Average Cost of Auto Insurance: Find Affordable Quotes (2023)

Online calculators and quote generators make finding insurance prices easier than ever. However, understanding how much you should pay for car insurance can still be confusing. Various factors affect your car insurance rates and figuring out how they impact rates can help you save.

While there are several tips to find lower auto insurance rates, the most important step is to compare quotes with as many companies as possible. Read on to learn more about the average cost of auto insurance, then find personalized quotes with as many companies as possible to find the cheapest coverage.

The Cost of Auto Insurance Per Month

Many factors affect car insurance rates, but the average American pays about $119 monthly for full coverage and $45 for minimum insurance.

While these average rates represent what many Americans pay, you might see very different prices when you get a personalized quote. To get an idea of how much variation you might see, consider full coverage rates for the following situations:

• 65-year-old drivers — $117
• 18-year-old drivers — $459
• Drivers with a DUI — $209

This price difference is why comparing quotes from as many companies as possible is important. While companies look at the same factors, all use unique formulas to determine how much you’ll pay for auto insurance. As a result, you’ll likely overpay for insurance if you don’t compare rates.

While many factors affect your insurance, one of the most important is where you live. Some states have much higher average rates than national prices, while others enjoy much lower quotes.

Average Auto Insurance Rates by State

Most drivers buy either minimum insurance or full coverage policies, depending on their needs. While other types of coverage are available, minimum or full coverage insurance usually covers most needs.

Minimum insurance refers to the minimum auto insurance you need in your state to legally drive. Most states require liability insurance, and uninsured motorist or personal injury protection coverage is also common. It’s your cheapest option for coverage, but minimum insurance doesn’t protect your vehicle.

State law never requires full coverage, but drivers with a car loan or lease usually need it. Full coverage includes multiple types of insurance, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection.

Since full coverage includes more insurance than your state’s minimum requirements, it costs more. Check below to see how much the average driver pays for insurance in your state.

As you can see, there’s a significant variation in auto insurance quotes by state. There are several reasons for this price difference, including state requirements, the number of uninsured drivers in a state, weather risks, and crime rates.

Regardless of your state, it’s usually a good idea to buy more coverage than the minimum requirements. Since minimum insurance only pays for damage you cause to other drivers, you’ll be responsible for paying for anything that happens to your car out-of-pocket.

Average Auto Insurance Rates by Age and Gender

Aside from your ZIP code, car insurance companies also carefully track claims by age and gender. Statistics show that young, inexperienced drivers are more likely to practice unsafe driving habits like driving distracted. Additionally, teens are less likely to know how to handle dangerous situations and get into more accidents, therefore auto insurance for teenagers is generally more expensive.

Men also pay more for insurance for similar reasons — male drivers are more likely to receive traffic citations and cause accidents.

Check below to see how much you might pay based on average rates for age and gender.

Teens pay some of the highest rates for any driver, and rates can be so high that they become unaffordable. To help teens afford car insurance, a parent or guardian can add them to an existing policy. Teen car insurance is usually half as expensive when being added to an adult’s policy.

Average Auto Insurance Rates by Driving History

When considering how auto insurance rates get calculated, all factors come down to riskiness. One of the clearest examples of your riskiness as a driver is to look at your driving history.

From at-fault accidents to DUIs, traffic violations will significantly increase your rates. Take a look below to get an idea of how much your insurance might increase after some of the most common incidents.

Full Coverage Auto Insurance Monthly Rates by Provider and Driving Record

Insurance Company	Clean Driving Record	One Speeding Violation	One Accident	One DUI Conviction
Allstate	$160	$188	$225	$270
American Family	$117	$136	$176	$194
Farmers	$139	$173	$198	$193
Geico	$80	$106	$132	$216
Liberty Mutual	$174	$212	$234	$313
Nationwide	$115	$137	$161	$237
Progressive	$105	$140	$186	$140
State Farm	$86	$96	$102	$112
Travelers	$99	$134	$139	$206
USAA	$59	$67	$78	$108

Some infractions have a relatively small impact on your insurance rates. For example, speeding tickets usually only increase your rates by about 23%. Severe violations will have a more significant impact.

However, even minor offenses can greatly impact your rates if you’re a repeat offender. On the other hand, too many infractions might mean you’ll need to find high-risk car insurance.

Average Auto Insurance Rates by Credit Score

While it’s easy to understand why your location, age, and driving history affect your auto insurance rates, many drivers are surprised to learn their credit score and auto insurance are related.

Insurance companies look at your credit score for two reasons. The first is simply a matter of financial responsibility. Companies assume people with a higher credit score are more likely to pay their monthly bills on time.

Secondly, people with lower credit scores are statistically more likely to file a claim than people with higher scores.

Finding affordable car insurance with a low credit score can be difficult. Companies like Geico, which usually offer low rates, can have much higher prices for people with low scores.

Full Coverage Auto Insurance Monthly Rates by Credit Score

Insurance Company	Good Credit	Fair Credit	Poor Credit
Allstate	$166	$197	$296
American Family	$116	$136	$203
Farmers	$140	$161	$269
Geico	$82	$100	$148
Liberty Mutual	$177	$226	$355
Nationwide	$120	$133	$166
Progressive	$109	$138	$206
State Farm	$91	$118	$200
Travelers	$107	$128	$194
USAA	$63	$76	$129
Average	$123	$148	$226

Although drivers with low credit scores usually pay higher rates, that’s not the case in every state. California, Massachusetts, Hawaii, and California don’t allow insurance companies to use your credit score when determining your rates.

While your rates will be higher when you have a low credit score, you can reduce them. So, notify your insurance company if you improve your credit score so they can lower your rates.

Other Factors That Affect Auto Insurance Rates

Aside from the factors listed above, there are several other things insurance companies look at when crafting rates, including:

• Marital status: Married people tend to file fewer claims than single drivers, so insurance companies tend to offer a discount for people who have tied the knot.
• Annual mileage: The more you drive, the more likely you will get into an accident. If you drive fewer than 10,000, consider a usage-based program to get a low-mileage auto insurance discount.
• Car make and model: The type of car you drive affects your insurance rates primarily due to how expensive it is to repair. The more it costs to buy your vehicle, the more repairs cost.

Since insurance companies look at various factors when setting your rates, it can be difficult to estimate which company has the lowest rates for you. So, it’s integral to compare personalized quotes with multiple companies.

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Vehicles With the Cheapest Auto Insurance

As you saw above, the type of car you drive significantly affects your insurance rates. Insurance companies offer the lowest rates to cars with solid reliability, good safety ratings, and low repair costs.

If you’re in the market for a new car, check how much you might pay for insurance before you buy.

Affordable SUVs, sedans with good safety ratings, and regular-sized pickup trucks usually have the lowest average car insurance rates.

On the other hand, luxury and sports cars tend to have the most expensive average insurance rates because they cost more to repair, but some maybe considered to offer cheap insurance. For instance, BMW, Lamborghini and Tesla’s has something cheap to offer if you opt to.  Learn more about how vehicle makes and models affect auto insurance rates.

Read More: Affordable BMW Auto Insurance Quotes

How to Find Cheap Auto Insurance

With the price of just about everything increasing, finding affordable monthly auto insurance is more important than ever. Use the following tips to maximize your insurance savings:

• Find discounts. Insurance companies know their customers are looking for affordable rates, so most offer discounts to help them save. The number of available auto insurance discounts should be one of the things you look at when shopping for a new policy.
• Lower your coverage. While paying more after an accident comes with a financial risk, lowering your coverage also lowers your rates. A representative can help you determine the least amount of coverage you need.
• Raise your deductible. Another way to lower your rates is to raise your deductible. Your deductible is the portion you pay before your insurance kicks in — if you choose a higher auto insurance deductible, you’ll pay less per month.
• Keep your driving record clean. As shown above, having incidents on your record will increase your rates. You can keep your insurance costs low by avoiding traffic violations.
• Compare rates. Of all the things you can do to find low insurance rates, comparing quotes is one of the most important.

Finding affordable insurance doesn’t have to be complicated, no matter your situation. You’ll find the lowest rates possible by comparing quotes, taking advantage of discounts, and choosing the right coverage amount.

Find Affordable Auto Insurance Today

Though cheap insurance might seem hard to come by, finding an affordable policy doesn’t have to be a challenge. Whether you have a low credit score, lack driving experience, or have a DUI on your record, finding a policy that fits your budget requires only a little research.

Companies offer plenty of ways for drivers to save on their insurance, but the easiest way is to compare as many quotes as possible. Looking at personalized rates from several sources will help you find the most affordable coverage.

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