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Annual Report

The true cost of auto insurance in 2022

The true cost of car insurance refers to the average proportion of income drivers spend on auto insurance coverage. Nationally, drivers spend an average of $1,771 per year on full coverage car insurance, which accounts for 2.57% of the average American’s annual income. The average annual income in the United States is $68,852, according to data collected from the U.S. Census Bureau. The average percentage individuals spend on their car insurance varies widely by state and metropolitan area, and the regions where car insurance has the greatest impact on drivers’ finances may surprise you.

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AVERAGE ANNUAL PREMIUM

$1,771

PERCENT OF INCOME SPENT

2.57%

HIGHEST TRUE COST

Louisiana

LOWEST TRUE COST

Hawaii

Highlights

Nationally, drivers spend nearly 3 percent of their annual income insuring their cars on average. Drivers in Louisiana, which has the highest true cost of auto insurance in the country according to our study, spend even more, doling out more than 5 percent of their annual income to insure their cars. Maine drivers, who enjoy the lowest true cost of car insurance in 2022, spend just over 1 percent of their income on car insurance.
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How much do Americans pay for auto insurance?

State
True Cost rank
Average annual full coverage premium
Percent difference from national average
Alabama 41 $1,760 0.57%
Alaska 19 $1,686 -0.40%
Arizona 31 $1,743 0.08%
Arkansas 42 $1,806 0.83%
California 30 $2,190 0.00%
Colorado 29 $2,019 -0.03%
Connecticut 11 $1,533 -0.69%
Delaware 34 $1,963 0.18%
Florida 49 $2,762 1.85%
Georgia 39 $1,985 0.48%
Hawaii 1 $1,206 -1.16%
Idaho 8 $1,065 -0.89%
Illinois 18 $1,548 -0.41%
Indiana 15 $1,242 -0.59%
Iowa 13 $1,254 -0.63%
Kansas 33 $1,802 0.18%
Kentucky 45 $1,954 0.92%
Louisiana 50 $2,864 2.69%
Maine 2 $876 -1.13%
Maryland 17 $1,931 -0.46%
Massachusetts 3 $1,296 -1.12%
Michigan 47 $2,345 1.18%
Minnesota 21 $1,692 -0.37%
Mississippi 44 $1,701 0.89%
Missouri 37 $1,861 0.42%
Montana 40 $1,795 0.51%
Nebraska 25 $1,538 -0.21%
Nevada 46 $2,426 1.17%
New Hampshire 5 $1,182 -1.10%
New Jersey 20 $1,891 -0.40%
New Mexico 32 $1,489 0.15%
New York 48 $2,996 1.30%
North Carolina 23 $1,392 -0.33%
North Dakota 12 $1,225 -0.66%
Ohio 14 $1,200 -0.63%
Oklahoma 43 $1,902 0.86%
Oregon 16 $1,371 -0.58%
Pennsylvania 36 $2,002 0.40%
Rhode Island 26 $1,847 -0.08%
South Carolina 28 $1,464 -0.06%
South Dakota 27 $1,542 -0.08%
Tennessee 24 $1,383 -0.23%
Texas 35 $1,868 0.21%
Utah 9 $1,449 -0.72%
Vermont 6 $1,000 -1.09%
Virginia 4 $1,340 -1.11%
Washington 7 $1,313 -0.97%
West Virginia 38 $1,527 0.46%
Wisconsin 10 $1,249 -0.70%
Wyoming 22 $1,510 -0.34%
Metro
True Cost rank
Average annual full coverage premium
Atlanta 15 $2,084
Baltimore 10 $2,064
Boston 1 $1,328
Charlotte 7 $1,480
Chicago 8 $1,622
Dallas 13 $1,899
Denver 12 $2,103
Denver 23 $2,872
Houston 16 $1,994
Los Angeles 20 $2,477
Miami 25 $3,508
Minneapolis 6 $1,722
New York 21 $3,082
Orlando 22 $2,510
Philadelphia 19 $2,395
Phoenix 14 $1,845
Portland 4 $1,452
Riverside-San Bernardino 18 $2,083
San Antonio 17 $1,824
San Diego 9 $1,968
San Francisco 5 $2,190
Seattle 2 $1,426
St Louis 11 $1,742
Tampa 24 $3,017
Washington DC 3 $1,664
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Factors that impact the cost of your car insurance

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Credit tier Average annual premium
Poor credit $3,002
Average credit $1,907
Good credit $1,771
Excellent credit $1,556
*Premium listed for full coverage policies
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The current and future state of auto insurance

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Inflation may continue to push premiums upwards