How Much Does Car Insurance Cost?

How Much Does Car Insurance Cost
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According to 2022 statistics from Quadrant Information Services, the average car insurance cost in the United States is $1,674 per year for full coverage or roughly $139.50 per month.

 The cost of minimum coverage is about $565 per year, on average. These remain the actual national average rates for clean drivers. 

According to the Insurance Information Institute (Triple-I), auto insurance premiums vary based on more than a dozen criteria, including your region, the type of vehicle you drive, and your driving record, so you may pay more or less than the national average.
 

The following are some essential statistics concerning average vehicle insurance prices in 2022:
 

  • The average full coverage rate for an at-fault collision is $2,311 per year.
  • The average full coverage rate for someone with a DUI conviction is $3,139 per year.
  • With an average rate of $965 per year, Maine is the cheapest state for complete coverage.
  • With annual premiums of $1,225 and $1,233, respectively, USAA and Erie are the lowest companies for complete coverage.
  • Every year, Americans spend 2.44 percent of their family income on vehicle insurance.
     

A speeding ticket will raise your annual full coverage vehicle insurance premium by an average of 23%, an accident by roughly 38%, and a DUI by nearly 87 percent.
 

In most states, credit-based insurance scores are used to assist decide vehicle insurance premiums. According to statistics, drivers with bad credit file more claims and are engaged in more serious accidents than drivers with good credit.
 

Let’s help you with answers to all the questions that you have on your mind about the actual cost of car insurance.

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What Is Car Insurance?

Car insurance, which is also known as vehicle insurance, motor insurance, or auto insurance, covers cars, trucks, motorbikes, and other vehicles on the road. 

Its major aim is to make provision for financial protection against physical damage or bodily injury which can be caused by traffic collisions, as well as the responsibility that’d probably arise because of incidents like this. 

Vehicle insurance may also make provision for financial protection against vehicle theft and damage caused by incidents other than traffic crashes, such as keying, bad weather, or natural catastrophes, as well as damage caused by colliding with stationary objects. 

Each region’s legal rules influence the precise terms of vehicle insurance.

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Why Is Car Insurance Needed?

In most states, having car insurance is compulsory by law. If you cause a car accident and are at fault, the auto liability coverage required by your car insurance policy helps pay for covered losses, such as the other party’s medical costs and damage to their vehicle or other property.

It also aids in the payment of legal bills if they haul you to court because of the accident.

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What Is the Average Cost of Car Insurance?

Based on data from nine of the country’s top auto insurance providers, our analysis found that the average yearly rate of car insurance in the United States is $1,321. However, the price you may expect to pay will vary.
 

The lowest nationwide average of the insurance establishments, according to analysis, $875, belongs to USAA, but they limited coverage to military personnel and their families. Geico is second, with $1,100 in average countrywide vehicle insurance costs. 

According to research, State Farm, Travelers, and Nationwide give insurance rates that are lower than the national average.
 

However, there are several factors that influence how much you pay for auto insurance, and we’ll go over a few of them below.

One’s age and other demographic information, one’s credit history and credit score, one’s driving record, and whether you purchase a primary policy or full coverage are all determinants of auto insurance cost.

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How Do Insurance Requirements Affect Rates?

Car insurance costs are determined by a variety of criteria, including the type of vehicle you drive, your age, gender, and, of course, your driving record. 

Though we’ll be looking at national average vehicle insurance prices, it’s vital to remember that your region has a significant impact on the rates you’ll pay. Because each state regulates the insurance sector differently, this is the case.
 

For auto insurance, state rules govern the minimum coverage you must have. Keep in mind that you should carefully assess if the minimum coverage requirements in your state will provide you with protection.

These characteristics can affect how your auto insurance rate compares to the national averages.

How Much Does Car Insurance Cost By State?

The answer to the question “How much does automobile insurance cost?” is a little more complicated than you would think. 

The state you live in, for example, can affect how much you pay. Even within a state, your ZIP code might affect your insurance price (except in California and Michigan). 

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Several geographical factors influence auto insurance prices, including traffic volume, the risk of accidents and claims, and the rate of theft and vandalism in your area.
 

Louisiana’s full coverage prices are the most expensive in the US, at $2,724 per year on average.

With an average annual premium of $965, Maine is the cheapest state in the country for full coverage.

At 5% and 4%, respectively, Louisiana and Florida have the highest average proportion of median household income spent on vehicle insurance.

With little over 1% of median household income spent on vehicle insurance, Hawaii and Massachusetts have the lowest average percentage of median household income spent on car insurance.

Average Cost of Full Coverage Car Insurance

States Annual Cost Insurance For:
 

  • Alabama Full Coverage is at $1,623 and Minimum Coverage is $469.
  • Alaska Full Coverage is $1,559 and Minimum Coverage is $373
  • Arizona Full Coverage is $1,547 and Minimum Coverage is $555
  • Arkansas Full Coverage is $1,914 and Minimum Coverage is $470
  • California Full Coverage is $2,065 and Minimum Coverage is $733
  • Colorado Full Coverage is $2,016 and Minimum Coverage is $518
  • Connecticut Full Coverage is $1,845 and Minimum Coverage is $794
  • Delaware Full Coverage is $1,775 and Minimum Coverage is $787
  • Florida Full Coverage is $2,364 and Minimum Coverage is $1,101
  • Georgia Full Coverage is $1,982 and Minimum Coverage is $756
  • Hawaii Full Coverage is $1,127 and Minimum Coverage is $345
  • Idaho Full Coverage is $1,045 and Minimum Coverage is $307 
  • Illinois Full Coverage is $1,485 and Minimum Coverage is $442 
  • Indiana Full Coverage is $1,254 and Minimum Coverage is $367
  • Iowa Full Coverage is $1,260 and Minimum Coverage is $252 
  • Kansas Full Coverage is $1,698 and Minimum Coverage is $410 
  • Kentucky Full Coverage is $2,128 and Minimum Coverage is $748
  • Louisiana Full Coverage is $2,724 and Minimum Coverage is $975 
  • Maine Full Coverage is $965 and Minimum Coverage is $294
  • Maryland Full Coverage is $1,877 and Minimum Coverage is $767
  • Massachusetts Full Coverage is $1,223 and Minimum Coverage is $767
  • Michigan Full Coverage is $2,309 and Minimum Coverage is $948 
  • Minnesota Full Coverage is $1,643 and Minimum Coverage is $537
  • Mississippi Full Coverage is $1,782 and Minimum Coverage is $294 
  • Missouri Full Coverage is $1,661 and Minimum Coverage is $468 
  • Montana Full Coverage is $1,737 and Minimum Coverage is $342 
  • Nebraska Full Coverage is $1,531 and Minimum Coverage is $335
  • Nevada Full Coverage is $2,245 and Minimum Coverage is $860
  • New Hampshire Full Coverage is $1,275 and Minimum Coverage is $389
  • New Jersey Full Coverage is $1,757 and Minimum Coverage is $847
  • North Carolina Full Coverage is$1,325 and Minimum Coverage is $413 
  • New York Full Coverage is $2,321 and Minimum Coverage is $1,062 
  • New Mexico Full Coverage is $1,419 and Minimum Coverage is $385 
  • North Dakota Full Coverage is $1,264 and Minimum Coverage is $285 
  • Ohio Full Coverage is $1,034 and Minimum Coverage $328 
  • Oklahoma Full Coverage is $1,873 and Minimum Coverage is $423 
  • Oregon Full Coverage is $1,346 and Minimum Coverage is $610 
  • Pennsylvania Full Coverage is $1,476 and Minimum Coverage is $427 
  • Rhode Island Full Coverage is $2,018 and Minimum Coverage is $749 
  • South Carolina Full Coverage is $1,512 and Minimum Coverage is $558 
  • South Dakota Full Coverage is $1,642 and Minimum Coverage is $275 
  • Tennessee Full Coverage is $1,338 and Minimum Coverage is $371 
  • Texas Full Coverage is $1,823 and Minimum Coverage is $524 
  • Utah Full Coverage is $1,306 and Minimum Coverage is $528 
  • Vermont Full Coverage is $1,207 and Minimum Coverage is $292 
  • Virginia Full Coverage is $1,304 and Minimum Coverage is $441 
  • Washington Full Coverage is $1,176and Minimum Coverage is $463 
  • Washington, D.C. Full Coverage is $1,855 and Minimum Coverage is $704 
  • West Virginia Full Coverage is $1,499 and Minimum Coverage is$458 
  • Wisconsin Full Coverage is $1,186 and Minimum Coverage is $322 
  • Wyoming Full Coverage is $1,495 and Minimum is $271

What Are The Most Expensive States For Car Insurance?

Louisiana has the highest average car insurance rates in the US, with full coverage costing $2,724 per year or nearly $227 per month. 

Louisiana drivers also pay the largest percentage of their median family income, 5.27 percent, on vehicle insurance. Florida, New York, Michigan, and Nevada are the other states with the highest costs.

Average Cost of Full Coverage Car Insurance

  • Louisiana annual cost is at $2,724 and monthly cost is at $227 
  • Florida annual cost is at $2,364 and monthly cost is $197
  • New York annual cost is at $2,321 and monthly cost is at $193 
  • Michigan annual cost is at $2,309 and monthly cost is at$192 
  • Nevada annual cost is at $2,245 and monthly cost is at $187.

What Are The Cheapest States For Car Insurance?

Maine has the lowest average full-coverage auto or car insurance rate in the US, at $965 per year or roughly $80 per month, or just 1.45 percent of the median household income.

Ohio, Idaho, Hawaii, and Washington are the other states that have the lowest costs.

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How Much Does Car Insurance Cost By Company?

Because of each auto insurance company has its own rating system, car insurance rates differ from one provider to the next. Get quotes from several auto insurers to compare rates and features to discover the best car insurance carrier for your needs.
 

The average annual and monthly premiums for some of the nation’s largest vehicle insurance providers by market share are shown in the table below.

On a scale of 0.0 to 5.0, we’ve awarded each insurance firm a Bankrate Score. Average pricing, coverage options, discounts, and third-party rankings are all factored into the Scores. A higher Bankrate Score shows that the company performed better in each of the rating categories.

Average Cost of Full Coverage Car Insurance by Car Insurance Company

  • Allstate annual cost is $1,921, while the monthly cost at $160
  • American Family annual cost is at $1,911 while monthly cost is at $159
  • Amica annual cost is $1,378 while the monthly cost is $115
  • Auto-Owners annual cost is at$1,351 while monthly cost is at $113
  • Erie annual cost is at $1,233 while the monthly cost is $103
  • Farmers annual cost is at $2,000 while monthly cost is at $167
  • Geico annual cost is at $1,405 while, the monthly cost is at $117
  • The Hartford annual cost is at $2,270 while, monthly cost is $189
  • Mercury annual cost is at $1,558 while, the monthly cost is $130
  • Nationwide annual cost is at $1,485 while, the monthly cost is at $124
  • Progressive annual cost is at $1,509 while monthly cost is at $126
  • State Farm annual cost is at $1,457 while monthly cost is at $121
  • Travelers annual cost is at $1,325 while, the monthly cost is at $110
  • USAA annual cost is at $1,225 while, the monthly cost is $102

     

How Much Does Car Insurance Cost By Age And Gender?

Inexperienced drivers often pay the highest premiums, with age being one of the most important criteria in determining how much they will pay for vehicle insurance. 

Auto insurers use actuarial data to determine that teens and inexperienced drivers, as well as the elderly, are more likely to be involved in an accident. 

As a result, these drivers’ car insurance premiums are typically higher to compensate for the increased risk. If you live in Hawaii, your age should not affect your price because state statutes prohibit using age as a rating factor for vehicle insurance.
 

In most states, your gender affects your premium. Men are more expensive to insure than women. According to the Triple-I, men engage in riskier driving behaviors and have a greater rate of accident severity than women. 

Gender is not, however, a variable in all states’ rates. Gender should not affect how much you pay for vehicle insurance if you live in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, or Pennsylvania.

How Much Does Car Insurance Cost By Credit Score?

According to Triple-I, drivers who have poor credit file more claims and possess higher claim severity than drivers who have strong credit. 

This implies that the better your credit score is, the lower your premium will be. Each vehicle insurance provider determines your insurance credit tier based on a variety of characteristics; it will probably differ from the scores from Experian, TransUnion, or Equifax because it is a credit-based insurance score, not a credit score. 

The table below shows how credit affects the cost of full coverage automobile insurance annually.
 

They do not consider credit when determining auto insurance rates in California, Hawaii, Massachusetts, Michigan, and Washington.

Average Cost of Full Coverage Car Insurance by Credit Score

National average

  • Poor $3,873 
  • Average $1,865 
  • Good $1,674 
  • Excellent$1,487

How Much Does Car Insurance Cost By Vehicle Type?

The sort of vehicle heavily influences the auto insurance rate you drive. Also, the cost of components and labor, the statistical chance of accidents, and the vehicle’s safety and crash-prevention systems may all impact how much you pay for insurance. 

The five most popular vehicle makes and models in the country are listed in the table below.
 

Insurance companies perceive some car brands and models to be more expensive to insure. The following are examples of shared features:

Luxury or sports automobiles are examples of high-end vehicles. In the event of a claim, the high cost of these vehicles sometimes entails expensive parts and specialist knowledge to fix. Sports cars also have higher top speeds, which insurance companies may charge extra for because of the increased chance of accidents or harm.

Insurance costs can be higher for larger cars than for sedans. Their larger size and weight may cause more damage to other drivers and property in the event of a collision. Most drivers who own a larger car may accommodate more passengers, which increases the danger of an accident.
 

Vehicles that are more common and more affordable: While these economy automobiles are less expensive, their popularity and sheer volume on the road contribute to the statistical risk that it will involve them in more accidents.

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They may also be easier for criminals to break into and steal from, increasing the number of comprehensive claims that an insurance provider must pay out.

Average Cost of Full Coverage Car Insurance by Make and Model

  • Ford F-150 ranks no. 1, with an annual cost of $1,442 and monthly cost of $120
  • Chevrolet Silverado ranks no. 2, with an annual cost of $1,682 and monthly cost of $140
  • Ram 1500 ranks no. 3, with an annual cost of $1,697 and monthly cost of $141
  • Toyota RAV4 ranks no. 4, with an annual cost of $1,510 and monthly cost of $126
  • Honda CR-V ranks no. 5 with an annual cost of $1,369 and monthly cost of $114
     

How Do You Find The Best Car Insurance Rates?

Car insurance does not have to be expensive; there are ways to save money. One of the most effective methods to reduce your premium is to take advantage of discounts. 

Most major vehicle insurance companies provide discounts. The following are some of the most popular insurance discounts in the United States.

Claims-free: Drivers who have had no auto claims in the last few years are usually eligible for discounts.

Bundling insurance plans: When you combine your automobile insurance policy with your house insurance policy, you can typically save money on both policies.

Many vehicle insurances provides discounts to inexperienced drivers who have received good grades in high school or college.

If you can afford to pay your auto insurance payment in full rather than monthly or quarterly, you may save money.

Telematics: Most vehicle insurance companies provide telematics programs in which you can allow them to follow your driving behavior via an app or device in order to save money.
 

The reason is each vehicle insurer has its own set of discounts. Speaking with your agent or a company representative may be the best method to learn about potential savings.
 

Getting quotes from different automobile insurance companies might also assist you in comparing rates. Because each company sets its own rates, the same coverage can cost a lot of money with different companies. 

By comparing quotes, you may discover the best deal on the coverage you require.

How Much Does Commercial Auto Insurance Cost?

For a policy limit of $1 million, the median cost of commercial auto insurance is $142 per month or $1,704 per year.

Frequently Asked Questions (FAQs)

Does car insurance decrease every year?

Car insurance prices reduce as you get older, until around the age of 70, when they rise again. However, because car insurance premiums are based on various factors, including your geographic area, vehicle make and model, and driving history, your car insurance may not reduce every year. If you’ve been in an accident or been charged with a DUI, your premiums may skyrocket when it’s time to renew your coverage. Your premium may rise even if your personal characteristics and policy specifics remain same. Every year, insurers file new rates with the insurance departments in the states they serve, so your premium may increase or drop to reflect these new rates.

Is full coverage insurance worth it?

When you purchase full coverage auto insurance, you are adding comprehensive and collision coverage to your policy. Full coverage automobile insurance may be worthwhile in many situations. It is usually more expensive than minimal coverage, but it can help you pay for the cost of repairs or replacement of your car following a covered loss. If your car is financed or leased, full coverage may be necessary.

Will my car insurance cost be close to the average cost of car insurance?

Although our analysis determined average vehicle insurance premiums for a variety of client groups, your rates may be lower or higher than those displayed here because of a variety of individual circumstances.

How can I find the best car insurance rates?

The easiest method to get the best vehicle insurance prices is to shop around. Compare rates from several insurance companies. Maintaining a strong credit history and a clean driving record can also help you save money on vehicle insurance.

What factors affect car insurance rates?

Car insurance providers look at your age, gender, marital status, home address, credit history, driving record, and the type of vehicle you drive, as well as your state’s insurance rules and regulations.

Conclusion

It is just as important to insure an automobile as it is to insure one’s life.

There are several low-cost car insurance businesses where you may insure your vehicle, so there’s no reason not to. Your car is your property, and they must secure it from harm.



 

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