Car insurance premiums are unique to each individual, which makes it hard to know how much you’ll pay before getting a quote.
For example, if you have a history of car accidents or traffic violations, your car insurance will likely be more expensive than it will for someone with a clean driving record. But many more factors determine your car insurance price, including age, where you live and your driving history.
The best way to know exactly how much you’ll pay for car insurance is to get a quote from your desired insurance provider, but some general rules of thumb can help you get a better idea of what to expect. For example, a sports car typically costs more to insure than a minivan. Likewise, younger drivers can generally expect higher car insurance premiums than older drivers. And a driver with a DUI or speeding ticket may have higher rates than someone with a clean record.
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What does car insurance cover?
There’s a lot of risk involved with owning and operating a motor vehicle, from accidents that cause injury to yourself and others, to damage to your car or others’ property. Car insurance protects you from the financial consequences of those risks by paying for some or all the costs when something goes wrong. This can include coverage for medical expenses for you and your passengers, legal fees if you’re held liable for an accident, repair costs for your vehicle and more. The specific amount and types of expenses covered, what type of circumstances are insured and how much you pay out of pocket before your insurance steps in will depend on your individual policy and how much coverage you purchase.
Each state has different requirements for car insurance coverage. Almost every state requires bodily injury liability and property damage liability insurance. Many states also require personal injury protection and uninsured motorist coverage. Collision coverage and comprehensive coverage are typically optional add-ons to a car insurance policy, but your lender may require them if you finance or lease your car.
Here are the different types of car insurance coverage and what they mean:
Liability insurance
Liability insurance covers you if you’re found responsible -- or liable -- for damage to another vehicle, person or property. If you’re at fault in a car accident, your insurance will pay the other party for medical bills or compensation (up to the coverage limit) for property damage so you don’t have to. If you’re sued because of an accident that’s your fault, liability insurance can also cover your legal fees. There are usually separate coverage limits for bodily injury and property damage. The critical distinction between liability insurance and the other types is twofold: it pays out to the other person, not you, and it only kicks in when you’re at fault.
Liability insurance requirements differ by state, and many states have a minimum requirement for the amount of liability insurance you have. All states except New Hampshire and Virginia require drivers to have liability insurance. Although New Hampshire doesn’t require liability insurance, you must prove you have sufficient funds to cover any damages you’re liable for in an accident to avoid it. Virginia also lets you drive an uninsured vehicle at your own risk, with the additional $500 Uninsured Motor Vehicle fee requirement.
Collision coverage
Collision coverage includes damage to your vehicle resulting from a collision with another vehicle or object (with some exceptions, such as collisions with animals). Unlike liability insurance, collision coverage pays for your repair costs, minus your deductible, in the event of an accident and will cover you even if you’re at fault. Collision coverage usually has a separate deductible.
Comprehensive coverage
Comprehensive coverage covers damage or loss of your vehicle due to things other than colliding with another car or object. This includes acts of nature, like fire, flood or falling objects, and theft or vandalism of your vehicle. Like collision coverage, comprehensive coverage typically has its own deductible.
Uninsured or underinsured motorist coverage
When you’re in an accident and the other party is at fault, their liability insurance may compensate you for damages to yourself, your passengers or your car. But if the other driver does not have liability insurance -- or their coverage doesn’t fully cover your damages -- then your own uninsured or underinsured motorist coverage steps in. Most policies have separate amounts for property damage and bodily injury coverage.
Personal injury protection
Personal injury protection, or PIP, covers injuries to you and your passengers after an accident, regardless of who is at fault. PIP covers the cost of medical treatment and, depending on the specifics of your policy, may also cover additional costs that result from these injuries -- including lost wages and funeral costs.
How to sign up for car insurance
Depending on the provider, you can sign up for a car insurance policy online, at a physical branch or by phone. If you have an insurance company in mind, you can typically sign up online or visit a local office to purchase a policy directly from the provider. However, getting quotes from several companies is a good idea to find the best rates and coverage. Some websites will let you find and compare quotes from multiple providers in one place.
You can use an insurance broker if you don’t want to research different insurance companies. Insurance brokers will help compare auto insurance providers to find the best policy for your situation. While you can typically do the work of an insurance broker yourself, if you have complex insurance needs or don’t have the time to research on your own, turning to an experienced broker may make sense.
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Here’s a breakdown of the average cost of car insurance by various factors, including age, state, company and driving record.
The average cost of car insurance
A 40-year-old driver with a clean driving record and good credit in the US can expect to pay an average of $2,014 per year, or about $168 monthly, for full coverage car insurance in 2023. The minimum insurance cost -- the bare bones you’d need to purchase to drive legally in your state -- is $622 per year on average in 2023.
Average cost of full coverage by insurance company
| Insurance provider | Annual cost | Monthly cost |
|---|---|---|
| Allstate | $2,630 | $219 |
| American Family | $1,700 | $142 |
| Amica | $1,467 | $122 |
| Auto-Owners | $1,361 | $113 |
| Erie | $1,356 | $113 |
| Farmers | $1,598 | $133 |
| Geico | $1,353 | $113 |
| Mercury | $1,547 | $129 |
| Nationwide | $1,422 | $119 |
| Progressive | $1,642 | $137 |
| State Farm | $1,480 | $123 |
| The Hartford | $2,104 | $175 |
| Travelers | $1,551 | $129 |
| USAA | $1,361 | $113 |
Source: Bankrate (A sister site of CNET)
These are averages across all categories. You’ll probably fall somewhere above or below these numbers, depending on your situation. Let’s break down the various factors.
How much does car insurance cost by state?
Insurance providers must work with each state when setting rates. State insurance departments typically must approve the carrier’s rates beforehand, so insurance costs vary from state to state.
Here are the five most expensive states for car insurance in 2023, according to Bankrate:
- Florida: $3,183 per year -- 58% above the national average
- New York: $3,139 per year -- 56% above the national average
- Louisiana: $2,909 per year -- 44% above the national average
- Nevada: $2,779 per year -- 38% above the national average
- Michigan: $2,691 per year -- 34% above the national average
And here are the five cheapest states for car insurance in 2023:
- Maine: $941 per year -- 53% below the national average
- Vermont: $1,061 per year -- 47% below the national average
- Idaho: $1,133 per year -- 44% below the national average
- New Hampshire: $1,162 per year -- 42% below the national average
- Massachusetts: $1,262 per year -- 37% below the national average
Average annual car insurance cost by state
| State | Full coverage | Minimum coverage |
|---|---|---|
| Alabama | $1,843 | $441 |
| Alaska | $1,946 | $421 |
| Arizona | $1,810 | $587 |
| Arkansas | $1,907 | $443 |
| California | $2,291 | $636 |
| Colorado | $2,121 | $500 |
| Connecticut | $1,533 | $620 |
| Delaware | $2,103 | $801 |
| Florida | $3,183 | $1,128 |
| Georgia | $2,085 | $639 |
| Hawaii | $1,275 | $344 |
| Idaho | $1,133 | $267 |
| Illinois | $1,806 | $552 |
| Indiana | $1,295 | $327 |
| Iowa | $1,315 | $223 |
| Kansas | $1,878 | $416 |
| Kentucky | $2,124 | $678 |
| Louisiana | $2,909 | $815 |
| Maine | $941 | $225 |
| Maryland | $1,971 | $815 |
| Massachusetts | $1,262 | $429 |
| Michigan | $2,691 | $1,104 |
| Minnesota | $1,760 | $585 |
| Mississippi | $1,771 | $446 |
| Missouri | $1,943 | $490 |
| Montana | $1,889 | $310 |
| Nebraska | $1,624 | $359 |
| Nevada | $2,779 | $973 |
| New Hampshire | $1,262 | $319 |
| New Jersey | $1,754 | $782 |
| New Mexico | $1,591 | $346 |
| New York | $3,139 | $1,371 |
| North Carolina | $1,446 | $432 |
| North Dakota | $1,302 | $269 |
| Ohio | $1,266 | $338 |
| Oklahoma | $1,998 | $406 |
| Oregon | $1,415 | $616 |
| Pennsylvania | $2,040 | $428 |
| Rhode Island | $1,886 | $551 |
| South Carolina | $1,532 | $524 |
| South Dakota | $1,553 | $276 |
| Tennessee | $1,429 | $371 |
| Texas | $2,019 | $565 |
| Utah | $1,510 | $539 |
| Vermont | $1,061 | $238 |
| Virginia | $1,439 | $494 |
| Washington | $1,410 | $515 |
| Washington DC | $2,072 | $607 |
| West Virginia | $1,580 | $421 |
| Wisconsin | $1,292 | $358 |
| Wyoming | $1,582 | $263 |
Source: Bankrate
How much does car insurance cost by age and gender?
Age is one of the most significant factors determining your car insurance cost. Generally, the older you get, the cheaper your car insurance bill. Car insurance policies for teens and young drivers are often more expensive because teens and young adults are more likely to be involved in more frequent -- and more deadly -- accidents compared to older adults.
Premiums for teen drivers can be astronomical: The national average cost for adding a 16-year-old driver to a parent’s full coverage policy is $4,392 per year in 2023. From there, prices start dwindling. By the time a driver hits 24, annual premiums for full coverage go down to about $2,837 per year.
Your gender also impacts your auto insurance costs -- but this disparity diminishes as drivers get older. Overall, insurance costs by gender largely also depend on the driver’s age.
Teen and young adult boys are often the most expensive drivers to insure. That’s because young males tend to be involved in more serious auto accidents and engage in riskier driving behaviors than their female cohorts, according to the CDC.
For this reason, 20-year-old males may pay $639 more on their car insurance premiums than 20-year-old females, according to Bankrate. The gender gap narrows with age but widens again, with males paying more after age 60.
Average annual premium by age and gender
| 20-year-old | 25-year-old | 40-year-old | 60-year-old | |
| Male | $4,638 | $2,552 | $2,020 | $1,832 |
| Female | $3,999 | $2,393 | $2,008 | $1,816 |
Source: Bankrate
Other factors that could impact the price you pay for auto insurance
Driving record
Your driving record is a double-edged sword. Drive well, and you could receive a safe driver discount. But drive poorly, and you might see a surcharge on your bill at your next renewal.
Insurance providers, including Geico and Progressive, typically have optional telematics programs that use your smartphone or a car plug-in device to analyze your driving habits, checking for speed, hard-braking or using your phone while driving. Using telematics to establish a good driving history can make you eligible for safe driving discounts. Remember, telematics devices may track where, when and how often you drive. If you’d rather keep this data private, you should not enroll in a telematics program. You do not always need to register in telematics programs to be eligible for safe driver discounts, though it varies by carrier.
However, a record of accidents or violations can steeply increase your insurance costs. A speeding ticket could increase your annual premium by $413 on average, while a DUI conviction could increase it by $1,887, according to Bankrate. An at-fault accident may also increase the cost of your bill.
Credit history
Insurers may use your credit history when calculating a quote -- and your credit score could affect your premiums, depending on where you live. Some states, including Hawaii, Michigan, Massachusetts and California, limit or prohibit insurers from considering credit history when determining your rate.
Vehicle type
The type of vehicle you drive can significantly impact your car insurance bill. Luxury or sports cars, such as BMW or Mercedes-Benz, typically cost more to insure than economy cars like Toyotas or Hondas. There are a couple of reasons for this, including the differences in the price and availability of car parts for specific makes and models, as well as the vehicle’s safety record and crash-prevention features.
Annual mileage
Carriers often offer discounts if you have a low annual mileage count, meaning you drive less than the average number of miles per year compared to other Americans. You may be considered a low-mileage driver if you drive less than 7,500 miles per year, which could be good news for remote workers.
Type of coverage
The more coverage you purchase and the lower your deductible -- which refers to the amount you pay out of pocket before your insurance kicks in -- the higher your monthly or annual premiums will likely be. Conversely, the less coverage you buy and the higher your deductible, the lower your annual premiums will be. However, setting your deductible too high and lowering your coverage options may leave you vulnerable to more significant losses if an accident occurs, and could cost you a substantial sum of money.
Here’s how to decide how much car insurance you need to keep costs low without jeopardizing your finances.
Insurance history
The longer you’ve had car insurance while being a licensed driver, the lower your rates may be. Additionally, some carriers offer discounts for having continuous car insurance over a length of time. And this doesn’t necessarily need to be with the same insurer. Progressive, for example, includes time with your previous insurer for its continuous insurance discount.
How to find the best rates on car insurance
Shopping around is essential to finding the best car insurance rates. The Insurance Information Institute recommends getting at least three quotes from a mix of national and regional insurers, says Mark Friedlander, director of corporate communications.
“We like to tell people to do an apples-to-apples comparison, meaning the same levels of coverage and the same deductibles,” Friedlander said. “And insurers offer various discounts at different levels, and you might get a better price based on the discounts.”
A good time to check in on your policy and get new quotes is during your renewal period, typically every six or 12 months.
Average rate data was last reviewed on Feb. 22, 2023.
FAQs
If you purchase a full coverage policy, that means you purchase collision coverage and comprehensive coverage in addition to basic liability coverage. Collision coverage pays for damage to your vehicle in an accident resulting from a collision between your car and another car or object. Comprehensive coverage pays for damage to your car caused by an event other than collision, including fire, flood, vandalism and theft.
Minimum coverage, on the other hand, often refers to purchasing the minimum coverage that your state requires. This will typically mean purchasing just bodily injury liability coverage and property damage liability coverage. When possible, it’s advisable to purchase greater than minimum liability limits and consider adding full coverage for better protection in case of an accident or natural disaster.
There are many ways to reduce your premiums, including shopping around for better rates. Aside from comparing car insurance rates, you can also try these tips:
- Look for applicable discounts. Take advantage of discounts you may already qualify for. While discounts vary across carriers, some common discounts include safe driving, good student and defensive driving course completion discounts. Moreover, car insurance for veterans or active-duty military members tends to be cheaper, and you might be able to get a military discount with national insurers like Geico.
- Increase your deductible. Increasing your deductible will reduce your premium, but it will also raise the amount of money you must pay out of pocket before your insurance kicks in if you get into an accident. Don’t set your deductible too high though -- make sure you’d be able to pay the amount in the event of an accident.
- Bundle your policies. One of the most straightforward ways to save money on insurance is by bundling your home and auto insurance, meaning you buy multiple insurance policies from the same company. If your current policies are through different carriers, look for an insurance provider that offers both home and auto insurance to see if you can save money.
Car insurance premiums typically go up after an accident, but the exact increase varies depending on your insurance provider, location, history, age and the circumstances of the accident. For the at-fault party in an accident, annual premiums for a full-coverage policy go up an average of $750, according to Bankrate.
How long you’ll pay the increased premiums depends on your insurance carrier, the cost and severity of the incident and other factors. However, as long as you don’t have any additional accidents or violations, you can expect the impact from the increased premium to gradually lessen at each passing renewal period.
It depends. If you’re a young driver, say anywhere from 18 to 25, and you’ve been driving safely, you can expect your car insurance bill to decrease slowly over time as you get older. Moreover, after every year, you may qualify for discounts that you didn’t qualify for previously, including good student discounts and safe driver discounts that require you to have gone accident-free for a certain length of time.
On the other hand, if you’ve recently gotten speeding tickets, been in an at-fault accident or gotten a DUI, you’re likely to see a surcharge on your insurance bill at your next renewal period.
Methodology
Auto insurance rates come from Bankrate, CNET’s sister site also owned by Red Ventures, which gathers data using Quadrant Information Services.
