How Much is Car Insurance?

Many drivers wonder, "How much does car insurance cost?" The price changes depending on many things. But on average, it's about $1,717 yearly for full coverage nationwide¹. This cost suits a 35-year-old driver with good driving history and credit¹.

Full coverage protects against many risks. It includes several types of coverage, like liability and damage insurance¹. But what each policy offers can differ¹.

Many factors affect how much your insurance will cost. This includes age, gender, where you live, and your driving record¹. Also, what car you drive and your insurance history matter too¹.

So, when you're looking for cheap insurance, compare prices from different companies. The best deal for you might not be the same for someone else¹. By shopping around, you can save money and find the right coverage for you.

Average Car Insurance Costs in the United States

The cost of car insurance changes based on your coverage. Full coverage insurance costs an average of $2,681 each year. For basic coverage, it's about $869 per year². If you pay month by month, full coverage is around $193. Minimum coverage will cost you only $53 a month³.

Minimum Coverage vs. Full Coverage

The most basic car insurance is called minimum coverage. This covers things like injuries and damages you cause. Full coverage, however, offers more. It includes hits to your car, theft, and general damage, on top of the basic options. On average, car insurance each year in the U.S. comes to about $2,068⁴.

Coverage Type	Average Annual Cost	Average Monthly Cost
Minimum Coverage	$869	$53
Full Coverage	$2,681	$193

Factors Affecting Car Insurance Premiums

Many things can change what you pay for car insurance:

• Age: Teens pay more because they're new to driving. On average, it's around $6,410 for girls and $7,377 for boys each year⁴.
• Driving record: If you've always been a safe driver, your insurance will cost less. But if you've had tickets, accidents, or DUIs, it will be more expensive².
• Vehicle type: The car you have affects your insurance. They look at how much it costs to fix, how safe it is, and other things like that².
• Location: Where you live also matters. More people and more cars usually mean you'll pay more. Crime and local weather can play a part too².
• Credit history: Some states let insurance companies check your credit. If yours is bad, you could end up paying more⁴.

They also consider your gender, if you're married, how far you drive, and your policy details like the type and amount of coverage, and your deductible1⁴.

Car Insurance Rates by State

Where you live affects your car insurance rate significantly. This is due to things like how many people are there and how often accidents happen. It also includes state laws about insurance⁵. The average cost for car insurance in the U.S is $2,118 a year⁶, which is about $251 monthly⁷.

States with the Highest Car Insurance Rates

Places like Michigan are often the most expensive for car insurance. Michigan, for example, has an average of $5,766 a year for full coverage⁷, which is $3,643 a year⁵. Florida, Louisiana, New York, and Delaware are also among the highest. These high rates are due to laws that require special coverage, more accidents, and harsh weather⁶.

States with the Lowest Car Insurance Rates

Some states have much lower rates, though. Hawaii has the lowest, with $1,619 a year⁷. Idaho is also inexpensive, at $2,010 yearly⁷. States like Vermont, Maine, and New Hampshire have lower rates because they're less crowded and have fewer accidents. They also have insurance laws that help keep costs down⁵.

State	Average Annual Full Coverage Premium	Average Annual Minimum Coverage Premium
Michigan	$5,7667	$1,4506
Florida	$4,3266	$1,3855
New York	$4,7696	N/A
Louisiana	$3,62956	N/A
Idaho	$2,0107	$3416
Hawaii	$1,6197	N/A

Remember, even within states, prices can vary a lot. This is because of things like how you drive, your credit, and your car. Knowing the average rate in your area can help you figure out what's a good deal when you shop for insurance.

How Much is Car Insurance for Different Age Groups?

Car insurance rates change a lot based on age. Youth and seniors usually pay more. In 2023, a full coverage policy costs $2,014 yearly on average. A minimum coverage policy runs about $622 annually⁸. Let's explore how these costs shift with each age group.

Teen Drivers

Teen drivers bear the brunt of expensive insurance. This is mostly because they're new and have more accidents. People aged 16-24 are four times likelier to crash than those 20 and older⁹. For 16-year-olds, the average full-coverage policy hits $632 monthly and $7,581 yearly¹⁰. At 18, premiums are highest. Males pay 15% more than females of their age⁸.

Young Adult Drivers

Insurance costs drop roughly 9% at 25 years of age with Progressive⁹. At this age, full coverage might run $195 monthly and $2,336 yearly¹⁰. Young adults pay more initially but see rates go down after the early years. Rates balance out by their 30s to 40s and sometimes become lower than they used to⁸.

Senior Drivers

Seniors often pay less, given their experience. But around 70, rates can start going up. Health issues might lead to higher costs⁸⁹. While drivers over 65 might pay more than those in their 30s, 40s, or 50s, it's still typically less than what teens pay⁹. At 55, the price could be $147 monthly or $1,767 yearly for full coverage¹⁰.

Age Group	Average Monthly Cost (Full Coverage)	Average Annual Cost (Full Coverage)
16-year-old	$632	$7,581
25-year-old	$195	$2,336
55-year-old	$147	$1,767

While age is key, many other things influence insurance prices. Factors like where you live, how you drive, and your claim history matter too. Shopping around and getting quotes from different insurers is smart. This way you can find the best deal no matter your age.

Car Insurance Costs by Vehicle Type

Your car's type affects how much you pay for insurance. Be honest about your car when getting quotes. Factors like the car's price, safety features, how much it's stolen, and if it's fast affect your premium¹¹.

Sports cars and luxury cars cost more to insure. This is because they're expensive to fix and steal. Cars like convertibles, sports cars, and SUVs also bump up the price because they're targets for thieves and can go very fast¹¹. On the flip side, sedans, minivans, and small SUVs are usually cheaper to insure.

Some of the least expensive cars to insure are Honda at $161 monthly, Acura at $167, Subaru at $168, Hyundai at $180, and both Ford and Toyota at $185¹¹. The Honda HR-V is the most budget-friendly SUV for insurance, costing $1,673 yearly¹². Luxury cars, on the other hand, like Ferrari ($913) and Aston Martin ($548), are at the high end¹¹.

Car shape matters too. Coupes and four-door sedans might cost more to insure. Vans, on the other hand, could be cheaper. This is because the chances of accidents vary¹³. Although sedans and light trucks often get in more accidents, bigger vehicles might have lower repair costs after a crash¹³.

Car Model	Average Monthly Insurance Rate
Honda Accord	$151
Acura RDX	$153
Ford F-150	$157
Ford Mustang	$166
Acura ILX	$179
Chevrolet Cruze	$238
Lamborghini Huracan	$436

The table above shows average insurance costs by car model. It lists the Honda Accord, Acura RDX, and Ford F-150 as cheaper to insure. But the Lamborghini Huracan stands out as pricier¹¹. In 2024, the Honda HR-V is the least expensive overall, averaging $139 monthly. The Maserati Quattroporte, in contrast, is the most costly at $6,166 yearly¹².

When buying car insurance, it's key to shop around. Get quotes from different companies. Also, note your car's make, model, and shape to find the best deal for you.

Impact of Driving Record on Car Insurance Rates

Insurance companies look closely at your driving record when setting your car insurance prices. It's key to have a clean record to keep your premiums down. Any tickets, accidents, or convictions can significantly raise what you pay¹⁴.

Clean Driving Record

A driver with a clean record often pays less for car insurance. Their average premium is $2,706 a year, which is $289 below the national average¹⁴. Such drivers are seen as less risky, getting better deals from insurers.

Speeding Tickets

Getting a speeding ticket means you might get points on your license. In New York, that could be three to 11 points¹⁵. Too many points in a short time could even get your license suspended¹⁵¹⁶.

Those with speeding tickets pay around $2,958 yearly. This is nearly the same as the average premium¹⁴. Small violations can raise your premium by 10 to 15 percent¹⁶.

At-Fault Accidents

Causing an accident can raise your car insurance rates. The average cost is $3,284 per year, which is 109% of the average¹⁴. An accident can also add $353 to your annual premium¹⁴.

DUI Convictions

DUIs have a big impact on your insurance costs. Drivers with a DUI pay about $4,282 a year, which is 142% of the average¹⁴. Expect an extra $1,363 on top of your regular costs¹⁴.

In Michigan, a DUI can more than double your insurance costs. Your premiums could go from $5,766 to $11,163¹⁴.

Insurers often check three to five years of your driving history. For severe violations like DUIs, they may look back even further¹⁵. Remember, insurers can refuse or cancel your policy for major infractions¹⁶.

How Much is Car Insurance?

Buying car insurance means thinking about how much coverage you need. The costs change based on what kind of insurance you get. You can opt for the cheapest kind or go all out. In California, you might pay around $651 yearly for just the basics, up to $2,667 for top-notch coverage¹⁷.

Minimum Coverage

Minimum coverage is what the state makes you get. It's budget-friendly but doesn't protect you much. In California, this might go for $54 each month¹⁷. In places where it's less expensive, like low-cost states, you'd pay around $79.83 a month¹⁸.

Liability-Only Coverage

Liability-only is more than the minimum. It helps with costs to others, not your own car. It's pricier but still cheaper than full coverage. In states with mid-range prices, you could spend about $105.36 monthly¹⁸.

Full Coverage

Full coverage is the best, covering a lot more, including your car's repairs. It's the costliest option. People in California usually pay $222 a month for it¹⁷. Some states, like those with high costs, see prices around $157.27¹⁸. But, in Florida, it's about $2,587, much lower in Maine at $831¹⁹.

Car insurance prices depend on your age, driving record, where you live, and your car¹⁸. In Los Angeles, the bill can jump to $3,649 yearly for full coverage, more than the average for California. Big cars are generally cheaper to insure than fancy ones¹⁹.

Coverage Type	Average Monthly Cost (California)	Average Monthly Cost (Low-Cost States)	Average Monthly Cost (Medium-Cost States)	Average Monthly Cost (High-Cost States)
Minimum Coverage	$54	-	-	-
Liability-Only Coverage	-	$79.83	$105.36	-
Full Coverage	$222	-	-	$157.27

Strategies to Lower Your Car Insurance Premiums

Being a smart car owner means always looking for money-saving tips on premiums. The average cost for car insurance for a safe driver is $1,556 a year²⁰. I use several strategies to keep my car insurance low while keeping the same level of protection.

Shop Around and Compare Quotes

Comparing quotes from different insurers is very important. The goal is to find affordable car insurance that still meets my needs²¹. It pays off to spend time researching and comparing. This often leads to savings on premiums.

Increase Your Deductible

Raising my deductible is a trick I use to lower costs. For example, going from a $200 to a $500 deductible can cut certain coverage costs by 15% to 30%²²²⁰. But, it's crucial to have enough savings to cover the higher deductible if I need to make a claim²¹.

Bundle Your Policies

Linking my car insurance with other types, like home insurance, can save me a lot. Many companies drop 5% to 25% off the total bill for doing this²⁰. By bundling, I save money and make managing my policies simpler.

Maintain a Good Credit Score

Your credit score can impact your car insurance rates in some places. A good credit score can lead to lower insurance costs²¹. So, it's good to work on maintaining a solid credit reputation to save money on insurance²².

Take Advantage of Discounts

Exploring all the discounts available is something I never skip. There might be savings if:

• I don't have accidents or moving violations²²²¹
• I take defensive driving or accident prevention courses²²²¹
• My yearly mileage is low²²²¹
• I've been a loyal customer²²
• I insure multiple vehicles with the same company²²²⁰
• Student drivers in my family get good grades²²²¹
• I pay all my premiums at once²⁰

Using all available discounts helps me find affordable insurance coverage. It allows me to manage my budget without losing on important coverage.

Choosing the Right Car Insurance Coverage

When picking car insurance coverage, think about what you need and what you can afford. Looking at the lower cost of minimal coverage might catch your eye. But, it might not give you enough protection in a serious crash. In 2021, a crash with minor injuries cost over $40,000 on average²³. Some states only require $15,000 in coverage for bodily injuries²³. Considering 1 out of 8 drivers don't have insurance²³, higher coverage could save you a lot of stress and money.

Liability-only can be better than the minimum but won't help if your car's damaged. If your car is new or worth a lot, you'll want collision and comprehensive coverage. The deductible, what you pay before insurance kicks in, can be $250 to $1,000 or more²³. Knowing your car insurance options helps you choose wisely.

Full coverage is the best but costs more. The yearly average for those with a clean record is $2,068²⁴. Things like speeding, accidents, and DUIs raise your cost²⁴. Keeping your driving and credit record good can lower the cost. Good credit users pay about 21% less than those with fair credit²⁴.

Every state has its financial responsibility law for vehicles, and liability car insurance is the primary required coverage²⁵.

When you're picking your car insurance policy, look at what the National Association of Insurance Commissioners suggests²⁵:

• Liability insurance
• Uninsured/underinsured motorist coverage
• Personal injury protection (PIP)
• Collision coverage
• Comprehensive coverage

Coverage Type	Minimum Limit	Recommended Limit
Bodily Injury Liability (per person)	$25,000	$100,000 - $250,000
Bodily Injury Liability (per accident)	$50,000	$300,000 - $500,000
Property Damage Liability	$25,000	$100,000

Each state has different rules for how much insurance you need, from $15,000 to $50,000 for bodily injury coverage²⁵. Some states need more, such as personal injury protection or uninsured motorist coverage²⁵.

Choosing your car insurance depends on your car's worth, how you drive, and your money situation. If you're unsure, ask the pros. They can guide you to a choice that fits your needs and budget.

Conclusion

In conclusion, the cost of car insurance changes a lot because of many things. What car you drive, your age, where you live, and your driving history matter²⁶. Little things like this can make a big difference in what you pay. Across the U.S., prices can vary a lot. States like Michigan and Connecticut usually have the highest prices. Yet, Maine and Ohio tend to have the lowest²⁶. So, it's smart to compare prices from different companies. This can save you a lot of money²⁷²⁸.

To get affordable car insurance that fits you, know your options. Basic coverage may be the cheapest. But it offers the least protection. On the other hand, full coverage costs more but protects you better²⁶. Think about your own situation and how much risk you're okay with. Then, pick the right coverage for you.

There are ways to try to pay less for insurance. Keeping your driving record clean is a good start²⁶. It can get you a discount. Also, a higher deductible might lower your rates. Just be sure you can pay it if needed for a claim²⁶. You can also save by bundling your policies or by showing good driving with certain programs²⁶.

In the end, getting good insurance that won't break the bank means looking into your options. Compare what companies offer. Then, pick the plan that's good for you and your wallet. By being informed and talking to experts, you can find a policy that's right for you.

FAQ

What factors affect car insurance rates?

Your age, driving record, and the type of vehicle you own can affect insurance rates. Where you live also plays a role. Young and accident-prone drivers usually pay more. Drivers who've kept a clean record and drive safe cars pay less.

How can I find affordable car insurance?

To find cheaper car insurance, compare quotes from different companies. You might be eligible for discounts such as safe driver or bundling policies. Consider raising your deductible to lower your premium. Yet, make sure you could pay the higher out-of-pocket costs if needed.

What is the difference between minimum coverage and full coverage car insurance?

Minimum coverage, required by law, includes liability insurance. Full coverage goes beyond, adding comprehensive and collision coverage. It costs more but offers more protection. Just liability only pays for others' damages, not your car's.

How much is car insurance for teen drivers?

Car insurance is highest for teens due to their inexperience and higher risk. In California, the average 16-year-old pays about $421 a month for full coverage from Mercury Insurance, the cheapest.

Does my credit score affect my car insurance rates?

Many states allow insurance companies to use your credit score to set rates. A good credit score can mean lower rates. A low credit score, however, often leads to higher premiums.

How does my driving record impact my car insurance costs?

Your driving record is a key factor in your insurance costs. A clean record usually means lower rates. Speeding tickets, accidents, or DUIs make rates go up.

What is the cheapest car insurance coverage?

The minimum coverage, required by law, is usually the cheapest. It's important to note this covers very little in terms of accidents. Liability-only insurance is a bit pricier but provides more protection for others' damages.

How can I lower my car insurance premiums?

To lower premiums, consider several strategies. These include shopping around, increasing your deductible, and bundling policies. Maintaining a good credit score and utilizing applicable discounts will reduce costs. Safe driving and selecting a car with good safety features can also help.

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