in the U.S. is $77 per month for state minimum coverage and $165 per month for a full coverage policy. But auto insurance rates are individualized, so the only way to know if you’re paying too much for car insurance is to compare quotes from multiple companies.

Are you paying too much for car insurance?

The national average for a state minimum policy in the United States is approximately $928 per year, or $77 per month. For a full coverage policy, these rates increase to $1,985 per year, or $165 per month.

Keep in mind that these are just average rates. Your car insurance rates are determined based on several factors, such as your age, driving history, and location—so even if you’re paying more than the average, it doesn’t necessarily mean you’re paying too much for your car insurance coverage.

When assessing your premium costs, consider whether:

You need to update your coverage: As your circumstances change, so should your insurance coverage. Failing to update your policy to reflect changes like fewer drivers in your household or changes in your driving habits could result in overpaying for coverage you no longer need.

You’ve been with the same company for years: While loyalty is commendable, sticking with the same car insurance company without shopping around could mean missing out on lower rates available from other companies.

You have outstanding tickets and traffic violations: Traffic violations can significantly impact your insurance rates. Accumulating tickets for speeding, reckless driving, or other infractions signals to insurers that you pose a higher risk, leading to higher premiums.

Learn more:

The average cost of car insurance

How different factors can impact the average cost of car insurance

Once you’re aware of what impacts your car insurance premiums the most, you can start to compare your rate to the average rate for each factor to see if you might be overpaying.

To help you get started, our experts analyzed thousands of real car insurance policies purchased by Jerry users. They compiled a list of the top five factors that most influence your premiums. Here are the results:

Coverage options and levels

Your coverage options and insurance limits are some of the most important factors impacting your rates. Most states require drivers to carry limits of 25/50/25. That includes:

$25,000 per person/$50,000 per accident in

bodily injury liability

$25,000 per accident in

property damage liability

However, drivers can increase their limits at any time. Keep in mind that higher coverage levels trigger higher premiums, even if it’s a

liability-only policy

. Here are the average rates for drivers with the limits of 25/50/25, and then higher limits of 50/100/50 and 100/300/100. Are they similar to your own?

Coverage limits	Monthly coverage cost
25/50/25	$168
50/100/50	$201
100/300/100	$231

Your deductible

can also change your rates. With most insurers, a lower deductible means higher monthly premiums on

full coverage insurance

. However, increasing these limits will lower your car insurance rates, as providers won’t have to pay as much for a claim.

For drivers with higher collision deductibles ($1,000–$2,000), the average policy costs between $219 and $245, whereas those with lower limits ($250–$500) pay approximately $206–$226. PIP deductibles are relatively similar: drivers with higher limits pay between $187–212, and lower limits generally cost an average of $221–$222.

Learn more:

How to choose the best car insurance deductible

Your insurance provider

Every insurance provider uses a different algorithm to

calculate your car insurance costs

, which is why you may find that your rate is different from one insurer to the next.

Jerry experts recently analyzed thousands of real customer policies to determine the average monthly coverage costs with varying insurers. This is what we found:

Insurance company	Minimum coverage cost	Full coverage cost
AAA	$105	$215
Allstate	$86	$198
Clearcover	$66	$130
Gainsco	$98	$222
Madison Mutual	$57	$140
National General	$93	$211
Nationwide	$61	$155
Progressive	$79	$178
Safeco	$70	$165
State Auto	$58	$162
Travelers	$59	$141

Learn more:

The best car insurance companies of 2024

Your driving experience

When it comes to your driver profile, your experience behind the wheel is generally one of the leading reasons for your-ever changing car insurance rates. Some states measure this based on your age, while states like California use overall driving experience to calculate rates, regardless of how old you are.

In either scenario, your rates will change depending on how often you drive. Most of the time,

teen drivers

and

senior motorists

pay the highest rates due to either their lack of experience or their higher risk for accidents.

Ultimately, your car insurance costs will be different based on where you live, but to help you get an idea, here’s the average monthly cost for car insurance based on age:

Age	Minimum coverage cost	Full coverage cost
< 18	$275	$681
18-21	$248	$542
22-25	$163	$369
26-34	$123	$274
35-44	$110	$242
45-54	$106	$230
55-64	$100	$213
> 65	$106	$214

Learn more:

How to find cheap car insurance for new drivers

Your location

Your zip code reveals a lot to insurance companies, such as state laws, population density, accident rates, theft rates, and weather patterns—all of which can either decrease or increase your premiums.

One of the biggest contributors to your rates from this list is state laws. All states have a

minimum coverage level

. Knowing how these limits can impact your rates is an important first step in determining whether or not you’re paying more than you think for car insurance.

Check out the table below to see the average monthly cost of car insurance in each state depending on their limits, and compare it against your current rate to help you see if location is a factor in your premium costs.

State	Liability	UM/UIM	PIP / MedPay	Average Cost
Alabama	25/50/25	N/A	N/A	$64
Alaska	50/100/25	N/A	N/A	$111
Arizona	25/50/15	N/A	N/A	$66
Arkansas	25/50/25	N/A	N/A	$61
California	15/30/5	N/A	N/A	$66
Colorado	25/50/15	N/A	N/A	$60
Connecticut	25/50/25	25/50 UMBI	N/A	$98
Delaware	25/50/10	Not required	15/30 PIP	$83
District of Columbia	25/50/10	25/50 UMBI $5,000 UMPD	N/A	$77
Florida	$10,000 (PD only)	N/A	$10,000 PIP	$174
Georgia	25/50/25	N/A	N/A	$104
Hawaii	20/40/10	N/A	$10,000 PIP	$82
Idaho	25/50/15	N/A	N/A	$42
Illinois	25/50/20	25/50 UMBI	N/A	$63
Indiana	25/50/25	N/A	N/A	$55
Iowa	20/40/15	N/A	N/A	$43
Kansas	25/50/25	25/50 UMBI	PIP (structured limits)***	$55
Kentucky	25/50/25	N/A	$10,000 PIP†	$109
Louisiana	15/30/25	N/A	N/A	$105
Maine	50/100/25	50/100 UMBI	$2,000 MedPay	$41
Maryland	30/60/15	30/60 UMBI $15,000 UMPD	$2,500 PIP†	$91
Massachusetts	25/40/5	20/40 UMBI	$8,000 PIP	$60
Michigan	50/100/10	N/A	$0–unlimited PIP†	$118
Minnesota	30/60/10	25/50 UMBI	$40,000 PIP	$67
Mississippi	25/50/25	N/A	N/A	$59
Missouri	25/50/25	25/50 UMBI	N/A	$65
Montana	25/50/20	N/A	N/A	$45
Nebraska	25/50/25	25/50 UMBI	N/A	$52
Nevada	25/50/20	N/A	N/A	$63
New Hampshire *	25/50/25	25/50 UMBI $25,000 UMPD	$1,000 MedPay	$43
New Jersey	25/50/25	N/A	$15,000 PIP	$93
New Mexico	25/50/10	N/A	N/A	$54
New York	25/50/10	25/50 UMBI	$50,000 PIP	$122
North Carolina	30/60/25	30/30 UMBI $25,000 UMPD	N/A	$43
North Dakota	25/50/25	25/50 UMBI	$30,000 PIP	$73
Ohio	25/50/25	N/A	N/A	$49
Oklahoma	25/50/25	N/A	N/A	$60
Oregon	25/50/20	25/50 UMBI	$15,000 PIP	$70
Pennsylvania	15/30/5	N/A	$5,000 MedPay**	$53
Rhode Island	25/50/25	N/A	N/A	$67
South Carolina	25/50/25	25/50 UMBI $25,000 UMPD	N/A	$113
South Dakota	25/50/25	25/50 UMBI	N/A	$53
Tennessee	25/50/25	N/A	N/A	$59
Texas	30/60/25	N/A	N/A	$85
Utah	25/65/15	N/A	$3,000	$67
Vermont	25/50/10	50/100 UMBI $10,000 UMPD	N/A	$36
Virginia	30/60/30	25/50 UMBI $20,000 UMPD	N/A	$61
Washington	25/50/10	N/A	N/A	$65
West Virginia	25/50/25	25/50 UMBI $25,000 UMPD	N/A	$59
Wisconsin	25/50/10	25/50 UMPD	N/A	$42
Wyoming	25/50/20	25/50 UMBI	N/A	$29

* Required for drivers who choose to use car insurance to prove financial responsibility ** Referred to as First Party Benefit in Pennsylvania *** Kansas custom PIP limits include: * $4,500/person for medical expenses * $900/month for one year for disability/loss of income * $25/day for in-home service for one year * $2,000 for funeral, burial, or cremation expenses * $4,500 for rehabilitation expenses † PIP required for drivers who choose no-fault coverage in choice-fault states

Your vehicle's make and model

Each car has a unique risk profile and a specific replacement cost. According to Forbes, the Honda CR-V and Subaru Outback are among the cheapest models to insure, whereas luxury models like the Tesla Model Y are more expensive in terms of overall costs due to their increased repair costs 1.

As such, when examining your car insurance premiums, it’s also important to take a look at what type of vehicle you own and its model year. Here’s a list of 10 of the most popular models in the US and their corresponding average costs.

Model	Minimum coverage cost	Full coverage cost
Toyota Tacoma	$89	$171
GMC Sierra	$91	$205
Ford F-Series	$95	$169
Chevrolet Silverado	$95	$211
Honda CR-V	$100	$212
Toyota RAV4	$103	$229
Ram 1500	$104	$252
Toyota Camry	$116	$236
Tesla Model 3	$117	$362
Tesla Model Y	$118	$343

Your driving history

As far as insurance companies are concerned, your past driving behavior predicts your future risk of filing a claim. Drivers with a

clean driving record

often pay lower than average premiums, whereas dangerous behavior like speeding tickets and

DUI convictions

can raise your rates for years.

Some companies are more forgiving of violations than others, so it’s worth comparing rates to see if you’re overpaying. Take a look at some of the most common violations and the average rates drivers pay after these infractions across states.

Violation	Average monthly cost	% over average
Failure to stop	$163	13%
Cell phone use	$168	17%
Seatbelt violation	$168	17%
Defective equipment	$183	27%
Driving on suspended license	$208	44%
Speeding - Major	$248	72%
Careless driving	$275	91%
DUI	$281	95%

Learn more:

How to save on car insurance after a speeding ticket

How to avoid overpaying on car insurance

If you think you’re overpaying for car insurance, you’re not alone. In fact, car insurance costs are on the rise for all drivers.

Jerry

experts recently analyzed the American car insurance market and found that nearly 24% of drivers with a monthly insurance payment spend approximately 20% or more of their house-hold take home pay on premiums. As a result, 58% of Americans have cut their spending in other areas, including takeout, clothes shopping, and groceries2.

If you last shopped around pre-COVID, pre-house ownership, or pre-marriage, it’s definitely time to compare rates and consider switching from your current insurer—and the best way to do so is with the Jerry app.

Once you create your account, you can compare rates from dozens of providers, all tailored to your specific needs. That way, you can be sure you’re receiving the best rate for your driver profile. Even once you’ve found your ideal policy, it’s best to continue to run quotes every six months to ensure you’re continuously saving on your premium costs.

Learn more:

Shopping for car insurance like a pro

Other ways to save on car insurance

Explore discounts

Inquire with your insurer about potential

car insurance discounts

to lower your auto insurance rates. You may qualify for several discounts—which you can often stack.

Get a good student discount if you’re a full-time high school or college student with a B-average or better.

Most companies offer discounts for being a good driver with a

clean driving record

If you have anti-theft devices or complete a defensive driving course, you can also usually get discounts.

Raise your deductible

By shouldering more of the financial burden in the event of a claim, you can enjoy lower monthly auto insurance premiums. Just ensure you have enough savings set aside to cover the higher deductible if you need to make a claim.

Bundle your insurance

Combine your auto and homeowners insurance policies

with the same insurer to qualify for multi-policy discounts. Bundling can lead to significant savings, up to 25%. Plus, it’s a convenient way to streamline your coverage and lower your overall insurance costs.

Maintain good credit

Review your credit reports regularly, lower your credit card usage, dispute any errors, and practice responsible financial habits to boost your score. According to Experian, it can take 30 to 45 days to notice an initial bump in your score—and potentially months or years to recover from more serious credit issues3.

Shopping for insurance is easy with Jerry.

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FAQ

Is $100 a month too much for car insurance?

Our cost estimates show that on average, drivers pay approximately $121 per month for car insurance coverage. Paying around $100 per month for quality auto coverage is a good deal.

How do you know if you are overpaying on car insurance?

If it’s been a long time since you last got quotes or adjusted your coverage, you may be overpaying. Life changes like marriage or entering a new age bracket can alter your premiums. The only way to know is to compare rates from multiple companies. If you find a lower rate elsewhere, you can switch anytime.

Can I lower my car insurance?

Shopping around is the best way to find a lower car insurance rate. You can also adjust your coverage levels and deductibles, ask about

car insurance discounts

, and work to maintain a

clean driving record

Is it worth it to pay more for car insurance?

You’re only required to purchase

state minimum insurance coverage,

but increasing your liability limits and adding

full coverage options

are almost always good. Higher liability limits protect you from potential lawsuits and

collision

and

comprehensive coverage

pay for damage to your vehicle if you’re involved in an accident.

Do high-risk drivers pay more for insurance?

On average,

high-risk drivers

pay more for car insurance. If you have

speeding tickets

DUIs

, or other violations on your driving record, insurance companies will see you as a higher risk to insure and charge you a higher rate.

Does car insurance ever get lower?

You might notice your car insurance getting lower when you turn 25 or if violations on your record are no longer affecting your insurance premium. In general, though, economic factors tend to cause insurance rates to steadily increase across the country.

Why are auto rates so high in 2024?

Inflation, rising vehicle repair costs, supply chain shortages, and higher car accident rates all contribute to higher insurance rates (and higher claim payouts) in 2023.

Which auto insurance companies offer the lowest rates?

No one insurer offers the lowest rates for every driver, though

Progressive

and

GEICO

are often noted for offering great rates. The best way to find a low rate is to shop around and compare auto insurance quotes from at least 3–5 companies.

Is car insurance more for a new car?

Car insurance tends to

cost more for a new car

than a used one since new vehicles are more expensive to repair or replace.

Does my age affect my car insurance rate?

Your age will impact your car insurance rate unless you live in

, or HI. In

North Carolina

, age is only used for discounts for those 55+. Young drivers under 25 pay some of the highest insurance rates, while drivers 35-55 pay lower premiums. Rates tend to increase again after age 75 due to higher risk factors.

Does my zip code affect car insurance rates?

Your zip code will impact your car insurance rate. If you live in an area with a high population density, lots of traffic, or a high risk of theft, you’ll pay higher premiums than if you live in a rural area with a low accident risk.

Meet our experts

Bonnie Stinson

Bonnie Stinson is an insurance writer with 8+ years of experience as a content writer. They specialize in making complex topics like insurance and technology easy to understand. Bonnie has written over 1,300 articles to help people become confident car owners, from how to choose the right car and build a car insurance policy to dealing with stressful situations like car accidents and unexpected repairs.

Before joining Jerry’s editorial team, Bonnie worked as a digital media strategist and user experience researcher, producing content for Furnishr, STACKEDD Magazine, InfinityCore Health, and the global non-profit Giraffe Heroes.

Kianna Walpole

Expert Insurance Writer & Editor

Kianna Walpole is an insurance writer and editor with a comprehensive background in consumer behavior and online publishing. With experience in car insurance, maintenance, and repair, she is dedicated to building informative content that helps customers reduce costs while achieving the best service. Prior to joining the Jerry editorial team, Kianna worked as a junior editor in the content marketing industry, using consumer data and key insights to create and edit content for an array of large-scale clients in the real estate, cybersecurity, and healthcare industries.

SOURCES

https://www.forbes.com/advisor/car-insurance/average-cost-of-car-insurance/

https://getjerry.com/communication_assets/Jerry+2024+State+of+the+American+Driver+Report.pdf

https://www.equifax.com/personal/education/credit/score/articles/-/learn/raise-credit-scores-fast/