How much does car insurance cost in 2024?

Key points

• Drivers with a clean record pay an average of $2,026 per year ($169 per month) for full coverage car insurance.
• USAA, Nationwide and Travelers have the lowest average car insurance prices, based on our analysis of rates.
• Drivers spend the most on car insurance from Allstate and Farmers.
• Drivers in Vermont and Idaho pay the least for full coverage, while those in Louisiana and Florida pay the most.

How much you pay for car insurance depends on a variety of factors, including your driving record, vehicle, location, insurance company and the types and amounts of coverage you need. Your gender and credit score may also be factored in, depending on where you live.

How much is car insurance?

The average cost of full coverage car insurance for a driver with a clean record is $2,026 per year, or $169 per month. Though coverage details can vary by state and company, a full coverage auto insurance policy typically includes liability insurance and any other state-required coverages plus comprehensive and collision insurance. 

The national average cost of minimum liability insurance is $630 per year, or $52 per month. Carrying the state-required minimum coverage can make it cheaper to legally drive in your state, but it may not be enough to cover accident-related expenses if you’re at fault for an accident. It also won’t help you cover costs to repair or replace your own vehicle. 

How much does car insurance cost by state?

How much car insurance costs varies by state and even ZIP code. Here’s how where you live can impact your car insurance rates:

• Individual states set their own minimum requirements for car insurance policies, which can impact your final car insurance costs.
• Cost of living varies dramatically across the country, which can increase or decrease local insurance costs compared to the national average. 
• Some states are more densely populated or have a higher number of accidents, which can yield higher car insurance premiums.

Where you live can affect how much you pay for car insurance. ZIP codes with more reported collisions and break-ins may result in higher insurance prices.

^{Full coverage car insurance rates are based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident and $100,000 in property damage liability), uninsured motorist coverage and collision and comprehensive insurance with a $500 deductible.}

What are the most expensive states for car insurance?

Florida has the most expensive car insurance in the United States, based on our analysis of rates. The average cost of full coverage car insurance in the Sunshine State is $3,865 per year, or $322 per month. That’s about 91% more than the national average of $2,026. 

Louisiana ($3,545), California ($2,768) and Oklahoma ($2,741) are also significantly higher than the national annual average. 

Florida is also the most expensive state for minimum coverage, with an average rate of $1,529 per year, or $127 per month. The national average for minimum coverage is $673 per year.

What are the cheapest states for car insurance?

Vermont drivers enjoy the lowest average rates for full-coverage car insurance. A good driver pays an average of $1,158 per year, or $97 per month for coverage. 

Drivers in Idaho ($1,246), Maine ($1,361) and Hawaii ($1,369) also pay significantly less for full coverage car insurance. 

Vermont is also the cheapest state for minimum coverage car insurance, with an average rate of $313 per year, or $26 per month.

Average cost of car insurance by company

The average cost of car insurance varies by the insurer you choose. Our analysis of major U.S. insurance companies reveals that USAA has the cheapest average rates. USAA members with a clean driving record pay an average of $1,364 per year for full coverage and $368 per year for minimum coverage. 

USAA coverage is only available through USAA membership. If you’re not eligible for USAA membership, Nationwide has the next cheapest average annual rate for full coverage — $1,436 per year.

After USAA, Erie ($437 per year) and Auto-Owners ($445 per year) have the cheapest average rates for minimum coverage. 

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Average annual car insurance rates by company

^{Source: Quadrant Information Services. Minimum liability rates are based on the minimum amount of auto insurance required in each state. Full coverage rates are based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability), uninsured motorist coverage and collision and comprehensive insurance with a $500 deductible.}

Average car insurance cost by age and gender

In most states, car insurance providers use data about your gender to inform car insurance price decisions. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania are exceptions.

Age is also a major factor in determining insurance rates, and the two data points go hand-in-hand. For example, an 18-year-old male driver can expect an average insurance rate of $6,640 compared to an 18-year-old female driver, who would pay $5,657.

Both are tremendously high when you look at what they might pay when they’re 25, just seven years later:

• A 25-year-old male driver pays an average of $2,537.
• A 25-year-old female driver pays an average of $2,385.

Cost of car insurance by age and gender

The big takeaway? Female drivers almost always get lower car insurance rates — and it makes sense. Analyzing data from the U.S. Department of Transportation, the Insurance Institute for Highway Safety found that men not only drive more miles than women, but they’re also more likely to speed, drive under the influence of alcohol, drive without wearing a seat belt and, as a result, die in motor vehicle crashes. In rare cases, male drivers do get lower car insurance rates.

^{Source: Quadrant Information Services. Average annual rates are based on full coverage (liability coverage of 100/300/100, uninsured motorist coverage and collision and comprehensive coverage) with a $500 deductible.}

Average cost of car insurance by driving record

Drivers with clean records — no accidents or tickets in recent years — can earn cheaper rates on their car insurance. Some companies may even discount your insurance over time as a reward for continued safe driving.

On the flip side, drivers with accidents, tickets, DUIs and even poor credit scores can expect higher insurance costs.

Read more: Car insurance after DUI

Average car insurance cost with driving incidents

If you have a clean driving record, you’ll be rewarded with the lowest car insurance rates, but violations on your record can send your policy premiums soaring. A DUI can increase your rates by an average of 71% and an accident with injuries can nearly double your annual premium. 

Depending on where you live, a poor credit score can also lead to higher rates. Your credit score influences your insurance-based credit score, and a poor credit score can lead to rates that are 94% higher.

^{Source: Quadrant Information Services. Average rates are based on a 40-year-old female driver insuring a Toyota RAV4 with liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability) and collision and comprehensive insurance.}

Average cost of car insurance by vehicle

Your car insurance premium will be further determined by the make and model of your vehicle. The table below includes the average annual and monthly rates for some of the most popular vehicles in the U.S.

^{Source: Quadrant Information Services. Average rates are for a 40-year-old driver with a clean driving record shopping for full coverage car insurance with a $500 deductible.}

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How to lower car insurance costs

According to data from the American Automobile Association (AAA), the average cost to own a vehicle is $12,182 per year for a vehicle driven an average of 15,000 miles annually. That includes the cost of fuel, maintenance, tires, insurance, registration, taxes and your license. 

Car insurance represents a significant and unavoidable portion of annual vehicle ownership costs, but there are still ways you can lower your policy premiums and lessen your financial obligations. Here are some practical tips to help you get the lowest rates. 

• Shop around for coverage each year, getting at least three car insurance quotes. Make sure to get quotes for the same type and amount of coverage. 
• Consider bundling your car insurance with another type of coverage, such as renters or home insurance. Most companies offer a bundling discount for purchasing more than one type of coverage, and the same is true for insuring multiple vehicles. 
• Revisit your coverage needs. You may find that your coverage needs change over time. For instance, if you drive an older vehicle that is inexpensive to repair, you may find it makes sense to drop collision or comprehensive coverage. Likewise, if you’ve paid off your auto loan, you can drop gap insurance. 
• Ask about discounts. Always ask your insurer about available discounts to make sure you’re getting each one you’re eligible for. 
• Get quotes before buying a new vehicle. Some vehicles are more expensive to insure than others. For instance, a luxury sports car will have higher rates than a standard sedan. If you’re shopping for a new car, get quotes for each make and model you’re considering. 
• Improve your credit score. If you have average or below-average credit — and live in a state where insurers can use your insurance-based credit score — working on your score may help you lower your premium the next time you renew your policy.
• Practice safe driving habits. Speeding tickets, at-fault accidents, DUIs, and other violations will increase your rates. Practicing safe driving habits and obeying the rules of the road can help you avoid a rate increase. 

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Frequently asked questions (FAQs)

Do I need full coverage auto insurance?

There are no state laws that require drivers to carry full coverage car insurance. However, if you lease or finance your vehicle, your lender or lessor may require full coverage as part of your agreement.

A full-coverage car insurance policy generally includes:

• Liability insurance that meets the minimum requirements set by your state. 
• Any additional coverages, such as uninsured motorist insurance or personal injury protection (PIP) required in your state
• Collision and comprehensive coverage. 

Even if you aren’t required to carry full-coverage car insurance, it’s often the best car insurance option. A full coverage policy will provide financial protection in a variety of scenarios, including if you’re at fault for an accident or if your vehicle is damaged in a collision or by a non-collision event, such as a flood or act of vandalism.

How often should I shop for new car insurance?

We recommend that you shop around for new coverage annually, though some drivers may benefit from shopping around at the end of a 6-month policy period. 

If you don’t shop around annually, it’s still a good idea to shop for coverage after a potentially rate-changing event, such as being charged with a traffic violation, adding a new driver to your policy, insuring a new vehicle, or purchasing another type of coverage, such as home or renters insurance.