In the United States, the average cost of car insurance is $1,553. However, that may not reflect what you actually pay for car insurance. Every auto insurance company evaluates a number of factors to determine car insurance rates. These include your age, location, type of vehicle, driving history, and credit score. And each insurance company weighs those factors differently. According to our data, USAA has the lowest average rates, but its insurance products are only available to active and former members of the military and their families. For most consumers, GEICO has the second lowest average car insurance rates, while Allstate has the highest average car insurance rates.
Car insurance rates fluctuate due to several factors, including where you live. Florida has the most expensive rates with average annual rates of $2,393, while New Hampshire has the least expensive rates with average annual rates of $940. The table below includes the average car insurance cost for each state in the nation and the District of Columbia. Keep in mind that these rates provide a general idea of what you can expect but may not reflect what you actually pay for your own car insurance policy.
The best way to find out how much you’ll pay for car insurance is to get and compare at least three car insurance quotes. Aside from estimating the cost of a policy, shopping around can also help you find the cheapest coverage for you.
What factors affect car insurance rates?
Car insurance companies generally consider the following factors when determining the cost of your policy:
- Driving record
- Vehicle type
- Vehicle use (e.g., commute to/from school or work, average annual mileage)
- Credit history
Your auto insurance rates also depend on the type of coverage, deductible, and limit you choose. Minimum coverage is often the cheapest option, but you may need or choose to purchase additional coverage. For instance, if you finance or lease your vehicle, your lender or lessor will likely require you to carry full coverage, which includes liability auto insurance as well as collision and comprehensive coverage. A full coverage policy will be more expensive than a liability policy.
A higher deductible and lower limit typically lead to lower rates. But there are drawbacks. If you choose a higher deductible, you’ll need to pay more out of pocket when you make a claim. Similarly, lower limits mean accident-related expenses may exceed the amount your insurer will cover.
How can I find the best car insurance rates?
Shopping around is the best way to find the best car insurance rates. Make sure to compare quotes from several different insurance companies. You can also keep car insurance cheaper by maintaining a good credit history and a clean driving record.
Will my car insurance cost be close to the average cost of car insurance?
Although our study determined average car insurance prices for a variety of customer groups, there are a lot of individual factors that may make your rates lower or higher than those shown here. Our U.S. News auto insurance guide can help you learn more about shopping around to find the cheapest rates, finding discounts, and other ways to cut costs.
How much does an average car insurance policy cost?
Based on our data, the average cost for an auto insurance policy is around $1,539 a year. Your costs may be higher or lower depending on various factors, including your age, location, driving record, and credit score.
The type and amount of auto insurance you choose will also determine how much you pay for insurance. For instance, a full coverage auto insurance policy will cost more than a minimum coverage policy.
Getting several auto insurance quotes can help you get an idea of how much it will cost to purchase a policy.