Many factors go into choosing your car insurance, and understanding more about the average cost of auto insurance might help you get the right coverage.
CarInsurance.com gathered rates from top insurance companies for different coverage levels to find out the average car insurance cost.
Keep reading to find out how much car insurance costs. See rates by state and coverage level and based on gender and vehicle make/model.
- The average cost of car insurance
- Car insurance rates based on coverage level
- Average car insurance cost, by company
- What’s the average cost of car insurance in your state?
- Average car insurance cost based on age and gender
- Average auto insurance rates by vehicle make and model
- Final thoughts on how much car insurance costs
The average cost of car insurance
The average cost of car insurance in the United States is $1,682 per year for 100/300/100 full-coverage insurance for drivers with a clean driving record and good credit score, based on a 2022 rate analysis by CarInsurance.com.
This is just an average; your actual costs could be higher or lower depending on your circumstances. However, knowing the average insurance cost helps you understand how much you can expect to pay.
Insurance companies have different ways of calculating premiums. This means the same driver could find varying quotes from insurance providers for the same coverage. For this reason, drivers need to shop around and compare quotes for the same coverage levels before purchasing a policy.
Car insurance rates based on coverage level
The cost of car insurance can vary significantly depending on your chosen coverage level. Drivers who only purchase liability insurance can expect to pay much lower premiums than those who opt for more comprehensive coverage.
However, the cheapest insurance option is not always the best. In an accident, drivers with only basic coverage may face more out-of-pocket expenses. On the other hand, a driver who has invested in a full coverage insurance policy can rest assured knowing that he or she will be covered.
Listed below is the average cost of car insurance for three coverage levels:
- State minimum liability requirements vary by state, and many states have super-low limits. But a typical amount is $25,000 for medical bills from injuries in an accident you cause, up to $50,000 per accident, with $25,000 for any property damage you cause (25/50/25).
- Liability limits of $50,000 for injuries you cause in an accident, up to $100,000 per accident, with $50,000 to pay for property damage (50/100/50).
- Full coverage with comprehensive and collision covers damage to your car, carrying a $500 deductible, $100,000 for injuries you cause in an accident, up to $300,000 per accident, and $100,000 for property damage (100/300/100).
Average car insurance cost, by company
Car insurance companies consider many variables when deciding on car insurance costs, such as location, age, driving record, etc. Each insurance company assesses these factors using its unique calculations for estimating the likelihood you’ll file a claim in the future.
That’s why rates for the same policy vary significantly from one insurance company to another. It is a good idea to explore your options and weigh the pros and cons of each insurer, including insurance prices, before deciding.
Here are the average annual car insurance rates from the nation’s major auto insurance providers for state minimum, liability-only and full coverage policies.
What’s the average cost of car insurance in your state?
Car insurance costs an average of $1,682 annually in the United States. However, there is a significant difference in rates from state to state, with some states experiencing significantly higher costs than others.
The average cost of car insurance in Ohio is $1,023 per year while the average annual cost in Florida is $2,560 for a full-coverage policy in 2022.
Where you live is one of the major factors car insurance companies use to determine insurance costs. They consider the number and cost of claims in your area and the frequency of theft and vandalism.
Insurers determine your rates depending on factors such as age, driving record, credit history, car type and other personal information.
Additionally, state laws differ in what is mandated as required coverage to drive. And generally, drivers in densely populated cities and urban areas pay more than those in rural areas.
Average car insurance cost based on age and gender
Regarding gender, teen females typically pay much less for car insurance than males. This is because, statistically, male drivers are more likely to be involved in accidents than female drivers, according to the Insurance Information Institute Fatality Facts 2020. Therefore, insurers charge higher premiums to cover the increased risk.
Some states, including Massachusetts, California, Hawaii, Pennsylvania, North Carolina, Montana, and Michigan, prohibit insurers from determining insurance rates based on gender.
Average auto insurance rates by vehicle make and model
Your car is an expensive investment, and getting the right coverage is important to keep it safe. Insurers consider your car’s model year, how safe the vehicle is, the rate of accident claims, and how much it costs to repair on average, along with other factors we’ve mentioned already.
Individuals pay higher premiums for newer models, vehicles with high retail prices and standard features.
Below are the top-selling vehicles in 2022 and know how much you can expect to pay for a full coverage car insurance policy.
Final thoughts on how much car insurance costs
Regardless of what insurance cost matches your situation, you can usually save money by comparison shopping.
You can also use our car insurance estimator tool to see a customized rate for your particular driver profile. And the average car insurance rates by ZIP code show costs for three different coverage levels for various ages and locations, for three coverage levels.
Resources & Methodology
- AAA Foundation “Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014-2015.” Accessed July 2022.
- Insurance Information Institute “Facts + Statistics: Highway safety.” Accessed July 2022.
- Kelly Blue Book “25 Best-Selling Cars of 2022…So Far.” Accessed July 2022.
CarInsurance.com commissioned Quadrant Information Services in 2022 to compile auto insurance coverage data by ZIP code for 2022 vehicles and a 40-year-old with a clean driving record (no recent moving violations/tickets) with full coverage insurance, a good insurance score and a 12-mile commute.