Julia Taliesin is an insurance content writer at Insurify. She began her career as a journalist, covering local government and business in Somerville, Mass.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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Many factors affect car insurance rates, so premiums can vary widely among drivers. The national average monthly cost of car insurance is $204 for full coverage and $104 for liability only, according to Insurify data.
Car insurance costs increased by 24% in 2023, and Insurify’s data scientists predict another 7% increase in 2024, but comparing quotes can mean cheaper premiums.
Quick Facts
Teen drivers and drivers with DUIs typically pay the most for car insurance.
Drivers in their 60s and drivers with clean records get the lowest rates.
Driving safely, maintaining good credit, and comparing quotes can get you cheaper rates.
Factors that affect car insurance rates the most
Insurers consider many factors when setting premiums. Your driving record is a major factor — the better your record, the lower your premium, according to the Insurance Information Institute (Triple-I).[1] Your location, credit history, age, gender, and the car you drive also affect the cost of your car insurance.
Location
Age
Driving record
Insurance history
Coverage level
Credit score
Why car insurance rates are increasing so quickly
Insurers may consider personal factors when setting rates, but an Insurify report found other factors affect bottom lines before you even get a quote.
Car insurance companies are losing money. Insurance companies are experiencing record losses, paying more in claims than they collect in premiums. Insurers pass those costs onto consumers to offset the loss.
Repair costs are higher than ever. Mechanic shortages, hard-to-repair car technology, and the increasing average vehicle age contribute to rising costs.
Climate disasters cause expensive claims. Areas with frequent severe weather, like floods, earthquakes, and wildfires, typically have higher rates due to more expensive claims.
Important Information
Motor vehicle insurance rates rose dramatically after the pandemic and increased by 24% in 2023 alone, according to Insurify data. Rising repair costs, severe claims, and catastrophic weather all contribute to surging premiums.
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Car insurance costs by state
Disposable income, urban population, and miles driven per number of highway miles are all correlated with state auto insurance premiums.[2] The number of uninsured drivers on the road also influences how insurers set rates.
Average Annual Cost of Full-Coverage Car Insurance
Premiums can vary down to the ZIP code, but here are the monthly liability-only and full-coverage rates for each state.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile. California prohibits insurers from using ZIP code as a rating factor.
States with the cheapest car insurance rates
States with cheaper rates typically have fewer densely populated areas or higher median incomes. Wyoming and South Dakota are among the least densely populated states and have some of the lowest auto insurance costs. Drivers in cheaper states also pay a smaller percentage of their incomes for premiums, according to Insurify analysis.
Regional climate risks, auto repair prices, fraud, and litigation can also lead to varying premiums from state to state. For example, Nevada isn’t very densely populated but is among the most expensive states for car insurance.
These are the states with the cheapest car insurance premiums.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
States with the most expensive car insurance rates
New York has the highest average car insurance premiums largely due to its densely populated urban areas, which have higher rates of vehicle theft and vandalism, leading to more claims. Other factors, like rising repair costs and rampant insurance fraud, have led to expensive rates in Nevada and Florida.
What’s expensive or affordable is also relative. Increasing auto insurance rates hit low-income states hard. Louisiana’s median income is well below the national median income, but its drivers pay the highest percentage of their income to car insurance premiums, according to Insurify analysis.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
How your age affects car insurance rates
Teen drivers and drivers in their early 20s typically pay the highest auto insurance rates. That’s partly due to teens’ lack of experience, and the characteristics of teen fatal crashes include driver error, speeding, and night driving, according to the Insurance Institute for Highway Safety.
Rates typically decrease with age, but costs start to increase again slightly when drivers reach age 70. Fatal crash rates are highest for senior drivers older than 80, followed by drivers aged 16–19 and 20–24, according to the National Highway Traffic Safety Administration.[3] Age-related changes to vision and physical functioning, as well as diseases and medications, may affect older adults’ driving ability, according to the Centers for Disease Control and Prevention.
These are the national average monthly car insurance premiums by age group.
Average Monthly Quote by Driver Age
Insurify Tips
Adding a teen to your policy? Call your agent first to check the cost. Rates will decrease over time if your teen has a good driving record, so encourage positive driving behaviors.
Cost of car insurance by driving record
Your driving record affects your car insurance premiums significantly. Drivers with a clean record pay about 7% below average, and drivers with a DUI pay 67% above the national average rate, according to Insurify data.
Most states have a driver’s license points system, which assigns a point value to various traffic offenses. For instance, a Florida driver could earn three points for failing to yield or six for a hit-and-run. Accumulating 12 points in 12 months means a 30-day license suspension, and so on. Not all states use the points system, but each has a way to track violations.
Average Monthly Quote by Driving History
Rate increases following an incident typically last three to five years, so ask your insurer about when you can expect a decrease or shop for new quotes around that time to find cheaper coverage.
Insurify Tips
A DUI is among the worst things that can happen to your driving record. It can increase your premium by 67%, per Insurify data. In some states, it stays on your record forever, so avoid drinking and driving, and practice safe driving habits to lower your likelihood of an incident.
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How insurance history affects your rates
Just like insurers assess your driving record and credit history, they’re also interested in your insurance history. Your claims and coverage history can provide information about your risk.
Filing a claim could increase your premium, especially if you’re at fault, but it’s still best to report an incident. Not doing so could jeopardize your insurance coverage. Filing a claim can raise premiums by 35%, Insurify data shows.
Most insurers charge more if you’ve gone without coverage, according to the NAIC. Insurify data shows premiums increase by 9% after a coverage lapse of less than 30 days.
Going without coverage is a bigger problem than higher rates or lost discounts. Most states have minimum liability insurance requirements and serious consequences for driving without coverage, such as fines, license suspension, or even jail time. And if you cause an accident while you’re uninsured, you’ll have to shoulder the financial consequences on your own.
Advice from the experts
Betsy Stella
Vice President of Carrier Management and Operations, Insurify
“Maintaining coverage is important from a legal perspective. But it can also save you money. Many insurers consider drivers who have consistent coverage better risks and may offer a discount based on your continuous coverage period.”
Liability vs. full-coverage rates
The coverage you choose significantly affects how much car insurance costs. A full-coverage policy costs about 105% more than liability-only coverage, according to Insurify data. New Hampshire is the only state that doesn’t require car insurance, but if you lease or finance your car, your lender may require you to buy full-coverage car insurance.
State-minimum coverage typically includes bodily injury and property damage liability coverage. No-fault states typically also require personal injury protection and uninsured/underinsured motorist coverage. Here’s what those cover:
Bodily injury liability
Covers costs from injuries you or another driver causes using your car
Property damage liability
Reimburses others for damage you cause to other cars, fences, buildings, etc.
Personal injury protection
Covers medical expenses and lost wages for you and any passengers
Uninsured/underinsured motorist coverage
Reimburses you in a hit-and-run or when another driver causes an accident and lacks adequate coverage
To insure against damages to your vehicle, you’ll need full coverage, which typically includes collision and comprehensive insurance. Collision covers damages from a crash with another vehicle or object when you’re at fault, while comprehensive protects you against vehicle theft, fire, floods, and things like falling trees. Some policies include glass coverage, or you can buy supplemental coverage.
Advice from the experts
Mallory Mooney
Director of Sales and Service
“Choosing insurance limits is all about asset protection. With liability limit selection, you want to look at a few things, like ‘In the worst-case scenario, what costs would I need to cover?’ A typical fender bender with minimal bumper damage now costs more than $6,000 because of the technology. It adds up quickly!”
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How car insurance rates differ by insurance company
Every insurance company has a different way of calculating premiums, though most consider the same factors. Besides personal risk factors, some factors affecting costs for all drivers include inflation, upticks in riskier driving, severe weather, and reinsurance rates. Reinsurance is basically insurance that helps insurance companies cover their losses following a year of high claims.
You can find dramatically different rates between insurers, so it’s always good to compare quotes.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
How credit history affects your car insurance premium
Most states allow insurers to use credit history to set rates. California, Hawaii, Massachusetts, and Michigan don’t permit insurers to use any credit information to set auto insurance premiums. In Maryland, Oregon, and Utah, credit history can affect rates, but insurers can’t use it to deny, cancel, or non-renew your policy.
When insurers consider your credit, they’re not actually looking at your credit score. Instead, they use information in your credit history to generate a credit-based insurance score, which in turn helps them estimate your likelihood of filing a claim.
Different types of insurance scores may use different factors and weighting, but all use information from your credit report. That can include payment history, balances, credit limits, and more. Insurers use these scores to predict your likelihood of filing insurance claims.
Rates by Credit Tier
Insurify Tips
Curious about your credit? It used to be that you could get only one free credit report a year, but not anymore. In 2023, the federal government made permanent a pandemic-era program to make one free report available every week.[4] The Federal Trade Commission directs consumers to visit AnnualCreditReport.com to sign up.
How to get cheaper car insurance
As average car insurance rates continue to increase, here are some ways to get more affordable car insurance.
Maintain a clean driving record. Safe driving habits and a clean record will save you money on premiums. Drivers with a clean record pay 7% below average and 42% less than drivers with an incident, according to Insurify data.
Look for discounts. Many insurers offer discounts for installing safety features, bundling your policies, taking a defensive driving course, and more. That savings can add up, so ask your agent what your insurer offers.
Compare car insurance rates. Prices vary between insurers, and Triple-I recommends getting at least three quotes. Compare costs when buying a car or renewing your policy to see if you can get a better deal.
Improve your credit. A good credit history can mean lower rates. Pay bills on time, pay down balances, and use different types of credit to improve your score.
Adjust your coverage. Choosing a higher comprehensive and collision deductible or reducing coverage amounts often means cheaper premiums, but these can come with higher out-of-pocket costs after an accident. Assess your finances to ensure the new policy works for you.
Consider telematics. If you’re a safe driver or drive fewer miles, a telematic program could help you save money. Some insurers offer usage-based policies that provide discounts for safe driving habits or driving fewer miles in a month.
Other factors that affect car insurance costs
Several other factors can affect the cost of car insurance:
How much you drive: The more you drive, the more opportunities you have to be in a car accident. So you’ll pay more for car insurance if you drive your car for work or have a long daily commute.
Selected coverages: Many insurance companies offer additional coverages beyond liability, comprehensive, and collision coverages. Adding glass coverage, gap insurance, custom equipment coverage, roadside assistance, or rental reimbursement coverage will increase your monthly premiums.
Your deductible: The higher your deductible, the lower your monthly premiums. But higher deductibles also mean higher out-of-pocket costs when you file a claim, so it’s important to consider your financial situation when selecting a deductible.
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Average cost of car insurance FAQs
Shopping for car insurance can feel overwhelming when so many factors go into determining the cost of coverage. To help make the process easier and less confusing, here’s some additional information about average car insurance costs.
What is the average monthly cost of car insurance?
Nationwide, auto insurance averages $204 per month for full coverage and $104 per month for liability-only coverage. But premiums depend on various factors, including the driver’s age, location, driving history, and the type of coverage they select.
Do your car insurance costs decrease once your car is paid off?
Your car insurance premiums won’t automatically decrease when you pay off your car loan. But if you were carrying gap insurance, which covers the difference between how much you owe on your vehicle and the insurance payout after a total loss, then you can drop that coverage after paying off your loan, which will lower your overall car insurance costs.
Does car insurance go down annually?
Not necessarily. Insurify data analysts found that car insurance premiums increased by an average of 24% in 2023. Insurify predicts rates will increase an additional 7% in 2024 as the industry stabilizes and insurers continue grappling with profitability.
Which car insurance company is the cheapest?
COUNTRY Financial has the cheapest car insurance nationwide, with liability premiums starting at $16 per month, according to Insurify data. But the cheapest car insurance company for you will depend on where you live, your driving history, the type of car you drive, and other factors. So it’s a good idea to shop around and compare rates from multiple insurance companies to identify the most affordable option.
At what age is auto insurance the least expensive?
Auto insurance tends to be cheaper once drivers reach 25 years old. Drivers in their 60s pay the lowest premiums, averaging just $80 per month for liability-only coverage and $158 per month for full coverage.
Why are car insurance companies pulling out of Florida and California?
Car insurance companies are pulling out of California because of the state’s consumer-friendly legislation, Prop 103, which limits insurers’ ability to raise rates, and because of the state’s two-year freeze on insurance rate increases during the COVID-19 pandemic. This legislation, in addition to rising car repair costs and wildfires in California, has prompted companies like GEICO, Progressive, and State Farm to withdraw or limit new coverage after experiencing high losses in the state.
Florida’s high risk of hurricanes and other coastal storms has hit insurers in the state hard. Companies are either pulling out of Florida or declaring insolvency — meaning they can’t pay debts they owe — to manage the risk of claims they’re experiencing from natural disasters in the state.[9]
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Julia Taliesin is an insurance content writer at Insurify. She began her career as a journalist, covering local government and business in Somerville, Mass. She reported multiple investigative stories about municipal finances and budget allocation, building development and inspection, and personnel. When the pandemic began she became a de facto public health reporter, writing daily and weekly reports using available data to quickly communicate rates of infection and city response.
She's worked for print and digital outlets, writing everything from quick-hit breaking news to long-form community features. More recently, Julia managed content strategy at a startup creating a social platform for licensed nurses, overseeing a team of nurse freelancers and editing interview transcripts and news articles for publication.
She holds a Bachelor's degree in communications from Simmons University, with a focus in journalism. Outside of work, Julia enjoys working on crafting projects, learning about homesteading, and singing in cover bands.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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