How Much Does Car Insurance Cost?

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

The amount you’ll pay for car insurance depends on your driving history, type of car, and location, among other factors. In 2019, the national average car insurance premium was $1,070 for the year, according to the National Association of Insurance Commissioners.

Let’s dive deeper into average auto insurance costs by state, as well as factors that influence how much you pay.

Here’s what you need to know about average car insurance costs:

How much is car insurance?

The amount you’ll pay for your car insurance premium varies depending on many factors. You may pay more or less than the countrywide average of $1,070. Auto insurance providers determine your rate based on how likely they are to pay out for claims, in addition to things like your age, gender and driving history.

Compare car insurance from top carriers

  • Fully online: Buy car insurance coverage instantly
  • Compare quotes from highly rated car insurance carriers in your area
  • No spam, phone calls, upselling, or fake quotes

Get Insurance Quotes Now

Factors that affect car insurance costs

All auto insurance carriers have their own unique way of setting prices. However, some common factors that insurers use when determining your car insurance premium include:

  • Location: The weather, traffic density, and crime rate where you live can all influence how likely you are to file a claim.
  • Coverage type and amount: The more coverage you want, the more you’ll pay for it.
  • Driving record: If you have a clean driving record, you’ll likely pay a lower premium than someone who’s been in multiple at-fault accidents.
  • Your age: Younger drivers tend to have higher premiums, since they lack experience.
  • Type of car: Your car’s cost affects your insurance rate. A new luxury car is more expensive to repair and insure than an old sedan.
  • How much you drive: The more you drive, the more you’ll pay for car insurance, since you have a higher likelihood of getting into an accident.

Check Out: Can You Get Car Insurance With a Learner’s Permit?

Average car insurance cost by state

Car insurance costs can vary widely by state. To help you get a better idea of what different types of car insurance policies may cost in your state, the table below shows the average premium costs for full coverage insurance (liability, collision, and comprehensive coverage) and for liability coverage in all 50 states, as of 2019.

The annual premiums are based on the latest data from the National Association of Insurance Commissioners. We’ve also noted the current minimum coverage levels by state so you can be aware of how much coverage you must get. Minimum coverage levels by state are based on data from the Insurance Information Institute and Progressive.

How to save on car insurance

Car insurance is a major expense for drivers. Here are some steps you can take to save money on your policy:

  • Pay in full. If you pay an entire year of premiums up front, you can qualify for a discount.
  • Drive safely. Most car insurance providers offer a discount for going a certain period of time without getting into an accident. You may also be eligible for a discount if you take a defensive driving course to improve your driving skills.
  • Get a usage-based policy. If you don’t drive often, you may find that paying for a usage-based policy works in your favor. These policies allow you to pay based on how many miles you drive.
  • Comparison shop. Shop around with a few different insurance providers to see who can provide you with the most coverage for the lowest cost. Be sure to get quotes for the same level of coverage and deductible across insurers for a true apples-to-apples comparison.

When you’re ready to compare auto insurance quotes, we can help. Credible makes it easy to secure quotes from multiple insurance companies.

Compare car insurance from top providers

  • Fully digital experience — Fill out all of your insurance forms online, no phone call required!
  • Top-rated carriers — Choose from a mix of highly reputable national and regional car insurance carriers.
  • Data privacy — We don’t sell your information to third parties, and you won’t receive any spam phone calls from us.

Get Insurance Quotes Now

How to purchase car insurance

Gaining knowledge about the average cost of car insurance is a great first step toward finding the right policy for your needs. Once you’re ready to buy car insurance, you’ll generally follow these steps:

  1. Choose your coverage type. Your state likely requires you take out certain types of auto insurance coverage, but you may decide you want to take out more than what’s required. To really cover your bases, consider adding liability, collision, comprehensive, uninsured and underinsured motorist, and medical payments coverage or personal injury protection.
  2. Decide on your coverage amounts. Again, your state typically requires a certain amount of coverage, but you can choose to purchase more for additional financial protection and peace of mind. The more coverage you want, the more your coverage will cost.
  3. Compare insurance quotes. Get free quotes from at least three insurance carriers to find out which one offers the best deal for the coverage you need.
  4. Apply for coverage and pay the first premium. Once you’ve chosen an insurer, apply for a policy, decide on an effective date (when your coverage will begin), and make your first payment.

Disclaimer: All insurance-related services are offered through Young Alfred.

About the author
Jacqueline DeMarco
Jacqueline DeMarco

Jacqueline DeMarco has been a personal finance writer for over seven years and is a contributor to Credible. She has contributed content to more than a dozen financial brands, including LendingTree, Credit Karma, Fundera, Chime, MagnifyMoney, Student Loan Hero, ValuePenguin, SoFi, and Northwestern Mutual.

Read More

Comments are closed.