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How Much Does Auto Insurance Cost?

When it comes to choosing the right auto insurance plan, one question always comes to mind, and that is the monthly, or the annual premium. Whether you’re considering acquiring auto insurance or changing your existing one either to a different plan or possibly switching from minimum to maximum coverage, and vice versa.

So, to decide, and determine which auto insurance plan is best suited for you within your budget, it is crucial to understand how much does auto insurance cost.

Just so you know, auto insurance premiums basically vary from person to person based on various factors which includes your location, driving record, insurance coverage, insurance history, age, minimum insurance by state, credit score, vehicle price, and type, gender, marital status, annual mileage, and inflation.

To help you understand how insurance costs significantly vary, this article focuses on all the factors that affect auto insurance premiums by state, the cheapest, and most expensive states for car insurance, effects of inflation on auto insurance, and tips to lower your auto insurance costs.

How Much Does Auto Insurance Cost on Average?

Based on our extensive research, and by referring to various studies conducted by Bankrate, Forbes, and MarketWatch, we’ve thoroughly evaluated the monthly and annual national average cost of auto insurance in the USA.

As of August 2024, the national average auto insurance cost of full coverage ranges from $2,150 to almost $2700 per year. The average cost of minimum auto insurance coverage ranges from $633 to $869 per year.

The above-mentioned annual auto insurance cost is typically to give you a gross idea of the annual insurance premiums nationwide.

In the USA, there are 38 at-fault states, and 12 no-fault states, so the minimum liability coverage for auto insurance significantly varies between each state. Plus, there are specific legal requirements, and regulations that affect the minimum liability coverage in each state.

On top of that, your insurance premium will significantly vary based on your profession, income, driving records, age, credit history, and many other factors that will be discussed in detail to help you understand, and estimate how much your auto insurance may cost.

How Much Does Auto Insurance Cost by State?

Depending on where you live, your auto insurance premium can significantly vary. Apart from the minimum state mandated auto insurance coverage, there are other factors that influence auto insurance costs from one state to another.

Like the total number of automobiles driven on the road. States with more vehicles on the streets are more prone to road accidents. Speaking of car accidents, the cost of auto insurance also varies significantly depending on the number of automobile accidents that occur monthly, or on an annual basis.

This is because states with a higher accident ratio usually have a higher minimum coverage for auto insurance. Plus, insurance companies need to compensate a higher amount depending on your insurance plan, and the coverage limit.

Not to mention, natural disasters are also crucial in determining the minimum coverage limits. States that are more prone to environmental casualties like storms, hurricanes, and earthquakes have a higher minimum insurance coverage.

Insurance companies in those States also tend to charge a higher price for comprehensive, and full coverage insurance that typically covers vehicle damage due to severe weather.

Plus, states that have a higher crime rate also have a relatively pricier auto insurance premium due to increased risks of auto thefts, and robberies.

Auto Insurance Cost Comparison by State

State	Average Annual Full Coverage Cost	Average Annual Minimum Coverage Cost	Minimum Coverage Limit by State
Alabama	$1,809	$497	25/50/25
Alaska	$2,323	$381	50/100/25
Arizona	$1,696	$604	25/50/15
Arkansas	$2,061	$511	25/50/25
California	$2,462	$758	15/30/5
Colorado	$2,489	$483	25/50/15
Connecticut	$1,730	$805	25/50/25
Delaware	$2,462	$1,018	25/50/10
Florida	$4,326	$1,310	31/12/1969
Georgia	$2,181	$743	25/50/25
Hawaii	$1,633	$370	20/40/10
Idaho	$1,021	$368	25/50/15
Illinois	$2,345	$539	25/50/20
Indiana	$1,454	$409	25/50/25
Iowa	$1,238	$287	20/40/15
Kansas	$1,693	$521	25/50/25
Kentucky	$1,979	$751	25/50/25
Louisiana	$3,629	$847	15/30/25
Maine	$1,216	$413	50/100/25
Maryland	$3,349	$955	30/60/15
Massachusetts	$2,333	$491	20/40/5
Michigan	$2,995	$1,491	50/100/10
Minnesota	$2,360	$610	30/60/10
Mississippi	$1,704	$487	25/50/25
Missouri	$2,323	$618	25/50/25
Montana	$1,770	$391	25/50/20
Nebraska	$1,538	$415	25/50/25
Nevada	$3,342	$858	25/50/20
New Hampshire	$1,411	$402	25/50/25
New Jersey	$2,240	$1,236	25/50/25
New Mexico	$2,104	$369	25/50/10
New York	$4,769	$1,172	25/50/10
North Carolina	$1,307	$411	30/60/25
North Dakota	$1,319	$397	25/50/25
Ohio	$1,112	$435	25/50/25
Oklahoma	$2,291	$509	25/50/25
Oregon	$1,459	$723	25/50/20
Pennsylvania	$3,600	$504	15/30/5
Rhode Island	$2,715	$733	25/50/25
South Carolina	$2,387	$778	25/50/25
South Dakota	$1,821	$288	25/50/25
Tennessee	$1,720	$475	25/50/25
Texas	$2,938	$653	30/60/25
Utah	$1,955	$592	25/65/15
Vermont	$1,037	$277	25/50/10
Virginia	$1,486	$530	30/60/20
Washington	$1,829	$507	25/50/10
West Virginia	$1,688	$500	25/50/25
Wisconsin	$1,905	$397	25/50/10
Wyoming	$1,341	$248	25/50/20

Source: Quadrant Information Services, and Forbes

What are the Cheapest States for Car Insurance in 2024?

Based on our research, Idaho currently ranks as the cheapest state for auto insurance. While identifying the cheapest auto insurance states, we have considered factors like cost of living, low accident ratio, lower insurance claims, and lesser traffic congestion, and more.

Here are the 5 Top Cheapest Auto Insurance States for Full Coverage in the USA:

Idaho: $1,021 to $1,322 per year which is 42% less than the national average.
Vermont: $1,037 to $1,385 per year which is 39% less than the national average.
Ohio: $1,112 to $1,497 per year which is 35% less than the national average.
Maine: $1,216 to $1,505 per year which is 34% less than the national average.
Hawaii: $1,543 to $1,581 per year which is 33% less than the national average.

What are the Most Expensive States for Car Insurance in 2024?

Similarly, we have conducted thorough research to identify the most expensive states for auto insurance in the USA. Based on our findings, New York is the most expensive state for auto insurance, followed by 4 other highly expensive states.

Here are the Top 5 Most Expensive States for Auto Insurance for Full Coverage in the USA:

New York: $3,697 to $4,769 per year which is 62% higher than the national average.
Louisiana: $3,629 to $3,646 per year which is 59% higher than the national average.
Florida: $3,451 to $4,326 per year which is 51% higher than the national average.
Michigan: $3,010 to $4,067 per year which is 56% higher than the national average.
Colorado: $3,010 to $3,259 per year which is 43% higher than the national average.

Based on the data presented above, the average cost of auto insurance is significantly higher in Michigan. Many auto insurance companies in the USA tend to charge a high premium in Michigan, if you are looking for a more affordable Insurance Agency in Michigan you can contact us, and we will work around to offer you the most suitable premium.

What Factors Impact the Cost of Auto Insurance?

So far, we’ve addressed how the cost of auto insurance varies based on the state you’re residing in. Your location is one of the most important factors when estimating the average cost of auto insurance.

Apart from location there are other crucial factors that significantly affect the cost of auto insurance. Typically, your insurance company will mainly evaluate your profile, and quote a monthly or annual premium based on the insurance plan, and the coverage that you’re interested in.

Now, we will focus on these individual factors to help you estimate and give you an overall idea how much your insurance company might charge you. This will also help you choose the most reliable insurance provider within your budget.

Driving Record

Driving record is the most crucial factor when it comes to forecasting, and determining how much your insurance company will have to compensate you. More importantly it also reflects how often your insurance company may have to compensate you.

So, depending on your driving record, your insurance company will quote your annual insurance premium.

Typically, your insurance company would like to see whether you got speeding tickets, got charged/fined for DUI (driving under influence), and how frequently you’ve claimed insurance after an at-fault accident.

Speeding Tickets: Generally, you will have to pay an annual premium of $2,150 to $2,329 for full coverage, but if you get a speeding ticket, your auto insurance cost can jump by $500, or more. This will increase your auto insurance premium to $2,633 to $2,857 per year, which is 23% more of the national average.
DUI (Driving Under Influence): If you’re charged for driving under influence, then your annual auto insurance coverage can significantly increase. This can increase your annual premium by 95%. So, in this case your insurance company might charge you $3,537 to $4,192 or more per year, instead of the national average of $2,150.
After an At-Fault Accident: If you have recently claimed an at-fault auto insurance in the last 3 years, then you will most likely have to pay 40% to 45% more than the national average. Usually, the average rate increases by $850 a year in such cases, so you would have to pay an annual premium of $3,005 to $3,378 or more, compared to the national average of $2,150.

There are some exceptions though, for example in New York insurance companies cannot charge an additional rate if the accidental damage is less than $2,000, and no bodily injuries.

Insurance Coverage

Your auto insurance cost will vary depending on the insurance plan, and the coverage that you choose to purchase. In general, if you go for the minimum coverage then you will have to pay a monthly premium of $43 to $70, or an annual premium of $507 to $1,060 or more.

If you go for full coverage insurance, then you will have to pay a monthly premium of $151 to $289, or an annual premium of $1,811 to $3,463 or more depending on the exact quote of your insurance provider.

The data that’s mentioned here is from a thorough market analysis, so it can be auto insurance cost can be anything within this range, or beyond.

Insurance History

The insurance provider will investigate your insurance history mainly to identify how frequently you’ve claimed auto insurance, and how much you were compensated for vehicle damage, and bodily injuries.

The total amount that has been compensated by your current or previous auto insurance provider will be a strong determinant of evaluating the insurance premium that you will have to pay annually.

As it was previously mentioned in this article, if you have recently claimed an auto insurance in the last 3 years then you may be charged a higher premium of 40% to 45% or more of the national or state average.

If you’re a loyal, and recurring customer of an auto insurance company, they might offer you accident forgiveness benefit, and on note that, your insurance premium won’t increase.

But then again, if you get involved in another at-fault accident right after, or if you claim another auto insurance any time soon then you may end up losing that benefit.

Age

Regardless of whichever state that you’re residing in, one thing’s common throughout the entire country when it comes to determining auto insurance cost based on age.

In the USA, teenagers have a bad record of getting into more frequent accidents and claiming more frequent auto insurance.

So, that’s why the annual premium for teenage drivers, particularly between the ages of 16 to 20 is significantly a lot higher. On average, adults between the ages of 25 to 60 are charged what we consider the normal rate.

Again, we’re only focusing on the age factor here, given the benefit of the doubt that adult drivers have a clean driving record. If they have a poor driving record, and insurance history then data presented below based on the age factor won’t necessarily apply to them.

Senior drivers from the age of 70, and beyond are generally charged with a higher annual premium. Although they’re more experienced, they usually have a slower response rate which can lead to more frequent accidents.

The following data represents the average auto insurance cost based on age:

Age	Annual full coverage premium	Annual minimum coverage premium
16-year-old	$5,069	$1,544
18-year-old	$4,365	$1,305
20-year-old	$4,804	$1,359
25-year-old	$2,932	$800
30-year-old	$2,522	$684
40-year-old	$2,329	$633
50-year-old	$2,170	$622
60-year-old	$2,135	$609
70-year-old	$2,298	$683

Credit Score

In most US States, credit scores are a crucial metric of determining auto insurance costs, except for 8 States that don’t allow insurance companies to quote an insurance premium based on credit score, and credit history.

These 8 states include California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah.

If you’re residing in any of the other 42 States that do allow insurance companies to check your credit score, then it is vital for you to maintain a good credit score.

The reason credit scores are so important is, it reflects how quickly and sincerely you pay your credit bills. It mainly illustrates the full amount of credit debt that you’ve paid in due time.

So, having a good credit score automatically gives the impression that you will also pay your auto insurance premium in due time.

Drivers with a poor credit score happen to pay 76% to 87% more auto insurance premiums than drivers with a good credit score.

That’s an average increase of at least $1600 a year, which means if you had to pay an annual premium of $2,150 a year with a good credit score, then you may have to pay $3,779 or more for having a poor credit score.

Vehicle Price, and Type

Depending on the type of vehicle that you drive, your auto insurance will significantly vary based on it. If you’re driving a sport, or luxury car then you’re more prone to getting into an accident.

Especially because you’re more likely to drive at much higher speed, and on top of that the cost of parts, and its overall maintenance cost is relatively much more expensive than average sedans.

Not to mention, sports car accidents are usually much more severe, especially when you’ve a car accident at a very high speed, you, and the other driver are likely to sustain more critical bodily injuries. So that adds a high risk of increased medical bills.

On the other hand, if you’re driving a minivan or any heavy vehicle of that sort, you may be safer from severe bodily injuries, but you may damage the other vehicle more.

Of course, if you’re driving cheaper vehicles like sedans then your auto insurance is likely to be cheaper. So, when it comes to auto insurance cost, your vehicle type, and its price has a huge impact on the insurance premium.

The following data below shows the Auto Insurance Rate by Car Types:

Car Type	Average Annual Cost
Minivan	$2,041
Van	$2,168
Trucks	$2,234
Hatchback	$2,298
SUV	$2,378
Sedan	$3,184
Convertible	$3,393
Wagon	$3,438
Coupe	$3,894

The cost of repairing an EV (electric vehicle) is relatively more expensive than gas, or hybrid. Based on the fuel type of your vehicle the annual insurance premium will also vary as follows,

Car Fuel Type	Average Annual Cost
Gas	$2,567
Hybrid	$2,802
Electric	$3,547

The cost of your auto insurance can significantly vary specifically based on the vehicle that you drive. So, based on the data acquired from Forbes, the following table shows the average annual cost of auto insurance for each of these Top Selling Vehicles in the USA.

Vehicle	Annual Average Cost
Ford F-150 XL	$1,769
Chevrolet Silverado 1500 Limited WT	$1,812
Ram 1500 Classic Express	$1,963
Toyota RAV4 LE	$1,835
Tesla Model Y Long Range	$3,128
Toyota Camry SE	$2,095
Honda CR-V EX	$1,723
Chevrolet Equinox LS	$1,856
Toyota Tacoma SR	$1,990
GMC Sierra 1500 Pro	$1,827

Gender

Although the average auto insurance cost does not vary much based on gender, yet male drivers are charged more than female drivers across various states in the US. This is particularly because male drivers are usually more prone to causing accidents compared to female drivers.

According to recent studies it was found that there are about 117.6 million licensed female drivers compared to 115.2 million male licensees. So, this means that female drivers are typically more aware of obeying the law compared to male drivers.

Over the last couple of years, male drivers have causes more fatal auto accidents than female drivers. Based on recent statistics, male drivers have been involved in 44,000 fatal accidents in the US, whereas female drivers were involved in more than 15,000 car accidents. So, based on the ratio men are typically involved in 72% of fatal auto accidents.

There’s another reason to it though, men tend to drive for mileage than women do, men drive about 6000 miles more than women per year in the US. Not to mention the male drivers get more speed tickets, and DUI (driving under influence) fines compared to female drivers.

Here’s one thing to note, gender profiling is not allowed as a cost factor for auto insurance in 8 States which includes California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.

Based on our analysis auto insurance cost can typically vary depending on the state that you’re residing in, which usually varies between 2% to 6%; male drivers have to pay the higher percentage there. The variation is significantly much higher in Wyoming though, as male drivers are charged 13% more than female drivers for auto insurance.

The table below shows the differences in auto insurance costs across 42 States in the USA based on gender.

State	Average Annual Cost for Women	Average Annual Cost for Men	Difference Between Genders
Alabama	$1,117	$1,164	4%
Alaska	$1,022	$1,095	7%
Arizona	$1,347	$1,435	6%
Arkansas	$1,127	$1,161	3%
Colorado	$1,332	$1,375	3%
Connecticut	$2,562	$2,720	6%
Delaware	$1,757	$1,798	2%
Florida	$2,478	$2,477	0%
Georgia	$1,412	$1,472	4%
Idaho	$808	$855	5%
Illinois	$1,122	$1,160	3%
Indiana	$1,016	$1,063	4%
Iowa	$870	$908	4%
Kansas	$1,106	$1,150	4%
Kentucky	$1,486	$1,495	1%
Louisiana	$2,205	$2,382	7%
Maine	$796	$840	5%
Maryland	$1,547	$1,603	3%
Minnesota	$1,278	$1,345	5%
Mississippi	$1,146	$1,222	6%
Missouri	$1,283	$1,356	5%
Montana	$1,385	$1,385	0%
Nebraska	$1,210	$1,210	0%
Nevada	$1,610	$1,714	6%
New Hampshire	$1,058	$1,137	7%
New Jersey	$1,697	$1,750	3%
New Mexico	$1,120	$1,170	4%
New York	$2,242	$2,255	1%
North Dakota	$980	$1,026	4%
Ohio	$771	$795	3%
Oklahoma	$1,225	$1,313	7%
Oregon	$1,144	$1,145	0%
Rhode Island	$1,524	$1,621	6%
South Carolina	$1,381	$1,421	3%
South Dakota	$1,093	$1,160	6%
Tennessee	$936	$986	5%
Texas	$1,416	$1,504	6%
Utah	$1,231	$1,265	3%
Vermont	$850	$917	7%
Virginia	$979	$998	2%
Washington	$1,111	$1,132	2%
Washington, D.C.	$1,402	$1,526	8%
West Virginia	$1,220	$1,319	8%
Wisconsin	$947	$977	3%
Wyoming	$1,197	$1,382	13%

Marital Status

Married couples tend to be more responsible when it comes to driving on the roads. In general, married individuals drive safer and obey traffic laws a lot more compared to single drivers, or unmarried drivers.

On top of that many auto insurance companies offer bundle plans for married couples; in this way they can save by getting exclusive discounts, and avail specialized auto insurance schemes like multi-vehicle discounts, and more!

If you’re married, then you can save at least $200 a year on auto insurance by going for multi-vehicle, or bundle plans that are specifically designed for married couples.

Annual Mileage

The more you drive, the higher the risks of getting into an auto accident. So, that’s why annual mileage is another factor when it comes to evaluating the cost of your auto insurance.

Of course, it varies based on the state and the area, specifically because auto accidents are more frequent in densely urban areas compared to less populated cities or rural areas.

If your annual mileage is about 7500 or below, then you won’t be charged any additional costs for your auto insurance premium. But if it’s higher than that, then your auto insurance fee will increase based on the following data given below,

Miles	Increase in Rates
7,500	10%
10,000	7%
12,000	4%
20,000	25%

Does Inflation Affect Auto Insurance Cost?

Inflation is an overall economic impact that increases the price of various products and services throughout the entire country. The reason inflation has a direct effect on the cost of auto insurance are,

Increases the price of automobiles
Increases the cost of automobile repairs, and maintenance
Increased healthcare, and medical costs

As of March 2024, it has been reported that due to inflation auto insurance rates have spiked up by 22.2%, which is the highest since 1976.

So, based on the inflation rate your auto insurance costs can significantly vary. It has also been reported that inflation seems to be cooling down this year, so there’s a high chance that auto insurance rates will also decrease in the following years.

But it’s hard to predict if it will decrease because there are many economic factors involved here that influence inflation and the overall prices of goods and services in the economy.

How to Lower Your Auto Insurance Cost?

The first thing that you should do is explore multiple auto insurance companies. Go through their policies and compare their pricing.

As you’ll invest a good amount of money on a monthly or annual basis, it is crucial for you to consult with these insurance companies to get price quotes. In that way, you can easily compare and decide which insurance provider can provide you with the best offer at the most affordable price range.

While you’re at don’t hesitate to ask for discounts like multi-vehicle plans, and bundle offers, if you’re eligible for it then you can easily save up 6% to 23%.

Some insurance companies have certain policies to reduce the auto insurance premiums, if you’re a recurring customer, and if you have a smooth record of always paying on time.

If you have a good driving record, you can also negotiate at a lower price as you will have strong ground to prove that you’re less prone to getting into accidents.

Additionally, with a good driving record you can apply for telematics insurance. By doing so, you’ll agree to either install a tracking app on your phone, or plug-in device in your vehicle.

The telematics tracker will basically send real-time data from your vehicle’s speedometer, mileage covered, and how hard you have hit the brakes. This is to evaluate whether you’re a safe driver.

So, if you’re driving below 7500 miles a year, then you can safely opt for this scheme and save with a pay-per-mile program. Make sure to maintain the speed limits according to your insurance provider. Depending on the policies of your insurance provider, you can save 25% to 40% with the telematics auto insurance.

You can also take a defensive driving course, which will basically certify that you’re aware of safe driving rules, and you can drive safely on the roads.

Here's another option, it comes with substantial risk, but you can ask your insurance provider to raise your deductibles, this will increase your out-of-pocket expenses, but it can save you 7% to 28% on average.

Final Tip: Take Control of Your Auto Insurance Cost

The thing is there are so many ways you can get the best, or the most affordable auto insurance premium within your budget. The most crucial thing is to be aware of the costs associated with auto insurance.

In a nutshell, auto insurance costs are typically affected by your location, driving records, insurance coverage, insurance history, age, credit score, vehicle, and among other factors.

Although there are many external clauses here that’s beyond your control, at the same time there are so many crucial factors with which you can put up a strong negotiation with your insurance provider.

Also, don’t forget the part about seeking insurance schemes like telematics insurance, bundle plans, multi-vehicle insurance, and discounts.

If you’ve read this article till the very end, you should have a clear idea of the average auto insurance cost throughout the USA.

Yet again, auto insurance costs still do vary for every individual, so if you need help understanding and evaluating the cost of your auto insurance, we would be more than glad to help.

If you’re looking for a personal quote, you can contact us, and one of our representatives will get in touch with you shortly.

FAQ

How much does auto insurance cost?

The average cost of auto insurance for minimum coverage ranges between $633 to $869 per year, and for full coverage insurance it’s $2,150 to almost $2700 per year.

How much does auto insurance cost per month in the USA?

The average cost of auto insurance per month for minimum coverage is $43 to $70 a month, whereas for full coverage insurance it is $151 to $289. This is the average auto insurance cost in the USA, it can significantly vary based on the state that you live in.

Does the cost of auto insurance vary across different states in the USA?

Yes, due to differences in insurance laws, minimum coverage limits, and variations in common auto insurance policies the cost of auto insurance does vary from one state to another.

How to save money on auto insurance cost?

You can try looking into multiple auto insurance companies and compare the insurance premiums and go for the one that offers the best price quote within your budget. You can also look for bundle plans, multi-vehicle insurance, and seek discounts for having a good driving record, and credit history.