Monthly

$75

$109

$119
6-Month

$449

$656

$712
Annual

$898

$1,311

$1,424

Average Car Insurance Costs by Car Model

certain car models can be extremely expensive to insure, but most car models will alter a driver ’ second rates by less than a few hundred dollars per year. For exercise, the exceed sell sedan ( Toyota Camry ), truck ( Ford F-150 ) and SUV ( Toyota RAV4 ) models in the state all cost our sample driver an average of $ 1,266 to $ 1,414 to insure. On the other bridge player, sports cars and electric car models can be much more expensive to insure than the average car. MoneyGeek found that the most expensive car to cover is a Nissan GT-R. The cheapest car model to insure is a Honda CR-V .

model	2020 Average annual agio
Nissan GT-R ( Most expensive model to insure )	$ 3,096
Toyota Camry ( Top-selling Sedan )	$ 1,414
Ford F-150 ( Top-selling Truck )	$ 1,269
Toyota RAV4 ( Top-selling SUV )	$ 1,266
Honda CR-V ( Cheapest model to insure )	$ 1,172

Average Car Insurance Costs With Tickets or Accidents

Your accident and ticket history is another factor indemnity companies consider when setting rates and determining if they can insure you .

A driver with a clean record pays an average of $1,424 per year for car insurance.
The same driver with a ticket on their record pays an average of $1,836 per year.
If that driver were at-fault for an accident, he pays an average of $2,237 per year.

There are things that can combat increases or lower the costs to your car insurance after an accident. In some states, attending dealings school can get irreverence points taken off your phonograph record. That, in turn, can impact your premiums. And, depending on the insurance company, you may get a break if it ’ s your first rape. It ’ mho worth discussing your options with your indemnity agent.

Car Insurance Premiums With Tickets and Accidents

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payment bicycle rate After A tag rate After An accident
Monthly

$153

$186
6-Month

$918

$1,119
Annual

$1,836

$2,237

Average Car Insurance Costs If You Have Bad Credit

In most states, your credit score can impact your car insurance rates. The exceptions to this rule are Hawaii, Massachusetts and California, where this practice is not allowed. But for those who live elsewhere in the U.S., tied having barely average credit can increase your costs more than, for example, having a moving violation, according to research from Consumer Reports. Raising your score can help you get lower car insurance rates and access early benefits. So it ’ second something to keep an eye on if you ’ re design on taking out a new policy soon.

Car Insurance Premiums for Drivers With Poor Credit

payment cycle Poor Credit
monthly $ 223
6-Month $ 1,335
annual $ 2,671

Average Car Insurance Costs If You Have a DUI

If you have a DUI on your drive record, that can importantly increase your rates, as indemnity companies take it as a signal that the driver is bad .

The average annual cost of car insurance across the board was $1,424.
The cost for someone with a DUI was $2,879. That’s more than double the average.

A DUI can stay on your tug record for years, and the demand distance of clock time will depend on the state of matter in which you live. For many reasons, not merely insurance rates, you need to avoid a DUI.

Car Insurance Premiums With a DUI

requital bicycle rate After DUI
monthly $ 240
6-Month $ 1,440
annual $ 2,879

Other Factors That Impact Cost

The way policy companies calculate the costs of insuring any given person is normally based on a wide variety of unique factors. Our cable car insurance cost calculator can help see how these respective impingement estimated costs. here ’ s a dislocation of some of those other aspects you should be aware of and how those can influence your cost of getting car policy :

Vehicle Type

Your car ’ mho make, model and year all impact how much you ’ ll pay in indemnity costs. For model, classic cable car policy companies would come with special requirements as those have a different kind of value than a typical vehicle. On the other hand, a car that ’ s rated highly for safety and can qualify for eco-friendly discounts can lower your car policy costs.

Gender

Your gender can be another agent that influences your rates. In general, this rule only applies to drivers under 21. Among those younger drivers, men tend to pay more than women. But, after that, things tend to even out.

Insurance History

Those who have a gap in coverage are by and large seen as being less credible, or safe, from the perspective of cable car policy companies. So it ’ south essential to make sure that you have at least the minimal compulsory insurance for your fomite at all times to avoid inflate rates.

Your ZIP Code

Where you live can have a significant shock on your rates a well. For model, more dense population areas and those with higher crime rates tend to be more expensive. On the other hand, more sparsely populate areas or places with lower crime rates can help you get a better conduct.

Annual Mileage

The more you drive, the more opportunities there are for an accident or other damages. So your rates will vary depending on your annual mileage american samoa well.

Deductible Amount

Opting for a higher deductible will lower your monthly costs and vice versa. Keep in mind that if you need to file a claim, you will have to pay more. If you choose a higher deductible, it ’ randomness important to have that come saved, if possible, to lessen potential fiscal shock subsequently on.

Claims History

Can insurance companies tend to assume that those who have had claims filed in the past are more likely to do then in the future. In general, having fewer claims under your knock is better for getting a lower pace.

Number of Drivers in Household & Marriage Status

Having more drivers in your family will cost more, but it can besides lower your overall costs, per driver, if your insurance company offers a multi-driver discount. That ’ s in comparison to each driver getting their own policy. marital status besides impacts your rates as individual people tend to pay more than marital individuals. Some factors are intemperate to control when it comes to the monetary value you ’ ll pay up for car indemnity, such as your historic period and where you live. Since indemnity companies weigh many factors when determining your bounty, it ’ south good to control the elements you can, such as not getting tickets or DUIs and maintaining effective accredit. Knowing the average cost of car insurance in your department of state can help you make an educated decision when you shop for the best rate. Loading …

Expert Advice: Factors That Influence the Cost of Auto Insurance

Why does the average cost of car policy change indeed much depending on what department of state you live in ?
My indemnity rates seem much more expensive than modal. What factors could be driving that ?
policy companies give me very different quotes. Why is the median monetary value of car indemnity so different between policy companies ?

Dr. Zachary Moore Assistant Professor of Marketing at the University of Louisiana at Monroe Chris Miller teacher of Accounting at the University of Indianapolis Laura Sendldorfer Financial Advisor & Insurance Specialist at Offit Advisors Joseph F. Eschleman, CIMA® President of Towerpoint Wealth Michael Omansky Associate Professor, Felician University, School of Business and Information Sciences Dr. Cara Peters Professor of Marketing at Winthrop University Scott W. Hegerty Associate Professor of Economics at Northeastern Illinois University Roc Starks Associate Teaching Professor at Bowling Green State University, CIC, CRM, ARM, MBA Ali Zeytoon-Nejad, Ph.D Visiting Assistant Teaching Professor at Wake Forest University, School of Business Raj Iyengar Ph.D., CPA, CMA, Professor and Chair of the Department of Accounting at North Carolina Central University Susan Hume, PhD Associate Professor Finance at The College of New Jersey Dr. Brian Routh Assistant Professor of Accounting at Meredith College, School of Business Suman Banerjee Associate Professor of Finance, School of Business at Stevens Institute of Technology Michael McGuinness Associate Professor, Economics and Business at Saint Anselm College Ryan Stueber Agency Founder of PNW Insurance Group Dr. Chandan Kumar Jha Assistant Professor of Finance, Madden School of Business, Le Moyne College John Espenschied Agency Owner of Insurance Brokers Group John Forlines III Professor of Economics at Duke University Jing Ai Jing Ai Professor of Finance, Risk Management and Insurance at the University of Hawaiʻi Madhuparna Kolay, Ph.D. Associate Professor of Finance, Pamplin School of Business Administration, University of Portland Dr. Brock Zehr Associate Professor Business & Economics at Huntington University David Hart executive in Residence at Oklahoma Wesleyan University Derek-Dion Lee Assistant Professor of Finance at Ohio Northern University Matthew Hall Assistant Professor of Marketing, College of Business at Oregon State University Joseph R. Stasio Associate Professor, marketing at Merrimack College Pavel Yakovlev, Ph.D. Associate Professor of Economics, Palumbo Donahue School of Business at Duquesne University Thomas W. Hall Associate Professor of Finance and Economics at Christopher Newport University Nicole McConlogue assistant Professor and Clinic Director, WVU College of Law Biwei Chen Assistant Professor of Economics at Binghamton University Benjamin Pugsley Assistant Professor of Economics at the University of Notre Dame Barry Choi personal finance and Travel Expert at MoneyWeHave.com Dr. Joseph G. Eisenhauer Dean of the College of Business Administration at the University of Detroit Mercy Dr. Jose Mendoza adjunct Professor in Marketing, Jack Welch College of Business & Technology at Sacred Heart University Chase Reid Lecturer in Finance at Elon University art Rossetti indemnity agent at Gateway Insurance Group Christopher J. Marquette Assistant Professor of Finance at Millikin University John Lapointe Vice President at Lapointe Insurance Justin Yoshizawa Mercury Insurance Director of Product Management Dr. Kip Pirkle entrepreneur and Consultant William Martin Associate Professor of Marketing at Eastern Washington University Li Cai Li Cai Associate Professor of Finance at IIT Stuart School of Business Dr. Debra J. Dean President & CEO at Dean Business Consulting, LLC John Alpers Assistant Professor of Business, Carson-Newman University Dr. Ying Zhen Associate Professor of Business and Economics at Wesleyan College Dr. James Weisel Professor of Accountancy at Georgia Gwinnett College Dr. Kelly Carter Associate Professor of Finance at the Earl G. Graves School of Business and Management at Morgan State University Tae-Nyun Kim Associate Professor of Finance at The College of New Jersey School of Business Sean Spence Adjunct Professor in the School of Business at George Mason University Christopher Serafin Assistant Professor of Business Administration & Marketing at Andrew College Talaya Scott accounting Professor at Milwaukee Area Technical College About the writer expert-profile Devon Delfino is an independent diarist based in the Pacific Northwest. Her personal-finance coverage has been featured in publications such as the L.A. Times, Teen Vogue, Mashable, MarketWatch, CNBC and USA Today, among others .