Average cost of car insurance in December 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

The average cost of car insurance varies between states for many reasons, and the coverage levels you choose play a significant role. Here, we cover the two most common coverage limits for a holistic view of average rates — full coverage and minimum coverage. It is typical for drivers who have leases or loans to have comprehensive and collision coverage, along with higher liability limits of 100/300/50, and for drivers of older cars to have liability-only limits at the state-required amounts.

Keep in mind that there are various degrees of coverage between these two options. Even if you are driving an older vehicle, liability coverage helps protect your financial future if you are found at fault for an accident. And insurance experts agree that carrying more liability coverage offers better financial protection. It’s a good idea to speak with a licensed insurance agent to better understand the limits that will work best for you. 

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.

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.

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 American National and MMG Insurance Co. But because car insurance companies have their own proprietary underwriting systems, the cost of car insurance for each individual will vary from carrier to carrier. This can make choosing an insurer a difficult decision. 

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 and minimum coverage premiums from some of the largest car insurance companies in the nation by market share. 

How much does car insurance cost by age and gender?

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. 

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 other things 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.

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.