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

What’s happening with auto insurance rates in 2023?

Car insurance rates are going up in 2023

as a result of rising repair costs, inflation, catastrophic weather events, and an increasing number of car accidents on the road.

The average annual cost of auto insurance in 2021 was $1,796 for a full coverage policy. As of September 2023, a

full coverage car insurance policy

costs drivers an average of $2,264 per year. That’s an increase of 26% in just two years.

While it’s normal to see a small increase in insurance prices each year, auto rates are growing faster than normal in 2023.

With the average cost of car insurance on the rise, finding savings is more important than ever. Compare quotes from at least three to five insurance providers to find the best rates.

Inflation. While some of the growth in auto insurance rates can be explained by post-pandemic adjustments, inflation is driving up the cost of replacement pairs, mechanics’ labor charges, and other car-related costs.

Learn more:

The 10 best car insurance companies in 2023

Drivers under 25 and over 70 have the highest average car insurance rates

Age is one of the biggest factors that auto insurance companies use to set premiums. The table below compares average rates for different age groups:

Age	Average cost of full coverage	Average cost of minimum coverage
18	$4,680	$2,375
25	$2,566	$1,772
35	$2,274	$1,457
45	$2,016	$1,378
55	$1,875	$1,408
65	$1,572	$1,396
70	$1,721	$1,345

The two most expensive age groups to insure are

teen drivers

and

seniors over 70

. Here’s why:

Teens are still learning to drive: According to IIHS, the fatal crash rate for drivers aged 16 to 19 is almost three times higher than the average for other age groups. The result: higher rates than more experienced drivers.

Older drivers are more susceptible to injuries: IIHS data shows that fatal crashes rise dramatically after age 70. It’s not that older drivers are less capable than young drivers—but they’re more likely to be seriously injured in a collision.

Learn more:

Cheap car insurance for college students

Car insurance is cheapest in the Midwest and rural areas

Average car insurance rates vary from state to state—and from region to region. The state with the cheapest average rates is Vermont, while New York takes the top spot as the most expensive state for car insurance.

Cheapest car insurance by region

The cheapest place to buy car insurance is the Midwest, where the average annual full coverage premium is $1,950. That’s $314 less than the national average!

Region	Average cost of full coverage	Average cost of state minimum coverage
Midwest	$1,950	$1,355
West	$2,141	$1,425
South	$2,551	$1,643
Northeast	$2,326	$1,670

Across all regions, car insurance costs most in urban areas, where a high rate of accidents and auto theft contribute to higher premiums.

Take the rates in the table below as an example: we’ve paired the average cost of car insurance coverage in the nation’s 10 biggest cities with rates in rural areas in the same states. On average, we saw a 51.6% increase in major cities compared to rural towns.

City	Average annual rate	Small town	Average annual rate
New York City	$5,166	Potsdam	$1,943
Los Angeles	$2,236	Cambria	$1,920
Chicago	$2,432	Macomb	$1,859
Houston	$2,831	Hallettsville	$2,231
Phoenix	$2,093	Kingman	$1,771
Philadelphia	$3,491	Tunkhannock	$1,500
San Antonio	$2,605	Bishop	$1,344
San Diego	$2,411	Temecula	$2,278
Dallas	$2,676	Sweetwater	$2,117
San Jose	$2,597	Dos Palos	$2,640

America’s 10 most popular cars cost an average of $1,998 to insure

Three major factors affect the cost of insuring any vehicle type:

Actual cash value: The price of collision and comprehensive insurance is based on the actual cash value (ACV) of the vehicle—the more you paid for your car, the more you’ll pay to insure it.

Safety equipment and ratings: Safer vehicles, like

modern crossover SUVs

, have a lower likelihood of generating expensive insurance claims compared to risky rides like

sports cars

Model year: Older cars typically cost less to insure than brand-new models.

Model	Average cost of full coverage
Honda CR-V	$1,764
GMC Sierra	$1,776
Toyota Tacoma	$1,776
Ford F-150	$1,824
Toyota RAV4	$1,824
Toyota Highlander	$1,944
Chevrolet Silverado	$1,992
Toyota Camry	$2,196
RAM 1500	$2,244
Tesla Model Y	$2,640

Choose a car that keeps your insurance costs low:

Vehicles equipped with all-wheel drive (AWD) see a lower rate of insurance claims and cheaper policies.

Up-to-date safety features and high ratings from the

National Highway Traffic Safety Administration (NHTSA)

and Insurance Institute for Highway Safety (IIHS) generally lead to lower auto insurance costs.

Small SUVs have the lowest average car insurance prices thanks to strong safety ratings and affordable replacement components.

Learn more:

The 10 cheapest cars to insure in 2023

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Why your car insurance quotes are so high (and how to lower them)

Unfortunately, it’s normal to see high car insurance rates in 2023—but if you’re only able to find super-expensive quotes, it’s time to do some digging to uncover the reasons.

When you purchase a car insurance policy—or when your existing policy is

up for renewal

—your insurance company analyzes a ton of information to determine how much to charge you. That information includes:

Your personal information (name, age, marital status, and address)

Your driving history, including any past violations or at-fault accidents

Your insurance history, including any past claims or coverage lapses

Your coverage selections and deductibles

Your vehicle and its annual milage

Your eligibility for insurance discounts

Your credit score (in most states)

Start by comparing quotes from as many companies as possible. The Jerry app allows you to upload documents and enter your car’s exact VIN to get the most accurate quotes. You can also turn on discounts to make sure they’re applied to your quotes.

If you have any violations from the last five years—from a speeding ticket to a DUI—be sure to enter that information accurately. Any inconsistencies between your answers and the official documents could result in a rate increase when you go to buy.

If you own your home

Once you’ve got quotes, review your coverage options and costs to determine which level of coverage is the best for your family.

Bundling car and homeowners insurance

is one of the most powerful ways to effectively lower your rates, it's like a two-for-one deal that can seriously shrink your costs.

Use the Jerry app to see if you could save by bundling your insurance.

Keep in mind:

Full coverage auto insurance is required for all financed and leased vehicles.

Adding collision insurance and comprehensive coverage to your policy costs more than raising your liability coverage limits to fit your assets.

You can’t buy less bodily injury and property damage liability than the minimum coverage requirements set by your state’s insurance laws.

In most cases, a policy that includes comprehensive, collision, and $50k/$100k/$50k liability coverage offers the best mix of coverage and savings for drivers without significant assets, while $100k/$300k/$100k offers a higher level of liability protection. Avoid a liability-only policy unless you can’t afford anything else.

Avoid unnecessary add-ons: Rental car reimbursement, paid accident forgiveness, and roadside assistance are all great things to have on a policy. But if it’s crunch time and you’re trying to save, you can usually afford to drop them for a while.

Learn more:

Why is my car insurance so high?

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FAQs

Is $100 a month too much for car insurance?

No. If you pay $100 a month for car insurance, you’re paying an annual rate of $1,200—well below the national average for most drivers.

How much is car insurance on average?

Car insurance costs drivers in 2023 an average of $2,264 per year or $189 per month.

What does car insurance cover?

A standard auto insurance policy protects you financially through liability insurance and will also cover damage to your vehicle if you buy collision coverage and comprehensive coverage.

What percentage of Americans have car insurance?

About 12.6% of American drivers don’t carry any car insurance, according to a 2021 study by the Insurance Research Council. That’s one in eight motorists uninsured.

Is it cheaper to pay car insurance annually or monthly?

Most car insurance companies offer a discount to policyholders who pay their annual premium in full. However, monthly costs may be more manageable and can reduce the up-front cost of buying a new policy.