How Much Does Car Insurance Cost in the United States?
Average Car Insurance Rates
Some of the lowest rates in our study are for motorists with a clean driving record. The national average rate for good drivers is $2,068 per year.
USAA has the cheapest sample rate in this category, 35% below the national average. Those who don’t qualify for USAA membership might want to explore policy options with Erie, which has an average annual rate 26% cheaper than the average.
Auto-Owners, with a rate about 22% below the national average, has the third-cheapest sample cost for drivers with a clean record.
Average Car Insurance Rates for
Even a single speeding ticket can raise car insurance rates significantly. Our analysis found that drivers with a single speeding ticket pay, on average, $2,503 annually for a policy.
But how much you’ll pay after a ticket also depends heavily on the insurer you choose. USAA's sample rate for drivers with a speeding ticket is the cheapest in our study, beating the national average by 35%. Erie and Auto-Owners have the next-cheapest average annual rates, at 30% and 23% below the national average, respectively.
Average Car Insurance Rates for
Shopping around and comparing quotes can be especially important after an accident. Our study determined that the average annual cost of car insurance increases to $2,940 after one accident.
It’s likely that your rates will increase regardless of your insurer, but the cost of car insurance after an accident varies widely by company.
Other than USAA, which has a sample rate 35% below the national average, the cheapest sample rate in our study belongs to Erie, at 33% below the national average. Auto-Owners, with an average annual rate 24% lower than average, had the third-cheapest post-accident rate we found.
Average Car Insurance Rates for
The national average rate for drivers after a DUI is $3,538 per year, according to our car insurance rate analysis. That’s $1,478 more per year than the average annual rate for a motorist with a clean driving record. That difference helps illustrate precisely how much a DUI can impact what you pay for car insurance.
But different insurers charge different rates. Progressive has the cheapest sample rates for motorists after a DUI. Its premiums are 35% below the national average for drivers with a DUI on their record.
USAA and Erie also offer competitive premiums, with sample costs approximately 28% below the national average.
Average Car Insurance Rates for Drivers With Poor Credit
The average cost of a policy for a driver with poor credit is $4,381 per year, compared to $2,095 per year for a driver with good credit – a difference of $2,286 annually.
Nationwide’s sample rates are the lowest for drivers with poor credit: 48% below the national average. Other drivers in this category may find the most affordable premiums with USAA and Geico, which have sample rates 42% and 32%, respectively, below the national average.
Average Car Insurance Rates
Average annual rates to insure teen drivers are some of the highest sample costs in our study: $6,410 per year, on average, for females and $7,377 per year for males. Why the high sample premiums for this group of drivers? Because insurance companies generally view younger, less experienced motorists as riskier to insure.
Erie’s average annual rate for female teen drivers is 54% cheaper than the national average for female teen drivers and 59% cheaper than the national average for male teen drivers. USAA and Auto-Owners offer competitive rates as well.
Average Car Insurance Rates
Car insurance rates typically decrease for drivers as they move past their teens and early 20s. The average annual rates for 25-year-old drivers are $2,387 for females and $2,526 for males.
The cheapest sample rates in our study for young adult drivers – defined as single 25-year-olds – are USAA’s. Its average annual premiums for both female and male young adults are about 33% below the national average.
For young adult drivers outside of the military community, Nationwide and Geico also offer rates well below the national average. Geico’s sample rates are 20% below the national average for females, and 22% for males. Nationwide is 21% and 20% cheaper than average, respectively, for female and male drivers.
Average Car Insurance Rates
Adult drivers – defined as married 35-year-olds – generally pay less for car insurance than teens and young adults. According to our analysis, the national average rate for female adult drivers is $1,951 per year, and for males, $1,976 .
The cheapest sample rates for adult drivers in our study belong to USAA. Its average annual rates are more than 37% below the national average for both female and male adult drivers. Erie is No. 2, with rates 27% cheaper than the national average for female adults and 30% less than the national average for adult males.
No. 3 Nationwide’s sample rates are 23% cheaper for females and 21% cheaper for males compared to the national average.
Average Car Insurance Rates
Senior drivers – defined here as married and 60 years old – enjoy some of the most affordable national average rates we found: $1,756 per year for female senior drivers, and $1,813 per year for males.
USAA’s sample rates, the lowest in our study, are 36% and 38% cheaper than average for female and male senior drivers, respectively.
Erie and Nationwide also offer competitive rates in this demographic. Erie’s sample rates are 27% and 32% cheaper than average for female and male senior drivers, while Nationwide’s rates for female drivers are approximately 25% below the national average and 22% for male drivers.
The national average rate for a low-coverage policy is $1,997 per year, according to our study.
USAA has the most affordable sample rate for minimum coverage, coming in at 36% cheaper than the national average. But USAA is only available to active and former military members and their families. For most drivers, Erie has the most affordable rates, 26% below the national average.
If you’re shopping for low or minimum coverage, make sure you buy a policy that meets your state's requirements. And if you’re financing or leasing your vehicle, always verify the requirements of your lender or lessor.
Average Car Insurance Rates
Higher levels of coverage cost more, but provide additional protection. Our analysis found a national average rate of $2,150 per year for high coverage.
Erie has the second-cheapest rates, behind only USAA, for drivers seeking higher levels of coverage. Its rates are 27% cheaper than the national average. Nationwide is the third most affordable, with a sample rate 25% below the national average.
Average Car Insurance Rates
According to our rate analysis, low-mileage drivers pay less for car insurance. Our study found that the average annual rate for a driver who travels 6,000 miles per year is $1,973 . That’s $95 per year less than the national average rate for a motorist who averages 12,000 miles per year.
USAA is the cheapest insurance for low-mileage drivers, with a rate 37% below the national average. Drivers who don’t qualify for USAA membership may want to try Erie or Nationwide, which have sample rates 34% and 19% below the national average, respectively.
How to Find the Best Price on Car Insurance
Saving money on your car insurance may take a little extra effort, but it’s worth the work to find the best price.
Keep your insurer up-to-date with any life changes that could affect your premium, such as moving, graduating college, changing jobs or getting married. It’s also a good idea to call your insurance agent to make sure everything in your policy is accurate and that your coverages are appropriate.
Here are some more ways to save:
- Get multiple quotes. Comparison shopping is the best way to find a good deal for your unique situation.
- Bundle your policies. Many insurance carriers will reward your loyalty with lower premiums if you also choose them for home, life, or other insurance policies.
- Increase your deductible. Lower deductibles usually come with higher premiums. Raise your deductible if you feel comfortable paying more out of pocket if you file a claim.
- Eliminate unnecessary coverage. While choosing minimum coverage isn’t always best, it’s smart to eliminate features or add-ons you won’t use.
- Let your insurer track you. You might save money with a car insurance tracking device or a usage-based insurance policy that rewards you for driving less.
- Work on your credit score. According to Nationwide, 92% of insurers consider credit scores when setting premiums. Work on making consistent, timely payments and reduce your usage to improve your score over time.
- Seek out discounts. With the variety of discounts available, you might qualify for more than you think. Ask your agent (or review your policy) to see if there are any you’ve missed.
Types of Car Insurance Discounts
Car insurance companies like to incentivize safe driving, good grades, low mileage, and other behaviors by rewarding customers with lower premiums. Here are a few types of discounts to explore that might save you additional money.
- Safe driving for accident-free or claims-free drivers
- Good student for student drivers with good grades (as determined by the insurer)
- Low mileage for drivers who aren’t on the road much
- Affiliation for drivers with connections to professional or alumni groups
- Driving course for drivers who complete a state-approved defensive driving class
- Payment option for drivers who pay their premiums in full upfront or arrange automatic payments from their bank account
- Paperless statements for drivers who opt to have their policies and statements delivered electronically
- Multiple vehicles for drivers who have multiple vehicles at the same household that are insured with the same company
- Multi-policy for drivers who bundle their car insurance with other policies (like home, renters, or life insurance) from the same company
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