Average cost of car insurance for 2021

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Car insurance is not always cheap, but all states besides New Hampshire and Virginia require coverage. In the United States, the average cost of full coverage car insurance is $1,674 per year, or $139.50 per month. However, the cost varies significantly based on location and personal factors, like your age and credit score.

Coverage is available at different options, and your coverage requirements will depend on your personal situation and comfort level. You may have an older vehicle that is not financed and feel comfortable with the minimum insurance limits required by your state. Or you may carry full coverage that offers more robust insurance coverage in the event of a claim.

If you find yourself asking “How much is car insurance?” Bankrate’s insurance editorial team can help. We utilize Quadrant Information Services to provide up-to-date rates for minimum coverage and full coverage car insurance to help you determine how much your car insurance might cost.

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Key car insurance facts

The national average cost of car insurance in the U.S. is $1,674 a year or $139.50 per month

Americans spend about 2.44% of their household income on car insurance every year.

Car insurance rates are on the rise, increasing an average of 4.68% over the most recent 5 years of data.
A DUI will increase your annual premium by an average of $1,203 per year, an accident will increase it by about $625 and a speeding ticket will increase it by about $195.

Average car insurance cost by state

The answer to the question “How much does car insurance cost?” is not as straightforward as you might think. There are numerous factors that can impact how much you pay, including the state you live in.

Most expensive states for car insurance

Louisiana has the highest average cost of full coverage auto insurance at $2,724 annually or $227 per month. Louisianans also pay the highest percentage of their median household income toward car insurance, a whopping 5.27%. Other high-cost states are Florida, New York, Michigan and Nevada.

Average cost of full coverage car insurance
State Annual cost Monthly cost % of median household income spent
Louisiana $2,724 $227 5.27%
Florida $2,364 $197 4.05%
New York $2,321 $193 3.23%
Michigan $2,309 $192 3.60%
Nevada $2,246 $187 3.17%

Least expensive states for car insurance

Maine has the lowest average cost of full coverage car insurance, at $965 per year or about $80 per month, which is just 1.45% of their median household income. Other low-cost states are Ohio, Idaho, Hawaii and Washington.

Average cost of full coverage car insurance
State Annual cost Monthly cost % of median household income spent
Maine $965 $80 1.45%
Ohio $1,034 $86 1.60%
Idaho $1,045 $87 1.58%
Hawaii $1,127 $94 1.28%
Washington $1,176 $98 1.43%

Car insurance rates by state

The average car insurance cost varies by location. Different states have different rates. Even within a state, your ZIP code can influence your premium. Car insurance rates are affected by local factors, including traffic, accidents in the area and the crime rate.

Average cost of full coverage car insurance
State Annual cost Monthly cost % of median household income spent
Alabama $1,623 $135 2.89%
Alaska $1,559 $130 1.99%
Arizona $1,547 $129 2.19%
Arkansas $1,914 $160 3.51%
California $2,065 $172 2.64%
Colorado $2,016 $168 2.78%
Connecticut $1,845 $154 2.11%
Delaware $1,775 $148 2.39%
Florida $2,364 $197 4.05%
Georgia $1,982 $165 3.50%
Hawaii $1,127 $94 1.28%
Idaho $1,045 $87 1.58%
Illinois $1,485 $124 2.00%
Indiana $1,254 $105 1.88%
Iowa $1,260 $105 1.91%
Kansas $1,698 $142 2.32%
Kentucky $2,128 $177 3.82%
Louisiana $2,724 $227 5.27%
Maine $965 $80 1.45%
Maryland $1,877 $156 1.96%
Massachusetts $1,223 $102 1.39%
Michigan $2,309 $192 3.60%
Minnesota $1,643 $137 2.02%
Mississippi $1,782 $149 3.98%
Missouri $1,661 $138 2.74%
Montana $1,737 $145 2.89%
Nebraska $1,531 $128 2.10%
Nevada $2,246 $187 3.17%
New Hampshire $1,275 $106 1.47%
New Jersey $1,757 $146 2.00%
New Mexico $1,419 $118 2.67%
New York $2,321 $193 3.23%
North Carolina $1,325 $110 2.17%
North Dakota $1,264 $105 1.80%
Ohio $1,034 $86 1.60%
Oklahoma $1,873 $156 3.15%
Oregon $1,346 $112 1.81%
Pennsylvania $1,476 $123 2.09%
Rhode Island $2,018 $168 2.88%
South Carolina $1,512 $126 2.44%
South Dakota $1,642 $137 2.56%
Tennessee $1,338 $112 2.36%
Texas $1,823 $152 2.70%
Utah $1,306 $109 1.55%
Vermont $1,207 $101 1.62%
Virginia $1,304 $109 1.60%
Washington $1,176 $98 1.43%
West Virginia $1,499 $125 2.79%
Wisconsin $1,186 $99 1.76%
Wyoming $1,495 $125 2.30%

Average car insurance cost by company

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The cost of car insurance varies from carrier to carrier. Although some providers are known for offering cheaper rates, their coverage options may also be less than other auto insurance providers who offer more expensive rates on average. To find the best car insurance company for your needs, get quotes from different providers to compare rates and features.

Average cost of full coverage car insurance by car insurance company
Insurance provider Annual cost Monthly cost
Allstate $1,921 $160
Amica $1,378 $115
Auto-Owners $1,351 $113
Geico $1,405 $117
Erie $1,233 $103
Farmers $2,000 $167
Nationwide $1,485 $124
Progressive $1,509 $126
State Farm $1,457 $121
Travelers $1,325 $110
USAA $1,225 $102

When deciding on the amount of coverage you want, you can opt for liability, PIP and other coverages that meet your state’s minimum standards, or you can select different options that give you more coverage.

Liability coverage pays for damages and injuries you cause to others but does not cover repairing your vehicle from a covered claim. Full coverage car insurance includes coverage to your vehicle in addition to paying for the damages or injuries you cause to others from an at-fault accident. You may also be able to add “optional” coverages, like roadside assistance or rental reimbursement coverage to help transport your vehicle if it breaks down or if you need a rental car while yours is being repaired from a covered claim.

Average car insurance cost by manufacturer

In addition to the state you live in and the car insurance company you choose, the type of vehicle you drive will have a large impact on your car insurance. Different vehicles have different insurance considerations. The price and availability of parts, the price of labor, the statistical likelihood of accidents and the vehicle’s safety and crash prevention features could all influence the premium you will pay. The vehicle makes and models in the table below are the five most popular vehicles in the country.

Top-selling rank Make and model Average annual full coverage premium
1 Ford F-150 $1,442
2 Chevrolet Silverado $1,682
3 Ram 1500 $1,697
4 Toyota RAV4 $1,510
5 Honda CR-V $1,369

Average cost of car insurance by age

Age is perhaps one of the biggest factors for how much you will pay for car insurance. Generally, the younger the driver, the more expensive the car insurance. Drivers will typically pay more than the national average of $1,674 until they reach about age 40. Teenage drivers have crash rates that are almost four times that of more experienced drivers. Insurance companies are aware of the fact that teens and young drivers — as well as the elderly — are more likely to get in an accident, so the car insurance costs that these drivers pay are typically higher to compensate for the greater risk.

There are options available that can help offset increased rates for younger, inexperienced drivers. Usage-based driving programs, good student and away at school discounts and drivers training programs may help reduce some of these increased rates to help keep budget expenses lower while drivers gain more experience behind the wheel.

Average cost of full coverage car insurance by age
Age Annual cost Monthly cost
16-year-old $4,178 $348
18-year-old $5,243 $437
25-year-old $2,108 $176
30-year-old $1,850 $154
40-year-old $1,674 $140
60-year-old $1,544 $129

*Combined 2021 rate for teen ($2,531) added on parents’ auto insurance policy
*18-year-old driver rate reflects renters (not homeowners) calculated on their own policy.

Average cost of car insurance by driving record

Your driving record also helps determine how much you will pay for car insurance. After a driving violation, your insurance company will likely view you as a more high-risk driver and will increase your premium accordingly. The severity of your infraction and how many incidents you have on your record will impact how much your car insurance premium increases. For example, the average full coverage premium increases over $1,400 per year after a DUI conviction, but only by $388 annually for a speeding ticket.

Average cost of full coverage car insurance by driving record
Driving record Annual premium Monthly cost % more expensive than national average Amount more expensive than the national average
Clean driving record $1,674 $140 0% $0
DUI conviction $3,139 $262 87% $1,465
At-fault accident $2,311 $193 38% $637
Speeding ticket $2,062 $172 23% $388

Average cost of car insurance for men and women

Gender also plays a role in the cost of auto insurance in most states, with men typically being more expensive to insure than women at younger ages. An 18-year-old male will pay 14% more than a female, but by age 25, a male pays only 7% more. Men generally engage in riskier driving behaviors than women, including driving under the influence of drugs or alcohol, not wearing a seatbelt and speeding, all of which can lead to more severe accidents.

However, not all states allow gender to be a factor in rates, including California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Male Female Difference Percent difference between rates
18-year-old $5,646 $4,839 $807 14%
25-year-old $2,181 $2,036 $145 7%
40-year-old $1,648 $1,701 $53 3%
60-year-old $1,552 $1,537 $15 1%

Additional factors that determine your rate

Car insurance providers look at a variety of factors when determining the cost of your car insurance. In addition to your state, vehicle type, age, driving record and gender, the following factors will impact your car insurance premium.

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 take advantage of optional coverages, your rates will likely be higher.

Credit score

The statistics show that drivers with poor credit file more claims and more expensive claims than drivers with good credit. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on a variety of factors; it will likely not exactly match the scores from Experian, TransUnion or Equifax. The table below showcases how credit can affect your annual full coverage car insurance premium.

California, Hawaii, Massachusetts, Michigan and Washington do not allow credit to be factored when setting insurance rates.

Poor Average Good Excellent
National average $3,873 $1,865 $1,674 $1,487

How to save money on car insurance

Most car insurance carriers provide discounts that can lower the cost of your insurance premium. The exact discounts vary among insurance providers, but there are a handful of standard auto insurance discounts that many companies offer. When you buy an insurance policy, make sure to ask an agent about all the savings available to you. Here are some of the most common insurance discounts:

  • Claims-free: Drivers who have no claims on their record in the past several years usually qualify for savings.
  • Bundling insurance policies: You can often reduce your car insurance premium when you bundle your car insurance policy with a home insurance policy.
  • Good student discounts: Many insurance carriers offer discounts for young drivers with good grades in school.
  • Paying in full: If you can afford to pay your car insurance premium in full, you may save money.

Because every company offers a different suite of discounts, talking with a representative about your situation might help you find multiple savings opportunities.

Frequently asked questions

What discounts are available for car insurance?

There are a lot of discounts available for car insurance. Some examples are maintaining a clean driving record, bundling your insurance policies, having an anti-theft device in your car and paying your premium in full. Consider asking your carrier about the auto insurance discounts it offers to see how you can qualify.

Is full coverage insurance worth it?

Full coverage car insurance means you are adding coverage for damage to your own vehicle by adding comprehensive and collision coverages. Bankrate also defines full coverage as having higher liability limits. In many circumstances, full coverage car insurance is worth it. It is typically more expensive than minimum coverage, but it can help you pay for the cost of your vehicle repairs or replacement after a covered loss. It may also be worth noting that full coverage can be required if your car is financed or leased.

How can I find the best rate for my car insurance premium?

To find the best car insurance rate, it may help to shop around and get quotes from different auto insurance providers. By comparing quotes from different providers, you could find the coverage you are looking for at a more competitive price.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age:
*2021 rates for 16-year-old are based on a driver of this age added to their parents’ policy.
*2021 rates for 18-year-old are based on a driver of this age that is a renter (not a homeowner).

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base).

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA, MI, WA

Written by
Cate Deventer
Insurance Editor
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in professional and technical writing from Indiana University East. She began writing for Bankrate in January 2021 and has nearly a decade of experience in the insurance industry as a licensed insurance agent. Cate has worked with over a dozen insurance companies and is experienced with auto, home, flood, umbrella and life insurance.
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