Average Cost of Car Insurance 2020

Fact-checked with HomeInsurance.com

5 min read
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The average cost of car insurance in the United States is $1,758 per year for full coverage. However, the exact cost of coverage varies from person to person, so if you’re wondering, “how much is car insurance for me,” you’ll need to do a little more research.

Car insurance rates depend on many factors, including the level of coverage you choose (liability vs. full), driving history, type of vehicle and the geographic area where you live.

Though car insurance can be expensive, maintaining coverage on your vehicle is a worthwhile investment. If you shop around, you’ll find that there are many discounts available to help you save while protecting your car

Average Car Insurance Costs by Company

The cost of car insurance varies from carrier to carrier. Although some providers may feature lower rates, their levels of coverage may also be less than other providers who offer more expensive rates on average.

To find the best policy, get quotes from different providers to compare rates and features.

Insurance Provider Average Annual Premium
Allstate $1,758
Farmers $1,351
Geico $901
Nationwide/Allied $1,227
Progressive $1,415
State Farm $1,313

Car insurance rates by state

The average annual premium varies by location. Different states have different rates, and even your zip code can influence your costs. Premiums are affected by local factors including the amount of traffic and accidents in the area and crime rate.

Below is the average cost for car insurance in each state.

State Average Car Insurance Rate
Alabama $1,724
Alaska $1,533
Arizona $1,791
Arkansas $1,744
California $2,135
Colorado $1,973
Connecticut $2,010
Delaware $1,959
Florida $2,178
Georgia $1,873
Hawaii $1,589
Idaho $1,269
Illinois $1,531
Indiana $1,270
Iowa $1,360
Kansas $1,669
Kentucky $2,385
Louisiana $2,608
Maine $1,062
Maryland $1,842
Massachusetts $1,466
Michigan $3,466
Minnesota $1,620
Mississippi $1,681
Missouri $1,805
Montana $1,963
Nebraska $1,493
Nevada $2,486
New Hampshire $1,070
New Jersey $2,001
New Mexico $1,605
New York $1,759
North Carolina $1,425
North Dakota $1,565
Ohio $1,197
Oklahoma $1,822
Oregon $1,548
Pennsylvania $1,700
Rhode Island $1,688
South Carolina $1,620
South Dakota $1,614
Tennessee $1,477
Texas $1,823
Utah $1,515
Vermont $1,374
Virginia $1,194
Washington $1,640
West Virginia $1,653
Wisconsin $1,320
Wyoming $1,721

When deciding the amount of coverage you want, you can opt for liability coverage that meets your state’s minimum standards, or you can select full, comprehensive coverage.

Liability coverage pays for all damages you cause to others but does not cover damages to you or your vehicle caused by others. Comprehensive or full coverage includes paying for the damages you cause to others, as well as damages to you or your car.

The laws surrounding auto insurance change quite a bit from state to state, so check local legislation when shopping for car insurance.

Additional factors that determine your rate

Once you determine the coverage options you want your insurance policy to include, consider the other factors that can affect the cost of your annual premium. Car insurance carriers take into account a variety of factors that deal with your car’s value and the likelihood of you being involved in an accident. Some of these factors include:

  • Geographic location: The area where you reside plays a significant role in determining the price of your car insurance. Living in certain cities and even neighborhoods can impact the cost of coverage significantly. For example, in New York, Brooklyn neighborhoods see the highest average premiums because of their high population density, increased risk of car break-ins and theft and a higher number of commuters. Meanwhile, Manhattan drivers pay less because the area is more apt to use public transportation to get around.
  • Type of car: The type of car you drive can impact the cost of your car insurance policy because it’s based, in part, on the value of your car. If you have a brand new, expensive sports car, it will cost more to replace or repair it, so your premium will likely cost more. On the other hand, if you have an older car, you may see costs fall. The premium can also vary based on the vehicle’s safety and theft ratings.
  • Driving history: One of the easiest ways to see your car insurance premium skyrocket is by getting into car accidents or accumulating traffic tickets. These negative incidents indicate to your insurance carrier that you are a higher-risk driver.
  • Credit score: The statistics show that drivers with poor credit file more claims, and more expensive claims, than drivers with good credit.
  • Age: Age is a particularly important factor in determining your car insurance premium if you’re a young driver. Data shows that teenage drivers are more reckless and become involved in more accidents than any other age group. Therefore, young drivers face much higher premiums when compared to older drivers.
  • Gender: Though only relevant for those drivers under the age of 25, gender can play a role in how much you pay for car insurance. Male drivers 24 and younger pay an average of $10 less per year for their car insurance than their female counterparts.

How to save money on car insurance

Most car insurers carriers provide discounts to reduce the cost of annual insurance premiums. The list that follows is by no means exhaustive, so be sure to ask your local insurance agent about any other discounts that may apply in your situation. Common discounts offered by many providers include:

  • Safe driver discounts: Most car insurance providers offer safe driver discounts for drivers who have completed an eligible safety course within the past couple of years.
  • Multi-car discounts: If your household has multiple vehicles, consider placing them all on one insurance policy to qualify for multi-car discounts.
  • Bundling insurance policies: You can often score better insurance premiums overall when you bundle your car insurance policy with a life or renter’s insurance policy.
  • Good student discounts: Many insurance carriers offer discounts for young drivers with good grades in school. For example, Nationwide extends its good student discount to those drivers aged 16-24 enrolled full-time in high school or college who sustain a B average. You’ll need to provide academic evidence in the form of an up-to-date grade report or a form signed by a school administrator.
  • Paying the annual lump sum: If you can afford to pay your annual car insurance premium at once, you’ll likely save money. Many insurance companies provide a discount for those drivers willing to pay upfront because it is more convenient and requires less processing for them.
  • Frequently asked questions

    What discounts are available for car insurance?

    From taking safe driving courses to bundling your car insurance policy with other policies like renters insurance to installing anti-theft devices, there are a variety of ways for you to save. Ask your carrier about the insurance discounts they offer to see how you can qualify.

    Is full-coverage liability worth it?

    Full-coverage liability is worth it, especially if you spend a lot of time driving, you’re still making payments on the vehicle, or if your car has a high cash value. The only advisable time to stick to the bare state minimum requirements is if the car is paid in full and its overall value is not worth the annual premium.

    Who pays more for car insurance, men or women?

    On average, women pay $1,480 for annual car insurance premiums, while men pay an average of $1,470 per year. However, when it comes to men under 25, there’s no doubt about it–they average paying about 14% more than women in the same age bracket.

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

    To find the best rate for car insurance, shop around for personalized quotes from different auto insurance providers. By comparing quotes from different providers, you’ll be able to choose the one that best fits your needs behind the wheel.