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The average cost of car insurance is $2,008 a year for full coverage, but personal factors such as your driving history affect what you pay
Average Car Insurance For Two Cars
Written by: Daniel Robinson Written by: Daniel Robinson Author Daniel is a Guides team writer and has written for a number of automotive news websites and marketing companies across the US, UK and Australia, specializing in car finance and care topics there are Daniel is the Guides team’s authority on car insurance, loans, warranty options, car services and more.
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Edited by: Rashawn Mitchner Edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is the editor of the Guides team with over 10 years experience dealing with personal finance and insurance topics.
Reviewed by: Mark Friedlander, Reviewed by: Mark Friedlander Advisor Mark Friedlander is Director, Corporate Communications, Insurance Information Institute (Triple-I), a New York-based non-profit research and education organization focused on providing consumers with a better understanding of insurance. Mark is a national spokesperson for the Triple I, handling a wide variety of media issues in the insurance industry. His responsibilities also include leading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.
What is the average cost of car insurance in the United States? In this article, we at the Guides Team will explain the average car insurance costs by state and how to keep your rates low. We also recommend three of the best car insurance companies worth considering in the sections below.
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The Guide Team is committed to providing reliable information to help you make the best possible decision about insuring your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to compile our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to rank the companies on a wide range of rating factors. After 800 hours of research, the final result was an overall score for each provider, with the insurers with the most points at the top of the list.
The average cost of full coverage insurance is $2,008 per year or $167 per month, while minimum liability coverage averages $627 per year or $52 per month. However, what you pay for auto insurance varies based on your personal ranking factors. This is because insurers consider factors such as your location, driver profile, vehicle and desired coverage when calculating premiums.
There are good reasons for the wide price difference between full car insurance and a minimum liability course. Liability insurance has two components: bodily injury and property damage. It is required in most states and covers other driver injuries and vehicle damage when you cause an accident.
Full coverage car insurance goes beyond the state minimum by adding collision and comprehensive coverage to liability protection. Collision coverage pays for damage to your vehicle regardless of who causes an accident. Comprehensive coverage protects your car against damage from natural disasters, theft, fire and vandalism.
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Each state sets its own car insurance regulations and requirements. Factors such as driving conditions also vary by state, which can affect the cost of car insurance.
Average car insurance costs were compiled by Quadrant Information Services to give you some idea of what drivers in each state pay for average annual premiums. Auto coverage costs vary by state due to a variety of factors, including the frequency of accidents and claims. The cost of parts and labor can also result in higher rates in one part of a state versus another.
The cost estimates in the table below include estimates for car insurance minimum car insurance and car insurance for a 35 year old driver with good credit and a clean driving record.
The best way to see how much car insurance would cost for your vehicle is to compare free quotes from providers in your state.
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Age is one of the most important factors in setting car insurance rates. Teenage drivers and those in their early 20s can pay thousands more a year than people with more experience behind the wheel. This is because young drivers are more likely to be in a car accident. Insurance companies charge higher premiums to help offset the risk of insuring these inexperienced motorists who tend to behave more dangerously behind the wheel.
Car insurance costs also vary widely depending on your provider. Here are some national and regional companies that offer lower than national average rates for full car insurance:
USAA typically offers low car insurance rates in all regions of the United States, but its policies are only available to active duty military, veterans and their immediate families. Erie Insurance is another affordable option if you live in one of the 12 states (and Washington DC) that the company serves.
Car insurers must weigh the risk factors in each driver’s record. If you have one or more speeding tickets, at-fault accidents or other offenses in your driving history, you will pay higher premiums than those with clean records for several years. Here’s a look at how average rates change for 35-year-old men when they commit driving offences:
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All car insurance companies weigh risk factors differently. The following sections provide rate estimates for various driver profiles from leading insurers.
Having a recent at-fault accident on your record usually results in higher auto service rates for at least three years. State Farm and Erie Insurance offer the lowest average rates for these drivers.
Speeding can also lead to higher car insurance premiums for at least three years. Here are some average rates for drivers who have recently been ticketed for speeding for going 16-20 mph over the limit. Erie Insurance and USAA lead the way with the cheapest rates.
As you would expect, a DUI violation significantly increases car insurance rates for at least three years. State Farm has the lowest rates for drivers with a recent DUI, with Erie Insurance, USAA and Progressive close behind.
Car Insurance Rates By Age And Gender
The type of vehicle you drive plays a key role in setting your car insurance rates. The cost of replacement parts and repairs, the likelihood of accidents and the vehicle’s safety features all contribute to how much you pay for auto insurance. Here are some types of vehicles that tend to be more expensive to insure:
More affordable, standard size cars with modern safety features are usually the cheapest to insure. As a bonus, features like anti-lock brakes, anti-theft systems and passive restraint systems can even earn you extra discounts from some insurers.
Car insurance costs are determined based on a number of factors. How heavily each factor affects your total premiums can vary from provider to provider, which is why it’s important to compare average car insurance rates from multiple insurers.
The table below contains the main factors that determine the cost you will pay for car insurance:
Average Car Insurance Rates By Age
Drivers typically see the highest rates between the ages of 16 and 25. Rates fall gradually and see a small increase again around age 65.
Insurers can set rates based on your gender, except in the states of California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania, where insurers are prohibited from using gender as a rate factor.
Drivers with good credit are often offered lower rates. In California, Hawaii, Massachusetts, Michigan and New Jersey, insurers are not allowed to set rates based on credit score.
Your city and state affect the cost of your car insurance premium. If you live in an area with particularly high accident or theft rates, you may see higher rates for insurance.
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If your car model has high theft or accident rates – as many sports cars do – your insurance premium may be higher. The value of your car is also used to determine the cost of comprehensive and collision premiums.
Keeping a clean driving record is one of the biggest ways to save on car insurance. Those with a history of speeding tickets, at-fault accidents, traffic violations or DUIs are charged more for insurance. A break will stop affecting your rates once it falls off your record, which usually happens after three years.
Each state sets its own minimum insurance requirements, but you can get additional insurance if you want to be fully covered. Shopping for full coverage coverage with higher policy limits will increase your car insurance quotes.
Collision and comprehensive insurance policies usually include a deductible. Choosing a higher deductible will result in a lower premium and vice versa.
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The discounts you qualify for affect your rate. Common car insurance discounts include a homeowner discount, military discount, multiple policy discount and pay-in-full discount.
You may find that your car insurance premiums change slightly every six months or every year. Your premiums are actually part of a regional insurance pool which is sometimes affected by changes to state regulations and the total number of claims in a particular pool.
