20+ years in insurance and personal finance content creation
Contributor to top brands like USA Today
John specializes in insurance, personal finance, real estate, and health and wellness. In 2022, he authored a guide on content marketing for beginners.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Mark FriedlanderDirector, Corporate Communications
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
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Securing the best car insurance rate for yourself or your loved ones depends on many factors. The better you understand what insurers use to calculate your premiums, the easier it will be to manage those factors in your favor.
To calculate your premium, auto insurers generally consider your age, gender, driving history, type of car, credit history, amount of coverage, and more. Read on to see how you can improve the rates you receive.
Quick Facts
New drivers 16 to 20 years old account for 8.5% of all drivers involved in deadly crashes. As such, they pay some of the highest premiums in the nation.
Car insurance premiums decrease at age 25, but increase again for senior drivers due to an increased risk of accidents.
People with high-stress jobs with long hours, like doctors and attorneys, generally pay more for car insurance than other drivers. Occupations that include lots of driving, like being a real estate agent, can also lead to higher insurance premiums.
Cheapest recent rates
Drivers using Insurify have found quotes as cheap as $34/mo for liability only and $44/mo for full coverage.
*Quotes generated for Insurify users within the last 10 days. Last updated on April 25, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 25, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on April 25, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 25, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Personal factors
Several personal factors contribute to the calculation of your car insurance rates in most states. Here’s a look at each.
Age
Generally, younger drivers — those younger than 25 — with little to no experience behind the wheel pay more for car insurance than older drivers do because they tend to get into more accidents.[1]
In 2020, drivers 16 to 20 years old accounted for 8.5% of all drivers involved in deadly crashes, according to the National Highway Traffic Safety Administration (NHTSA). These same drivers represented only 5.1% of all licensed drivers that year.[2]
Meanwhile, senior drivers may also pay more for their car insurance policies, with rates rising as they age. This is because older drivers run a higher risk of being involved in a car accident and of being seriously injured. The number of traffic deaths involving drivers 65 and older rose an estimated 14% from 2020 to 2021, according to the NHTSA.[3]
The national average cost of car insurance for teen drivers is $369 for full coverage and $180 for liability-only policies. By comparison, senior drivers pay an average of $155 and $76 for full and liability-only coverage, respectively.
The following table illustrates how age affects monthly average liability-only rates from top national insurance companies.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Young drivers
Middle Aged
Seniors
USAA
82
32
28
GEICO
86
42
31
State Farm
107
39
26
Allstate
123
47
37
Liberty Mutual
163
117
62
Progressive
168
46
29
Farmers
213
75
59
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.
Gender
Statistics show women drive more safely, and are less likely than men to get into:
As such, women often pay less for car insurance than men. The average national car insurance cost for women is $209 for full coverage and $102 for liability-only insurance. By contrast, the averages for male drivers are $218 and $106, respectively. The following table illustrates how gender affects average monthly liability rates from top insurers.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Women
Men
USAA
45
47
State Farm
52
56
GEICO
52
56
Allstate
60
64
Progressive
75
87
Liberty Mutual
94
100
Farmers
108
114
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.
Keep in mind, several states prohibit insurers from using gender as a rating factor in car insurance.
Marital status
Insurers generally view married drivers as less risky than their single counterparts. As such, being married may allow you to reduce your car insurance rates.
Occupation
Some car insurance companies take your occupation into account when setting your rates. In the eyes of a car insurer, high-risk occupations might include:
Real estate agents
Sales representatives
Doctors
Attorneys
Insurers may consider these and other occupations risky because of their generally long work hours, on-the-job stress, lack of sleep, and the amount of time they spend driving. This higher risk can lead to paying more for car insurance.
Meanwhile, people working in “low-risk” occupations might pay less for car insurance. These occupations include:
Scientists
Accountants
Teachers
Artists
Why might their rates be lower? On average, people in these professions stick to a normal sleep schedule, drive less, and may have more manageable levels of stress.
Driving history
Your driving history plays a key role in how your car insurance rates are set.[1] Among the things that can ding your car insurance rates are:
Racking up traffic violations, such as speeding or DUI citations
Being involved in at-fault car accidents
Filing claims
Any one of these factors might end up labeling you a high-risk driver, meaning you could end up paying more for car insurance than someone with a clean driving record. For example, the national average cost of car insurance for drivers with clean motor vehicle records is $158 per month. But drivers with DUIs on their records can see their overall average costs climb to $264 per month.
The following data illustrates how different driving infractions can affect monthly liability-only costs from top insurance companies.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Clean Record
Speeding Ticket
Accident
DUI
USAA
46
53
57
71
State Farm
54
60
65
84
GEICO
54
62
67
84
Allstate
62
71
76
96
Progressive
81
101
108
126
Liberty Mutual
97
130
139
150
Farmers
111
127
137
172
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.
Your car is more expensive to replace, like a sports car.
Your car has or doesn’t have key safety features.
If any of these factors (or others) apply to your car, you might end up with higher car insurance rates.
Vehicle age
Generally, the older your car is, the less you’ll pay for car insurance. This is because a car’s value typically goes down as it ages, meaning it’ll probably cost less to repair or replace. In addition, you might be able to get rid of comprehensive and collision coverages for an older car if it’s paid off. This will likely lower your car insurance premium.
Vehicle usage
How you use your car — namely how much mileage you put on the odometer — can affect your car insurance rates.
If you use your car mostly for purposes like running errands and commuting to work, you might spend more time on the road. That, in turn, makes you more likely to be involved in an accident. However, if you use your car only for leisurely weekend drives, you typically spend less time on the road and might enjoy lower car insurance rates because you present a reduced risk.
Anti-theft devices
The installation of anti-theft devices, such as an alarm system or remote locks, can result in lower car insurance rates. In most cases, car insurers offer discounts if your car features anti-theft devices because you’re taking steps to reduce your risk of filing a claim.
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Coverage and deductible factors
Your level of coverage, deductible amount, and insurance bundles affect your car insurance rates, as you’ll see here.
Level of coverage
Nearly every state requires its drivers to carry a minimum of liability coverage. In addition, your lender may also require you to buy comprehensive and collision coverages, which otherwise are optional. Other types of insurance, such as uninsured/underinsured motorist coverage, may be required under state law or may be optional.
Nationally, full-coverage car insurance averages $213 per month, and liability-only insurance averages $104. The following table compares the national average monthly cost of full-coverage car insurance with liability-only coverage from top insurers.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Full Coverage
Liability Only
USAA
100
46
State Farm
116
54
GEICO
119
54
Allstate
138
62
Progressive
143
81
Liberty Mutual
205
97
Farmers
249
111
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.
Deductible amounts
Your policy’s comprehensive and collision deductibles can affect your car insurance premium. If, for instance, you raise your deductible for comprehensive coverage from $200 to $500, you should see a decrease in your premium. This is because you’re agreeing to take on more of the up-front costs yourself.
However, make sure you consider whether you have enough money set aside to cover your out-of-pocket costs before increasing your car insurance deductible. A deductible you can’t afford is a claim you can’t file.
Insurance bundles
An insurance bundle typically involves insuring your car and home with the same company. If you do this, you could receive a policy discount from your insurer. Inquire about bundling options with your insurer. You may also be able to bundle your auto insurance with renters insurance, home insurance, or another type of coverage.
The area where you live and the local weather also come into play when you’re buying car insurance.
Location
Your ZIP code affects how much you pay for car insurance in most states. For instance, if you live in an urban area with a high rate of car thefts, your coverage might cost more than if you lived in a rural area with a low rate of car thefts. However, California and Michigan prohibit insurers from using ZIP code as a rating factor in auto insurance.
Other location factors that can affect your auto insurance rates include how much car repairs cost in your area and how much car insurance fraud happens there. Here are the average monthly costs of car insurance in different states and in Washington, D.C.
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.
Local weather conditions
If your area is prone to weather conditions or natural disasters that could damage vehicles, your car insurance rates might be higher. That’s because such property damage typically prompts more claims. So, if an insurer pays out more claims, it might charge higher premiums to make up for its bigger losses.
Florida, for example, faces a greater risk of hurricanes, which is one of many reasons why Floridians pay some of the highest car insurance premiums in the nation.
State laws and regulations
Laws and regulations in your state also factor into how much you pay for car insurance.
Minimum insurance requirements
Most states require motorists to carry a minimum amount of bodily injury liability and property damage liability coverage. Furthermore, some states might mandate other types of car insurance, such as uninsured/underinsured motorist coverage, medical payments, or personal injury protection (PIP) coverage.
You have no control over the minimum insurance requirements in your state, but it’s a good idea to understand them so you can better forecast your potential costs.
No-fault vs. tort states
In the car insurance world, some states are no-fault states and others are tort (or at-fault) states. If you live in a no-fault state, you typically must file a claim with your own insurance company if you or a passenger is injured in a car crash. That’s regardless of whose fault the accident was.[4] But if you live in a tort state, car insurers representing everyone in a car accident assign fault and base claim payouts on that determination.
Premiums tend to be higher in no-fault states than in tort states because no-fault claim payouts are usually higher. The following table shows total monthly averages for no-fault and at-fault states.
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.
Credit score
In many states, insurers can take your credit history into account when setting your car insurance rates. However, they don’t rely on traditional credit scores as part of the rate-setting process. Rather, they use information in consumer credit profiles to generate credit-based insurance scores. These insurance scores help forecast how likely you are to file a car insurance claim.
Improving your credit score might bump up your credit-based insurance score and lower your premium. The national average cost of full-coverage car insurance for drivers with poor credit is $258, while rates average $177 per month for drivers with excellent credit.
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Car insurance factors FAQs
If you still have questions about what factors can affect your auto insurance premiums, the answers below can help.
What are the biggest factors that affect car insurance rates?
Among the biggest factors affecting your car insurance rates are the amount and types of coverage you have, your geographic location, your history of traffic violations and car accidents, and the kind of car you drive.
Why is your car insurance so expensive?
A number of factors could be contributing to your car insurance being so expensive. For instance, your rates might be higher if you’re a younger driver, you’ve compiled a poor driving record, you live in an area prone to natural disasters, or you’ve got a low deductible.
When do car insurance costs go down?
For younger drivers, car insurance rates normally go down once you reach age 25. But that isn’t guaranteed to happen. For instance, your rates could stay the same or go up if you’ve accumulated traffic violations or been involved in crashes. However, your rates could go down if, say, you’ve gotten married or moved to a place with a lower rate of car thefts.
Does filing a claim increase car insurance rates?
Filing a claim can increase your car insurance rates.[5] Depending on the cost and severity of a claim, your premiums will typically go up if you file a claim for an at-fault accident. Rules vary from one insurer to another. This type of increase generally lasts three years.
How can you lower your car insurance premiums?
You might be able to lower your car insurance premiums by comparing quotes from different auto insurance companies, inquiring about discounts, raising your deductible, being a good driver, maintaining good grades, and enrolling in automatic payments for your premiums.
Does the name on the title affect car insurance rates?
Most states don’t mandate that the name on an insurance policy be the same as the name on a car title. However, it might be tougher to obtain coverage if the names don’t match. In fact, you might wind up paying a higher insurance cost if the names aren’t the same.
What types of drivers generally pay more?
The types of drivers who generally pay more for car insurance include men, single people, those younger than 25 years old, senior citizens, those who log a lot of mileage or who have occupations that involve a lot of driving, those who drive expensive cars, and those with bad driving records.
John Egan is a freelance writer and content marketing strategist in Austin, Texas. His specialties include personal finance, real estate, and health and wellness. John’s work has been published by outlets such as CreditCard.com, Bankrate, Forbes Advisor, Experian, Capital One, The Balance and U.S. News & World Report. He is the author of The Stripped-Down Guide to Content Marketing.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Mark FriedlanderDirector, Corporate Communications
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
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