The median car policy cost in 2021 is $ 2,646 per class, which breaks down to approximately $ 221 per month. That ‘s the overall average, but it can change quite a spot depending on a kind of factors, including historic period, drive record, and location. How much of an impact do those factors have on a driver ‘s car policy rates ? The Ascent, a Motley Fool service, pulled the most recent data to find out. Keep read for a detail attend at what drivers are paying across the nation .
Key findings
- Americans pay an average of $2,646 in annual auto insurance premiums.
- Standard coverage ($2,915) costs almost four times as much on average as minimum coverage ($764).
- The Mid-Atlantic has the highest regional average for car insurance ($3,016). The non-mainland states have the lowest ($1,631).
- Michigan has the highest average car insurance premiums across the board, while Hawaii has the lowest average for car insurance at $1,096
- Drivers with poor credit pay over twice as much for car insurance as drivers with excellent credit in states that allow carriers to use credit history when setting rates.
- Young drivers pay much higher car insurance premiums, with an average annual cost of $5,988 for 18-year-olds.
- GEICO and USAA have the cheapest auto insurance rates among major providers.
National average cost of car insurance
|
National average car insurance paid annually |
National average car insurance paid twice per year |
National average car insurance paid monthly |
|---|---|---|
|
$2,646 |
$1,323 |
$221 |
Data source : quadrant information Services.
Americans pay an average car indemnity cost of about $ 221 per month. Since that ‘s an overall average, it includes everyone, from drivers with immaculate records to those who have had accidents, a poor people accredit history, or other issues. Drivers with good accredit and clean driving records can often qualify for cheap car insurance. however, this besides depends on where they live and the type of coverage they want .
National average cost of car insurance by coverage type
|
Coverage type |
Average annual auto insurance premium |
Average monthly auto insurance premium |
|---|---|---|
|
Minimum coverage |
$764 |
$64 |
|
Standard coverage |
$2,915 |
$243 |
minimum coverage provides insurance adequate to the minimal total required by the state where the driver lives. Each country has its own requirements. There are two states, New Hampshire and Virginia, where drivers are n’t required to have car insurance. They do have minimum coverage requirements for drivers who choose to purchase indemnity. A standard coverage policy policy generally includes three different types of car policy coverage :
- Liability coverage for medical and repair costs sustained by other parties if the driver is responsible for an accident.
- Collision coverage for the cost of repairing or replacing the driver’s vehicle in the event of a collision with another vehicle or an object.
- Comprehensive coverage for repair or replacement costs that aren’t related to a collision.
Average cost of car insurance by region
|
Region |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Mid-Atlantic (DC, DE, MD, NJ, NY, PA, VA, WV) |
$3,016 |
$251 |
|
Southeast (AL, AR, FL, GA, LA, MS, NC, SC, TC) |
$2,745 |
$229 |
|
Southwest (AZ, CO, NM, OK, TX, UT) |
$2,670 |
$223 |
|
Midwest (IA, IL, IN, KS, KY, MI, MN, MO, ND, NE, OH, SD, WI) |
$2,511 |
$209 |
|
West (CA, NV) |
$2,433 |
$203 |
|
Northeast (CT, MA, ME, NH, RI, VT) |
$2,433 |
$203 |
|
Northwest (ID, MT, OR, WA, WY) |
$2,136 |
$178 |
|
Non-mainland (AK, HI) |
$1,631 |
$136 |
Data source : quadrant information Services .
The Mid-Atlantic has the most expensive car indemnity rates, and it ‘s the only area with an average higher than $ 3,000. Auto indemnity is much more low-cost in the non-mainland states of Alaska and Hawaii .
Average car insurance cost by state
|
State |
Average annual car insurance rate |
Average monthly car insurance rate |
|---|---|---|
|
Alabama |
$2,482 |
$207 |
|
Alaska |
$1,758 |
$147 |
|
Arizona |
$2,668 |
$222 |
|
Arkansas |
$2,671 |
$223 |
|
California |
$2,346 |
$196 |
|
Colorado |
$2,602 |
$217 |
|
Connecticut |
$3,435 |
$286 |
|
Delaware |
$3,175 |
$265 |
|
District of Columbia |
$3,040 |
$253 |
|
Florida |
$3,997 |
$333 |
|
Georgia |
$2,736 |
$228 |
|
Hawaii |
$1,096 |
$91 |
|
Idaho |
$1,901 |
$158 |
|
Illinois |
$2,183 |
$182 |
|
Indiana |
$1,778 |
$148 |
|
Iowa |
$1,728 |
$144 |
|
Kansas |
$2,428 |
$202 |
|
Kentucky |
$3,413 |
$284 |
|
Louisiana |
$4,312 |
$359 |
|
Maine |
$2,340 |
$195 |
|
Maryland |
$2,880 |
$240 |
|
Massachusetts |
$1,972 |
$164 |
|
Michigan |
$4,894 |
$408 |
|
Minnesota |
$2,652 |
$221 |
|
Mississippi |
$2,411 |
$201 |
|
Missouri |
$2,646 |
$221 |
|
Montana |
$2,583 |
$215 |
|
Nebraska |
$2,492 |
$208 |
|
Nevada |
$2,870 |
$239 |
|
New Hampshire |
$2,386 |
$199 |
|
New Jersey |
$3,720 |
$310 |
|
New Mexico |
$2,018 |
$168 |
|
New York |
$3,909 |
$326 |
|
North Carolina |
$1,595 |
$133 |
|
North Dakota |
$2,620 |
$218 |
|
Ohio |
$1,567 |
$131 |
|
Oklahoma |
$2,763 |
$230 |
|
Oregon |
$2,143 |
$179 |
|
Pennsylvania |
$2,491 |
$208 |
|
Rhode Island |
$3,063 |
$255 |
|
South Carolina |
$2,712 |
$226 |
|
South Dakota |
$2,560 |
$213 |
|
Tennessee |
$2,272 |
$189 |
|
Texas |
$2,785 |
$232 |
|
Utah |
$2,398 |
$200 |
|
Vermont |
$1,947 |
$162 |
|
Virginia |
$2,220 |
$185 |
|
Washington |
$2,001 |
$167 |
|
West Virginia |
$2,479 |
$207 |
|
Wisconsin |
$2,023 |
$169 |
|
Wyoming |
$2,405 |
$200 |
Data generator : quadrant information Services .
Michigan is the state with the most expensive car indemnity by a wide margin. At $ 4,894, its average rate is over $ 500 higher than second-place Louisiana. Florida, New York, and New Jersey round out the top five. On the other end of the list, Hawaii has the cheapest monetary value of car policy at $ 1,096. It ‘s followed by Ohio, North Carolina, Iowa, and Alaska. Why do average car insurance premiums by department of state vary so much ? hera are the main factors that cause car policy to cost more or less :
- Accident rates
- Crime rates
- Percentage of uninsured drivers
- Population density
State average car insurance cost by coverage type
|
State |
Average annual (monthly) rate for minimum coverage |
Average annual (monthly) rate for standard coverage |
|---|---|---|
|
Alabama |
$617 ($51) |
$2,748 ($229) |
|
Alaska |
$440 ($37) |
$1,946 ($162) |
|
Arizona |
$910 ($76) |
$2,919 ($243) |
|
Arkansas |
$591 ($49) |
$2,968 ($247) |
|
California |
$643 ($54) |
$2,590 ($216) |
|
Colorado |
$603 ($50) |
$2,888 ($241) |
|
Connecticut |
$1,206 ($101) |
$3,754 ($313) |
|
Delaware |
$1,114 ($93) |
$3,469 ($289) |
|
District of Columbia |
$933 ($78) |
$3,341 ($278) |
|
Florida |
$1,417 ($118) |
$4,366 ($364) |
|
Georgia |
$958 ($80) |
$2,990 ($249) |
|
Hawaii |
$376 ($31) |
$1,199 ($100) |
|
Idaho |
$476 ($40) |
$2,104 ($175) |
|
Illinois |
$627 ($52) |
$2,405 ($200) |
|
Indiana |
$478 ($40) |
$1,964 ($164) |
|
Iowa |
$348 ($29) |
$1,925 ($160) |
|
Kansas |
$534 ($45) |
$2,698 ($225) |
|
Kentucky |
$1,112 ($93) |
$3,742 ($312) |
|
Louisiana |
$1,167 ($97) |
$4,761 ($397) |
|
Maine |
$643 ($54) |
$2,583 ($215) |
|
Maryland |
$974 ($81) |
$3,152 ($263) |
|
Massachusetts |
$520 ($43) |
$2,180 ($182) |
|
Michigan |
$1,909 ($159) |
$5,321 ($443) |
|
Minnesota |
$864 ($72) |
$2,908 ($242) |
|
Mississippi |
$595 ($50) |
$2,670 ($223) |
|
Missouri |
$686 ($57) |
$2,925 ($244) |
|
Montana |
$470 ($39) |
$2,885 ($240) |
|
Nebraska |
$454 ($38) |
$2,783 ($232) |
|
Nevada |
$1,099 ($92) |
$3,123 ($260) |
|
New Hampshire |
$599 ($50) |
$2,641 ($220) |
|
New Jersey |
$1,328 ($111) |
$4,061 ($338) |
|
New Mexico |
$472 ($39) |
$2,239 ($187) |
|
New York |
$1,491 ($124) |
$4,254 ($355) |
|
North Carolina |
$454 ($38) |
$1,758 ($147) |
|
North Dakota |
$482 ($40) |
$2,926 ($244) |
|
Ohio |
$417 ($35) |
$1,732 ($144) |
|
Oklahoma |
$616 ($51) |
$3,069 ($256) |
|
Oregon |
$827 ($69) |
$2,331 ($194) |
|
Pennsylvania |
$542 ($45) |
$2,769 ($231) |
|
Rhode Island |
$952 ($79) |
$3,364 ($280) |
|
South Carolina |
$419 ($35) |
$2,866 ($239) |
|
South Dakota |
$891 ($74) |
$2,972 ($248) |
|
Tennessee |
$540 ($45) |
$2,520 ($210) |
|
Texas |
$712 ($59) |
$3,081 ($257) |
|
Utah |
$731 ($61) |
$2,637 ($220) |
|
Vermont |
$445 ($37) |
$2,161 ($180) |
|
Virginia |
$641 ($53) |
$2,446 ($204) |
|
Washington |
$611 ($51) |
$2,200 ($183) |
|
West Virginia |
$658 ($550 |
$2,739 ($228) |
|
Wisconsin |
$448 ($37) |
$2,248 ($187) |
|
Wyoming |
$362 ($30) |
$2,697 ($225) |
Data informant : quadrant information Services .
In addition to having the highest overall median cost of car policy, Michigan is besides the most expensive submit for minimum coverage and standard coverage. There were some deviations from the overall averages. For model, Wyoming has the second-cheapest minimum coverage, even though it did n’t even make the top 20 for cheap car insurance overall. But for the most partially, minimal and standard coverage costs fell in line with a state ‘s overall average .
National average cost of car insurance by credit history
|
Credit history |
Average annual auto insurance rate |
Average monthly auto insurance rate |
|---|---|---|
|
Excellent credit |
$1,703 |
$142 |
|
Poor credit |
$3,622 |
$302 |
Data source : quadrant information Services .
In most states, a car policy ship’s company can use a driver ‘s credit history to set their car insurance rates. When this is allowed, drivers with excellent credit save a bunch of money. They pay less than half of what drivers with poor credit do for car indemnity. It ‘s a thoroughly reason to increase your credit rating score if it is n’t in the excellent range however.
here are the states that do n’t allow car indemnity companies to base rates on a driver ‘s credit history :
- California
- Hawaii
- Massachusetts
- Michigan
National average cost of car insurance by gender
|
Gender |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Female (with clean driving record) |
$2,182 |
$182 |
|
Male (with clean driving record) |
$2,208 |
$184 |
Data source : quadrant information Services .
These averages are taken from drivers with uninfected drive records. They do n’t include drivers with tickets or accidents, which is why both of them are less than the overall national average. female drivers pay a little less than male drivers for car insurance because they ‘re a lower risk. Statistics show that male drivers are more probable to speed, drive under the influence of alcohol, and not wear seatbelts. They ‘re besides often involved in more hard crashes .
National average cost of car insurance for younger and older drivers
|
Age |
Average annual rate |
Average monthly rate |
|---|---|---|
|
18 years old |
$5,988 |
$499 |
|
65 years old |
$1,979 |
$165 |
Data source : quadrant information Services .
Younger drivers have much higher car policy premiums than any early group ascribable to the gamble they present. Because they ‘re inexperienced and more likely to drive recklessly, they ‘re besides more likely to be involved in accidents. The effective news for adolescent drivers is that indemnity rates drop well every year for a few decades — at least for those who avoid negative marks on their driving records. There are besides insurance companies that offer relatively brassy car indemnity for teens and young drivers. The fifties and sixties tend to be when drivers pay the lowest car insurance rates. By that bespeak, most people have decades of driving have. indemnity rates can start to rise once drivers hit their seventies. Slower reaction times, vision loss, and hearing passing are all common among senior citizens and go to an uptick in insurance rates .
National average cost of car insurance by driving record
|
Driving record |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Clean record |
$2,551 |
$213 |
|
One speeding ticket |
$2,766 |
$231 |
|
One accident |
$3,092 |
$258 |
Data reservoir : quadrant data Services .
It pays to have a clean drive phonograph record. Those who do score rates about $ 18 per month less than drivers with a speed slate and about $ 45 per month less than drivers who have been in an accident .
National average cost of car insurance by provider
|
Insurance company |
Average annual rate |
Average monthly rate |
|---|---|---|
|
Allstate |
$2,912 |
$243 |
|
American Family |
$1,955 |
$163 |
|
Erie Insurance |
$2,021 |
$168 |
|
Farmers |
$2,831 |
$236 |
|
GEICO |
$1,758 |
$147 |
|
Nationwide |
$2,214 |
$185 |
|
Progressive |
$2,325 |
$194 |
|
State Farm |
$2,147 |
$179 |
|
Travelers |
$2,362 |
$197 |
|
USAA |
$1,871 |
$156 |
Data informant : quadrant information Services .
These averages are proof that drivers do n’t always flock to the indemnity aircraft carrier with the lowest prices. state farm, Allstate, and Progressive are the largest car insurance companies by market share. Of the three, State Farm is the entirely one that makes the top five when it comes to broken average rates. Allstate comes in last with annual rates over $ 250 greater than the national average. GEICO and USAA offer the least expensive car indemnity on average. Editor’s note: Our data included the average car insurance rates for dozens of companies, but we went with 10 of the largest providers in the country for this list. You may be able to get a better deal with a smaller local provider, so be sure to get insurance quotes from multiple insurers.
How to reduce your car insurance costs
There are several ways to cut your car policy premiums. here are some tips that can help you save :
- Shop around at least once per year to compare rates with the best car insurance companies. Most let you get a quote online.
- Look for discounts. Insurers may offer discounts for installing antitheft devices in your vehicle, taking a defensive driving course, driving a low number of miles per year, and more.
- See if you can pay less overall by bundling your car insurance with your homeowner’s insurance.
- Adjust your coverage. It may be worth raising your deductible if you have a solid emergency fund or reconsidering how much car insurance you need if you have an older vehicle.
- Improve your credit. A high credit score can help you pay less for auto insurance in most states.
Most importantly, practice condom, defensive drive habits. If you have a clean drive record, it can help you qualify for the lowest indemnity rates for your long time group and location .
Sources
The data found on this page is a combination of publicly available quotation data obtained immediately from the carrier ampere well as policy rate data from Quadrant Information Services. These rates were publicly sourced from the top ten ( 10 ) to fifteen ( 15 ) mailman markets, within each express, based on annual written premium and should be used for comparative purposes only — your own quotes may be different .
