Insights:

Know the going rates so you don’t overpay.

Shopping for car insurance and comparing quotes, without knowing things like the average car insurance cost a month, can be a little daunting.

But if you are aware of what the average monthly car insurance payment is before you buy, you’ll be much less likely to stumble or pick a policy that gives you buyer’s remorse.

To assist you in your car insurance shopping experience, Insure.com has researched average auto insurance costs based on various driver profiles and rates collected from up to six major car insurance companies in every state.

How much is car insurance per month?

According to Insure.com research, the average cost of car insurance is $140 a month for a 40-year-old driver with good credit and driving history buying a full coverage policy.

The amount you pay for car insurance per month depends on several factors. Here are some of the main factors specific to you that insurance companies will use to determine your rate:

  • How much car insurance you buy
  • Driving record
  • Credit score
  • Vehicle type
  • Gender
  • Number of years you’ve been driving
  • Age
  • Location

Key Takeaways

  • The average car insurance cost per month in 2022 for a 40-year-old driver with good credit and a good driving history is $140 for full coverage, according to Insure.com’s research.
  • You should compare quotes from at least three different insurance companies before you renew your plan.
  • Insurance providers use your credit score to determine your insurance rates. Try to get your credit score to 650 or higher.

Average car insurance cost per state

Average monthly car insurance rates by state are outlined in the chart below. Rates are from a 2022 Insure.com study and based on a person with good credit and a clean driving record buying a full coverage policy.

StateAnnual RatePer Month Rate
Alaska$1,359$113
Alabama$1,542$129
Arkansas$1,597$133
Arizona$1,617$135
California$2,115$176
Colorado$1,940$162
Connecticut$1,750$146
Washington D.C.$1,858$155
Delaware$2,137$178
Florida$2,560$213
Georgia$1,647$137
Hawaii$1,306$109
Iowa$1,321$110
Idaho$1,121$93
Illinois$1,578$131
Indiana$1,256$105
Kansas$1,594$133
Kentucky$2,105$175
Louisiana$2,546$212
Massachusetts$1,538$128
Maryland$1,640$137
Maine$1,116$93
Michigan$2,133$178
Minnesota$1,493$124
Missouri$2,104$175
Mississippi$1,606$134
Montana$1,692$141
North Carolina$1,368$114
North Dakota$1,419$118
Nebraska$2,018$168
New Hampshire$1,307$109
New Jersey$1,901$158
New Mexico$1,505$125
Nevada$2,023$169
New York$2,020$168
Ohio$1,023$85
Oklahoma$1,797$150
Oregon$1,244$104
Pennsylvania$1,445$120
Rhode Island$1,845$154
South Carolina$1,894$158
South Dakota$1,581$132
Tennessee$1,373$114
Texas$1,875$156
Utah$1,469$122
Virginia$1,321$110
Vermont$1,158$97
Washington$1,371$114
Wisconsin$1,499$125
West Virginia$1,610$134
Wyoming$1,736$145

Average cost of car insurance by vehicle type

The type of vehicle you drive makes a significant impact on your car insurance cost. You’ll find the average cost of full coverage car insurance for each vehicle type in the chart below, assuming good credit and a clean driving record.People are often surprised to discover that trucks and vans are, on average, cheaper to insure than cars. Vans come in with the lowest average cost to insure at $1,606 per year, according to Insure’s 2022 study, with trucks not far behind at $1,787 per year.

Vehicle TypeAverage Annual Premium
Car$2,316
Truck$1,787
Utility$1,788
Van$1,606

Average cost of car insurance by gender

Although insurance companies using gender as a factor in determining car insurance rates is an ongoing controversial issue, only seven states have banned it.

In all other states, gender is a determining factor for car insurance rates. The data insurers use shows that men are a higher risk to insure and are involved in more accidents, speeding and DUI convictions than women.

However, our analysis shows that the average annual rate is nearly identical when comparing a 40-year-old male to a 40-year-old female. In fact, it only shows a difference of $1 between the two groups.

GenderAverage Annual Rate for Full Coverage
40-year-old female$1,681
40-year-old male$1,682

Average cost of car insurance by age

As you’ll see in the table below, the younger you are, the more you’ll pay for car insurance, but rates go up after age 60. This is because insurers consider teens and young drivers higher risk drivers due to inexperience.

Compounding the higher cost is the fact that younger people generally do not have experience with shopping for financial products such as insurance.

“In my studies of financial literacy among college students, we have found many of them lacking. This general finding most likely can be extended to understanding car insurance among college students as well. Anecdotal evidence from when I teach this topic in class suggests over half of my students do not fully understand auto insurance,” says James Brau, the Joel C. Peterson professor of finance and editor-in-chief of the Journal of Entrepreneurial Finance at Brigham Young University’s Marriott School of Business.

Even so, Dr. Brau points out that greater familiarity with computers and the internet can be a way younger people can make up for being new to shopping for financial products. “Computer literacy seems to compensate to some degree for lack of financial literacy,” he says. “Motivated students can scour the internet to compare insurance products. They can also Google around to learn terms and concepts they have never been taught.

Of course, it isn’t a problem for only college students. In general, Dr. Brau says, consumers tend to make a lot of mistakes when shopping for car insurance. He says the most common error is “probably that they don’t fully understand minimum state requirements and the options for collision and comprehensive insurance,” he says. “I encourage everyone to use online insurance calculators and tools to determine the optimal types and limits of their insurance packages.”

For instance, average car insurance costs for a 20-year-old have been found to be double what they are for a 60-year-old. Rates decrease with each year of age. But after age 60, rates begin to increase as senior drivers also are considered higher risk by insurance companies. Below are average rates for people at various ages, based on Insure’s 2022 analysis.

AgeMaleFemale
20$3,759$3,305
30$1,798$1,771
40$1,682$1,681
50$1,582$1,580
60$1,517$1,504
70$1,676$1,646
Expert Advice Badge
James Brau

Dr. James Brau

Joel C. Peterson Professor of Finance, Brigham Young University, Provo, UT

Computer literacy seems to compensate to some degree for lack of financial literacy.

How to get affordable car insurance

Here are some tips to help you get affordable car insurance:

  • Shop around. Get comparable quotes from at least three different insurance providers before every renewal period and go with the best value. We’ve included the top cheapest car insurance companies below to give you a head start.
  • If you lack experience with insurance shopping, benefit from the experience of others. Dr. Brau suggests: “Talk with people older than you, who you respect. Ask your parents, aunts, uncles, professors, etc.”
  • Don’t drop your coverage. Even if you go a period without a car, consider a non-owners policy to avoid gaps in coverage. Insurers frown upon coverage gaps and it could affect how much you pay in the future.
  • Increase your deductible. Selecting a higher deductible can result in a lower premium. However, this is only a good option if you can afford to pay the deductible.
  • Look for discounts. Most insurance companies offer a variety of car insurance discounts for which you may qualify.
  • Have a credit score of 650 or higher. In most states (Hawaii, California and Massachusetts are the exceptions), auto insurers can use your credit score in pricing your policy. Drivers with lousy credit pay 70% more, on average, than those with good credit, Insure.com found in a rate analysis. A look at the companies offering the cheapest policies, based on Insure’s 2022 study, are below.

Top cheapest car insurance companies

CompanyAverage Annual Premium
American National Finance$857
Palisades$1,073
Mapfre$1,091
Vermont$1,172
Nationwide$1,190
USAA$1,192

The bottom line

The typical driver spends about $140 per month on car insurance per month in 2022. However, those costs can vary widely depending on where you live, your age, the kind of car your drive, and your gender. If you’re unsure where you are getting the best rate, be sure to shop around before buying a policy. Also, ask for discounts to ensure the best possible monthly car insurance cost.

Methodology

Insure.com commissioned Quadrant Information Services to calculate average auto insurance rates for 2022. Averages are calculated based on males drivers aged 40 purchasing full coverage car insurance. Sample driver has a Good insurance score and no violations on their driving record. Averages are rounded to the nearest sum.

Frequently asked questions about the cost of car insurance

Is $100 a month for car insurance good?

Yes. The average cost of a monthly car insurance premium, based on a 2022 Insure.com report, is $140 a month. $100 a month for car insurance is below average and cheaper than most people are paying. That said, keep in mind that the cheapest insurance often isn’t the best insurance. All policies are different, and you may want to study the fine print to make sure you’re well covered in case your car is damaged or stolen.

Is $150 a month too much for car insurance?

It arguably isn’t too much, but you may be able to do better. The average cost of a monthly car insurance premium, based on a 2022 Insure.com report, is $140 a month. If you’re paying $150, you’re about average. You may be able to find cheaper insurance, but just remember that cheaper isn’t always better. The last thing you probably want is to pay for insurance that is extremely cheap – and then get into an accident with your brand-new car and discover that you were only protecting the damage on the other driver’s vehicle.

How much is car insurance for a 20-year-old?

Based on an Insure.com 2022 study, the national annual average rate for a standard liability car insurance policy for a 20-year-old is $1,390. This policy comes with liability limits of 50/100/50, which stands for $50,000 for bodily injury per person, $100,000 for all injuries in one accident and $50,000 for property damage. A state minimum policy costs less, an average of $1,159. A premier recommended policy with limits of 100/300/100 plus collision and comprehensive coverage has an average rate of $3,759.

How much is car insurance for a 25-year-old?

Hitting 25 years of age helps bring down the cost of auto insurance. Insure.com 2022 data shows that the average annual car insurance cost nationwide for a 25-year-old is $749. That is for a standard liability policy that includes $50,000 for bodily injury per person, $100,000 max for all injuries and $50,000 of property damage (50/100/50). A bare-bones state minimum policy cost is a bit less at $612. You need a full-coverage policy for sure if your car is leased or financed has an average annual rate of $2,063.

How much is car insurance for an 18-year-old?

Based on Insure.com 2022 data, car insurance for an 18-year-old will average at $2,149 annually for a standard liability policy with limits of 50/100/50. That stands for bodily injury of $50,000 per person and $100,000 per accident plus property damage of $50,000. A state minimum policy is cheaper at $1,786 but not recommended as novice drivers are more likely to crash and thus carry higher limits. A full-coverage policy comes in at $5,565 – pricey, but worth it if you need collision and comprehensive on your vehicle.

How can comparison shopping lead to low insurance rates?

You can check all the boxes of being a low-risk driver, but it is still essential to find an insurer with competitive pricing. Monthly car insurance costs can vary greatly, even for the most low-risk drivers. By looking at multiple rates from different carriers, you can find an insurer that offers the lowest rates for your profile.

How can I find average car insurance prices for my vehicle?

To get an idea of car insurance prices for a particular vehicle, use Insure.com’s Car Insurance Estimator, which shows rates for more than 3,000 2021 models. Car insurance prices should always be considered as part of the budget when shopping for a car. Insurance costs can quickly push an affordable vehicle out of reach. The Insure.com comparison tool, located at the bottom of this page, makes comparing insurance costs easy. It lets you compare the cost of insurance on up to 10 different vehicles at one time so you can narrow down your choices. Our tool makes it easy to go onto the next step and shop for a great car insurance policy at a price you can afford.

–Michelle Megna contributed to this article.

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