Average cost of car insurance in 2024

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Average cost of car insurance in 2024



How much is car insurance?

According to ours extensive research, the average cost of car insurance in the U.S. is $2,311 per year. Minimum coverage, on the other hand, has an average annual cost of $640. However, car insurance is like a fingerprint: although your circumstances may seem similar, your personalized rating factors will cause your premium to vary from that of friends, family and the national average. Still, knowing the average cost of car insurance might give you the information you need to ensure you’re not overpaying for this necessary financial protection. 

Key insights from ours 2024 car insurance cost analysis:

  • Full coverage car insurance costs an average of $2,311 per year, while minimum coverage is $640 per year. On a monthly basis, full coverage averages $193, with minimum coverage averaging $53 per month.
  • USAA, Auto-Owners and Geico offer some of the cheapest full coverage car insurance but are not all available to all drivers. 
  • Men tend to pay more than women for car insurance, on average, since data show they are more likely to engage in riskier driving behaviors.
  • Some vehicles experience higher average insurance premiums than others because of MSRPs, safety features, repair costs, parts availability and other variable characteristics.

How much does car insurance cost by state?

The average cost of car insurance varies between states for many reasons, like accident and claim frequency, the cost of labor and vehicle parts, vehicle theft frequency and even road conditions. The coverage levels you choose also play a significant role. Here, we cover the two most common coverage limits for a holistic view of average rates — full coverage and minimum coverage. It is typical for drivers who have leases or loans on their vehicles to have comprehensive and collision coverage, along with higher liability limits of 100/300/50, and for drivers of older cars to have liability-only limits at the state-required amounts.

Keep in mind that there are various degrees of coverage between these two options. Even if you are driving an older vehicle, liability coverage helps protect your financial future if you are found at fault for an accident. And insurance experts agree that carrying more liability coverage offers better financial protection at a relatively low cost to you. While making the jump from minimum coverage to full coverage can throw a wrench in your budget, raising your liability limits can be an affordable way to protect your finances if you are at fault for an accident. You may want to speak with a licensed insurance agent to better understand the limits that will work best for you. 

Average car insurance cost by state in 2024

Alabama
   $1,993
$490
Alaska
   $2,406
$518
Arizona
   $2,557
$770
Arkansas
   $2,194
$446
California
   $2,667
$651
Colorado
   $2,941
$549
Connecticut
   $2,506
$976
Delaware
   $2,484
$893
Florida
   $3,467
$1,094
Georgia
   $2,554
$867

What are the cheapest states for car insurance in 2024?

Drivers in Idaho, Vermont, Maine, Ohio and Washington pay the cheapest annual full coverage car insurance rates in the nation, on average. Factors like cheaper cost of living, lower probability of accidents and claims, and less traffic congestion could contribute to these states' lower average premiums.

  • Idaho: $1,339 per year — 42 percent below national average
  • Vermont: $1,376 per year — 40 percent below national average
  • Maine: $1,481 per year — 35 percent below national average
  • Ohio: $1,485 per year — 35 percent below national average
  • Washington: $1,576 per year — 31 percent below national average

What are the most expensive states for car insurance in 2024?

Based on our research, drivers in New York, Louisiana, Florida, Nevada and Colorado have the highest average annual cost of full coverage car insurance. This could be due in part to frequent claims for common losses in these states, making drivers riskier to insure overall.

  • New York: $3,672 per year — 60 percent above national average
  • Louisiana: $3,623 per year — 58 percent above national average
  • Florida: $3,462 per year — 51 percent above national average
  • Nevada: $3,004 per year — 31 percent above national average
  • Colorado: $2,945 per year — 29 percent above national average

Estimate your monthly car insurance cost

Despite car insurance being a highly individualized product, there are ways to help estimate car insurance costs. By understanding how insurance companies calculate rates, you can be better prepared to shop for car insurance and find a competitive price. While the rate you get from the calculator below is not an exact quote, it can help you budget better. Our rates database is updated monthly and represents the most accurate estimates based on rate change approvals insurers file with state insurance departments. 

How much is car insurance by company?

On average, car insurance from some of the top insurance carriers in the nation ranges from around $1,300 to $2,800 per year for full coverage, some of the cheapest rates being from Auto-Owners, Erie and Geico. But because car insurance companies have their own proprietary underwriting systems, the cost of car insurance for each individual will vary from carrier to carrier. This can make choosing an insurer a difficult decision. 

For drivers looking for the best car insurance company, keep in mind that the coverage you choose plays a role, too. The average cost of full coverage car insurance is about 261 percent more than minimum coverage. The table below showcases the average annual and monthly full and minimum coverage premiums from some of the largest car insurance companies in the nation by market share. 

Insurance company Annual full coverage premium Monthly full coverage premium
Allstate
$2,977
$248
American Family
$1,895
$158
Amica
$2,662
$222
Auto-Owners
$1,631
$136
Erie
$1,703
$142
Farmers
$2,970
$247
Geico
$1,782
$148
Mercury
$1,896
$158

How much does car insurance cost by age?

Car insurance companies use many different rating factors to determine your premium, and in most states, your age significantly impacts how much you pay for coverage. Statistically speaking, younger drivers (especially teens) are more likely to be involved in an accident and engage in distracted driving. Because of the added risk, younger drivers tend to pay more for auto insurance compared to drivers with more experience behind the wheel.

Average rates tend to decrease from ages 25 to 60 but begin to creep back upward when a driver reaches their 70s. Advanced age can cause decreased reaction time and poorer eyesight, which in turn can increase the likelihood of an accident. Because of this, senior drivers typically see elevated insurance rates. 

16-year-old*
$5,015
$1,540
18-year-old*
$4,333
$1,309
20-year-old
$4,671
$1,326
25-year-old
$2,852
$782
30-year-old
$2,450
$667
40-year-old
$2,299
$637
50-year-old
$2,120
$610

How does driving record impact the cost of car insurance?

Drivers with an at-fault accident on their driving record pay around 43 percent more for car insurance on average compared to drivers with a clean driving record. This average increase is even higher for drivers with a DUI conviction, at 91 percent more, showing how the severity of an incident and being considered a high-risk driver could impact your premium.

Clean driving record
$192
$2,299
0%
Speeding ticket
$231
$2,773
21%
At-fault accident
$273
$3,280
43%
DUI conviction
$367
$4,399
91%
*rates are for full coverage

  • Speeding ticket: Earning a speeding ticket conviction may be one of the most common driving infractions and it can increase your full coverage premiums by, on average, 21 percent more. Every car insurance carrier will have its own algorithm for determining rates after a speeding ticket. For example, even after a speeding ticket conviction, Erie and Auto-Owner’s average car insurance rates are both well below the national average cost of auto insurance. 
  • At-fault accident: An at-fault accident on your record could raise your monthly full coverage car insurance payment from $193 to $273, and increase your annual premium by, on average, 43 percent more. If this is your first accident and you’ve previously added optional coverage like accident forgiveness to your policy, you may be able to avoid the surcharge.
  • DUI conviction: Being convicted of a DUI could cause your monthly full coverage premium to be 91 percent more, and stay on your driving record for 10 years or more. The amount surcharged will also vary in each state. For example, the average cost of car insurance after a DUI for a full coverage policy is $2,184 per year in Idaho, but around $7,471 per year in Michigan. 

How much does car insurance cost by credit score?

Drivers with poor credit pay nearly 85 percent more for full coverage car insurance compared to those with good credit. This is because drivers with poor credit are seen as more likely to file claims and thus pose a larger financial risk to an insurer versus a driver with good credit. In states where using a credit-based insurance score as a rating factor is allowed, insurers review your insurance credit tier, which is not necessarily identical to your credit score from services like Experian, TransUnion or Equifax.

Regulations in California, Hawaii, Massachusetts and Michigan prohibit or severely limit auto insurers from using credit as a factor when setting rates.

Poor credit
$354
$4,248
Average credit score
$211
$2,530
Good credit score
$192
$2,299
Excellent credit score
$165
$1,978
*rates are for full coverage

How much does car insurance cost by vehicle type?

The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents, how much damage your vehicle could cause during an accident and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are well-suited for a variety of lifestyles and budgets.

BMW 330i
$229
$2,744
Ford F-150
$179
$2,149
Honda Odyssey
$166
$1,987
Toyota Prius
$194
$2,331
Tesla Model 3
$279
$3,349
Audi Q5
$211
$2,533
Toyota RAV4
$166
$1,993
Subaru Outback
$155
$1,854
Jeep Wrangler
$169
$2,033
Nissan Altima
$205
$2,466

The vehicles listed above are representative of common model types seen across the United States. Our list includes a variety of luxury and standard brands and a broad selection of model sizes. Some vehicle makes and models are considered more expensive to insure by insurance companies. These shared features can include:

  • High-end vehicles, like luxury or sports cars: The high price tag of these vehicles is often coupled with expensive parts, leading to more costly repairs in the event of a claim, as well as higher speed maximums compared to standard vehicles, increasing the risk of at-fault accidents.
  • SUVs, vans and other large vehicles: Larger vehicles may weigh more and carry more passengers, which could cause more damage in accidents compared to smaller vehicles.
  • Common, more affordable vehicles: Though economy cars may be easier on a budget, they may also be more susceptible to vandalism and theft due to having fewer security measures, raising the likelihood of comprehensive claims.
  • Hybrid and electric vehicles: Hybrid and electric vehicles may help you save on fuel costs, but they might be more expensive to insure. Like luxury and sports cars, parts and labor for hybrid and electric cars can be pricey, leading insurers to typically charge more for comprehensive and collision coverage.
  • Vehicles with high safety ratings: Vehicles with high safety ratings tend to have lower base rates because you may be less likely to be injured in an accident (or get into an accident in general). As a bonus, vehicles with features like anti-lock brakes and passive restraint systems might earn extra discounts, depending on your carrier. 

What other things affect my car insurance price?

Your car insurance price can also be influenced by less apparent elements such as your occupation, annual mileage and even your marital status. Certain professions may be considered lower risk, leading to lower premiums. Similarly, the number of miles you drive annually can impact your rate, with lower mileage often resulting in cheaper insurance due to reduced exposure to potential accidents. Additionally, married individuals typically receive lower rates compared to single drivers, as insurers often associate marriage with more stable and safer driving behaviors. Many states allow insurance providers to consider gender, but a handful of states have banned this practice. Every state except Hawaii and Massachusetts allows insurance companies to consider age as a factor for insurance pricing. Other things like where you park your car, whether in a garage or on the street, can also affect your insurance costs, as vehicles kept in secure locations are less likely to be stolen or damaged.

How to lower your car insurance cost 

If you're looking to save when buying car insurance, there are several simple strategies you can use to lower your costs:

  • Shop Around for Quotes: Different insurance companies offer varying rates, so it's essential to compare quotes from multiple providers. Shopping around allows you to find the best coverage at the most competitive price for your specific needs and circumstances.
  • Bundle Policies: Consider bundling your auto policy with your home or renters insurance from the same company. This often leads to a discounted premium.
  • Drive Less: Many insurers offer discounts for drivers who don't use their vehicles frequently. If you drive fewer than a certain number of miles per year, you could qualify for a lower rate.
  • Raise Your Deductible: Increasing your deductible — the amount you pay out of pocket in the event of a claim — can result in lower premiums. Just make sure you can comfortably afford the higher deductible if you need to file a claim.
  • Take Advantage of Discounts: Most insurance providers offer various discounts that can significantly reduce your premium. Look into available discounts like safe driving, anti-theft devices, or being a student with good grades. Combining multiple discounts can lead to substantial savings. Be sure to ask your provider about specific programs and discounts they offer, such as telematics programs that monitor your driving habits.

Auto insurance discounts

  • Claims-free discounts: Drivers who have no auto claims on their record for the past three to five years typically qualify for savings. This could include either a claims-free or safe driving discount.
  • Good student discounts: Adding a young driver could drastically increase your overall auto insurance premium. Many auto insurers offer discounts for young drivers who earn good grades in high school or college.
  • Discounts for paying in full: If you can afford to pay your car insurance premium in full, versus monthly or quarterly, you might qualify for a discount on your car insurance cost.
  • Telematics discounts: Your car insurance provider might offer a telematics app or device that you install in your vehicle. The program monitors your driving habits to determine how safe or risky you are as a driver. Safe drivers are typically rewarded with discounts, but be aware that some providers reserve the right to raise your premium if the program detects risky driving habits.
  • Paperless policy discounts: Many insurance providers offer savings when policyholders agree to receive their bills and policy documents electronically instead of through the mail.
  • Automatic payments plan: While not technically a discount, the majority of insurance companies charge service fees any time a payment is processed on an insurance policy, unless the customer opts to pay the bill in full each renewal. Many companies will waive or lower the service fee if the account is set up on auto pay through a checking account instead of a credit or debit card.
  • Bundling discounts: The home and auto bundle is not the only kind of bundling discount available. Depending on your insurer, you may also be able to bundle your auto policy with a renters, umbrella, motorcycle or other insurance lines.

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