Shopping for car insurance and comparing quotes can be overwhelming if you don’t have a ballpark idea of how much car insurance should cost. To equip you with that knowledge, Insure.com 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?
The average cost of car insurance is $147 a month, or $1,758 per year, for a full coverage policy.
Your cost may be higher, lower or somewhere right around that average.
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
- Number of years you’ve been driving
- You can purchase a full coverage policy to insure your car, that costs $147 a month, or $1,758 per year, on average.
- It is cheap to insure trucks and vans than cars. You can get insurance coverage for vans with the lowest average cost of $1,515 per year.
- Compare quotes from at least three different insurance companies before you renew your plan. Choose the company that offers the best price.
- Make sure you have a credit score of 650 or higher because insurance providers use your credit score to determine your insurance rates.
Average car insurance cost per state
Average monthly car insurance rates by state are outlined in the chart below. Rates are based on buying a full coverage policy, assuming good credit and a clean driving record.
Enter your state in the search field below to see the average car insurance rate for your state.
|State||Full Coverage Annually||Monthly Rate|
Average cost of car insurance by vehicle type
The type of vehicle you drive can make a significant difference in 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 $1,515 per year, with trucks not far behind at $1,750 per year. Tesla’s top the cost to insure list at $3,110 per year.
|Vehicle Type||Average Annual Rate for Full Coverage|
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. Statistics support the theory that men are a higher risk to insure and are involved in more accidents, speeding and DUI convictions than women.
As age increases, the gender insurance gap decreases for several decades. In quotes collected by Insure.com and Quadrant Information Services in 2018, a 20-year-old man was quoted at $523 higher than a 20-year-old woman. By age 55, there was only a $36 difference, but the gap started to widen again after age 55.
|Gender||Average Annual Rate for Full Coverage|
Average cost of car insurance by age
As you’ll see in the table below, the younger the age, the higher the insurance. That is until you reach age 65. In addition to teens and young drivers being considered a higher risk due to inexperience, there are statistics behind why insurance companies consider younger age to equal higher risk.
Compounding the higher cost is the fact that younger people generally do not have experience with shopping for financial products such as insurance. Dr. 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 points out that based on his experience as a teacher, “Off the top of their heads, most students do not know of specific websites or services to compare insurance providers.”
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.
Average car insurance costs for a 20-year-old are 129% higher than they are for a 60-year-old. Rates decrease with each year of age. But after age 65, rates begin to increase as senior drivers are also considered higher risk by insurance companies.
|Age||Average Annual Rate for Full Coverage|
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 your future rates.
- 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 if needed.
- Look for discounts. Most insurance companies offer a variety of 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 71% more, on average than those with good credit, Insure.com found in a rate analysis.
Top cheapest car insurance companies
|Company Name||Average Annual Rate for Full Coverage|
|State Farm||$ 1,505|
Frequently asked questions about the cost of car insurance
How much is car insurance for a 20-year-old?
The national annual average rate for a standard liability car insurance policy for a 20-year-old is $1,329. 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 $1,175. A premier recommended policy with limits of 100/300/100 plus collision and comprehensive coverage has an average rate of $3,454.
How much is car insurance for a 25-year-old?
Hitting 25 years of age helps bring down the cost of auto insurance. The annual average nationwide for a 25-year-old is $737. 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 $657. You need a full-coverage policy for sure if your car is leased or financed has an average annual rate of $1,957.
How much is car insurance for an 18-year-old?
Car insurance for an 18-year-old will average at $2,172 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 $1,910 but not recommended as novice drivers are more likely to crash and thus carry higher limits. A full-coverage policy comes in at $5,399 – 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.
If you know you have the advantage of being a low-risk driver, you know you deserve a great price, and you can likely find it by getting quotes from multiple insurance companies.
On the contrary, are your traits as a driver preventing you from getting the lowest rates? Here are some other ways to save money on car insurance.
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.