Average Cost of Auto Insurance: Find Affordable Quotes (2024)

While many factors affect auto insurance rates, including age and driving record, the average cost of auto insurance per month is $45 for minimum insurance and $119 for full coverage. Lower auto insurance costs by choosing the minimum amount of auto insurance you need in your state and adding discounts.

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Brad Larson

Licensed Insurance Agent

Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...

Licensed Insurance Agent

Michael Vereecke

Commercial Lines Coverage Specialist

Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many insurance providers, giving him unique insight into the insurance market, differences in ...

Commercial Lines Coverage Specialist

UPDATED: Jan 20, 2024

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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What You Should Know

  • Full coverage typically costs about $119 a month, while minimum insurance runs about $45
  • While rates vary by several factors, State Farm, Geico, and Erie are often the cheapest companies for auto insurance
  • Young, inexperienced drivers and people with a DUI on their driving record typically pay the most for car insurance

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.

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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.

State Auto Insurance Monthly Rates by Coverage Type
StatesCollisionComprehensiveLiabilityFull Coverage
District of Columbia$41$19$58$118
New Hampshire$26$9$35$70
New Jersey$33$11$76$119
New Mexico$24$15$44$84
New York$34$15$71$120
North Carolina$26$11$31$67
North Dakota$22$20$25$67
Rhode Island$36$11$68$116
South Carolina$24$16$50$89
South Dakota$19$24$26$69
West Virginia$28$18$43$88
National Average$29$13$48$90
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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.

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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.

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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.

Auto Insurance Monthly Rates by Provider, Gender, & Age
Insurance CompanyFemale (Age 16)Male (Age 16)Female (Age 25)Male (Age 25)Female (Age 30)Male (Age 30)Female (Age 60)Male (Age 60)
Liberty Mutual$723$785$187$215$174$200$148$159
State Farm$311$349$101$111$94$103$76$76
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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 CompanyClean Driving RecordOne Speeding ViolationOne AccidentOne DUI Conviction
American Family$117$136$176$194
Liberty Mutual$174$212$234$313
State Farm$86$96$102$112
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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 CompanyGood CreditFair CreditPoor Credit
American Family$116$136$203
Liberty Mutual$177$226$355
State Farm$91$118$200
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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. (For more information, read our “Cheap Hawaii Auto Insurance“).

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. Consider exploring affordable auto insurance quotes for low-income individuals. 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 may be considered to offer cheap insurance. For instance, BMW, Lamborghini, and Tesla may have affordable options. Learn more about how vehicle makes and models affect auto insurance rates.

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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. (read our “How To Budget for Auto Insurance” for more information).

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.

Frequently Asked Questions

What’s the difference between minimum and full coverage?

Minimum insurance refers to the minimum amount of coverage you can carry and still legally drive or register your car. Most states require liability insurance, while some include uninsured motorist and personal injury protection coverage.

Full coverage offers better protection for your vehicle and includes liability, collision, comprehensive, uninsured motorist, and personal injury protection insurance. However, full coverage also costs more than minimum insurance.

Does paying off your auto loan make your insurance go down?

Your ownership status generally doesn’t impact your insurance rates. Companies only look at your ownership status to help you determine how much coverage your car needs.

How much is auto insurance for a new driver?

Young, new drivers see some of the highest rates for car insurance because they lack the experience to handle some of the most dangerous situations on the road. The average 16-year-old pays about $592 monthly for full coverage insurance, which can be four times as much as older adults.

Does auto insurance decrease every year?

Insurance rates can decrease for various reasons, including when you gain more driving experience, increase your credit score, or when traffic incidents fall off your record. However, rates don’t automatically drop every year. In fact, your rates often increase, especially if you file a claim.

Other factors outside of your control — like increased claims in your neighborhood, more car thefts, or higher vandalism cases — can also increase your rates.

Which company offers the cheapest rates?

Car insurance rates depend on various factors, but State Farm, Geico, and Erie tend to have the lowest prices for most drivers. However, you should always compare rates before you make a decision.

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