The Average Cost of Car Insurance

The average cost of car insurance in the US is $77 per month for state minimum coverage and $165 per month for full coverage. In the past two years, car insurance has increased by approximately 24%, but by shopping smart, you can find affordable rates for the protection you need.

Drivers pay approximately $121 per month on car insurance

Drivers in the US pay an average of $121 per month for car insurance. This breaks down to $77 per month for the state minimum, and $165 per month for full coverage—however, your car insurance rates will vary based on several factors, such as your age, driving history, and location.

State regulations and car insurance laws vary depending on where you live. While some states mandate $25,000 per person/$50,000 per accident in bodily injury liability and $25,000 per accident in property damage coverage, others may require higher limits, or more coverage, thus raising costs.

To help visualize the difference in car insurance premiums across states, Jerry experts gathered the average cost of car insurance for each state. Here are the results:

State	Minimum coverage	Full coverage
Alabama	$64	$149
Arizona	$61	$157
Arkansas	$66	$161
California	$66	$200
Colorado	$60	$181
Connecticut	$98	$183
Delaware	$77	$185
District of Columbia	$83	$164
Florida	$174	$312
Georgia	$104	$213
Idaho	$44	$114
Illinois	$42	$102
Indiana	$63	$138
Iowa	$56	$114
Kansas	$55	$135
Kentucky	$109	$199
Louisiana	$105	$260
Maine	$60	$129
Maryland	$91	$192
Massachusetts	$41	$75
Michigan	$118	$197
Minnesota	$67	$133
Mississippi	$65	$162
Missouri	$59	$147
Montana	$45	$124
Nebraska	$43	$109
Nevada	$73	$152
New Hampshire	$52	$121
New Jersey	$43	$82
New Mexico	$93	$181
New York	$54	$159
North Carolina	$63	$150
North Dakota	$122	$211
Ohio	$49	$106
Oklahoma	$60	$137
Oregon	$70	$149
Pennsylvania	$53	$133
Rhode Island	$67	$152
South Carolina	$113	$218
South Dakota	$53	$124
Tennessee	$59	$155
Texas	$85	$198
Utah	$67	$132
Vermont	$61	$130
Virginia	$36	$80
Washington	$65	$145
West Virginia	$42	$103
Wisconsin	$59	$134
Wyoming	$29	$89
Average coverage cost	$77	$165

But it’s not just your demographic factors that can change your auto insurance rates. Other factors, such as your coverage levels and additional insurance options, can also influence your final premium amount. To make sure you’re getting the best rate for your specific profile, compare quotes frequently from multiple insurance companies.

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Learn more: How is car insurance calculated?

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Minimum liability costs less than full coverage, but it can leave you vulnerable

Regardless of where you live, all drivers in the US are required to purchase their state minimum limits for liability insurance. On average, this type of policy costs around $77 per month, and generally includes both bodily injury coverage and property damage insurance.

A liability-only policy will cover any medical expenses or property damages for third parties up to your policy limits. This type of coverage does not pay for your medical bills unless you live in a state that requires medical payments coverage (MedPay) or personal injury protection (PIP). It doesn’t cover damage to your vehicle, either.

Your car insurance rates can vary based on a lot of factors, like where you live, the car you drive, and your driving record. But since all insurance companies calculate rates differently, you may also pay more or less depending on the insurance company you choose. Here’s how much you can expect to pay, on average, for a minimum liability car insurance policy with these top providers:

Insurance company	Monthly coverage cost	Annual coverage cost
AAA	$105	$1,266
Allstate	$85	$1,019
Clearcover	$66	$791
Dairyland	$116	$1,380
Direct Auto	$94	$1,123
Mercury Auto	$74	$890
Nationwide	$61	$734
Progressive	$79	$947
State Auto	$58	$693

Full coverage can provide added protection in a variety of scenarios

While liability coverage is generally the cheapest car insurance on a monthly basis, most drivers will benefit from a full coverage car insurance policy, complete with comprehensive and collision coverage. And you may be required to carry this type of policy if you’re leasing or financing a vehicle.

The national average for a full coverage auto insurance policy is about $165 per month, but rates can change based on your driving and insurance history. Take a look at the average cost of a full coverage policy with some of the top providers in the US:

Insurance company	Monthly coverage cost	Annual coverage cost
AAA	$215	$2,584
Allstate	$198	$2,380
Clearcover	$130	$1,559
Dairyland	$321	$3,857
Direct Auto	$239	$2,864
Mercury Auto	$146	$1,756
Nationwide	$155	$1,860
Progressive	$178	$2,317
State Auto	$162	$1,939

Drivers should also consider other add-on insurance options, such as roadside assistance, which will come to your aid with a tow or minor mechanical help if you break down while you’re driving, and uninsured motorist coverage, which helps provide coverage if you’re in an accident caused by an uninsured driver.

Additionally, drivers should look into increasing their liability limits beyond their state requirements. A serious accident can easily cause damages that exceed state minimum liability limits—and if you can’t afford to pay the remaining balance, your assets and future income could be on the line.

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Learn more: Liability insurance vs. full coverage

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These providers offer the lowest average rates

To help drivers find more affordable—and reliable—car insurance, Jerry experts conducted one of the largest surveys in the nation. In this survey, over 15,000 respondents rated their current providers in three major categories: customer satisfaction, policy cost, and claims handling.

After taking these results into consideration and looking at our own in-house data, we found that these providers had the cheapest average rates and highest customer ratings combined:

Insurance company	Minimum coverage	Full coverage	Cost rating	Overall Jerry rating
Anchor General	$52	$167	3.4	4.6
Madison Mutual	$57	$140	5.0	4.7
Travelers	$59	$141	4.2	4.6
Nationwide	$61	$155	4.0	4.3
Clearcover	$66	$130	4.6	4.6
Safeco	$70	$164	4.2	4.5
Mercury Auto	$74	$146	3.5	4.3
Progressive	$78	$178	3.8	4.2

While these rates are already relatively lower, drivers can continue to save even more with the Jerry app. With Jerry, you can build a custom profile and compare quotes from dozens of auto insurance companies at once, so it’s easy to find the best rates for you.

The average cost of car insurance by demographic

Your coverage choices are only one part of the insurance equation. When it comes to your auto insurance policy, your age (or driving experience), driving record, and vehicle type can also change how your premiums are calculated.

Drivers under 22 have some of the highest average car insurance rates

The average cost of car insurance for teen drivers in the US is approximately $395 per month. This places the going rate for teen car insurance at around 169% higher than drivers between the ages of 22 and 65.

According to a recent article by the Centers for Disease Control and Prevention, young drivers (16-21) are more likely to underestimate or not recognize dangerous situations and make more critical errors due to their lack of experience behind the wheel. As a result, a majority of insurers view this age demographic as high-risk, ultimately leading to increased premium costs.

Once motorists turn 22, rates tend to decrease, with the most significant drop occurring once a driver reaches 25. In most states, rates increase once again when drivers turn 65+. Similar to teen drivers, insurers deem more senior motorists as higher risk due to age-related factors, such as impaired vision and slower reaction times.

Drivers between 55 and 64 tend to see the lowest rates at $116 per month. Here’s a further breakdown of how much, on average, drivers in the US pay based on their age:

Age	Minimum coverage	Full coverage
<18	$280	$649
18-21	$205	$463
22-25	$126	$296
26-34	$92	$215
35-44	$85	$191
45-54	$80	$178
55-64	$75	$157
65+	$79	$158

To lower costs, Jerry experts often recommend that teen drivers remain on a parent or guardian’s policy, and that both young motorists and senior drivers take advantage of car insurance discounts, such as paid in full, loyalty programs, or good student.

A poor driving record can increase your average car insurance rate by 68%

On average, drivers with violations pay 68% more for premiums compared to those with a clean driving record, raising rates from $121 per month to $203 per month.

Any infraction or violation on your record—whether it’s a single speeding ticket or DUI charge—can increase your car insurance rates. However, the total cost increase depends on the type of violation you have and your state laws. Here’s a look at the average cost of insurance drivers pay after specific violations or infractions:

Violation/infraction	Average coverage cost
Failure to stop	$182
Illegal turn	$182
Driving on a suspended license	$185
Driving without a seat belt	$192
Passing a school bus	$198
Cell phone use	$201
Careless driving	$210
DUI	$213
Speeding – Major	$248

More serious violations, such as a DUI or reckless driving charge will increase your rates the most and come with an SR-22 requirement. With an SR-22, the average cost of car insurance rises to $207 per month. While some providers, such as GEICO and Progressive, offer competitive rates for those with SR-22s, most insurers opt to exclude these higher risk drivers from their coverage plans.

If you’re paying over the average for car insurance after a violation, you can find cheaper car insurance prices by comparing rates among providers. Additionally, some states allow drivers to complete a defensive driving program to either stop points from going on their record or have points removed entirely.

America’s 10 most popular cars cost an average of $1,878 a year to insure

Your vehicle will also have an impact on your car insurance rates. Insurers look at things like how safe a vehicle is, how frequently drivers file serious claims, the cost of repairing or replacing the car, and even how often that model is stolen when they’re setting rates.

To help you better understand how your vehicle choice affects what you pay for car insurance, our experts analyzed the coverage costs for the ten top-selling vehicles in the US, according to Edmunds¹.

The average cost of car insurance coverage for these vehicles is approximately $157 per month, although your own auto insurance costs may vary. Here’s a closer look at what drivers pay on average for their monthly auto insurance premiums with the top 10 vehicles in the US:

Vehicle type	Average coverage cost
Toyota Camry	$164
Chevrolet Silverado	$142
Honda CR-V	$150
Ford F-150	$129
Chevrolet Equinox	$156
Toyota RAV-4	$172
Honda Civic	$163
Tesla Model Y	$257
Toyota Tacoma	$145
GMC Sierra	$150

It’s also important to note that any modifications to your vehicle can influence your premium costs as well. Similarly, the age of your vehicle can also have an impact on your rates. New cars tend to cost more than their older counterparts due to newer technology and increased repair and replacement costs. As a result, insurers raise premiums to offset these added expenses.

Other factors that can impact your average car insurance rates

Driver age, location, driving experience, and vehicle type are the most influential factors when it comes to averaging car insurance premiums. However, there are a few other factors that can change your premium costs, depending on where you live, including:

• Your insurance history: Drivers with a coverage lapse on their insurance history will typically see their rates climb from the average $121 per month to approximately $203 per month (a 69% increase). Similarly, if you’ve filed recently filed an insurance claim, your rates could average $166 per month.
• Your credit score: Drivers with a poor credit score (< 600) pay an average of $223 per month for car insurance—a 21% increase compared to those with moderate credit (601-699) and a 52% increase compared to those with high credit (700+). Remember, California, Hawaii, Michigan, and Massachusetts prohibit the use of credit when calculating premium costs.
• Your marital status: On average, single drivers pay 7% more for car insurance than those who are married. Oftentimes, insurance companies see married drivers as more cautious and financially responsible drivers, which is why they generally see cheaper rates. Insurers in Hawaii, Massachusetts, and Montana cannot use marital status when determining rates.

Car insurance rose by 24% from 2022 to 2023—here’s why

In 2022, the average cost of car insurance was approximately $176 per month, or $2,112 per year. In 2023, this rate increased to $219 per month, or $2,627 per year. So, what prompted the large jump? Here are a few key reasons.

Inflation and supply chain shortages

After the pandemic, many areas experienced a rise in the cost of living—and these increased costs have led to higher costs for replacement parts. As a result, mechanics and repair technicians have had to charge customers more to compensate for the loss.

A shortage of labor is also contributing to higher prices. With less workers in the field, factories are slower to ship parts and auto shops need more time to repair vehicles. Slower repairs mean that insurance companies are paying more for rental cars during this waiting period.

Increasing auto theft rates

From 2022 to 2023, auto theft rates in the US increased from 1,008,756 to 1,020,729—a number that’s been steadily rising since 2019². This is a major concern for insurers, as more drivers are filing theft claims, which drives up the overall cost of insurance as a way to offset the extra expenses.

Climate change

Based on data from the National Centers for Environmental Information, the yearly temperature in North America has increased by 0.23°F since 1910³. As a result, a heatwave in the West broke over 1,000 heat records in 2022, and major flooding in southern Illinois in 2016 trapped several residents in their homes for an extended period of time⁴.

For this reason, several home and auto insurers have ceased writing new policies in states like California and Illinois for the time being. And for insurance companies that have stayed in these high-risk areas, the higher chance that policyholders may file a claim leads to an increase in the cost of coverage for all motorists.

You can save up to 20% on the average cost of car insurance with these tips

Although the average cost of car insurance is relatively inexpensive, it may not be an accurate representation of what you’ll ultimately pay for coverage. If you find your rates to be higher—or even lower—than the average cost, you can still save on premiums with these tips.

• Continuously shop for car insurance: Even with a policy in place, it’s always best to keep shopping for car insurance to avoid missing out on any deals. With Jerry, you can turn on the auto-reshop feature and be notified of any potential savings opportunities with your provider or other insurers in your area.
• Search for discounts: Most insurance companies offer car insurance discounts to help drivers save on costs. Depending on your provider, you may qualify for good driver, student away at school, multi-car, or automatic payment discounts.
• Raise your deductible: If you have comprehensive insurance or collision coverage on your policy, you can raise your deductible amount to lower your monthly costs. However, it’s important to remember to never increase your deductible past what you can realistically afford after an accident.

Sources

1. https://www.edmunds.com/most-popular-cars/ ↩︎
2. https://www.nicb.org/news/news-releases/vehicle-thefts-surge-nationwide-2023 ↩︎
3. https://www.ncei.noaa.gov/access/monitoring/monthly-report/global/202213 ↩︎
4. https://www.ncei.noaa.gov/access/monitoring/monthly-report/national/202213 ↩︎