Average Cost Of Car Insurance in 2020

What is the average cost of car insurance in America?

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.

Table of contents:

• Rates by company
• Rates by insurance coverage level
• Rates by driver age
• Rates by driving record
• Rates by credit score
• Rates by gender
• Rates by location
• Rates by vehicle type
• FAQs

Note: All of the insurance resources published by The Zebra are written and reviewed by licensed insurance experts. Learn more about The Zebra.

Which car insurance companies are the most affordable?

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.

Average car insurance rate by coverage level

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:

• Best: Liability limits of 100/300/100, $500 deductible for collision and comprehensive coverage (full coverage)
• Good: Liability limits of 50/100/50, $1,000 deductible for collision and comprehensive coverage (full coverage)
• Minimum: State minimum liability only, no comprehensive and collision
  
  

Average premiums for "best" car insurance coverage level

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.

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.

Average premiums for "good" car insurance coverage level

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.

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.

Average premiums for "minimum" car insurance coverage level

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:

• A history of having just the minimum level of coverage can reflect negatively on you as a driver in the eyes of an insurance company. They could charge you higher rates because insurers view drivers who consistently carry the minimum amount of insurance as riskier clients.
• In the event of an at-fault accident in which your liability limits aren't sufficient to cover the other driver's injuries and/or property damage, you would be underinsured. You could then be sued to cover the remaining amount.
• If your own vehicle is damaged in an at-fault accident, by an uninsured driver, or by a comprehensive claim incident (like theft, weather, and animal-related damage), you would have no coverage.

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.

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.

Average car insurance rates by driver age

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.

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.

Average car insurance premium by driving record

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. 

Average cost of car insurance by credit score

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. 

For more information on how your credit score impacts your rates, including car insurance company-specific rates, see our related content below:

• Car insurance with bad credit
• Car insurance for good credit
• Car insurance with no credit history

Car insurance rates by gender

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.

6-MONTH AVERAGE CAR INSURANCE PREMIUMS BY GENDER

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.

Car insurance quote pricing by location

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.

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.

State minimum vs. full coverage: state-by-state cost analysis

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. 

AVERAGE INSURANCE PREMIUMS — FULL COVERAGE VS. STATE MINIMUM

Average car insurance rates by region

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.

AVERAGE INSURANCE PREMIUMS BY REGION

Car insurance quotes by vehicle

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.

AVERAGE COST OF CAR INSURANCE BY VEHICLE TYPE

How car insurance premiums are calculated

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.

Average car insurance rate FAQs

What is the average cost of car insurance?

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.

How much does car insurance cost in my state?

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.

Which car insurance companies have the most affordable rates?

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.

How much is car insurance for a young driver in their 20s?

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.

Additional resources

If you want to learn more about car insurance, see our additional articles:

• Best cheap car insurance and car insurance companies
• Car insurance rating factors overview
• Car insurance rates by driver age
• Car insurance costs by occupation

About The Zebra

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:

• We’re the first to compare all the major insurance companies side-by-side. The information provided on those insurers here is intended to help inform and educate consumers before they decide where to spend their hard-earned cash.
• We have no stake in which insurance company you choose — we simply want to offer you unbiased, fast, side-by-side comparisons of your insurance options.

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.®

Learn more about how The Zebra's team of experts derives our auto insurance rates.