Average Cost of Car Insurance | NextAdvisor with TIME
If your cable car policy reclamation is around the corner, or if you haven ’ t shopped for quotes in a class or more, use this time to look at what you should expect to pay. A good start orient to figure out whether you ’ re overpaying for car insurance is to consider the median price of car indemnity .
Average Car Insurance Cost by Company
The average cost of minimum car insurance is $ 565 per year, while wide coverage car policy costs an average of $ 1,674 per year, according to the latest datum from Bankrate. To find the best car policy company, get quotes from at least three or four indemnity companies to compare prices, coverage options, and any extra perks. Below you can compare modal annual rates across several policy companies .
- USAA is the cheapest company for full coverage car insurance with an annual average rate of $1,225, followed by Erie Insurance and Travelers.
- MetLife is the most expensive company for full coverage auto insurance at $2,123 per year on average, followed by Farmers and Allstate.
- Auto-Owners is the cheapest car insurance company for the minimum required coverage, at an annual average car insurance rate of $382, followed by USAA and Amica.
- MetLife is the most expensive car insurance company for the minimum required coverage, at $821 per year on average, followed by Farmers and Allstate.
Average Cost of Car Insurance by Coverage Type
The character of car insurance coverage you get and how much of it will determine the amount of your car bounty. Liability insurance is the plain minimal coverage you need to drive in most states, and it covers the property damage and injuries to others if the accident is your fault — up to your cover limit.
then there are optional types of coverage that protect your vehicle, like comprehensive and collision, which aren ’ deoxythymidine monophosphate required by police but most people have. Having a combination of indebtedness, comprehensive, and collision policy is normally referred to as “ wax coverage ” indemnity. Below you ’ ll find the average annual agio for coarse types of car insurance coverage .
| Type of Coverage | Average Annual Cost Nationwide |
|---|---|
| Liability | $611.12 |
| Collision | $363.08 |
| Comprehensive | $159.72 |
Source: National Association of Insurance Commissioners, 2020 Auto Insurance Database Report. Note: The data is accurate as of 2017.
Average Cost After Causing an Accident
Your car insurance rate is about always guaranteed to go up after an accident, but it ’ mho hard to say precisely how much. It ’ ll count on diverse factors, including your insurance company, the state where you live, your old age, and whether you have a history of accidents or dealings violations. According to the Insurance Information Institute, a rate increase will broadly stick around for three years following a title. Bankrate data shows the difference in rates before and after an accident can be adenine much as $ 560 on average .
| Average Annual Premium for Minimum Coverage | Average Annual Premium for Minimum Coverage | |
|---|---|---|
| Before an Accident | $563 | $1,738 |
| After an Accident | $803 | $2,299 |
Source: Bankrate, Average Cost of Car insurance in 2021. Note: Bankrate, like NextAdvisor, is owned by Red Ventures.
Average Car Insurance Cost by State
Your state of matter and the local area you live in can have an effect on your car indemnity rate. Data from the National Association of Insurance Commissioners shows the average car indemnity cost varies significantly across state of matter lines ; prices in the most expensive states are more than two times higher than those in the brassy ones. Below you can compare average annual rates in every express .
- Maine is the cheapest state for full coverage car insurance with an annual average rate of $765.
- Louisiana is the most expensive state for full coverage auto insurance at $1,638 per year on average.
- North Dakota is the cheapest state for minimum coverage car insurance with an annual average rate of $304.
- Florida is the most expensive state for minimum coverage car insurance with an annual average rate of $964.
| State | Full Coverage Premium | Minimum Coverage Premium |
|---|---|---|
| Alabama | $1,015 | $479 |
| Alaska | $1,072 | $561 |
| Arizona | $1,126 | $608 |
| Arkansas | $1,039 | $458 |
| California | $1,116 | $566 |
| Colorado | $1,195 | $640 |
| Connecticut | $1,276 | $744 |
| Delaware | $1,322 | $844 |
| District of Columbia | $1,466 | $744 |
| Florida | $1,446 | $964 |
| Georgia | $1,286 | $735 |
| Hawaii | $918 | $469 |
| Idaho | $780 | $403 |
| Illinois | $977 | $507 |
| Indiana | $840 | $432 |
| Iowa | $795 | $339 |
| Kansas | $948 | $400 |
| Kentucky | $1,044 | $586 |
| Louisiana | $1,638 | $937 |
| Maine | $765 | $370 |
| Maryland | $1,256 | $700 |
| Massachusetts | $1,215 | $643 |
| Michigan | $1,494 | $874 |
| Minnesota | $939 | $484 |
| Mississippi | $1,106 | $511 |
| Missouri | $1,003 | $493 |
| Montana | $969 | $423 |
| Nebraska | $934 | $417 |
| Nevada | $1,259 | $799 |
| New Hampshire | $861 | $426 |
| New Jersey | $1,465 | $932 |
| New Mexico | $1,051 | $548 |
| New York | $1,486 | $869 |
| North Carolina | $839 | $372 |
| North Dakota | $809 | $304 |
| Ohio | $865 | $439 |
| Oklahoma | $1,101 | $503 |
| Oregon | $1,044 | $677 |
| Pennsylvania | $1,065 | $539 |
| Rhode Island | $1,467 | $870 |
| South Carolina | $1,145 | $645 |
| South Dakota | $872 | $327 |
| Tennessee | $957 | $456 |
| Texas | $1,296 | $631 |
| Utah | $984 | $568 |
| Vermont | $842 | $375 |
| Virginia | $920 | $469 |
| Washington | $1,078 | $667 |
| West Virginia | $1,072 | $513 |
| Wisconsin | $805 | $412 |
| Wyoming | $936 | $354 |
Source: National Association of Insurance Commissioners, 2020 Auto Insurance Database Report. Note: The data is accurate as of 2017.
Factors That Determine Your Car Insurance Premium
Your rate is determined by dozens of different factors, and those factors vary across insurance companies. It ’ mho hard to pinpoint what precisely every policy company is analyzing to determine your premium, but hera are a few normally known ones that influence the price you pay for car indemnity, according to experts we spoke to and the Insurance Information Institute .
Pro Tip
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- Location: Your location plays a significant role in your auto premium. Every state has specific minimum requirements for auto insurance, so your state’s laws will influence how much coverage you need to buy in order to legally drive. Additionally, many insurance companies see drivers who live in urban areas as more susceptible to vandalism, theft, and accidents. That can lead to higher rates compared to those living in suburban or rural areas, according to III.
- Vehicle: The cost of your car affects the cost to insure it. A luxury car, for example, will be much more expensive to insure than a conventional sedan or SUV. The amount you drive your car also plays a role in your rate; the more miles you drive, the more chance for accidents. You’ll pay more as a result.
- Coverage Type and Amount: The type of coverage you choose and the limits and deductibles you pick will play a role in the cost of an insurance policy.
- Driving History: A good driving record can lower your auto insurance rate, and a bad driving record will do the opposite. New drivers also typically pay more because they’re less experienced and more likely to get into accidents.
- Credit History: If you’ve ever applied to open a line of credit or gotten a mortgage, you know that credit scores matter, a lot. That same principle applies to auto insurance, except it’s a credit-based insurance score (slightly different from a credit score). Insurance companies often use insurance scores — which are based on your credit history — to help determine your rate.
- Age: Data shows the more driving experience you have, the less likely you’ll get into an accident, and driving experience is usually correlated with age. Insurers usually see older, more experienced drivers as less of a risk on the road compared to teenagers or people under 25, and therefore will usually charge less.
- Gender: Auto insurers are allowed to set rates partially based on gender in nearly every state. According to III, women often pay less for coverage because men tend to get into more accidents.
Read more: 2022 Car Insurance Grace Period by Company