Understanding average nationwide auto insurance costs provides a helpful baseline, but your personalized rates depend on many individual factors. This comprehensive guide breaks down key pricing details across the country on average car insurance costs.
Average Annual Car Insurance Costs
Full coverage car insurance averages $2,014 per year nationwide, equaling $168 per month.
Minimum coverage car insurance averages $622 per year nationwide, equaling $52 per month.
As you can see, maintaining minimum coverage is significantly cheaper on average compared to full coverage. But full coverage provides more financial protection by covering damage to your own vehicle.
Average Car Insurance Costs by State
Auto insurance rates vary widely depending on the state drivers live in. Cost of living, road conditions, traffic levels, uninsured drivers, extreme weather risks, and required minimum coverage levels all influence base pricing.
Here are the most and least expensive states for average annual car insurance premiums:
Most Expensive
- Florida – $3,183 per year
- Michigan – $2,691 per year
- Nevada – $2,779 per year
Least Expensive
- Maine – $941 per year
- Hawaii – $1,275 per year
- Idaho – $1,133 per year
Make sure to analyze rates for your local ZIP code, as costs can fluctuate across different areas of the same state.
READ ALSO:Â 5 Car Loan Mistakes That Are Costing You Money
Average Car Insurance Costs by Company
Insurers consider proprietary rating factors when determining premiums. So average costs for the same coverage vary by provider.
Here are average annual full coverage costs from some top national auto insurers:
- Allstate – $2,630 per year
- American Family – $1,700 per year
- American National – $658 per year
- Amica – $1,467 per year
- Auto-Owners – $1,361 per year
Shopping around helps find the cheapest rates for your situation. Also note that insurance discounts vary between companies.
Average Insurance Costs by Age
Younger and older drivers tend to pay more for coverage. Insurers view these groups as higher risk due to lack of experience and slower reaction times.
Annual Premiums by Age:
- 20-year-old:Â $4,319
- 25-year-old:Â $2,473
- 40-year-old:Â $2,014
- 60-year-old:Â $1,824
- 70-year-old:Â $1,986
Note age does not impact rates in Hawaii or Massachusetts. So costs remain more consistent across age groups there.
Average Car Insurance Based on Gender
Historically males pay more on average compared to females, likely because risk data shows more accidents and moving violations. However, California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania have banned using gender as a rating factor.
Average Car Insurance by Vehicle Type
Insurers classify some vehicle types and models as riskier to cover than others based on accident rates, repair costs, medical claims, and more. This influences pricing significantly.
Here are average annual premiums by selected vehicle makes/models:
- BMW 330i – $2,513
- Ford F-150 – $1,753
- Honda Odyssey – $1,735
- Toyota Prius – $2,117
- Tesla Model 3 – $2,577
Additional Auto Insurance Cost Factors
Beyond basic demographics and car types, carriers weigh many other proprietary variables when pricing policies:
- Years licensed & driving history – More years licensed often leads to lower rates and clean history typically earns discounts
- Credit tier – People with poor credit often pay over 50% more compared to those with excellent credit
- Location – Insurance costs within the same state vary dramatically by ZIP code
- Mileage – Higher annual miles driven increases accident risk so more expensive premiums
- Marital status – Married couples typically receive discounts around 5%
Shopping around for quotes helps find the cheapest rates based on your unique situation.
Getting Cheaper Car Insurance
While some individual traits remain fixed, here are tactics that help lower costs:
- Improve credit – Boosting your credit tier over time can decrease premiums considerably
- Ask about discounts – Most insurers offer many discounts, so inquire to maximize savings
- Increase deductibles – Higher deductibles lead to reduced monthly payments
- Compare quotes – Rates for the same coverage vary wildly among insurers
Finding the optimal balance between rate and coverage takes some work. But significant savings are possible.
Recent Changes in Average Car Insurance Rates
Due to rampant inflation, supply chain issues, parts shortages, and rising claims, average car insurance rates rose over 13% nationally in 2023. Additional increases are expected in the coming years. But shopping around can help blunt the impact on your budget.
To Recap
While average nationwide car insurance costs provide a baseline, your personalized premium will differ significantly based on individual traits. Make sure to shop around with carriers to find the best rate for your situation. Consider both pricing and sufficient coverage limits as you review options. Use this guide to set realistic expectations around potential rates and savings opportunities in your state.
Frequently Asked Car Insurance Questions
Below find answers to some of the most common queries drivers have around costs:
How much should I expect rates to change at renewal?
It varies dramatically from year to year. Some see increases while others experience drops. Expect fluctuations but brace for rises in the short term.
Which companies have the cheapest average car insurance?
Based on our rate analysis, Auto-Owners, USAA, Geico, Amica, and Erie currently provide some of the lowest average premium estimates.
Should I only consider minimum coverage?
Experts strongly advise buying more than your state minimums to ensure sufficient protection. Higher liability limits and full coverage provide much more financial security.
What’s the best way to compare costs?
Get quotes from multiple top insurers to compare rates. Make sure you’re evaluating the same coverage amounts and policy limits for accurate comparisons.
