Average cost of car insurance in May 2024

How much does car insurance cost by state?

The average cost of car insurance varies between states for many reasons, like accident and claim frequency, the cost of labor and vehicle parts, vehicle theft frequency and even road conditions. The coverage levels you choose also play a significant role. Here, we cover the two most common coverage limits for a holistic view of average rates — full coverage and minimum coverage. It is typical for drivers who have leases or loans on their vehicles to have comprehensive and collision coverage, along with higher liability limits of 100/300/50, and for drivers of older cars to have liability-only limits at the state-required amounts.

Keep in mind that there are various degrees of coverage between these two options. Even if you are driving an older vehicle, liability coverage helps protect your financial future if you are found at fault for an accident. And insurance experts agree that carrying more liability coverage offers better financial protection at a relatively low cost to you. While making the jump from minimum coverage to full coverage can throw a wrench in your budget, raising your liability limits can be an affordable way to protect your finances if you are at fault for an accident. You may want to speak with a licensed insurance agent to better understand the limits that will work best for you. 

Average car insurance cost by state in 2024

What are the cheapest states for car insurance in 2024?

Drivers in Idaho, Vermont, Maine, Ohio and Washington pay the cheapest annual full coverage car insurance rates in the nation, on average. Factors like cheaper cost of living, lower probability of accidents and claims, and less traffic congestion could contribute to these states' lower average premiums.

What are the most expensive states for car insurance in 2024?

Based on our research, drivers in New York, Louisiana, Florida, Nevada and Colorado have the highest average annual cost of full coverage car insurance. This could be due in part to frequent claims for common losses in these states, making drivers riskier to insure overall.

How much is car insurance by company?

On average, car insurance from some of the top insurance carriers in the nation ranges from around $1,300 to $2,800 per year for full coverage, some of the cheapest rates being from Auto-Owners, Erie and Geico. But because car insurance companies have their own proprietary underwriting systems, the cost of car insurance for each individual will vary from carrier to carrier. This can make choosing an insurer a difficult decision. 

For drivers looking for the best car insurance company, keep in mind that the coverage you choose plays a role, too. The average cost of full coverage car insurance is about 261 percent more than minimum coverage. The table below showcases the average annual and monthly full and minimum coverage premiums from some of the largest car insurance companies in the nation by market share. 

How much does car insurance cost by age?

Car insurance companies use many different rating factors to determine your premium, and in most states, your age significantly impacts how much you pay for coverage. Statistically speaking, younger drivers (especially teens) are more likely to be involved in an accident and engage in distracted driving. Because of the added risk, younger drivers tend to pay more for auto insurance compared to drivers with more experience behind the wheel.

Average rates tend to decrease from ages 25 to 60 but begin to creep back upward when a driver reaches their 70s. Advanced age can cause decreased reaction time and poorer eyesight, which in turn can increase the likelihood of an accident. Because of this, senior drivers typically see elevated insurance rates. 

How does driving record impact the cost of car insurance?

• Speeding ticket: Earning a speeding ticket conviction may be one of the most common driving infractions and it can increase your full coverage premiums by, on average, 21 percent more. Every car insurance carrier will have its own algorithm for determining rates after a speeding ticket. For example, even after a speeding ticket conviction, Erie and Auto-Owner’s average car insurance rates are both well below the national average cost of auto insurance. 
• At-fault accident: An at-fault accident on your record could raise your monthly full coverage car insurance payment from $192 to $273, and increase your annual premium by, on average, 43 percent more. If this is your first accident and you’ve previously added optional coverage like accident forgiveness to your policy, you may be able to avoid the surcharge.
• DUI conviction: Being convicted of a DUI could cause your monthly full coverage premium to be 91 percent more, and stay on your driving record for 10 years or more. The amount surcharged will also vary in each state. For example, the average cost of car insurance after a DUI for a full coverage policy is $2,184 per year in Idaho, but around $7,471 per year in Michigan. 

How much does car insurance cost by credit score?

How much does car insurance cost by vehicle type?

The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents, how much damage your vehicle could cause during an accident and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are well-suited for a variety of lifestyles and budgets.

• High-end vehicles, like luxury or sports cars: The high price tag of these vehicles is often coupled with expensive parts, leading to more costly repairs in the event of a claim, as well as higher speed maximums compared to standard vehicles, increasing the risk of at-fault accidents.
• SUVs, vans and other large vehicles: Larger vehicles may weigh more and carry more passengers, which could cause more damage in accidents compared to smaller vehicles.
• Common, more affordable vehicles: Though economy cars may be easier on a budget, they may also be more susceptible to vandalism and theft due to having fewer security measures, raising the likelihood of comprehensive claims.
• Hybrid and electric vehicles: Hybrid and electric vehicles may help you save on fuel costs, but they might be more expensive to insure. Like luxury and sports cars, parts and labor for hybrid and electric cars can be pricey, leading insurers to typically charge more for comprehensive and collision coverage.
• Vehicles with high safety ratings: Vehicles with high safety ratings tend to have lower base rates because you may be less likely to be injured in an accident (or get into an accident in general). As a bonus, vehicles with features like anti-lock brakes and passive restraint systems might earn extra discounts, depending on your carrier. 

What other things affect my car insurance price?

In addition to your state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving record and gender (in most states), several other common rating factors will impact your auto insurance premium. By looking at these rating factors, car insurance companies can get a sense of your risk profile and what it might cost to insure you.

How to lower your car insurance cost 

Buying car insurance doesn’t have to break the bank. If you’re overwhelmed by the car insurance quotes you receive, there are a couple of different strategies you can employ to unlock some savings:

• Bundle your auto policy: If your auto insurance company also writes home or renters insurance, you may be able to bundle the two policies together for a lower premium. 
• Drive less: Many insurers offer a premium discount if you don’t drive frequently. For instance, you might get a discount if you put fewer than 7,500 miles on your vehicle. This option, or a pay-per-mile policy, might make sense if you work from home or don’t have much of a commute. 
• Raise your deductible: Your deductible is the amount you are financially responsible for in the event of a covered claim. Raising your deductible will almost always lower your premium, but you'll want to ensure it is still low enough that you could comfortably pay it out of pocket in the event of a claim.
• Take advantage of discounts: Most insurance providers offer a variety of discounts that can reduce your premium. Drivers who effectively combine discounts could potentially save up to 40 percent. Since each provider has unique ways to save, ask to learn about telematics programs and discounts specific to the company.

Auto insurance discounts

• Claims-free discounts: Drivers who have no auto claims on their record for the past three to five years typically qualify for savings. This could include either a claims-free or safe driving discount.
• Good student discounts: Adding a young driver could drastically increase your overall auto insurance premium. Many auto insurers offer discounts for young drivers who earn good grades in high school or college.
• Discounts for paying in full: If you can afford to pay your car insurance premium in full, versus monthly or quarterly, you might qualify for a discount on your car insurance cost.
• Telematics discounts: Your car insurance provider might offer a telematics app or device that you install in your vehicle. The program monitors your driving habits to determine how safe or risky you are as a driver. Safe drivers are typically rewarded with discounts, but be aware that some providers reserve the right to raise your premium if the program detects risky driving habits.
• Paperless policy discounts: Many insurance providers offer savings when policyholders agree to receive their bills and policy documents electronically instead of through the mail.
• Automatic payments plan: While not technically a discount, the majority of insurance companies charge service fees any time a payment is processed on an insurance policy, unless the customer opts to pay the bill in full each renewal. Many companies will waive or lower the service fee if the account is set up on auto pay through a checking account instead of a credit or debit card.
• Bundling discounts: The home and auto bundle is not the only kind of bundling discount available. Depending on your insurer, you may also be able to bundle your auto policy with a renters, umbrella, motorcycle or other insurance lines.