Paying for your monthly car insurance policy can be a bitter pill to swallow. Many of us know the feeling: you’ve taken care of your other household bills and think you’re in the clear–– then your car insurance payment takes you by surprise. In such a situation, it makes sense to wonder about the cost of your insurance coverage: is it above or below average? Are your neighbors paying more or less? And are there better deals to be found elsewhere?
In this article, we’ll take a look at the average cost of car insurance in the United States in 2020 among many different groups. We’ll also examine some of the factors that insurers use to determine which drivers are high-risk and when they should impose higher rates.
Taking the time to compare car insurance quotes is one of the smartest financial decisions you can make. Rather than wasting days speaking to individual agents, quote comparison site Insurify uses cutting edge AI technology to provide you with dozens of car, home, and life insurance quotes, customized to your driver history and complete with personal discounts.
On average, Insurify customers save an average of $585 per year on car insurance. With an average user rating of 4.8/5 from 2,900+ reviews, Insurify is the #1 highest-ranked insurance comparison platform in America. If you’re in the market for the cheapest car insurance (and you should be!), Insurify is here to help.
Average Auto Insurance Cost Per Month
Insurify combed through its database of proprietary data from millions of U.S. drivers to determine the national average cost of auto insurance. Whether you pay more or less, the answer may surprise you.
In the United States, the average cost per month of auto insurance is around $234.
$234 is a pretty hefty chunk of change. It’s a little under half the cost of the new PS5 with Ultra HD Blu-Ray Disc Drive, which is retailing for $499 this holiday season. It’s about the same price as a Halloween Day direct flight from New York to Madrid, which Iberia Air is currently offering for $242. With the average price of a gallon of gas currently sitting at $2.38, you could afford approximately 98 gallons for the same cost as the average monthly car insurance for a U.S. driver.
Average Total Auto Insurance Cost
Monthly averages are all well and good, but what’s the average cost of auto insurance for the duration of the policy? Most drivers want to know how much they’ll end up shelling out for the total duration of their car insurance plan, not just the price of their payments each month.
Because most auto insurance policies provide protection for six months, the average total premium for a U.S. driver is around $1,463.
If a driver chose to renew their $1,463 six-month policy for the same price, their average annual premium would come out to $2,926, just shy of three thousand dollars.
That’s a pretty significant amount of cash. In February 2020, the average monthly rent for an apartment in the United States was $1,468. That means that the average U.S. car insurance policy costs roughly as much as a month of rent. The average cost for a loaf of bread from your local supermarket currently runs around $2.08. That means that for the average cost for a car insurance policy in the U.S., you could buy roughly seven hundred loaves of bread. That’s a lot of sandwiches.
Average Auto Insurance Cost for Teens
Average monthly and annual auto insurance costs for all U.S. drivers are good metrics to get a birds’ eye view of America’s car insurance landscape. But those figures say surprisingly little about what the average cost of car insurance will be for an individual driver.
That’s because auto insurance companies look at many different factors for each individual driver to guess their potential risk level. The riskier a driver you’re considered to be by insurers, the higher they’ll raise your car insurance premiums. Some of these risks have to do with your driving record. If you’ve gotten into previous scrapes or received citations for driving recklessly or under the influence, your rates will almost certainly be higher than a driver with a squeaky-clean record.
But some of the factors have to do with traits outside of your control, like your age and gender. In general, young people, especially teenagers, are riskier drivers than older adults, and young men are more reckless behind the wheel than young women. Because of these trends, your car insurance will cost more as a teen, particularly as a teenage boy. Teenagers getting into more accidents than older drivers makes intuitive sense––in general, they’ve had much less experience behind the wheel.
Insurify examined data from hundreds of thousands of auto insurance quotes for teenage drivers to determine their average monthly costs––and as you might imagine, they’re quite a bit higher than the average monthly premiums for all U.S. drivers, particularly for boys. Another expected trend that the data reveals has to do with age: 19-year olds are the least expensive teens to insure, presumably because they have more experience on the road and make more mature choices while driving.
The most expensive category of teen to insure is a male 18-year old. These drivers pay a mind-boggling $503 per month––more than twice the average monthly cost for car insurance nationwide!
Car Insurance for Teenage Drivers
Remember: Driving record impacts auto insurance rates
A teen’s driving history may be limited, which is why their auto insurance premiums are so much higher than those of U.S. drivers in general. Teens cause the highest rates of auto accidents: per mile driven, teen drivers are nearly three times more likely than drivers aged 20 and older to be in a fatal crash. That’s why most providers consider their age group to be the riskiest drivers to insure.
Average Auto Insurance Cost for Young Drivers
The early twenties can be a special time in many people’s lives. For many, it’s their first time living away from home, launching a career, or attending college. Young adulthood also marks a time of change for car insurance premiums. As drivers gain more maturity and experience on the road, their rates decrease on average, though male drivers continue to pay higher premiums than female drivers.
There’s one interesting factor you might not expect in insuring young adults you might not expect: their educational status. Because college students are less risky drivers in general, college students sometimes pay lower insurance premiums than non-students of the same age and gender. Some insurance companies even offer special discounts for students who maintain a high grade-point average. Insurify’s data on car insurance quotes for young adults reveals that students pay a monthly average of around $433, while non-students pay about $376.
Why does the data suggest that college students pay more on average per month? There are a few reasons: students tend to be younger than non-students, and often remain on their family insurance policies. Students are also more likely to go to school in cities, where the cost to insure a car is often higher than in rural areas.
But regardless of whether you’re a student or not, you’ll likely be paying less for your car insurance coverage as a young adult than you did as a teen. Take a look at our table below of average premium costs for young drivers, compiled from Insurify’s comprehensive database of quote comparison searches.
Car Insurance for Young Drivers
Average Auto Insurance Cost for New Drivers
As we’ve covered, one of the most important factors in calculating the cost of your driving record is driver experience. So what about drivers who have only been licensed for one year or less? New drivers, also sometimes known as “first-time drivers,” are an expensive demographic to insure.
A 23-year old new driver costs, on average, $335 per month to insure. That’s $24 more per month than a 23-year-old man with prior driving experience is charged, and $40 more than an experienced 23-year-old female driver. $24 and $40 may not seem like much, but yearly it adds up to quite a bit: $288 and $480, respectively.
That’s why new drivers looking to save should compare quotes across dozens of the nation’s largest insurance companies with Insurify. Insurify provides drivers with car insurance quotes personalized for them in just a few clicks––while protecting their digital privacy.
Car Insurance for New Drivers
|Current Age||Monthly Cost|
Average Auto Insurance Cost by State
Another factor that heavily impacts the cost of your car insurance policy is location.
Different states have different laws regarding car insurance. State legislators determine how much car insurance drivers need to buy, what qualifies as an uninsured driver, what accident-related costs insurers are required to cover, and other insurance-related questions. These regulations affect how much car insurance costs in each state. Regulations aren’t the only location-related factors influencing average car insurance cost: Americans drive differently in each state and face different challenges and hazards.
You’re probably curious about insurance rates in your state. Thankfully, Insurify has the data to provide you with answers. Read on to find out the average monthly premium for car insurance in all 50 states, as well as the top 10 most and least expensive states for auto insurance.
Average Monthly Cost of Car Insurance: 50 States and Washington, D.C.
Top 10 Cheapest States for Car Insurance
The least expensive state to insure your car is Hawaii, with an average monthly premium of $117.
Why is the cost of car insurance in Hawaii so low?
Hawaii has passed strict anti-discrimination laws prohibiting insurers from basing insurance premiums on factors including age, sex, race, ethnicity, driving experience, or marital status.
Along with California and Massachusetts, Hawaii is also one of three states that don’t allow insurers to base their rates on a driver’s credit score.
Top 10 Cheapest States for Car Insurance
Top 10 Most Expensive States for Car Insurance
The most expensive state to insure your car is Michigan, with a stratospheric average monthly premium of $515.
Why is it so expensive to insure your car in Michigan? Again, regulations play a part. In Michigan, personal injury protection regulations decree that insurers are required to pay a lifetime of medical expenses––up to $550,000––if a driver is injured in a car accident. Additionally, Michigan’s no-fault car insurance policy means that drivers can recover financial losses from their own insurer after an accident, no matter who was at fault.
These policies present additional costs for car insurance companies, so companies raise their average rates as a result. However, in July 2020 Michigan reformed their car insurance regulations, so drivers can expect the average price of premiums to begin to trend downwards.
Top 10 Most Expensive States for Car Insurance
Average Auto Insurance Cost by City
Car insurance costs don’t just vary by state––they change depending upon what city you live in, too. Because of higher rates of theft, vandalism, and accidents, urban drivers usually have higher premiums than their rural counterparts. Below are the average monthly car insurance premiums in a few major cities in the U.S.
- New York City (pop. 8.4 million): $283
- Los Angeles (pop. 4 million): $316
- Chicago (pop. 2.7 million): $216
- Houston (pop. 2.3 million): $320
- Phoenix (pop. 1.7 million): $239
- Philadelphia (pop. 1.6 million): $307
Average Cost of Auto Insurance: Liability vs. Full Coverage
One of the most primary distinctions determining your car insurance cost is the level of coverage. Every state except New Hampshire mandates that drivers own some form of car insurance (and even New Hampshire requires proof of financial responsibility before you hit the open road).
But car insurance policies can provide many different coverage levels––from the bare-bones state minimum coverage to a comprehensive package of insurance products often known as “full coverage” insurance. Full coverage insurance varies from provider to provider, but it usually includes the three following insurance types: liability insurance, collision insurance, and comprehensive insurance.
|Liability Coverage||Bodily injury or property damage if you are at fault or if the person at fault is an uninsured motorist or an underinsured motorist.||Your medical bills or damage to your car or property should you be at fault.|
|Collision Coverage||Damage to objects (not animals or people) and vehicles due to a collision regardless of fault. Hit-and-run accidents.||Doesn’t cover damage due to “Acts of God.” (See Comprehensive)|
|Comprehensive Coverage||“Acts of God”: events out of a person’s control: for example, fire, floods, or vandalism.||Doesn’t cover medical costs or vehicle damage due to a collision.|
As you might expect, the more coverage a plan offers, the higher the cost of its monthly premiums. Insurify perused its database to determine the breakdown of average monthly costs across a spectrum of coverage types.
Average Monthly Car Insurance Cost by Coverage Type
|Coverage Type||Avg. Monthly Cost|
|State Min Liability Only||$164|
|50/100/50 Liability Only||$177|
|50/100/50 + $1000 Comprehensive/Collision||$320|
|50/100/50 + $500 Comprehensive/Collision||$335|
|100/300/100 + $1000 Comprehensive/Collision||$321|
|100/300/100 + $500 Comprehensive/Collision||$348|
Full Coverage vs. Liability Coverage Average Monthly Cost*
|Coverage Type||Avg. Monthly Cost|
|All Liability + Comprehensive/Collision||$323|
*All types averaged.
Average Auto Insurance Cost by Insurance Company
Some drivers may be curious about the average monthly car insurance costs of each insurance company.
Insurify compared the data from millions of car insurance quotes to determine average monthly car insurance costs by company. Insurance companies like Progressive or State Farm charge drivers different average premiums for a variety of reasons.
Some companies are regional and only operate in a few states. Some specialize in certain demographics of drivers, whether that’s high-risk drivers with low credit scores, low-risk older drivers, or military drivers, as with USAA.
Regardless, you shouldn’t rely on the table below to decide upon a car insurance company. Your individual characteristics and history as a driver are crucial to determining which company and policy is a good fit. For that reason, your best bet is using a quote comparison site like Insurify, which can customize your car insurance quote and add any potential discounts in real-time.
Average Monthly Car Insurance Cost by Insurance Company
|Provider||Avg. Monthly Cost|
Average Auto Insurance Cost by Credit Score
In many places, insurance companies use a driver’s credit score to determine their policy cost. (The practice is banned in three states: Hawaii, California, and Massachusetts.)
In general, good credit scores correlate with safer drivers, and customers with high credit scores are considered less likely to default on their insurance payments.
But if you’re a driver with lower-than-average credit, don’t fear––certain insurance companies, known as no-check insurers, will provide insurance quotes for drivers without examining their credit scores.
Check out Insurify’s data on the relationship between monthly premiums and credit scores below.
Average Auto Insurance Cost by Gender
Despite what outdated jokes may suggest, men––especially young men––tend to drive more recklessly than women. As a result, men pay on average slightly more for their car insurance. This difference in cost tends to shrink after men enter their mid-twenties.
Average Monthly Car Insurance Cost by Gender
|Gender||Average Monthly Premium|
Average Auto Insurance Cost by Marital Status
One unexpected factor in your monthly car insurance premiums is marital status. Married people tend to be older and drive less recklessly than single people. So if you’ve been waiting for a reason to pop the question, consider that you might save on your car insurance! Homeowners are also often eligible for discounts on their auto coverage.
Insurify tabulated data comparing rates for married and single drivers below.
Average Monthly Car Insurance Cost by Marital Status
|Marital Status||Average Monthly Premium|
Average Auto Insurance Cost: Clean Record vs. At Least One Accident
Insurance rates increase dramatically after an accident.
Because the main cost for insurance companies consists of paying for medical and property costs after auto accidents, a driver with a history of accidents is usually far more expensive to insure, particularly if they were found to be at fault in one or more of them. Having been at fault for a previous accident suggests to insurers that you may cause more in the future.
Look below to find Insurify’s table demonstrating the average monthly increase in insurance premiums for a U.S. driver after just one accident.
Average Monthly Car Insurance Cost: Clean Record vs. One Accident
|Accident Type||Average Monthly Premium|
|One Accident (At-Fault and Not At-Fault)||$276|
|One At-Fault Accident||$284|
Average Auto Insurance Cost: DUI vs. No DUI
Just one substance-related violation like a DUI can cause substantial increases in the price of your insurance policy, not to mention legal difficulties. If you’re thinking of driving after a few drinks, don’t do it.
Not only could you save a life by not driving drunk, but the cost of a taxi or rideshare home is far less than even one month’s difference in average premium cost between a DUI-free driver and one with a DUI.
Average Monthly Car Insurance Cost: Clean Record vs. DUI
|Clean Record vs. DUI||Average Monthly Premium|
|One DUI Violation||$352|
Factors that Determine Your Car Insurance Rates
As the tables above show, car insurance companies employ many different methods to assess your risk as a driver––and, as a result, the price of your monthly premiums. Some of the most common factors driving up your monthly auto policy cost include:
- Age: On average, young drivers are less experienced behind the wheel and pay more than older drivers.
- Gender: On average, young men tend to drive more recklessly and therefore pay more than young women.
- Car Type: What car model you drive impacts your insurance rates. A luxury or sports car driver will face higher premiums for their speedy ride with expensive parts.
- Location: For a variety of reasons, certain states have higher average car insurance rates, and urban drivers usually pay more than rural ones.
- Credit Score: In many states, a poor credit score will increase your auto premiums.
- Education: Students are considered lower-risk and are often offered discounts or lowered rates.
- Mileage: If you spend lots of time on the road, you’re statistically more likely to get into an accident, so your premiums will be higher.
- Driving Record: Accidents, moving violations, and DUI’s will all substantially raise your rates.
Conclusion: How To Save on Car Insurance
Hopefully, this article helped you learn more about average car insurance costs nationwide, as well as the many factors that go into determining the price of a driver’s car insurance premium. If you’re looking to save on your car insurance, here are some basic tips:
- Drive safely and carefully. It might seem commonsense, but accidents or tickets can cause substantial increases in your monthly car insurance premiums.
- Consider using telematics. Many insurance companies now offer telematics devices that drivers install in their vehicles, which calculate mileage and driving style. Installing such a device may send some serious discounts your way.
- Shop around for new quotes often, especially after life events like getting married or improving your credit score. These events could lower the cost of your monthly premiums! If you’re not actively shopping around for insurance, you might not be aware of potential discounts or deals available for you.
Whether you’re in the market for cheaper premiums, more comprehensive coverage, or a lower deductible, Insurify and its cutting-edge quote comparison AI technology can provide dozens of extra-affordable auto insurance quotes personalized for you––without frustrating spam calls or releasing your data!
The American driver pays around $1,463 in total premiums on average for their car insurance policy. Drivers in the United States face an average monthly premium of around $234 for their car insurance. U.S. drivers can expect to pay a monthly average of $323 for a full coverage car insurance package. Rather than wasting days comparing quotes from individual insurance carriers like Allstate or GEICO one-by-one, innovative insurance quote comparison platform Insurify can help you get real, accurate, and cheap car insurance quotes from dozens of companies in just a few clicks!
FAQ: Average Car Insurance Rates
What is the average cost of car insurance?
What is the average cost of car insurance per month?
What is the average cost of full coverage car insurance?
Where can I compare cheap car insurance quotes online for free?
The American driver pays around $1,463 in total premiums on average for their car insurance policy.
Drivers in the United States face an average monthly premium of around $234 for their car insurance.
U.S. drivers can expect to pay a monthly average of $323 for a full coverage car insurance package.
Rather than wasting days comparing quotes from individual insurance carriers like Allstate or GEICO one-by-one, innovative insurance quote comparison platform Insurify can help you get real, accurate, and cheap car insurance quotes from dozens of companies in just a few clicks!