Average Cost of Car Insurance (With Quotes, 2022)

The average car insurance costs in your state can vary widely depending on the type of coverage you’re buying, your annual mileage, your address, and many other factors. In this guide, we’ll break down the average car insurance rates by state to help you determine how much it might cost you to protect your car.

To find the best car insurance rates available in your area, simply compare quotes from multiple car insurance companies. Online insurance marketplaces save drivers time and money by comparing insurance quotes from multiple companies at once.

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What’s the average cost of car insurance?

According to Insurify’s internal database and recent research report, the average cost of auto insurance in the U.S. is $121 per month. Car insurance rates vary widely depending on who is insuring you and where you live. To get a better idea of how much car insurance might cost, consider using an online tool to compare car insurance quotes.

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Factors That Impact Your Auto Insurance Rates

While we’d all like to believe auto insurance companies base their rates on only our driving record and ZIP code, that’s not how it usually works. In reality, many factors impact your car insurance costs:

• Your driving record

• How much you use your car and how many miles you drive

• Where you live

• Your age, gender, and marital status

• The car you drive

• Whether you have a good or poor credit score

• The type and amount of insurance coverage

While some factors have less of an impact than others, they can help explain why a person might pay a higher monthly premium for auto insurance than another with a similar profile. Since drivers in younger age groups are less experienced, insurers see them as posing a greater risk. For that reason, they’re quoted higher rates for the same coverage levels.

Similarly, in the eyes of insurance companies, female drivers are less likely to file a claim and, thus, may be quoted lower monthly premiums. Gender-based quoting is outlawed in a few states, including California, Hawaii, Massachusetts, Montana, North Carolina, and Pennsylvania.

Understandably, a more standard vehicle, like a Toyota Camry, will almost always be cheaper to insure than a fancy sports car.

Average Car Insurance Rates Can Vary by Location

Your driving record, where you live, the kind of car you drive, and your policy options all impact your auto insurance rates. But you might not realize how much your location impacts your premiums.

The NAIC reports many factors that impact state-to-state differences in cost. For example, each state has different climate risks, accident rates, traffic and population density, vehicle theft rates, liability insurance requirements, and laws regarding coverage.

Why do car insurance costs differ by area?

Car insurance is about managing risk. The lower the risk, the less you’ll pay in premiums—that’s why drivers with clean driving records (no DUIs, speeding tickets, or at-fault accidents) typically pay lower rates.

The same is true for your location. States have different laws regarding car insurance requirements that make the area low- or high-risk to the insurance company. For example, auto insurance in North Dakota has the lowest average liability premiums, according to a report by the NAIC. It also has one of the lowest counts of federally declared emergencies in the U.S.

Why is it more expensive to insure cars in some areas than in others?

Location is a significant factor in determining your car insurance rates. Auto insurance premiums are usually more expensive in areas with higher population densities, traffic volumes, vehicle theft rates, occurrences of natural disasters, and insurance requirements set by the state. That’s because there’s a higher risk of damage in those areas.

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Primary Types of Car Insurance Coverage

Most states require some form of liability insurance. Other types of coverage (such as comprehensive, uninsured motorist, and underinsured motorist coverage) may be optional. Here are the primary types of car insurance coverage to consider when shopping for a car insurance policy:

• Liability coverage: Covers the cost of another person’s injuries if the policyholder is at fault

• Property damage liability: Covers the cost of damage done to another person’s property while driving

• Uninsured and underinsured motorist: Covers costs of the driver’s injuries if caused by someone without auto insurance or with low limits of liability

• Collision coverage: Covers vehicle damage if the driver collides with another vehicle or object

• Comprehensive coverage: Covers vehicle damage from fire, weather, theft, animals, and other causes

• Medical payments: Covers treatment expenses for the driver and passengers

• Personal injury protection (PIP): Covers medical costs, lost wages, and funeral expenses for the driver

• Excess medical payments: Covers costs that exceed the coverage limits of PIP coverage

You’ll notice full-coverage insurance isn’t on this list. That’s because it isn’t a type of coverage. Instead, a full-coverage policy is a combination of three types of insurance: liability, comprehensive, and collision. If your lender requires you to have full coverage on a vehicle you’re financing or leasing, you need to carry state-mandated coverage plus comprehensive and collision.

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Average Auto Insurance Rates by State

How much you pay for car insurance depends on the auto insurance policy you choose. For example, liability coverage is cheaper than full coverage that includes collision and comprehensive insurance. This chart shows the average price of liability premiums by state, according to the 2018–2019 Auto Insurance Database Report from the NAIC.

The most expensive states for liability auto insurance are Michigan, New York, Rhode Island, and Louisiana. The cheapest car insurance can be found for drivers in Maine, Vermont, North Carolina, and Hawaii.

How to Lower Your Auto Insurance Rates

With an estimated 212 million drivers in the United States, it’s no surprise that car insurance is a multi-billion-dollar industry. People choose car insurance based on a variety of factors, but one of the biggest draws is pricing. After all, who doesn’t want to pay less for their premiums? Here are some ways to lower those premiums:

• Maintain a clean record

• Shop around to get at least three quotes to compare rates

• Compare insurance costs before you buy a car

• Increase your deductible

• Consider reducing coverage on older cars

• Bundle homeowners and auto insurance to get a discount

• Establish a good credit history

• Ask about available car insurance discounts

Simply put, good drivers pay less for car insurance. Maintaining a good driving record is the best way to save on auto insurance. Remember that rates and discounts can vary from one insurer to the next—compare at least three quotes before you buy a policy.

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The Average Car Insurance Cost of Car Insurance

Whether you’re about to get a quote for your own policy or looking to buy a new car, it’s worth taking some time to understand average car insurance costs. Know how insurers determine your rates and how your location impacts your cost.

You could pay more or less than the average driver. It depends on many factors, including where you live. Before you commit to a policy, shop around to compare rates from multiple insurance companies—especially if you happen to reside in one of the states with higher average rates.

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Frequently Asked Questions

References

https://insurify.com/report/auto-insurance/2021/. Insurify.