Car insurance rates depend on a number of factors — let's dive into the data and learn more.
The average cost of car insurance is $1,548 per year. That's $774 per six-month policy or $129 per month.
Auto insurance quotes vary widely based on individual rating factors. The Zebra's team of licensed insurance experts crunched the numbers using a composite user profile and gathered rates from the top auto insurance companies to develop these figures. Dive into the data below to see how age, gender, location and vehicle type affect auto insurance premiums.
Note: All of the insurance resources published by The Zebra are written and reviewed by licensed insurance experts. Learn more about The Zebra.
As part of our car insurance rate analysis, we compared premiums from some of America's most popular insurers. Check out average car insurance rates from the best car insurance companies below. Keep in mind your rates will vary, depending on your driving history.
Among the surveyed car insurance companies, USAA was the cheapest based on our average profile. Our individual profile might not reflect your rates, but you can use our auto insurance premiums as a jumping-off point to explore options from multiple car insurance companies.
Depending on your level of coverage, your premium will vary. The average auto insurance policy includes liability insurance with limits of $50,000/$100,000 for bodily injury and $50,000 for property damage coverage, alongside collision and comprehensive deductibles at $500. If you're leasing or financing your vehicle, you might be required to carry gap insurance as well.
We grouped coverage levels by categories of best, good, and minimum, along with average rates for a six-month policy by top insurance companies. See more details per coverage tier:
We recommend carrying more ample coverage if you have assets to protect, multiple drivers on your policy (especially teenagers), drive a high-performance or luxury car, or are currently leasing or financing a vehicle. Due to the high liability limits and physical protection provided for your own car at this coverage level, it's typically the most expensive.
|Insurance Company||6-Month Premium|
Not carrying enough liability coverage can leave you at risk of being sued if you cause enough damage to eclipse your liability limits — leaving any assets vulnerable. A $500 deductible is the most common, but you can further decrease your premium by upping your deductible because of the inverse relationship they share — see this illustrated below at the "good" coverage level with a $1,000 deductible.
We generally recommend keeping your liability limits to at least 50/100/50. This middle-of-the-road level of full coverage also provides comprehensive and collision coverage for your own vehicle with a $1,000 deductible.
|Insurance Company||6-Month Premium|
While a $500 deductible is the most common, you can further decrease your premium with a higher, $1,000 deductible because of the inverse relationship they share. Learn more about how to choose a deductible.
Liability limits are set by each state. You must carry at least the state-mandated minimum level of liability insurance in order to be a legal driver in that state. However, keep in mind that this does expose you to more risks:
Opting for minimum coverage — without comprehensive and collision to cover damage to your own vehicle — is the cheapest tier of auto insurance you can buy.
|Insurance Company||6-Month Premium|
The less coverage you have, the less your premium will cost. However, it's generally recommended to keep your liability coverage as high as possible to ensure your assets are protected. If your vehicle has any considerable value or you're thinking of selling it in the future, make sure you add comprehensive and collision coverage.
Age is a major component of auto insurance premiums. Based on traffic safety data, age is a reliable proxy for risk behind the wheel. To help offset the effect of age on auto insurance and find the cheapest possible rates, we recommend comparing car insurance quotes yearly.
See below the relationship between age and car insurance rates.
|Age Group||6-Month Premium||Monthly Premium|
Those aged 50 to 59 pay the least for car insurance, with all other variables constant. Teen drivers pay the most — about $419 per month for drivers between 16 and 19 years old. Once you turn 20, you should expect an average monthly drop in your insurance premium by about $253. Aside from very young and very old drivers, age doesn't have a major impact on the average cost of auto insurance. Between the ages of 40 and 60, the average difference in premium is only $45. It's important to consider other rating factors that could have a larger impact on premiums.
Getting any type of violation — even a minor one — can have major impacts on your premium. For an at-fault accident, the average rate increase in 2019 was $384 per six-month policy — or $767 per year. Most insurance providers will raise rates for three to five years after any violation, ticket, or claim.
In all but a handful of states, your credit score is a major rating factor. According to the Federal Trade Commission (FTC), drivers with low credit not only file more claims than drivers with high credit but their claims tend to be more expensive. On average, drivers with Excellent credit pay $774 less for car insurance than drivers with very poor credit — all other rating factors constant.
|Credit Tier||6-Month Premium||Monthly Premium|
|Very Poor (300-579)||$1,448||$241|
|Very Good (740-799)||$812||$135|
For more information on how your credit score impacts your rates, including car insurance company-specific rates, see our related content below:
In states like California, Hawaii, Massachusetts, Pennsylvania, North Carolina, and Montana, there is no difference in car insurance premiums for men and women. In other states, the difference between car insurance rates for men and women is small — less than a 1% difference in car insurance premiums, nationwide.
Although many people assume car insurance costs vary greatly between men and women, it's a minor factor when you look at the bigger picture. However, gender does play a factor in premiums for young drivers. On average, male drivers between the ages of 16 and 19 pay almost $700 more per year than do female teens.
Anytime you move, you'll need to update your car insurance. Car insurance is regulated at the state level and priced by ZIP code. Your exact location can have a major impact on your premium. Compare your rates against your state's average to see whether you're paying too much for auto insurance.
|State||Average 6-Month Premium||Monthly Premium|
The difference between the cheapest car insurance state (Maine) and the most expensive (Michigan) is $1,081 per six-month policy period. This means drivers in Michigan pay over $180 per month more for car insurance than do Mainer drivers! Learn more about auto insurance rates by state.
Each state regulates its insurance laws, governing what coverage types drivers must carry and in what amounts. Nearly every state requires certain minimums for liability coverage, while some states may require additional coverage types such as personal injury protection or uninsured/underinsured coverage. Below, you'll find a state-by-state rundown of the average six-month premiums for the minimum liability limit versus a "full coverage" policy. While "full coverage" is generally a combination of other coverage types, in this case it refers to higher liability limits (50/100/50) and collision and comprehensive deductibles at $500 each — a fairly typical coverage level in the United States.
|State||State Minimum Liability||Full Coverage|
Car insurance costs vary by region, as well. For example, in the Midwest, Michigan is expensive, but the cheaper car insurance offered in Ohio ($523), Indiana ($582), Illinois ($651), and Wisconsin ($590), help lower the overall average.
|Region||Average 6-Month Premium|
It goes without saying: your vehicle contributes to the cost of your car insurance. Every single vehicle will generate a unique premium based on its vehicle identification number (VIN). Insurance companies use the VIN to assess your vehicle’s mileage, accident history, and other characteristics that are factored into your premium. It’s difficult to give an average cost of car insurance by vehicle — below are some national averages.
An “average rate” is hard to calculate, thanks to the myriad rating factors contributing to any driver's auto insurance premium. For instance, homeowners are likely to pay less for car insurance in general. Your driving record is also a major contributor, as those with a DUI are more likely to pay far higher rates for insurance as well.
Car insurance is designed — and priced — to suit each individual driver, accurately estimating the risk they represent to an insurer. While car insurance quote pricing varies by driver, it also varies by company. Between the cheapest company and the most expensive, you might find a substantial price gap. This is because every insurer weighs different factors when underwriting a policy.
It's important to take the national average cost of car insurance with a grain of salt. The best way to find an affordable policy, consult an insurance agent or compare car insurance online.
Across the U.S., the average annual premium is $1,548, or $129 per month. That's an increase of more than 5% compared to 2019's national average of $1,470.
Your location — down to your specific ZIP code — is a critical rating factor when insurance companies calculate your premium. In addition, because auto insurance is regulated on the state level, each state's laws and regulations do make an impact on average rates. For instance, Michigan is consistently the most expensive state for car insurance largely due to mandated coverage requirements enforced by law.
Other expensive states include Louisiana, Florida, Kentucky, Rhode Island, Nevada, and California. Some of the cheapest states for car insurance include Maine, North Carolina, Virginia, New Hampshire, and Hawaii.
In our survey of top car insurance companies, USAA was the cheapest for our average driver profile. For drivers who don't qualify for USAA, GEICO was a close second. Keep in mind that this individual profile likely won't match yours exactly. The best way to find a budget-friendly rate is to shop around for quotes before the end of every policy period.
On average, drivers aged 20 to 29 pay $1,989 per year for auto insurance. That's $995 for a six-month policy or $166 per month. Young drivers in their 20s paid almost 30% more than the national average.
If you want to learn more about car insurance, see our additional articles:
The Zebra is not an insurance company. We’re an independent, unbiased partner for consumers, on a mission to help you compare insurance options apples-to-apples, so you can make a truly informed decision. We’re proud because:
This article was written by one of The Zebra’s insurance experts. Each article is thoroughly researched to ensure we provide readers the most accurate — and helpful — information possible. That’s insurance in black and white.®