Average Cost of Car Insurance: Trends and Statistics (2024)

A car insurance policy costs an average of $1,860 in 2024, according to Insurify’s latest report on car insurance pricing.

Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
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Katie PowersAuto and Life Insurance Editor
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Updated February 1, 2024 at 11:00 AM PST

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The average car insurance policy costs $207 per month for full coverage and $103 for liability-only coverage. That comes to an annual cost of $2,487 and $1,232, respectively. Overall, the national average rate of full-coverage car insurance increased 24% in 2023.

Car insurance prices depend on a variety of factors, including coverage level, vehicle type, driving history, and (in many states) your credit score. 

Your location also has a large effect on your rate, especially in states like Michigan, California, and Florida. However, auto insurance rates are increasing at an alarming pace across the board, mainly due to factors like the price of auto parts and the effects of climate change.

To help you understand how much money you may pay for car insurance, Insurify has created a detailed data research report on the average car insurance costs and how various factors affect them in 2024.

How much does car insurance cost in 2024?

On average, a car insurance policy costs $155 per month, Insurify data shows. Full-coverage insurance rates increased by 24% in 2023 and now averages $207 per month nationwide. The minimum coverage, liability-only insurance, costs an average of $103 per month.

Insurify predicts full-coverage rates will increase by 7% in 2024 as the insurance industry stabilizes after a tumultuous few years.

Why car insurance rates are increasing so fast

The major drivers behind this year’s surging premiums are increasing car repair costs, more frequent and severe climate change-related natural disasters in some regions, and the cost of claims versus policyholders’ premiums.

Insurify based projections on its data of more than 79 million car insurance quotes sourced directly from partnering insurance companies.

1. Car insurance companies are losing money

Car insurance companies are experiencing record-high loss ratios — meaning they’re spending more money paying out claims than they’re collecting in premiums.[1]

Let’s say that in a year, an insurer paid $600 for a policyholder’s insurance claim, but that policyholder paid $2,640 in annual premiums. For that year, the insurer’s loss ratio for that car insurance policy is $600 divided by $2,640, or 0.227, which is roughly 23%. As long as insurance companies’ loss ratios are less than 100%, they’re making profits from their policies.

However, the property and casualty insurance sector reported a combined net loss ratio of 111.8% for 2022, which means insurance companies collectively paid more in claims than they earned in premiums for the year. To offset this loss, insurance companies increase premiums.

2. Car repair costs are higher than ever

The cost of car maintenance and repair is rising, which is one of the many factors that affect car insurance premiums. Car repair costs are 13.5% higher in 2023 than in 2022. This is mostly due to mechanic shortages, hard-to-repair vehicle technology, and increasing average vehicle ages.[2]

“Repair expenditures affect insurance rates because they raise the financial risk for the insurer,” says Emile Ashikyan, marketing analyst at Infopay Inc. “To counterbalance these rising expenditures, automobile insurance premiums often rise, increasing consumers’ insurance prices.”

Where you live, including the state, city, and ZIP code, affects your car insurance premiums. Areas with frequent severe weather events, including floods, snowstorms, tropical storms, and wildfires, typically have higher rates than areas with milder weather.[3]

“The frequency and severity of natural disasters have led to some geographical areas experiencing different types of weather events from what they’ve seen before. More vehicles are being caught and destroyed in fires and floods, and ice storms are more frequent, increasing the likelihood of collisions,” says Betsy Stella, vice president of partnerships at Insurify. 

“This has led to auto insurers paying a higher number of — and a higher price for — customer claims. As a result, customers are seeing higher premiums as insurers increase prices to cover these losses.”

Key takeaways from Insurify’s end-of-year auto insurance report

  • New York has the highest car insurance rates in the U.S., with an average full-coverage policy costing $3,374 annually at the time of publication.

  • Full-coverage auto insurance rates increased by 24% in 2023, influenced by rising repair costs, severe weather, and an increase in car accidents that contributed to record insurer losses.

  • Insurify predicts rate hikes will slow down and car insurance costs will rise by 7% in 2024 — but that’s still almost double the median year-over-year increase.

  • Lowering coverage limits and increasing deductibles are the most common ways drivers reduced their premiums in 2023, according to an Insurify survey.

  • Rising insurance costs hit low-income states hard. Only four of the 14 states that pay the highest percentage of earnings toward coverage have median household incomes above the U.S. average.

Average car insurance costs by state

Among factors like climate risk and auto body prices, states’ car insurance requirements and the number of uninsured drivers on the road can also influence costs.[3]

For example, Florida has the highest rate of uninsured drivers, had one of the highest rates of accident fatalities in 2021, and sees some of the most frequent and severe climate catastrophes in the country. These factors can contribute to its higher-than-average car insurance rates.

StateAverage Quote: Liability OnlyAverage Quote: Full Coverage
Alabama$64$170
Arizona$94$195
Arkansas$98$218
California$107$189
Colorado$82$207
Connecticut$188$332
Delaware$128$208
Florida$213$298
Georgia$142$242
Hawaii$64$112
Idaho$70$143
Illinois$78$172
Indiana$69$137
Iowa$63$168
Kansas$77$169
Kentucky$171$223
Louisiana$156$321
Maine$87$176
Maryland$166$276
Massachusetts$96$185
Michigan$191$388
Minnesota$103$209
Mississippi$72$180
Missouri$92$231
Montana$93$199
Nebraska$87$206
Nevada$184$306
New Hampshire$54$120
New Jersey$110$204
New Mexico$70$188
New York$155$190
North Carolina$55$113
North Dakota$88$149
Ohio$68$148
Oklahoma$89$218
Oregon$98$176
Pennsylvania$92$187
Rhode Island$133$170
South Carolina$167$282
South Dakota$63$165
Tennessee$78$166
Texas$119$236
Utah$95$169
Vermont$67$161
Virginia$94$168
Washington$92$208
Washington, D.C.$127$235
West Virginia$74$190
Wisconsin$61$131
Wyoming$66$166
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Most expensive states for car insurance

Florida, Michigan, and New York are some of the most expensive states for auto insurance. Michigan drivers pay the most for full coverage, at an average monthly rate of $388 compared to $207 nationwide.

Here are the most expensive states for car insurance, along with how much of the average household income goes toward coverage in each state.

StateAverage Quote: Full CoveragePercent of Household Income
New York$1903.7%
Nevada$3064.0%
Florida$2984.0%
Delaware$2082.6%
Louisiana$3213.7%
Washington, D.C.$2352.5%
South Carolina$2823.4%
Maryland$2762.5%
Michigan$3884.4%
Rhode Island$1702.5%
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

States with the fastest-rising car insurance costs

New Mexico, Nevada, New Jersey, Michigan, and Indiana have experienced the highest car insurance rate surges so far in 2023, with an average increase of 33% since 2022. 

Here’s how much car insurance costs are rising, based on Insurify’s proprietary data.

States with the cheapest car insurance rates

Rates aren’t expensive everywhere. Again, where you live has a significant influence on your car insurance premiums.[3]

The table below shows the states with the cheapest auto insurance rates.

StateAverage Quote: Full CoverageAverage Quote: Liability Only
New Hampshire$120$54
North Carolina$113$55
Maine$176$87
Vermont$161$67
Ohio$148$68
Idaho$143$70
Wyoming$166$66
Indiana$137$69
Wisconsin$131$61
Hawaii$112$64
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Average cost of car insurance by company

Car insurance costs vary among insurers because each uses a unique method to determine rates by evaluating risk, claims experience, and the cost of doing business.

“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 end up paying more to balance out the higher 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, The General, which specializes in insuring high-risk drivers, has some of the most expensive annual insurance rates.

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

The below rates are estimated rates current as of: Thursday, February 1 at 11:00 AM PST
Data reviewed by Konstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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.

Insurance CompanyAverage Quote: Liability OnlyAverage Quote: Full Coverage
USAA4698
State Farm53111
GEICO54115
Allstate62135
American Family76171
Progressive83148
Dairyland83232
Nationwide84184
Travelers89194
CSAA92150
Liberty Mutual95194
Farmers108242
The Hartford116166
Bristol West129293

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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.
The 10 Best Car Insurance Companies

The 10 Best Car Insurance Companies

Average cost of car insurance by credit score

Most states allow auto insurance companies to use a credit-based insurance 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.[4]

While auto insurers argue that a correlation exists between credit history and the risk of claims, legislators in some states have banned the practice of using credit scores when underwriting premiums, saying the practice has a disproportionately negative effect on low-income drivers and people of color.

California, Hawaii, Michigan, and Massachusetts have laws in place that ban the use of credit history in setting car insurance premiums.[5]

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

Rates by Credit Tier

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Average cost of car insurance by driving record

People with clean driving records pay lower rates for car insurance because insurers view them as less risky. Having an at-fault accident or speeding ticket on record can significantly increase premiums, but drivers with a DUI pay the most for car insurance.

Driving RecordLiability OnlyFull Coverage
Clean record$103$207
With speeding ticket$145$291
With at-fault accident$150$302
With DUI$170$343
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Car insurance rates by age and gender

A driver’s age and gender also affect car insurance rates. Teens and younger drivers have less experience on the road and insurance companies consider them a higher risk, while some research shows that men are more likely to file a claim. As such, these groups typically pay more for insurance.[3]

Costs by age

Generally, car insurance companies charge young 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.[3]

Teen drivers aged 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 average monthly quotes for liability-only and full-coverage insurance for drivers by age group.

Age GroupFull CoverageLiability Only
Teenagers$262$166
Under 25$219$130
25-29$179$109
30s$170$105
40s$161$97
50s$148$94
60s$137$91
70s$151$96
80+$170$100
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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, male drivers pay 11% more for full-coverage insurance and 5% more for liability-only insurance than female drivers. However, young male drivers might skew that data.

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.

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]

Rates by Gender

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.[3]

But your vehicle doesn’t have to be a luxury car to be costly to insure. Depending on the age and make of your vehicle, it may be difficult to get insurance coverage in general. 

For example, Progressive and State Farm are refusing to write new policies for older Kia and Hyundai vehicles in some cities because they’re too easy to steal.

“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 features, average repair costs, and theft rates can also affect your premiums.[3]

The following table shows average quotes for liability-only and full-coverage insurance by different vehicle types.

Rates by Vehicle

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Other factors that affect car insurance costs

In addition to the factors above, several other factors can affect the cost of car insurance:[3]

  • 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.[8]

  • Your deductible: The higher your deductible, the lower your monthly premiums will be. However, 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.

Compare Car Insurance by Coverage

Compare Car Insurance by Coverage

Methodology

Data scientists at Insurify analyzed more than 79 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information.

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates. With this data, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

Car insurance costs 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 are answers to frequently asked questions about car insurance costs.

  • What is the average monthly cost of car insurance?

    Nationwide, full-coverage auto insurance averages $207 per month, and liability-only coverage averages $103 per month. However, monthly premiums vary depending 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 coverage, 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 premiums.

  • 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 $22 per month, according to Insurify data. However, 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 $91 per month for liability-only coverage and $137 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 in the state from natural disasters.[9]

Sources

  1. Michigan Department of Insurance and Financial Services. "What is a loss ratio?." Accessed January 25, 2024
  2. Axios. "The cost of car repairs is surging amid widespread shortages." Accessed January 25, 2024
  3. Insurance Information Institute. "What determines the price of an auto insurance policy?." Accessed January 25, 2024
  4. National Association of Insurance Commissioners. "Credit-Based Insurance Scores." Accessed January 25, 2024
  5. National Conference of State Legislatures. "States Consider Limits on Insurers’ Use of Consumer Credit Info." Accessed January 25, 2024
  6. Teen Drivers and Passengers: Get the Facts. "Centers for Disease Control and Prevention." Accessed January 25, 2024
  7. Stateline. "What? Women Pay More Than Men for Auto Insurance? (Yup.)." Accessed January 25, 2024
  8. III. "Auto insurance basics—understanding your coverage." Accessed July 17, 2023
  9. Newsweek. "Florida Insurance Crisis Explained: Why Multiple Insurers Are Leaving State." Accessed January 25, 2024
Courtney Mikulski
Courtney MikulskiSenior Editor, Auto

Courtney Mikulski is a Senior Editor at Insurify with more than three years editing and producing personal finance content. She's experienced with insurance, credit cards, consumer lending, and banking products. Courtney works to provide easy-to-understand and actionable advice to readers looking for their next insurance provider. Her previous work with Bankrate, Reviews.com, and The Simple Dollar, helped readers make smarter financial decisions. When Courtney isn't working, you can find her hanging out with her cat or on a bike ride with her husband. She earned a bachelor's degree in journalism at Ohio University in Athens, Ohio. 

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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Daniel Roccato
Reviewed byDaniel RoccatoAdvisor
Headshot of industry expert Daniel Roccato
Daniel RoccatoAdvisor
  • 30+ years in financial services

  • 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 Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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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