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Average Cost Of Car Insurance 2022

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Average Cost Of Car Insurance 2022

Car insurance is required to drive legally in nearly all states, so it’s helpful to know what you can expect to pay for coverage. Forbes Advisor found the average cost of car insurance is $1,601 for full coverage and $513 for state minimum coverage.

We analyzed rates from the best car insurance companies to get the average cost of auto insurance by:

  • Age
  • Company and coverage amount
  • Driving history
  • Gender
  • State
  • Vehicle type

All of these factors are taken into account by car insurance companies when pricing policies so they affect what you pay.

How Much Is Car Insurance?

The national average cost for car insurance is $1,601 per year, according to a Forbes Advisor analysis. This rate is for full coverage car insurance, which includes optional coverage that covers theft and damage to your own vehicle..

There’s no standard definition of full coverage car insurance, it generally includes:

  • Liability insurance, which pays the cost of others’ injuries and property damage when you cause an accident, and for your legal defense, judgments and settlements if you’re sued.
  • Collision insurance, which pays for damage to your car, regardless of fault.
  • Comprehensive insurance, which pays for non-collision damage, such as damage from flooding or a fire.
  • Uninsured motorist coverage, which pays for you and your passengers’ medical bills if you’re injured in an accident caused by an uninsured driver.

Drivers with the minimum amount of liability car insurance required by their state pay an average of $513 per year, based on our analysis.

State minimum required liability insurance is much cheaper than full coverage car insurance because it doesn’t cover your car. It provides only liability insurance at the amount needed to drive legally.

Average Cost of Car Insurance by Company

Each auto insurance company assesses risk differently which means prices can vary significantly among companies. That’s why comparing auto insurance quotes with multiple companies can help you find the best price for your specific situation.

Average car insurance rates by company for full coverage

Among the companies we analyzed, average rates for full coverage range from $1,141 a year with USAA to $2,277 from Farmers, a difference of $1,136 a year.

USAA may be the cheapest but it’s only available if you’re a military member, veteran or military family member. The next cheapest is Nationwide ($1,154 a year), about $1,100 less than Farmers.

Average cost of car insurance by company for full coverage

A full coverage car insurance policy costs more than a liability-only policy because it provides the protection of collision and comprehensive coverage. If your car is leased or financed, your lender will usually require you to carry full coverage auto insurance.

Average car insurance rates by company for state minimum liability insurance

Average rates for minimum coverage among companies we evaluated start at $322 a year with USAA and go up to $830 a year with Farmers, a difference of over $500.

Auto-Owners ($356) is cheapest after USAA ($322), which restricts eligibility to active or veteran military members and their families.

Average cost of car insurance by company for minimum coverage

State minimum car insurance is fairly cheap, but it provides limited protection. If your budget changes, you can raise your liability limits to get better protection if you cause an accident. Also consider buying comprehensive and collision insurance if you want to add coverage for your car.

No matter what type of policy you’re buying, comparison shop for the same coverages and limits to get an accurate picture of which car insurance company is most affordable.

What Is the Average Cost of Car Insurance in Your State?

Where you live factors into your auto insurance rates. For instance, car insurance companies look at the number of claims in your area and how much they cost, and if your region is prone to severe weather, like flooding and hurricanes, among other things.

Since the likelihood of accidents is typically higher in urban areas where there are more cars on the road, densely populated states generally have higher average car insurance rates than rural states with fewer drivers.

Least and most expensive states for full coverage car insurance

Our analysis of average car insurance rates by state finds that Vermont is the cheapest state for full coverage. The top five cheapest states for full coverage car insurance are:

  • Vermont: $1,066
  • Idaho: $1,143
  • New Hampshire: $1,149
  • Maine: $1,168
  • Ohio: $1,168

The most expensive state for full coverage auto insurance is Florida. The top five most expensive states for full coverage car insurance are:

  • Florida: $3,301
  • Louisiana: $3,128
  • New York: $2,523
  • California: $2,521
  • Michigan: $2,495

Least and most expensive states for minimum liability car insurance

Drivers in Iowa pay the least for minimum liability coverage car insurance compared to the rest of the country. The top five cheapest states for state-minimum car insurance coverage are:

  • Iowa: $275
  • Vermont: $278
  • Wyoming: $295
  • South Dakota: $301
  • Idaho: $341

Michigan drivers pay the most for state minimum liability car insurance. The top five most expensive states for state minimum auto insurance coverage are:

  • Michigan: $1,450
  • Florida: $1,286
  • New Jersey: $1,119
  • New York: $1,016
  • Delaware: $936

Average car insurance rates by state

Average Cost of Car Insurance for Teens

Teen drivers are inexperienced and get into more accidents than older drivers, which means teen drivers are super expensive to insure. That makes it critical to shop for the best cheap car insurance for teen drivers.

The yearly average car insurance rate for 16-year-old drivers with their own policy is $8,765. Average rates for 17-year-olds clock in at $6,829. That’s about 22% lower than what 16-year-olds pay.

The cheapest way to insure teen drivers is usually by adding them to your policy. Still, it can double the parents’ auto insurance costs. For instance, listing a 16-year-old driver on a parent policy increased the rate by an average of 82%, our analysis found. The annual cost for the parents’ policy jumped from $2,948 to $5,367. That’s a $2,419 increase.

Average car insurance rates for parents’ policy with teen added

Average Cost of Car Insurance by Age

Car insurance costs start to decrease as you move beyond your teenage years. You’re no longer inexperienced. As long as you can keep your driving record clear of accidents or tickets, your rates should become cheaper and stay there until you reach your 70s.

Average car insurance rates by age

Car insurance rates generally decrease over time from age 18 to 60. For instance, 30-year-old drivers pay 64% less for car insurance than 18-year-old drivers, on average. And at 60, you pay about 13% less for coverage than you do at age 30. But rates start to climb again when you hit your 70s and keep going up as you hit your 80s.

Senior drivers have experience on their side but reaction times may decrease so car insurance companies consider those in their 70s and older to have a higher likelihood of getting into accidents.

Average Cost of Car Insurance by Gender

Gender is used as a rating factor for car insurance in all states but California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

Car insurance companies find young males more likely to engage in risky driving behavior, so they pay more than females initially. Rates tend to decrease for males after age 25 so they become mostly on par with their female counterparts as they get older.

Our analysis of car insurance rates for males and females ages 18 to 80 found that males and females pay about the same amount for car insurance in their middle years. Once males hit their senior years, auto insurance rates start to increase again. The same reasoning from their youth holds true again. Car insurance companies’ actuarial data shows older males exhibit riskier driving patterns than females so they’re charged more for car insurance.

Average car insurance rates by age and gender

Average Cost of Car Insurance by Car Type

The type of car you drive affects auto insurance rates, particularly collision and comprehensive coverage costs. Vehicles with better safety records, cheaper repair bills and that are less costly to replace if totaled in an accident are cheaper to insure.

Minivans are the cheapest type of vehicle to insure, with an average annual rate of $2,041, based on our data analysis of rates by vehicle type. While cautious parents with young children are drawn to minivans, the most expensive car type is at the other end of the spectrum. Coupes—think two-door sports cars—have the most expensive average rate at $3,894.

Car insurance rates for wagons may seem high, but the Porsche Panamera and Taycan, which come with hefty price tags and repair costs, are both in this category.

Average car insurance rates by car type

Average car insurance rates by fuel type

Hybrid and electric car insurance is more expensive than insurance for gas-powered cars because they can be more expensive to repair. Mechanics may need specialized training and parts can be more costly.

Average car insurance costs for top-selling vehicles

There’s a tie for the cheapest vehicle to insure among the 20 top-selling vehicles. The Honda CR-V and Subaru Outback both have an average annual rate of $1,723. That’s $1,405 cheaper than the price of the most expensive vehicle on the list.

Tesla Model Y insurance is the most expensive at $3,128 a year, followed by Tesla Model 3 insurance at $3,053 a year. The Tesla Model Y car insurance costs are 82% more than the Honda CR-V or Subaru Outback. The value of the vehicles and repair costs are a couple of reasons the Tesla models are so expensive to insure.

Average Cost of Car Insurance by Driver

Safe drivers usually pay lower rates than drivers with tickets or accidents on their driving record. Car insurance companies reward those with clean driving records with cheaper rates because good drivers typically file few claims, so are generally cheaper to insure.

Average car insurance rates after a speeding ticket

Safe drivers (no tickets or accidents) pay an average of $1,601 annually for full coverage, based on our analysis. But if you get busted for speeding, expect to pay 24% more for car insurance after a speeding ticket, on average—an annual hike of $384. That brings the average rate after a speeding ticket to $1,985.

Average car insurance rates after a DUI

Our evaluation of rates finds that car insurance rates after a DUI are 74% more on average than rates for drivers without a DUI. That hikes the average auto insurance rate for a good driver from $1,601 to $2,786 a year, an increase of nearly $1,200.

Average car insurance rates after an at-fault accident

Car insurance rates after an accident increase an average of 45% for drivers who cause property damage. That spikes the average rate by $720 a year, from $1,601 to $2,321. Note that minor accidents don’t always mean your rates go up.

Some state laws prohibit one minor accident from triggering a rate hike. For example, in New York, car insurance companies aren’t allowed to raise rates if the total accident damage is less than $2,000 and there are no injuries.

And, even when state laws don’t apply, some insurance companies will let a minor accident go without dinging your rates. For instance, in most states Progressive won’t increase rates if your total accident claim is $500 or less.

Also, many car insurance companies offer an accident forgiveness benefit—as part of being a loyal customer or for a fee—that spares you from a rate increase after your first auto accident. But if you have two accidents, don’t expect a pass on the second one.

Average cost of car insurance based on credit

Auto insurance companies say drivers with lower credit scores are more likely to file claims. That’s why car insurance rates for drivers with poor credit are often very high.

Our rate analysis finds that drivers with poor credit pay 76% more than drivers with good credit, on average.That’s a price hike of over $1,200 a year, from $1,601 to $2,818.

Not all states allow your credit score to be used in pricing car insurance. Using your credit-based insurance score is banned from auto insurance rate calculations in California, Hawaii, Massachusetts and Michigan.

Factors That Affect Car Insurance Rates

The main factors for car insurance quotes are:

  • Your driving record
  • Your age and years of driving experience
  • Gender (except in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania)
  • Your location (defined as where the car is garaged)
  • Vehicle model
  • Auto insurance coverage and limit selections
  • Your claims history
  • Your car insurance history (if you’ve had continuous coverage or lapses)
  • Your credit-based insurance score (except in California, Hawaii, Massachusetts and Michigan)

What Does Car Insurance Cover?

Here is what the main types of car insurance cover:

  • Liability insurance. Required in most states and is the base of an auto insurance policy. Pays for property damage and injuries you accidentally cause to others. It also pays for legal fees, judgments, settlements and your defense if you’re sued due to an auto accident.
  • Collision insurance. This optional coverage pays to repair or replace your car if you’re in an accident, regardless of fault, or if you hit an object, for instance a pole or a fence.
  • Comprehensive insurance. Also optional, this covers theft and also pays to repair or replace your car if damaged by animal strikes, hail, falling objects, fire, flooding or vandalism.
  • Uninsured motorist coverage. Required in some states and optional in others. Uninsured motorist insurance pays you and your passengers’ medical expenses if you’re injured in a car accident caused by a driver without liability car insurance.
  • Personal injury protection or medical payments. Required in some states. Regardless of fault, personal injury protection (PIP) and medical payments (MedPay) help pay for medical bills if you’re injured in an auto accident. PIP also covers lost wages and replacement services.

Related: What does car insurance cover?

How to Reduce Car Insurance Costs

Whether you buy a bare-bones minimum liability car insurance policy or a robust full coverage auto insurance policy there are ways to save.

  • Shop around with multiple companies. The hands-down best way to save money on car insurance is to shop around. Knowing the average cost of car insurance gives you an idea of what you can expect to pay. But comparison shopping—with at least three auto insurance companies—shows you how much you can save and can identify the company that offers you the best rates.
  • Ask for discounts. Car insurance discounts can be a way to trim your costs. Some price breaks are relatively easy to get—for example, for going paperless. Ask what car insurance discounts you’re eligible for when buying a policy.
  • Raise your deductible. A deductible is the amount your car insurance company will deduct from an insurance claim check. If you choose a higher deductible, you’ll pay less for your policy because the car insurance company is responsible for paying a little less on claims. Collision and comprehensive coverage each come with a deductible.
  • Try out a usage-based car insurance policy. Most car insurance companies offer usage-based car insurance, which could result in substantial savings if you’re a really good driver. With a usage-based insurance policy, you allow your car insurance company to monitor your driving habits, such as your braking, acceleration and miles driven.

Methodology

We used data from Quadrant Information Services, a provider of insurance data and analytics. Rates are based on a driver with a clean record insuring a Toyota RAV4. Full coverage rates include $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and any other coverage required in the state. The rate also includes collision and comprehensive with a $500 deductible. Minimum car insurance rates include the minimum amount of auto insurance required in each state. Rates are as of May 2022.

Average Cost of Car Insurance FAQ

What is the average cost of car insurance?

The average cost of car insurance is $1,601 annually, according to Forbes Advisor’s analysis of full coverage auto insurance policies. The average annual cost of a basic liability car insurance policy is $513.

Full coverage car insurance includes collision and comprehensive coverage, which protect your car and is a terrific benefit but comes with an additional cost.

Exactly what you’ll pay for car insurance depends on your driver profile and car insurance company. The best way to determine your cost for auto insurance is to compare car insurance quotes.

What is the average cost of car insurance per month?

The average cost of car insurance per month is $133 for a full coverage policy, according to a rate analysis by Forbes Advisor. The average price of auto insurance per month is about $43 a month for state-minimum liability car insurance.

Your rates will vary based on your personal information, such as the car you drive, your driving record and where you live. To get the best car insurance rates, comparison shop with at least three different auto insurance companies.

How can I get the best car insurance rates?

The easiest way to get the best car insurance rates is to shop around.

Evaluating average car insurance rates can help you see how much you may pay for an auto insurance policy. However, your car insurance costs will differ due to the various factors that affect your auto insurance rates. This includes personal information, such as where you live, the car you drive and your driving record.

To get cheap car insurance rates, compare car insurance quotes with at least three auto insurance companies. Make sure to compare the same coverage types and limits.

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