Average car insurance cost in 2025

Sticker shock at your latest car insurance bill? You’re not the only one. Auto insurance rates have been climbing across the country, and most drivers are feeling the pinch.

In 2025, the national average cost of a full coverage car insurance policy is about $209 per month, or $2,508 annually. Some states see averages below $150 a month, while in others, premiums can easily exceed $300.

Your final rate depends on personal factors such as driving record, age, credit score, and vehicle type — but knowing the baseline helps you recognize whether you’re paying more than you should.

What is the average cost of car insurance?

In 2025, the average cost of a full-coverage car insurance policy in the U.S. is $2,513 per year, or $209 per month. However, this cost varies based on several components, including where you live, your driving record, the type of vehicle you drive, and your age and gender.

To calculate average full coverage rates, we analyzed data from nearly 30,000 U.S. cities using a sample driver profile: a 40-year-old with a clean record driving a 2023 Honda Accord LX. Your own rate will vary based on your age, driving history, vehicle, and location.

The charts below image average car insurance costs in your state for basic liability and full coverage policies. They also illustrate how rates change based on factors like your age, vehicle type, and driving history — and how violations can cause premiums to rise sharply.

While understanding the average cost of coverage is important for budgeting, it’s just as critical to carry the right protections. Car insurance is designed to safeguard you and your vehicle after an accident, and choosing adequate coverage ensures you won’t face overwhelming expenses if the unexpected happens.

How much does car insurance cost each month?

Car insurance is a major expense, but drivers can still find affordable rates. Generally, you’ll pay less if you have a clean driving record and years of experience behind the wheel. Where you live also makes a difference, since each state has its own average premiums.

For instance, drivers in Maine and New Hampshire enjoy some of the lowest average full coverage rates in the country — about $142 and $137 a month, compared to the national average of $209.

Your rate may fall above or below your state’s average depending on your personal profile. Insurers consider factors like your age, driving experience, vehicle type, and even whether you’ve had recent violations when setting premiums.

Check the chart below to see average monthly rates by state and coverage type. It’s a useful benchmark to understand how your state compares and what you might expect to pay for car insurance.

Our recommendation

When you’re shopping for car insurance, it can be easy to go with the cheapest rate and call it a day. However, it’s typically not the best strategy for ensuring you’re fully protected on the road should you be involved in a car accident.

While we recommend purchasing minimum liability limits of 100/300/100, you do have to consider your needs and budget. So, how do you go about shopping for a policy? 

According to Jim 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, you should shop around with at least three reputable insurance companies and give them your exact personal details.

“Average car insurance costs can be tricky — because none of us are really average. For example, if one of your kids recently got a ticket or is in a wreck, each insurance firm will price this situation differently. The average basically goes out the window,” he says.

“Make sure to compare apples to apples – such as coverages, riders, etc. It’s wise to shop like this every year or two to make sure you have the most competitive policy.”

How much does car insurance cost in each state?

Car insurance rates vary based on where you live. In general, states create their own regulations and rules around how car insurance premiums can be determined. For example, California and Hawaii restrict car insurance companies from adjusting premiums based on age.

In some states, you’re required to carry personal injury protection (PIP) under no-fault laws, while others mandate uninsured or underinsured motorist coverage. These state-specific rules play a big role in determining how much you’ll pay for car insurance.

“Consider state costs versus the national average – auto insurers spend a lot of time, money, and effort running statistical models to estimate the exact risk each driver/vehicle combination costs them to insure. States differ, vehicles differ, families differ, individuals differ,” Brau says.

The chart below compares average annual rates for state minimum, liability-only, and full coverage car insurance.

10 most expensive states for car insurance

Louisiana, Florida and Washington, D.C. top the list of the most expensive states for car insurance in the U.S. In general, these states tend to be the priciest nationwide due to factors such as high population density or natural disasters, such as hurricanes. Inflation impacts have also contributed to high repair costs in the past year.

Louisiana is the most expensive state, with an average annual premium of $4,180, or $348 a month. Florida is the second-most expensive, at $3,852 annually, and Washington, D.C., at $3,394 annually.

The table below shows the 10 states with the most expensive full coverage car insurance rates.

10 cheapest states for car insurance

Vermont, New Hampshire and Maine made our list of the cheapest states for car insurance in the U.S. These states tend to have the lowest car insurance rates thanks to factors like low crime levels, fewer drivers on the road, and a reduced risk of accidents and vehicle theft.

Vermont is the cheapest state in the nation for car insurance premiums — the average annual premium is $1,504 per year or $125 per month. New Hampshire is the second-cheapest at $1,650, and Maine car insurance costs $1,701 annually.

Learn more about the 10 states with the cheapest full-coverage car insurance rates in the table below.

Average cost of car insurance by insurance company

When it comes to finding an affordable premium, shopping around is key. When you reach out for car insurance quotes, be upfront about your details and what kind of coverage you’re looking for. That way, you’ll get quotes that actually fit your needs and budget. It’s also worth asking about discounts — you might qualify for savings you didn’t even know were available.

USAA has the lowest full coverage rates at about $1,572 per year, though it’s only available to military members and their families. For everyone else, Auto-Owners comes in with the next cheapest option at around $2,051 a year. If you’re only looking for state minimum coverage, GEICO offers the most affordable choice at about $439 annually.

You can see how these and other insurers compare in the table below.

Average cost of car insurance by gender

Gender is one of the key factors that can influence your car insurance premium.

In many cases, men and women pay nearly the same for car insurance. For full coverage, the average annual premium is $2,516 for men and $2,511 for women — almost identical. The difference becomes more noticeable with age, especially during the teenage years, when male drivers typically face much higher rates than females.

You can see more average coverage costs in the table below.

Average cost of car insurance by age

Age and experience play a big role in what you pay for car insurance. Younger drivers, especially teens, face higher premiums because they’re statistically more likely to get into accidents. Rates often rise again for older drivers, as insurers see increased risk among seniors.

While finding the best car insurance for teens can be tricky, it’s not impossible. In general, teen drivers will pay the most for car insurance at age 16 and it will decrease in cost until the age of 25. After that point, and considering their driving record is clean, they will be quoted at much more affordable rates.

Average cost of car insurance for teens

Teen car insurance rates for a 16-year-old driver start at $7,831 annually, with GEICO offering the lowest average rate. By age 19, the cheapest average drops to $4,504. 

The reason premiums are so high for teens is because insurers see them as the riskiest drivers on the road. With limited experience and higher accident rates, teens are statistically more likely to file claims, which pushes premiums up. 

As young drivers gain experience and demonstrate safe driving habits, rates usually start to decline. Location also matters — the state a teen lives in can significantly affect their insurance costs.

Learn more about average car insurance rates for teens, by age, in the table below.

Find the best cheap car insurance for other age groups

• Guide to the cheapest car insurance for 16-year-olds
• Guide to the cheapest car insurance for 17-year-olds
• Guide to the cheapest car insurance for 18-year-olds
• Guide to the cheapest car insurance for 19-year-olds
• Guide to the cheapest car insurance for 20-year-olds

Average cost of car insurance for young drivers 

More time behind the wheel usually means lower car insurance costs, though young drivers still pay more than the average adult. For example, a 20-year-old with GEICO pays about $3,769 less per year — a 48% drop compared to a 16-year-old. By age 24, rates fall even further, averaging 35% less than what a 20-year-old pays.

The table below shows average car insurance rates for young drivers by insurance company.

Average cost of car insurance for adults 

After age 25, insurance premiums begin to drop significantly. While they may fluctuate based on driving history, the make and model of the car you drive, or your state, rates generally become more affordable as an adult driver through the age of 60.

At 25, drivers still pay a bit more than older adults, with the lowest average premium coming in at $2,423 per year through Nationwide or GEICO. By age 60, rates typically drop further, with Travelers offering coverage for about $1,868 annually. The table below shows how average car insurance costs for adult drivers compare by carrier.

Average cost of car insurance for seniors

After 65, car insurance premiums often start to climb again. As drivers age, factors like slower reflexes, changes in vision, and reduced hearing can increase risk behind the wheel, and insurers adjust rates accordingly.

For example, a 65-year-old driver pays about $1,925 per year for a full coverage policy with Travelers, compared to $2,103 for a 40-year-old — a $151 difference. But by age 75, the cost rises to $2,261 annually for the same policy.

You can see how senior car insurance rates compare by carrier in the table below.

Average cost of car insurance by vehicle make and model

The cost of car insurance varies widely depending on both the make and model. Luxury cars and high-performance SUVs often carry the steepest premiums, while sports cars and electric vehicles also rank among the most expensive to insure. On the other hand, many sedans, minivans, and smaller SUVs typically cost less to cover, especially models with strong safety ratings and lower repair costs.

Average cost of car insurance by vehicle type

Vans are the cheapest vehicle type to insure, followed by minivans, station wagons, SUVs, hybrids, hatchbacks, trucks and sedans. The average annual premium for a van is $2,208, and the rate goes up to $4,229 per year for a performance car.

How much does car insurance cost by vehicle fuel type?

Electric and diesel cars are more expensive to insure because the vehicle parts are more expensive to repair and replace. The table below shows the average annual insurance cost for various fuel types.

Average cost of car insurance for high-risk drivers

It’s no surprise that car insurance rates spike after an accident or speeding ticket. How much it increases depends on the violation, ranging from 14% for an SR-22 filing to 103% for a DUI. The reason you’re seeing the increase? You’ve now entered a risky driver category.

In general, violations on your driving record follow you for a couple of years to a decade, but can decrease how much you pay if you maintain a good driving record. The chart below shows average six-month premium costs for typical violations.

If a violation causes your premium to rise, it’s a good time to compare quotes from other insurers. Shopping around can often offset the increase and help you secure a more competitive monthly rate.

Tips for getting affordable car insurance in 2025

The national average car insurance rate in 2025 is $209 per month, but many drivers can find lower premiums. The best way to uncover savings is to shop around — get quotes from at least three to five companies and provide accurate details about your vehicle, driving history, and coverage needs.

Your rate is shaped by several factors, including where you live, your age, gender, and the type of car you drive. While some of these can push your premium higher, you can balance costs by taking advantage of discounts, such as good driver, student, or low-mileage programs, and by maintaining a clean driving record.

As you compare quotes, make sure you understand the differences between state minimum, liability-only, and full coverage policies. While it may be tempting to choose the cheapest option, working with an insurer to match your coverage to your needs and budget will give you better protection — and more peace of mind.

Methodology

Insure.com editors collected rates from Quadrant Information Services for drivers of a Honda Accord LX with a full coverage insurance policy for the limits of 100/300/100 and $500 comprehensive and collision deductibles. We analyzed 75,263,537 records across 34,588 ZIP codes and 169 insurance companies nationwide.

We also compared car insurance rates for drivers aged 16 to 75 for the following coverage limits: 

• Full coverage car insurance with limits of 100/300/100 and $500 collision and comprehensive deductibles
• State minimum liability-only
• Liability-only policy with limits of 50/100/50
  

Car insurance rates were calculated using a sample profile of a 40-year-old male and female driver, with the following incidents applied:

• At-fault accident
• Bad credit
• Distracted driving
• DUI
• Speeding
• SR22 filing only
• SR22 with 1 DUI
• Talking on a cellphone
• Texting
  

These are sample rates and should be used for comparison purposes only.