Average Car Insurance Cost By State, Company & Type

‍What is the Average Car Insurance Cost in the US?

The average cost of car insurance in the United States is $1,655 per year. However, this is just a national average. Your actual cost will vary depending on a number of factors, including your age, driving record, the type of car you drive, the state you live in, and the coverage you choose.

Average Car Insurance Cost for Individuals

For individuals, the average cost of car insurance in the US is $1,655 per year. This figure can fluctuate significantly based on individual factors. For example, younger drivers tend to pay more for car insurance due to their higher risk of accidents.

Average Car Insurance Cost for Families

Families typically pay more for car insurance, with an average cost of $2,148 per year. This increase is due to having multiple drivers and vehicles on the policy. Adding teenagers to your policy will also significantly increase the premium, as young drivers are statistically more likely to be involved in accidents.

Average Car Insurance Costs by Age

Age is a major factor in determining car insurance premiums. Younger drivers, especially those under 25, pay significantly more for car insurance than older, more experienced drivers. This is because younger drivers are statistically more likely to be involved in accidents.  

According to a 2022 study by NerdWallet:

• Drivers under 20: $3,192 per year (on average)
• Drivers over 60: $1,287 per year (on average)

Which State Has the Highest Average Car Insurance Cost?

Where you live plays a big role in how much you pay for car insurance. States with high population densities, higher rates of accidents, or increased instances of car theft often have higher average premiums.

According to a 2022 study by Insurify, the states with the highest average car insurance rates are:

1. Michigan ($2,245)
2. Louisiana ($2,222)
3. Massachusetts ($2,193)
4. New Jersey ($2,173)
5. Florida ($2,167)

Which State Has the Cheapest Car Insurance Rates?

On the other end of the spectrum, states with lower population densities, fewer accidents, and lower rates of theft and vandalism often have more affordable car insurance.

The states with the lowest average car insurance rates are:

1. Idaho ($522)
2. Maine ($554)
3. Ohio ($567)
4. Iowa ($573)
5. Vermont ($576)

Why Car Insurance Rates Vary by State

While some factors that affect car insurance rates by state are beyond your control, knowing how they work can empower you to find the best possible rates in your area. Here's a breakdown of the key elements that can cause premiums to differ from state to state:

• State Laws: Different states have different minimum insurance requirements and regulations.
• Cost of Living: Higher costs of living generally translate to higher insurance costs.
• Accident and Claim Rates: States with higher accident rates tend to have higher premiums.
• Weather Conditions: States prone to severe weather (like hurricanes in Florida) may have higher rates.

Average Car Insurance Costs by Company

Insurance companies calculate rates differently based on their own risk assessments, claims history, and operating costs. This is why it's crucial to shop around and compare quotes from multiple insurers.

Here are the average annual rates for some of the top car insurance companies in the United States (based on a 2022 Insurify study):

• Geico: $1,604
• Progressive: $1,817
• Allstate: $1,841
• State Farm: $1,917
• USAA: $1,430
• Nationwide: $1,950
• Farmers: $1,968
• Liberty Mutual: $1,986
• Erie Insurance: $2,009
• Safeco: $2,022

Remember: These are just averages. Your actual rate will depend on your individual circumstances and the specific insurer.

Average Car Insurance Costs by Plan Type

The type of coverage you choose significantly impacts your car insurance cost. Here's a breakdown of common plan types and their average annual rates:

• Liability Only: $584 (This is the most basic coverage, meeting the minimum requirements in many states. It covers damages you cause to others in an accident.)
• Collision and Comprehensive: $1,627 (This covers damage to your own vehicle in an accident, regardless of fault, as well as damage from non-collision incidents like theft, vandalism, or natural disasters.)
• Full Coverage: $2,148 (Generally refers to a policy that includes liability, collision, and comprehensive coverage, along with any other optional coverages you choose.)

Factors That Impact the Cost of Car Insurance

While some factors that affect your car insurance are beyond your control, knowing how they work can empower you to find the best possible rates. Here's a breakdown of the key elements that determine your premium:

• Your Age: Younger drivers are considered higher risk due to lack of driving experience.
• Your Driving Record: Accidents, traffic violations, and DUI convictions all increase premiums.
• The Type of Car You Drive: Sports cars, luxury vehicles, and cars with a high theft rate cost more to insure.
• Your Annual Mileage: The more you drive, the higher your risk of an accident.
• Your Credit Score: Insurers use credit scores to assess risk. A lower score can lead to higher premiums.
• The Coverage You Choose: Higher coverage levels and lower deductibles result in higher premiums.
• The Insurance Company You Choose: Each company has its own pricing structure.
• Where You Live: As discussed, state and even your specific location (urban vs. rural) affect rates.
• Your Claims History: Previous claims can increase your premiums.

How Can I Find an Affordable Car Insurance Plan That Meets My Needs?

• Shop around and compare quotes: Get quotes from multiple companies to find the best rates.
• Take advantage of discounts: Many insurers offer discounts for safe driving, good grades, bundling policies, safety features on your car, and more.
• Raise your deductible: A higher deductible lowers your premium but means you pay more out-of-pocket in the event of a claim.
• Maintain a good credit score: Improve your credit score to potentially qualify for lower rates.
• Drive safely: Avoid accidents and traffic violations.

How Can I Lower My Car Insurance Costs?

• Shop around and compare quotes: Don't just settle for your current insurer.
• Take advantage of discounts: Ask about all available discounts.
• Raise your deductible: Choose a deductible you can comfortably afford.
• Maintain a good credit score: Pay your bills on time and manage your credit responsibly.
• Drive safely: Obey traffic laws and practice defensive driving.
• Take a defensive driving course: Many insurers offer discounts for completing an approved course.
• Maintain good grades (if applicable): Student discounts are often available.
• Park in a garage or secure location: Reduce the risk of theft or vandalism.
• Drive a safe car: Consider the insurance costs when choosing a vehicle.
• Bundle your insurance policies: Insure your home and car with the same company for potential discounts.
• Pay your premiums on time: Avoid late fees and potential premium increases.
• Review your policy regularly: Make sure your coverage still meets your needs and adjust it if necessary.

Finding the Right Car Insurance for You

With so many variables impacting car insurance premiums, it can feel overwhelming to find the right coverage at the right price. Remember that understanding the factors at play — your age, driving history, location, vehicle, and chosen coverage — is the first step towards making informed decisions.

Don't hesitate to shop around and compare quotes from different insurers. Look for available discounts and consider adjusting your deductible to find a balance between affordability and sufficient coverage. And if you're a Florida driver, Worth Insurance is here to guide you through the process. Contact us today for a free quote and consultation.

Frequently Asked Questions About Car Insurance Costs

• How much car insurance do I really need? The amount of coverage you need depends on your individual circumstances, such as the value of your car, your assets, and your risk tolerance. It's important to have enough coverage to protect yourself financially in the event of an accident.
• What are the most common car insurance discounts? Common discounts include safe driver discounts, good student discounts, multi-car discounts, bundling discounts, and discounts for safety features on your vehicle.
• Does my credit score really affect my car insurance rates? Yes, in many states, your credit score can be a factor in determining your car insurance rates. Insurers use credit-based insurance scores to assess risk.

How can I compare car insurance quotes effectively? When comparing quotes, make sure you're comparing the same levels of coverage and deductibles. Pay attention to the coverage limits, any optional coverage included, and the insurer's reputation for customer service and claims handling.