Average cost of car insurance in September 2023

How much does car insurance cost by state?

On average, car insurance costs around $2,014 per year for full coverage and $622 per year for minimum coverage. However, when determining “how much does car insurance cost” in a specific area, the answer can vary depending on a variety of factors. The state where you live can influence accidents and claim reporting frequency, and even cost of labor and parts, which impact insurance premiums.

Average car insurance cost by state in 2023

What are the cheapest states for car insurance?

Drivers in Maine, Vermont, Idaho, New Hampshire and Massachusetts pay the cheapest annual full coverage car insurance rates in the nation, on average. Factors like cheaper cost of living, lower probability of accidents and claims, and less traffic congestion could contribute to these states' lower average premiums.

• Maine: $941 per year — 53 percent below national average
• Vermont: $1,061 per year — 47 percent below national average
• Idaho: $1,133 per year — 44 percent below national average
• New Hampshire: $1,162 per year — 42 percent below national average
• Massachusetts: $1,262 per year — 37 percent below national average

What are the most expensive states for car insurance?

Based on our research, drivers in Florida, New York, Louisiana, Nevada and Michigan have the highest average annual cost of full coverage car insurance. This could be due in part to frequent claims for common losses in these states, making drivers riskier to insure overall.

• Florida: $3,183 per year — 58 percent above national average
• New York: $3,139 per year — 56 percent above national average
• Louisiana: $2,909 per year — 44 percent above national average
• Nevada: $2,779 per year — 38 percent above national average
• Michigan: $2,691 per year — 34 percent above national average

How much does car insurance cost by company?

On average, car insurance from some of the top insurance carriers in the nation can range from around $1,300 to $2,600 per year for full coverage, the cheapest being from Geico and Erie. But because each auto insurance company has its own proprietary underwriting system, the cost of car insurance for each individual will vary from carrier to carrier. For drivers looking for the best car insurance company, keep in mind that the coverage you choose plays a role, too. The average cost of full coverage car insurance is about 224 percent more than minimum coverage.

The table below showcases the average annual and monthly full coverage premiums for some of the largest car insurance companies in the nation by market share. 

How much does car insurance cost by age?

Car insurance companies use many different rating factors to determine your premium, and in most states, your age may significantly impact how much you pay for coverage. Statistically speaking, younger drivers and the elderly are most likely to be involved in an accident due either to inexperience or a delayed response time when faced with a sudden hazard, so these groups usually pay the most for car insurance. 

The table below demonstrates the average cost of car insurance for various age groups. It’s important to note that your age will not affect your premium if you live in Hawaii, as state regulations prohibit auto insurers from using age as a rating factor. Massachusetts also prohibits the use of age as a rating factor, but does permit factoring the years of driving experience a person has. Since this often correlates with age — with newer drivers generally being younger — rates still vary between age groups in Massachusetts.

Car insurance costs for young drivers

How does gender impact the cost of car insurance? 

Gender also impacts your premium in most states. Men typically cost more to insure than women. This is because men generally engage in riskier driving behaviors than women and have a higher rate of accident severity, according to the Insurance Information Institute (Triple-I). However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina or Pennsylvania, your gender does not affect how much you pay for car insurance because of state regulations prohibiting this rating factor.

The table below shows the difference in premiums that men and women may expect to pay across different ages. Notice how the price difference between genders narrows as people get older, but starts to increase again once drivers hit their senior years. You may also be surprised to learn that 50-year-old women tend to pay slightly higher premiums than their male counterparts.

How does driving record impact the cost of car insurance?

How much does car insurance cost by credit score?

How much does car insurance cost by vehicle type?

The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are well-suited for a variety of lifestyles and budgets.

What factors affect my car insurance price?

In addition to your state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving record and gender (in most states), several other common rating factors will impact your auto insurance premium. By looking at these rating factors, car insurance companies can get a sense of your risk profile and what it might cost to insure you.

• Coverage selections: Your car insurance coverage options have a significant effect on your rate. If you select higher liability limits, choose lower deductible levels or add optional coverage types like comprehensive and collision coverage, your rates will likely be higher.
• Insurance history: If you’ve had continuous car insurance for the length of time you’ve been a licensed driver, you may pay lower rates. Lapses in your coverage (unless you did not own a car during that time) can be an indication of high-risk behavior and may increase your premium.
• Annual mileage: The more you drive, the more likely you are to get into an accident. Policyholders who drive fewer miles a year often qualify for lower rates (typically less than 7,500 miles per year, but it could vary by carrier).
• Number of policy members: Insuring multiple drivers on a policy may help lower rates. Data from Quadrant Information Services indicates that married couples pay 6 percent less than the national average for a full coverage policy and 4 percent less for minimum coverage. 

How to find the best car insurance prices

Buying car insurance doesn’t have to mean breaking the bank. Discounts are one of the best ways to lower your premium. Most major car insurance carriers offer discounts. Here are some of the most common insurance discounts in the U.S.