Are you curious about the cost of car insurance? It really varies. On average, full coverage car insurance in the U.S. costs $1,766 a year, or $147 monthly. Minimum coverage is about $497 yearly, or $41 monthly, based on NerdWallet’s September 2024 analysis. But, your premium will change based on several factors.
Key Takeaways
- The average cost of full coverage car insurance is $1,766 per year, or about $147 per month.
- The average cost of minimum coverage car insurance is $497 per year, or around $41 per month.
- Your actual car insurance rates will depend on factors like your age, driving history, location, coverage levels, and the make/model of your vehicle.
- Drivers in certain states, such as California, can expect to pay higher average car insurance rates.
- Factors like a clean driving record, good credit, and bundling policies can help lower your car insurance costs.
Average Cost of Car Insurance in the United States
A recent study by NerdWallet found that the average cost of car insurance in the U.S. is $1,766 for full coverage and $497 for minimum coverage. But, these prices can change a lot. This depends on who’s driving, where they live, and who insures them.
Key Insights from NerdWallet’s Analysis
NerdWallet’s study gives us important info on car insurance costs for different drivers:
- Drivers with a clean record and good credit pay $1,766 for full coverage and $497 for minimum.
- Drivers with one speeding ticket and good credit pay $2,244 for full coverage and $628 for minimum.
- Drivers with one at-fault crash and good credit pay $2,614 for full coverage and $744 for minimum.
- Drivers with a DUI and good credit pay $3,233 for full coverage and $938 for minimum.
- Drivers with a clean record but poor credit pay $2,794 for full coverage and $771 for minimum.
Average Costs for Different Driver Profiles
The national median car insurance rates change a lot based on a driver’s credit, driving record, and coverage:
| Driver Profile | Full Coverage | Minimum Coverage |
|---|---|---|
| Clean driving record, good credit | $1,766 | $497 |
| One speeding ticket, good credit | $2,244 | $628 |
| One at-fault crash, good credit | $2,614 | $744 |
| One DUI, good credit | $3,233 | $938 |
| Clean driving record, poor credit | $2,794 | $771 |
NerdWallet’s study shows how much driver profile affects average car insurance costs in the U.S.
Car Insurance Costs by State
Car insurance costs differ a lot from state to state. The cheapest states for full coverage auto insurance are Wyoming, Vermont, New Hampshire, Idaho, and Ohio. On the other hand, Florida, Louisiana, Texas, Michigan, and Kentucky are the most expensive.
Cheapest States for Full Coverage
- Wyoming: $970 per year on average
- Vermont: $1,072 per year on average
- New Hampshire: $1,136 per year on average
- Idaho: $1,162 per year on average
- Ohio: $1,220 per year on average
Most Expensive States for Full Coverage
- Florida: $3,090 per year on average
- Louisiana: $3,067 per year on average
- Texas: $2,567 per year on average
- Michigan: $2,418 per year on average
- Kentucky: $2,404 per year on average
Many factors affect car insurance costs by state. These include state laws, uninsured drivers, road conditions, and living costs. In affordable car insurance states, premiums are lower. But in more expensive states, car insurance costs are higher.
| State | Minimum Coverage | Full Coverage |
|---|---|---|
| New York | $2,490 | $8,232 |
| Maine | $448 | $1,460 |
| Louisiana | $1,432 | $4,357 |
| Wyoming | $303 | $970 |
| National Average | $72 | $223 |
The Rising Cost of Car Insurance Over Time
Car insurance costs have gone up a lot in recent years. This is making it harder for drivers in the United States to afford it. The Bureau of Labor Statistics says the average cost of full coverage car insurance is now $2,543 in 2024. This is a 26% jump from last year.
Insurers face many challenges, like more claims and costlier accidents. The pandemic first made prices drop, but they quickly went back up. In May 2024, prices only slightly fell before going up again.
Drivers across the country are now spending a lot on car insurance. They pay about 3.41% of their income, which is $74,580 on average. In some places, like Louisiana, it’s even more, taking up 6.53% of household income.
| State | Average Annual Premium | % of Median Household Income |
|---|---|---|
| Louisiana | $3,618 | 6.53% |
| Florida | $3,169 | 5.69% |
| Michigan | $2,777 | 5.01% |
| Massachusetts | $1,665 | 1.76% |
With car insurance costs going up, drivers need to look at their options carefully. They should understand what affects their rates, like their driving record and credit score. This can help them find ways to pay less for car insurance.
Car Insurance Cost Estimator by ZIP Code
Knowing the average car insurance cost in your state is a good start. But, looking at your ZIP code can give you a closer estimate. By entering your ZIP code, you can see the average car insurance rate for your area. This is usually more accurate than state averages.
NerdWallet’s September 2024 rate analysis found the national average car insurance rate for full coverage is $1,766 per year. Insurance rates depend on many factors. These include the driver’s age, gender, marital status, coverage level, driving record, location, credit score, and car insurance history.
| ZIP Code | Average Monthly Premium | Average Annual Premium |
|---|---|---|
| 33315 (Fort Lauderdale, FL) | $91 | $1,092 |
| 70117 (New Orleans, LA) | $314 | $3,768 |
| 20001 (Washington, D.C.) | $223 | $2,676 |
| 04626 (Ellsworth, ME) | $146 | $1,752 |
The cost of car insurance changes a lot by location. This is because of different state insurance minimums and factors like crime rates and population density. For example, Michigan has the highest average insurance rates in the nation with an annual premium of $3,777. Wyoming has the lowest average annual insurance rates at $1,758.
To get a personalized car insurance quote and estimated insurance costs by location, shop around. Compare rates from multiple insurers based on your specific ZIP code and driving profile. This can help you find the most affordable car insurance coverage for your needs.
Average Car Insurance Costs by Company
Car insurance rates can change a lot between different companies. Each company uses different factors to set their rates. This means what’s cheap for your friend might not be for you.
NerdWallet’s analysis shows the average annual car insurance costs from big insurers:
- Allstate: $2,302 for full coverage, $624 for minimum coverage
- American Family: $1,323 for full coverage, $505 for minimum coverage
- Farmers: $2,711 for full coverage, $909 for minimum coverage
- Geico: $1,303 for full coverage, $351 for minimum coverage
- Nationwide: $1,905 for full coverage, $743 for minimum coverage
- Progressive: $1,772 for full coverage, $493 for minimum coverage
- State Farm: $2,119 for full coverage, $469 for minimum coverage
- Travelers: $1,412 for full coverage, $431 for minimum coverage
- USAA*: $1,175 for full coverage, $309 for minimum coverage
Remember, these are just averages. Your actual rates could be different. Always compare quotes from various companies to find the best deal for you.
how much is insurance on a car
Many personal factors affect how much you pay for car insurance. These include your age, gender, and marital status. Your driving record, claims history, and the type and value of your vehicle also matter.
Your credit score, where you live, and the coverage you choose are also important. Knowing these factors can help you save money on car insurance.
Factors Affecting Car Insurance Premiums
- Age, gender, and marital status
- Driving record and claims history
- Type and value of the vehicle
- Credit score (in most states)
- Location and coverage requirements
- Selected coverage limits and deductibles
The average cost for full coverage car insurance is $1,766 a year. Minimum coverage costs about $497 annually. Drivers with DUIs, poor credit, and young drivers usually pay more.
| Coverage Type | Average Annual Cost | Average Monthly Cost |
|---|---|---|
| Full Coverage | $1,766 | $147 |
| Minimum Coverage | $497 | $41 |
Understanding what affects car insurance costs can help you make better choices. This way, you might be able to lower your auto insurance premiums.
“The cost of car insurance can vary significantly based on a variety of personal and regional factors, making it essential for drivers to research and compare options to find the best fit for their needs and budget.”
Car Insurance Costs by Age and Gender
Age and gender play big roles in car insurance rates by age and gender impact on auto insurance costs. Young drivers, especially those under 25, face the highest rates. This is because they have less driving experience and are at a higher risk for accidents. Rates drop as drivers get older and gain more experience.
Gender also matters, with men usually paying more than women. An 18-year-old male driver might pay about 15% more than an 18-year-old female. But, by the time drivers are 25, the difference is only $33 per year on average.
| Age | Average Cost for Females | Average Cost for Males |
|---|---|---|
| 16 | $5,211 | $5,760 |
| 18 | $5,172 | $5,950 |
| 25 | $2,745 | $2,778 |
| 30 | $1,486 | $1,515 |
| 50 | $1,401 | $1,409 |
| 70 | $1,532 | $1,564 |
Car insurance rates for young drivers go down each year until they stabilize with age. Rates for drivers under 18 in a family plan are lower than those with their own policies. Many things can affect your car insurance costs, like your deductible, the type of car you drive, how much you drive, your driving record, credit score, and more.
In short, car insurance rates by age and gender impact on auto insurance costs are key factors for insurance companies. Young drivers, especially males, pay the most, but rates decrease as they gain more driving experience.
Car Insurance Costs Based on Driving Record
Your driving history is key when insurance companies set your rates. Those with no accidents or tickets pay less. But, one ticket or accident can raise your rates by hundreds of dollars each year.
Getting a DUI can add $1,363 a year to your insurance. An accident adds $353. But, a clean record saves you $289 a year compared to the average.
Driving history affects insurance rates a lot. Drivers with no tickets pay $2,706 a year on average. Those with a DUI pay $4,282, over $1,500 more.
This pattern is true everywhere. DUIs are most expensive in Michigan, at $11,163 a year. In 28 states, the difference between a clean record and a DUI is over $1,000 a year.
Your driving history greatly affects your car insurance costs. Keeping a clean record saves you money and is the right thing to do.
Impact of Credit Score on Car Insurance Rates
Your credit score greatly affects your car insurance rates. In most states, insurers use your credit score to guess how likely you are to make claims. This guess affects your premiums. Drivers with poor credit pay much more than those with good credit.
Industry data shows drivers with poor credit (score under 580) pay 97% more for full coverage. The average annual full coverage premiums based on credit rating are:
- Poor Credit: $4,801
- Average Credit: $2,769
- Good Credit: $2,542
- Excellent Credit: $2,200
But, not all states let insurers use credit scores for rates. California, Hawaii, Massachusetts, and Michigan don’t allow it.
“Drivers with better credit history are less likely to file claims, leading to preferential rates from insurers.”
Insurers use special systems to figure out your credit score. They look at things like debt, payment history, and how long you’ve had credit. Drivers with better credit are seen as safer and get lower rates.
While credit score matters, it’s not the only thing that affects your rates. Your driving record, age, vehicle, and where you live also play a part. Knowing how credit score influences auto insurance prices helps you improve your credit. This could save you hundreds on insurance costs.
Car Insurance Costs by Vehicle Make and Model
The make and model of your car can really affect your insurance costs. Insurers look at crash and theft data to set rates for each model. Things like the car’s price, repair costs, safety features, and theft risk play a big role.
Vehicle Characteristics that Influence Rates
Insurance rates can change based on your car’s style, size, and how it performs. Coupes might cost more because they’re often seen as sports cars. Sedans might also be pricier because they’re more likely to be in accidents.
Vans and SUVs, on the other hand, might be cheaper to insure. They’re less likely to be in accidents. The cost to repair a car also matters, with sports and luxury cars often being more expensive.
Electric cars might have higher insurance costs because of the special parts they use. Cars that are more likely to be stolen will cost more for comprehensive insurance. It’s smart to get quotes from different companies to find the best price.
| Vehicle Model | Bodily Injury Losses Compared to Average |
|---|---|
| Chevrolet Malibu | 98% more |
| Nissan Altima | 65% more |
| Kia K5 | 38% more |
| Subaru Ascent | 57% less |
| Subaru Forester | 54% less |
| Honda Passport | 49% less |
Insurance costs vary a lot based on the car’s make and model. Speed, engine size, safety features, and trim level all matter. Newer cars usually cost more to insure because they’re more expensive to replace and repair.
Larger and heavier vehicles, like SUVs and pickup trucks, can cost more to insure. They can cause more damage in accidents. Small cars, on the other hand, are usually cheaper to insure because they’re less risky.
Trim levels in a vehicle can also affect insurance rates. Base trims are often cheaper because they’re less expensive to replace. Theft rates of certain models can also impact insurance prices, with higher rates for models at higher risk of theft.
Engine size and performance can also influence insurance premiums. High-performance vehicles tend to have higher rates because they’re often driven more aggressively. Vehicles with advanced safety features, however, can have lower insurance premiums because they’re safer.
Insurance companies might also offer discounts for electric vehicles. This is because they’re seen as environmentally friendly and potentially safer.
How to Lower Your Car Insurance Costs
Smart drivers look for ways to cut down on car insurance costs. Whether you’re new to insurance or have been with the same company for years, there are steps you can take. These steps can help lower your auto insurance premiums and reduce your overall costs.
Shop Around and Compare Quotes
To find the cheapest car insurance, compare quotes from different insurers. Make sure to check the coverage levels and look for discounts. Discounts can greatly affect your policy’s cost.
Take Advantage of Discounts
- Maintain a good driving record: Avoiding accidents and speeding tickets shows you’re a safer driver, leading to discounts.
- Improve your credit score: In some states, a better credit score means lower insurance rates, showing you’re a responsible driver.
- Choose a vehicle with lower insurance costs: The cost to insure a vehicle varies based on repair costs and safety features.
- Bundling your policies: Getting your home and auto policies from the same company can save you money.
- Increase your deductible: Going from a $200 to a $500 deductible can cut your collision and comprehensive costs by 15-30%.
Consider Usage-Based Insurance
Some insurers offer discounts for those who drive less. These programs track your driving habits. If you drive fewer miles, you might save money.
By using these strategies, you can save on car insurance. This helps you keep more money in your pocket.
Conclusion
The cost of car insurance changes a lot based on many things. These include where you live, how you drive, your credit score, and the car you own. Knowing these factors helps you find affordable coverage that fits your needs.
Looking around and comparing prices from different insurers is key. This way, you can get the best deal and the right protection for your situation.
Whether you want the minimum or full coverage, this article helps you understand your options. By looking at your choices carefully, you can balance cost and coverage. This ensures you get the protection you need without breaking the bank.
Car insurance costs vary for everyone. By understanding what affects your rates and looking at discounts, you can find a policy that’s affordable. This way, you can stay safe on the road without spending too much.
FAQ
How much is the average cost of car insurance in the United States?
The average annual cost for full coverage is $1,766, and for minimum coverage, it’s $497. This is based on NerdWallet’s September 2024 rate analysis.
What are the key factors that affect car insurance costs?
Several factors influence car insurance costs. These include your age, gender, driving record, and credit score. Your location, vehicle type, and chosen coverage also play a role.
Which states have the cheapest and most expensive car insurance rates?
Wyoming, Vermont, New Hampshire, Idaho, and Ohio have the lowest rates for full coverage. Florida, Louisiana, Texas, Michigan, and Kentucky have the highest rates.
How have car insurance costs changed over time?
Car insurance costs have risen sharply. This is due to more claims, accidents, and higher vehicle costs.
How can I get an estimate of car insurance costs in my local area?
Use your ZIP code to find the average car insurance rate in your area. This is more accurate than state averages.
How do car insurance rates differ among major insurers?
Rates vary among large insurers. USAA offers the lowest full coverage at $1,175 annually. Farmers charges the highest at $2,711.
How does my age and gender impact my car insurance rates?
Young drivers, especially those under 25, face high rates due to inexperience and risk. Men generally pay more than women.
How does my driving record affect my car insurance costs?
A clean record means lower rates. A single ticket or accident can significantly increase costs.
What is the impact of my credit score on my car insurance rates?
In most states, your credit score greatly affects rates. Poor credit means higher premiums compared to good credit.
How does the make and model of my vehicle affect my car insurance costs?
Rates are based on crash and theft statistics for each model. Factors like price, safety features, and theft risk also matter.
What are some strategies to lower my car insurance costs?
To lower costs, raise your deductibles, bundle policies, and maintain a good driving record. Improve your credit score and choose a vehicle with lower insurance costs.
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