“I love paying my car insurance policy,” said no one ever. OK, maybe there’s a happy-go-lucky insurance agent who enjoys giving money to the people who cut him a paycheck but the rest of us want that bill to be as small as possible.

Read on to discover what you should pay compared to the average cost of car insurance in your state. You’ll also learn what factors insurers use when setting insurance rates so you can avoid overpaying.

And speaking of savings, Insurify customers may pocket a whopping $585 per year on average. With a rating of 4.85/5 stars from 2,900+ reviews, Insurify is the #1 insurance comparison platform in America. So if you’re looking for the best car insurance companies at the most affordable rates, try Insurify today.

 

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Car Insurance: Why’s it so expensive, and what’s the average cost? 

Many variables, some driving-related and others indirectly connected, contribute to high car insurance rates. Here are some factors that decide how much car insurance costs and insights to help you get the best rates from insurers.

Location

The crime rate, the type of area you live in, and your state all affect your insurance premiums.

Crime Rates

Your address is used to get criminal records from local police departments for the insurance provider to evaluate the risk. Areas with a high number of thefts and vandalism also have higher claims and rates. Because insurers deal with risk, high crime rates increase the likelihood that you will make a claim. Consequently, the average auto insurance price rises to account for the increased risk.

Cities vs. Rural Areas

Shoppers in urban regions generally pay higher auto insurance rates than those in rural areas since greater congestion leads to higher crash rates. In addition, car break-ins, theft, and vandalism are also more common in cities. 

State of Residence

Different states mandate varying amounts of insurance coverage, with a couple requiring none. In addition, the coverage requirements vary, resulting in higher or lower rates based on location. For example, Michigan is the most expensive state in the nation, primarily because of the high medical coverage and no-fault policies.

You’re likely interested in the insurance prices in your state. Fortunately, Insurify has the numbers. Check out the average monthly rates nationwide.

Average Monthly Cost of Car Insurance: 50 States and Washington, D.C.

State Average Premium
Alabama Car Insurance Rates $195
Alaska Car Insurance Rates $160
Arizona Car Insurance Rates $210
Arkansas Car Insurance Rates $202
California Car Insurance Rates $235
Colorado Car Insurance Rates $250
Connecticut Car Insurance Rates $261
Delaware Car Insurance Rates $331
Florida Car Insurance Rates $328
Georgia Car Insurance Rates $328
Hawaii Car Insurance Rates $117
Idaho Car Insurance Rates $148
Illinois Car Insurance Rates $184
Indiana Car Insurance Rates $165
Iowa Car Insurance Rates $163
Kansas Car Insurance Rates $199
Kentucky Car Insurance Rates $272
Louisiana Car Insurance Rates $332
Maine Car Insurance Rates $145
Maryland Car Insurance Rates $312
Massachusetts Car Insurance Rates $218
Michigan Car Insurance Rates $515
Minnesota Car Insurance Rates $170
Mississippi Car Insurance Rates $217
Missouri Car Insurance Rates $265
Montana Car Insurance Rates $174
Nebraska Car Insurance Rates $211
Nevada Car Insurance Rates $305
New Hampshire Car Insurance Rates $163
New Jersey Car Insurance Rates $290
New Mexico Car Insurance Rates $173
New York Car Insurance Rates $351
North Carolina Car Insurance Rates $138
North Dakota Car Insurance Rates $175
Ohio Car Insurance Rates $178
Oklahoma Car Insurance Rates $196
Oregon Car Insurance Rates $207
Pennsylvania Car Insurance Rates $201
Rhode Island Car Insurance Rates $371
South Carolina Car Insurance Rates $308
South Dakota Car Insurance Rates $150
Tennessee Car Insurance Rates $192
Texas Car Insurance Rates $269
Utah Car Insurance Rates $195
Vermont Car Insurance Rates $149
Virginia Car Insurance Rates $213
Washington Car Insurance Rates $252
Washington, D.C., Car Insurance Rates $299
West Virginia Car Insurance Rates $213
Wisconsin Car Insurance Rates $161
Wyoming Car Insurance Rates $143

Marital Status

Tie the knot and watch your auto insurance premiums dive. Married folks are often more experienced and drive more cautiously, with the safety of their significant other and kids perhaps serving as motivation. As a result, your marital status can change your rates by over $300 per year on average—that’s more than enough to pay for that romantic dinner you’ve been planning! 

Check out the rates, according to Insurify’s proprietary database of millions of driver quotes.

Average Monthly Car Insurance Cost by Marital Status

Marital Status Average Monthly Premium
Married $238
Single $266

 

Age

Typically, skilled drivers, especially those 25 and older, have fewer accidents and insurance claims than less experienced drivers. Consequently, insurers often demand a higher premium from young drivers, especially teenagers. Once they get years behind the wheel, the pricing trends downward until retirement age around 65 because that’s when old drivers’ agility and alertness slip.

Gender

In this battle of the sexes, the women are clearly the winner—sorry gentlemen. Men drive more often than women on average and are far more prone to take part in risky behaviors, including speeding, forgoing safety belts, and driving under the influence (DUI) of alcohol. However, as men age out of adolescence, they tend to become safer drivers, and the price goes down.

 

Average Monthly Car Insurance Cost by Gender

Gender Average Monthly Premium
Male $245
Female $236

 

Credit Score

In every state but California, Hawaii, and Massachusetts, it’s perfectly legal for insurance companies to use your credit score when setting your rates. The thinking is people with good credit scores are safer, more responsible drivers. That means people with less-than-perfect or even poor credit might save between $50 and $100 per month by improving their credit.

Take a look at the average rates by comparing the lower scores to excellent credit.

Average Monthly Car Insurance Cost by Credit Score

Homeownership Status

Most car insurance companies give homeowners discounts. To get the price break, you don’t need to insure your house with the same company. Insurance providers incentivize homeowners because they see them as more stable than renters, and they want to win the home policy in the future.

Vehicle Type

Your vehicle’s worth heavily influences its insurance price because new cars are more expensive to replace than older vehicles. Other factors to consider are the engine size, the risk of theft, the maintenance cost, and the car’s safety record. Vehicles equipped with safety equipment may be eligible for added discounts.

Driving History 

When insurers ask for your driver’s license number, they check your motor vehicle report (MVR) to understand your history. If you have tickets, claims, and accidents, they believe the best judge of future driving behavior is past actions. So to offset the risk, insurers charge more.

But there’s light at the end of the insurance tunnel because you can regain a clean driving record with three or five years of good driving, depending on your state. 

Coverage Type

State-mandated car insurance coverage includes liability coverage for bodily injury and property damage. For example, minimum coverage in California is bodily injury liability coverage of $15,000 per person and $30,000 per accident and property damage of $5,000 per accident, abbreviated as 15/30/5. Therefore, your bill will be higher if you choose more significant coverage limits like 100/300/100.

Based on where you live, the state minimum may include personal injury protection (PIP) and underinsured and uninsured motorist coverage. Conversely, the law does not require full coverage, which is liability coverage with collision coverage and comprehensive coverage. But your lender may call for it if you have a loan or lease. Normally, picking less coverage means lower rates

Tips and Tricks to Save on Car Insurance

  • Drop unneeded coverage. Could you skip roadside assistance, remove collision and comprehensive insurance, and go to liability insurance only on that older car? If you do, you’ll probably save money on your premiums.
  • Raise your deductibles. The deductible is the amount you hand over before the insurance company pays your claim. Increase your deductible to the most you can afford out of pocket to lower your bill.
  • Try usage-based insurance. This type of insurance tracks your driving behavior with telematics devices. If you’re a safe driver who clocks less than 10,000 miles per year, you may save with programs like State Farm‘s Drive Safe & Save, Progressive‘s Snapshot, or Allstate‘s Drivewise. 
  • Shop around for car insurance rates. If your insurance is due to expire and the annual premium has risen significantly, try checking quotes from the competition.

Negotiating with Your Insurer: What You Should Know

The fast-talking insurance agent tells a half-truth when he quips the price is “take it or leave it.” In one sense, you can’t haggle into a reduced monthly auto insurance payment, just as you can’t bargain yourself into a lower monthly electric or gas bill. That’s because there’s not much wiggle room around fixed factors like your age, gender, location, credit score, and driving history.

>>> MORE: Average Cost of Car Insurance

However, there are two strategies to get the lowest price possible. One is to research all the discounts the company offers so you can make sure you’re getting every break you qualify for. The second is to shop around because the person who can walk away the easiest always wins at the negotiating table.

Find the Best Deal on Car Insurance with Insurify

Want to save on a super low car insurance bill? When you’re ready, head over to Insurify’s innovative quote-comparison tool. It uses the latest AI technology to offer you dozens of ultra-affordable auto insurance quotes, all personalized for your location, driver profile, and price point.

Insurify plays matchmaker for shoppers and insurance customers, and we only make a connection when you find the low rates that you’re head over heels for. Insurify customers can save up to $996 annually. See the Insurify difference today. 

Paying for Car Insurance: Quick Questions

What does the average driver pay for car insurance?

After millions of quotes nationwide, Insurify's data reveals the average U.S. driver pays around $1,463 for their car insurance policy. But, of course, your price may be higher or lower than the national average based on your location, vehicle, and unique driver profile.

How can I get my insurance company to lower my premium?

Your best bet is to check for discounts you may have missed. For example, households with multiple vehicles can save by combining everyone on a single auto insurance policy and taking advantage of the multi-car discount. It's also good to shop around at renewal time every six months or year to see what other companies can offer.

How do I know if I'm being overcharged for car insurance?

If your driving record has recently improved but your rates are the same, you may be being overcharged. For example, a speeding ticket or at-fault accident may have dropped off your record. You also could overpay if you have a clean record and shell out more than your state average. See the “State of Residence” section above for your state's pricing.

What is the quickest way for me to cut my monthly car insurance premium?

Why jump from site to site for auto insurance companies like GEICO or Nationwide and waste your valuable time? Almost faster than a U-turn after forgetting your phone at home, Insurify can help you find dozens of accurate, personalized, and cheap car insurance quotes from top companies in just a few minutes!

Score savings on car insurance with Insurify

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Updated July 8, 2021

Courtney Roy is a financial and technology copywriter. He creates content that makes an actionable difference in the life of his readers. In addition to years of experience across multiple industries, Courtney has insurance licenses, a real estate license, and a degree in electrical engineering. He and his wife chase their five kids in the Phoenix, Arizona sun. You can learn more at thecopyprophet.com.