How Much Is Car Insurance? Average Costs in 2023

Full-coverage car insurance costs an average of $253 a month in the U.S. While that number may seem high, coverage for your vehicle is vital to protecting you and your financial health in the event of an accident or other disaster. But rates can vary among insurance companies — even when coverage is virtually identical.

To help you understand how much money you may pay for car insurance, Insurify closely examined average car insurance costs by state in 2023.

How much is car insurance?

In the U.S., full-coverage car insurance costs an average of $253 per month, and liability-only coverage averages $170 per month.

But car insurance rates vary among states due to several factors, including the number of drivers on the road and the amount of traffic congestion in a particular area.^[1]

For example, in more densely populated states, like New York and Maryland, car insurance companies often charge higher premiums to offset the higher risk of accidents. But rates tend to be lower in less densely populated states, such as Wyoming, Montana, and South Dakota.^[2]

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Car insurance costs by state

Population density isn’t the only factor that affects rates. States’ car insurance requirements and the number of uninsured drivers on the road can also influence costs.

For example, in Michigan, which had the second-highest rate of uninsured drivers in the nation in 2019, full-coverage rates are higher than in New Jersey, which is more densely populated but has a much lower rate of uninsured drivers.

The table below shows the average monthly cost of liability-only insurance and full-coverage insurance for all states.

Average car insurance costs by company

Car insurance costs vary among insurers because they use their own rating factors, claims experience, and cost of doing business to determine rates.

“Some carriers will weigh personal credit [scores] as part of your risk profile more than others,” says Deon Williams, an agent and policy specialist at 4J Insurance in Frisco, Texas. “By that same token, some carriers are more sensitive to situations involving lapses in prior coverage, juvenile drivers, and claims history.”

Some companies specialize in working with high-risk drivers — such as those with poor credit or at-fault accidents and traffic violations on their driving records. High-risk drivers might pay higher rates to balance out the risk.

USAA, which caters to people who serve or have served in the U.S. military and their families, offers some of the lowest rates. On the other hand, CSAA, which requires an AAA membership and has special policies available for rideshare drivers, has some of the most expensive rates.

The following table shows the average monthly cost of liability and full-coverage insurance for popular car insurance companies.

Average car insurance costs by credit tier

Most states allow car insurance companies to use your credit score to determine your premiums. Insurers argue that your credit score correlates to your risk of filing a claim, so the higher your credit score, the lower your car insurance rates.^[3]

The table below shows the average monthly cost of liability-only and full-coverage car insurance for drivers by credit tier.

Car insurance costs by driving record

Your driving record significantly affects your car insurance costs. If you have a history of speeding tickets, DUIs, or other violations, you’ll likely pay higher premiums than someone with a clean record.^[4] Insurance companies consider drivers with multiple accidents or violations as higher-risk and calculate rates accordingly.

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Average car insurance rates with a clean record by state

If you have a clean record free of accidents or moving violations, you can expect to pay lower rates than someone with marks on their history. The table below shows the average monthly cost of liability-only and full-coverage insurance for drivers with a clean record, by state.

Average car insurance rates after an at-fault accident by state

An accident on your record can cause your insurance premiums to increase at renewal.^[4] One way to avoid premium increases after an accident is to add an accident forgiveness rider to your policy. The table below shows the average monthly cost of liability-only insurance and full-coverage insurance for drivers with at-fault accidents, listed by state.

Car insurance rates after a DUI by state

A DUI is a serious charge that can cause your car insurance premiums to skyrocket. Depending on the severity of the charge, your car insurance company may even not renew your policy.^[4] The table below shows the average monthly cost of liability-only insurance and full-coverage insurance for drivers with a DUI/DWI, listed by state.

Car insurance rates by age and gender

A driver’s age and gender also affect car insurance rates.^[1] Teens, younger drivers, and men typically have higher risks for accidents, so they usually pay more for car insurance.

Costs by age

Generally, car insurance companies charge teenage drivers higher premiums due to their lack of experience behind the wheel and because inexperienced drivers are more likely to make mistakes that could lead to an accident.^[5]

Teen drivers 16 to 19 years old have a fatal crash rate almost three times as high as drivers 20 and older, according to the Centers for Disease Control and Prevention.^[6]

The table below shows the average monthly cost of liability-only and full-coverage insurance for drivers by age group.

Costs by gender

Male drivers tend to pay more for car insurance than female drivers because they tend to get in more accidents. Williams refers to it as the James Dean effect.

“The idea of living fast and looking good seems more pervasive amongst young male drivers than young female drivers,” Williams says.

Data from the CDC backs that up. The motor vehicle crash death rate for males ages 16 to 19 is three times as high as that for females in the same age group.^[6]

On average, men pay 11% more for full-coverage insurance and 5% more for liability-only insurance than women. However, that data may be skewed by young male drivers. While male teenagers pay more for insurance than female teenagers, female drivers older than 25 — and particularly ages 40 to 60 — pay more for auto insurance than their male counterparts.^[7]

But some states — including California, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania — have laws prohibiting insurers from setting auto insurance rates based on gender.^[7]

Average cost of car insurance by vehicle type

The type of vehicle you drive is a major factor that affects your car insurance rates. If you have a high-end luxury car, you’ll likely face higher premiums than someone driving an economy model because high-end vehicles have higher repair costs due to their more expensive parts and specialized features.^[1]

But your vehicle doesn’t have to be a luxury car to be costly to insure.

“Two words: Kia Boyz,” Williams explains, referring to a TikTok trend of people across the country stealing 2011 and later Kia vehicles, taking them for joyrides, and posting the whole thing.

“This new TikTok phenomenon has led to some major carriers no longer insuring particular models of cars due to increased likelihood of thefts leading to massive casualty and property damage claims,” Williams says.

A vehicle’s safety record, average repair costs, and theft rates can also affect your premiums.^[1] The following table shows the average cost of liability-only and full-coverage insurance by different vehicle types.

Other factors that affect car insurance costs

In addition to the factors above, several other factors can affect the cost of car insurance:^[1]

• How much you drive: The more you drive, the more opportunities you have to be in an 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 coverage. Adding glass coverage, gap insurance, coverage for custom equipment, roadside assistance, or rental reimbursement coverage will increase your monthly premiums.^[8]

• Your deductible: The higher your deductible, the lower your monthly premiums will be. However, higher deductibles also mean more monetary risk in the event of an accident, so it’s important to consider your financial situation when selecting a deductible.

How to get car insurance quotes

It’s important to shop around and compare car insurance quotes to ensure you’re getting the best rate possible. Every driver’s situation is unique, so while one company may offer a great rate for one person, it may not be as good for another. By comparing quotes from multiple companies, you can ensure you get the right coverage for the right price.

Insurify makes it easy to compare quotes from multiple insurance providers in one place.

1. Gather all necessary information, such as your car’s year, make, and model and your driving record, vehicle details, and the expiration date of your current policy (if applicable).

2. Use Insurify’s quote tool to get car insurance coverage quotes after entering your information.

3. Compare rates from multiple companies to find the best deal that fits your needs and budget.

4. Once you select a quote, review it carefully to ensure it meets your requirements before signing up and paying the premium.

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