{"id":2288,"title":"How Much Is Car Insurance?","slug":"how-much-is-car-insurance","lang":null,"description":"The current U.S. average cost of car insurance is $2,242 per year for full coverage and $1,183 per year for liability-only coverage, according to Insurify data.\n\nIn 2025, car insurance rates fell in 39 states, according to the American Driver report. Eight states saw rate decreases of 15% or more.\n\nThe average cost of car insurance in your state depends on multiple factors, including traffic congestion, population density, accident rates, theft rates, and more.","content":"

Insights from the 2026 Insurify auto insurance report

Insurify’s data scientists analyzed more than 197 million rates from our proprietary database to glean key insights about how car insurance evolved in 2025 and what rates are likely to look like in 2026:

Average full-coverage costs rose more than 12% in three states and Washington, D.C., in 2025: New Jersey (20%), Washington, D.C. (18%), Rhode Island (13%), and Michigan (12%).
Full-coverage rates fell in 39 states overall, with Wyoming, Iowa, and Arkansas seeing price cuts of more than 20%.
The five most expensive areas for car insurance are Washington, D.C., Maryland, Rhode Island, Michigan, and New York.
Of the 50 most popular vehicles, just two had average rate increases in 2025: the Tesla Model S (up 9%) and the Model X (up 7%).
Insurify data analysts project the national average cost for full coverage will increase by about 1% by the end of 2026.

Factors that affect car insurance rates the most

Insurers consider many rating factors when setting premiums, including:

Your driving record: Drivers with clean driving histories typically pay less than those with at-fault accidents, speeding tickets, DUIs, and other moving violations.
Location: Where you live affects how likely you are to be in an accident or have your vehicle stolen.
Age: Your age typically affects how many years of driving experience you have and how likely you are to file a claim.
Insurance history: If you’ve had a coverage lapse in the past or a history of multiple claims, insurers will view you as a higher-risk driver.
Coverage level: More coverage means greater financial protection, but it can also result in higher premiums. For example, full coverage generally costs more than minimum coverage.
Credit history: In some states, insurers can use your credit information to predict how likely you are to file a claim. But some states ban the use of credit as a rating factor.
How much you drive: The more you drive, the more opportunities you have to be in a car accident. So you’ll pay more for car insurance if you drive your car for work or have a long daily commute.
Selected coverages: Many insurance companies offer additional coverages beyond liability, comprehensive, and collision coverages. Adding glass coverage, gap insurance, custom equipment coverage, roadside assistance, or rental reimbursement coverage will increase your monthly premiums.
Your deductible: The higher your deductible, the lower your monthly premiums. But higher deductibles also mean higher out-of-pocket costs when you file a claim, so it’s important to consider your financial situation when selecting a deductible.

Average car insurance costs by state

Auto insurance premiums vary by state due to different economies, urban population, miles driven per number of highway miles, state-mandated coverage requirements, and whether a state has a no-fault or at-fault insurance system.[1] The number of uninsured drivers on the road also influences how insurers set rates.

Premiums can vary down to the ZIP code, but here are the average monthly liability-only and full-coverage rates for each state.

State $\"sort$ $\"sort$	Full Coverage $\"sort$ $\"sort$	Liability Only $\"sort$ $\"sort$
Alabama	$142	$66
Arizona	$162	$91
Arkansas	$150	$73
California	$203	$98
Colorado	$217	$97
Connecticut	$225	$162
Delaware	$262	$166
Florida	$236	$142
Georgia	$259	$157
Hawaii	$126	$62
Idaho	$107	$64
Illinois	$162	$84
Indiana	$128	$64
Iowa	$111	$56
Kansas	$157	$79
Kentucky	$194	$121
Louisiana	$209	$106
Maine	$139	$74
Maryland	$302	$191
Massachusetts	$137	$103
Michigan	$229	$130
Minnesota	$182	$93
Mississippi	$186	$89
Missouri	$180	$92
Montana	$139	$62
Nebraska	$134	$69
Nevada	$260	$164
New Hampshire	$85	$52
New Jersey	$257	$181
New Mexico	$133	$65
New York	$218	$145
North Carolina	$113	$69
North Dakota	$114	$66
Ohio	$117	$65
Oklahoma	$169	$83
Oregon	$156	$91
Pennsylvania	$162	$90
Rhode Island	$298	$177
South Carolina	$255	$160
South Dakota	$152	$62
Tennessee	$132	$60
Texas	$204	$110
Utah	$146	$92
Vermont	$140	$57
Virginia	$207	$118
Washington	$184	$95
Washington, D.C.	$237	$136
West Virginia	$156	$83
Wisconsin	$125	$57
Wyoming	$94	$50

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

How U.S. car insurance rates have changed

The following chart shows how national average car insurance rates have changed in the U.S. over the past five years.

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To explore and download more auto insurance data, visit Insurify’s data center.

Average cost of car insurance by age

Teen drivers and drivers in their early 20s typically pay the highest auto insurance rates. That’s partly due to teens’ lack of experience, and the characteristics of teen fatal crashes include driver error, speeding, and night driving, according to the Insurance Institute for Highway Safety.

Rates typically decrease with age, but costs start to increase again slightly when drivers reach age 70. Fatal crash rates are highest for senior drivers older than 80, followed by drivers aged 16–19 and 20–24, according to the National Highway Traffic Safety Administration.[2] Age-related changes to vision and physical functioning, as well as diseases and medications, may affect older adults’ driving ability.

These are the national average monthly car insurance premiums by age group.

The below national rates are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT.

Data reviewed by Konstantin Halachev

Insurance Company $\"sort$ $\"sort$	Average Monthly Quote: Teens $\"sort$ $\"sort$	Average Monthly Quote: 20s $\"sort$ $\"sort$	Average Monthly Quote: 30s $\"sort$ $\"sort$	Average Monthly Quote: 40s $\"sort$ $\"sort$	Average Monthly Quote: 50s $\"sort$ $\"sort$	Average Monthly Quote: 60s $\"sort$ $\"sort$	Average Monthly Quote: 70s $\"sort$ $\"sort$
Country Financial	$59	$60	$45	$41	$38	$33	$30
USAA	$94	$67	$51	$47	$44	$39	$40
Auto-Owners	$102	$66	$47	$43	$39	$34	$32
State Farm	$107	$70	$52	$48	$44	$37	$34
Erie	$119	$83	$65	$58	$51	$44	$44
Root	$132	$113	$107	$111	$110	$109	$117
GEICO	$141	$92	$77	$77	$70	$57	$55
The General	$154	$114	$88	$79	$74	$73	$76
American Family	$157	$93	$81	$78	$67	$60	$54
GAINSCO	$161	$117	$94	$88	$83	$83	$89
Commonwealth Casualty	$162	$104	$79	$68	$64	$62	$74
Dairyland	$164	$121	$103	$93	$86	$84	$89
Clearcover	$167	$125	$117	$121	$114	$105	$110
Mile Auto	$167	$96	$74	$69	$57	$52	$58
Mercury	$172	$128	$99	$91	$79	$68	$72
Bristol West	$183	$131	$107	$100	$92	$87	$88
Direct Auto	$185	$116	$89	$82	$75	$69	$73
National General	$186	$112	$83	$73	$67	$62	$64
Elephant	$189	$127	$105	$96	$87	$77	$81
Safeco	$191	$98	$93	$97	$87	$75	$75
Plymouth Rock	$210	$134	$122	$121	$108	$94	$98
Liberty Mutual	$213	$152	$134	$136	$123	$101	$99
Travelers	$225	$121	$95	$90	$80	$72	$74
Farmers	$229	$128	$104	$95	$87	$77	$75
Anchor	$230	$143	$111	$99	$93	$84	$103
21st Century	$232	$173	$133	$128	$112	$97	$100
AssuranceAmerica	$237	$137	$92	$80	$73	$73	$85
Chubb	$265	$153	$119	$101	$91	$77	$73
Shelter	$282	$171	$127	$112	$89	$76	$74
The Hartford	$343	$194	$137	$114	$89	$76	$75
Amica	$417	$292	$221	$216	$189	$161	$168
State Auto	$443	$196	$150	$132	$120	$99	$106
CSAA	$457	$263	$195	$173	$148	$96	$140

Cost of car insurance by driving record

Your driving record affects your car insurance premiums significantly. Drivers with a clean record pay about 7% below average, and drivers with a DUI pay 67% above the national average rate, according to Insurify data.

A DUI is among the worst things that can happen to your driving record. In some states, it stays on your record permanently, so avoid drinking and driving, and practice safe driving habits to lower your likelihood of an incident.

The following table shows how your driving record can affect your full-coverage car insurance rates.

Average Car Insurance Cost by Driving Record

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Rate increases following an incident typically last three to five years, so ask your insurer about when you can expect a decrease or shop for new quotes around that time to find cheaper coverage.
Cost of car insurance by coverage level

These are the current national averages for car insurance in the U.S., according to Insurify data.

Coverage Level $\"sort$ $\"sort$	Average Monthly Rate $\"sort$ $\"sort$
Liability only	$99
Full coverage	$187

Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

The coverage you choose significantly affects how much car insurance costs. A full-coverage policy costs about 105% more than liability-only coverage, according to Insurify data. New Hampshire is the only state that doesn’t require car insurance, but if you lease or finance your car, your lender may require you to buy full-coverage car insurance.

State-minimum coverage typically includes bodily injury and property damage liability coverage. No-fault states typically also require personal injury protection and uninsured/underinsured motorist coverage. Here’s what those cover:

Bodily injury liability: Covers costs from injuries you or another driver causes using your car
Property damage liability: Reimburses others for damage you cause to other cars, fences, buildings, etc.
Personal injury protection: Covers medical expenses and lost wages for you and any passengers
Uninsured/underinsured motorist coverage: Reimburses you in a hit-and-run or when another driver causes an accident and lacks adequate coverage

To insure against damages to your vehicle, you’ll need full coverage, which typically includes collision and comprehensive insurance. Collision insurance damages from a crash with another vehicle or object when you’re at fault, while comprehensive insurance protects you against vehicle theft, fire, floods, and things like falling trees. Some policies include glass coverage, or you can buy supplemental coverage.

Average car insurance rates by vehicle make and model

Your vehicle affects what you pay for car insurance. Generally, vehicles with higher replacement and repair costs, like luxury models or brand-new cars, have higher premiums. But many insurers offer discounts for safety equipment or technology like lane-departure warnings.

The following table illustrates average car insurance costs by vehicle make and model for some popular cars.

The below national rates are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT.

Data reviewed by Konstantin Halachev

Vehicle $\"sort$ $\"sort$	Average Monthly Liability-Only Rate $\"sort$ $\"sort$
Camry	$117
Equinox	$99
Silverado	$103
Model Y	$120
Sierra	$104
F-Series Pickup	$105
RAV4	$103
Rogue	$110

Average car insurance rates by insurance company

Every insurance company has a different way of calculating premiums, though most consider the same factors. Besides personal risk factors, some factors affecting costs for all drivers include inflation, upticks in riskier driving, severe weather, and reinsurance rates. Reinsurance is basically insurance that helps insurance companies cover their losses following a year of high claims.

You can find dramatically different rates between insurers. It’s always good to compare quotes when you’re looking for the best car insurance company for your needs.

The below national rates are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT.

Data reviewed by Konstantin Halachev

Insurance Company $\"sort$ $\"sort$	Full Coverage $\"sort$ $\"sort$	Liability Only $\"sort$ $\"sort$
NJM	$81	$48
Auto-Owners	$89	$47
Country Financial	$91	$45
USAA	$102	$52
State Farm	$103	$53
Erie	$117	$66
Progressive	$136	$78
Safeco	$137	$85
Mile Auto	$139	$74
GEICO	$143	$79
Allstate	$159	$91
American Family	$160	$82
Direct Auto	$170	$90
Mercury	$172	$96
National General	$176	$88
AssuranceAmerica	$177	$104
Elephant	$177	$104
Commonwealth Casualty	$180	$83
Root	$181	$111
Plymouth Rock	$184	$119
Travelers	$190	$98
Liberty Mutual	$207	$128
Farmers	$208	$107
GAINSCO	$209	$97
Bristol West	$210	$108
Clearcover	$214	$117
The General	$215	$87
Chubb	$225	$119
The Hartford	$232	$132
CSAA	$238	$156
Shelter	$240	$133
Dairyland	$248	$102
Anchor	$252	$115
21st Century	$259	$136
State Auto	$291	$153
Amica	$394	$227

How credit history affects your car insurance premium

Most states allow insurers to use credit history to set rates. California, Hawaii, Massachusetts, and Michigan don’t permit insurers to use any credit information to set auto insurance premiums. In Maryland, Oregon, and Utah, credit history can affect rates, but insurers can’t use it to deny, cancel, or non-renew your policy.

When insurers consider your credit, they’re not actually looking at your credit score. Instead, they use information in your credit history to generate a credit-based insurance score, which in turn helps them estimate your likelihood of filing a claim.[3]

Different types of insurance scores may use different factors and weighting, but all use information from your credit report. That can include payment history, balances, credit limits, and more. Insurers use these scores to predict your likelihood of filing insurance claims.

Rates by Credit Tier

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Insurify Tips

Curious about your credit? It used to be that you could get only one free credit report a year, but not anymore. In 2023, the federal government made permanent a pandemic-era program to make one free report available every week.[4] The Federal Trade Commission directs consumers to visit AnnualCreditReport.com to sign up.

Average cost of car insurance FAQs

Shopping for car insurance can feel overwhelming when so many factors go into determining the cost of coverage. To help make the process easier and less confusing, here’s some additional information about average car insurance costs.

What is the average cost of car insurance in the U.S.?

Nationwide, auto insurance averages $187 per month for full coverage and $99 per month for liability-only coverage. But premiums depend on various factors, including your age, location, driving history, and the type of coverage you select.

Do your car insurance costs decrease once your car is paid off?

Your car insurance premiums won’t automatically decrease when you pay off your car loan. But if you were carrying gap insurance, which covers the difference between how much you owe on your vehicle and the insurance payout after a total loss, then you can drop that coverage after paying off your loan. This could lower your overall car insurance costs.

Does car insurance go down annually?

Car insurance rates fell nationwide in 2025, but that’s not typical. Rates often stay level or rise. After multiple years of rate increases, many insurers found themselves on improved financial footing in 2025, and they passed that on to drivers through reduced premiums. But Insurify data analysts predict rates will increase slightly — around 1% — by the end of 2026.

Which car insurance company is the cheapest?

Country Financial has the cheapest car insurance nationwide, with liability premiums averaging $45 per month, according to Insurify data. But the cheapest car insurance company for you will depend on where you live, your driving history, the type of car you drive, and other factors. So it’s a good idea to shop around and compare rates from multiple insurance companies to identify the most affordable option.

At what age is auto insurance the least expensive?

Auto insurance tends to be cheaper once drivers reach 25 years old. Drivers in their 60s pay the lowest premiums, averaging just $86 per month for liability-only coverage and $163 per month for full coverage.

Why are car insurance companies pulling out of Florida and California?

Car insurance companies are pulling out of California because of the state’s consumer-friendly legislation, Prop 103, which limits insurers’ ability to raise rates, and because of the state’s two-year freeze on insurance rate increases during the COVID-19 pandemic. This legislation, in addition to rising car repair costs and wildfires in California, has prompted companies like GEICO, Progressive, and State Farm to withdraw or limit new coverage after experiencing high losses in the state.

Florida’s high risk of hurricanes and other coastal storms has hit insurers in the state hard. Companies are either pulling out of Florida or declaring insolvency — meaning they can’t pay debts they owe — to manage the risk of claims they’re experiencing from natural disasters in the state.

Is $300 per month a lot for car insurance?

Compared to the national average of $143 per month, yes. But your rate depends on where you live, your driving history, your age, your credit history, your coverage levels, and more. So a $300 monthly rate might be considered cheap in Washington, D.C., where the average is $186 per month, but it’ll probably be considered expensive in Omaha, where the average is $126.

It’s helpful to use a calculator to see how your rates compare to other drivers.

Is $100 per month expensive for car insurance?

Compared to the national average of $143 per month, no. But if $100 is too much for your budget, try looking for discounts, raising your deductible, and altering your coverage to save on costs. In the long term, maintain a good credit rating and a clean driving record to reduce your premium.

Is $3,000 per year for car insurance normal?

The current overall national average cost for car insurance is $1,713 annually, so $3,000 is above average. But depending on your driver profile and where you live, $3,000 might be close to average. For example, if you have speeding tickets or a DUI and live in a state with high insurance costs, a $3,000 premium might not be unusual.

Sources

Insurance Information Institute. \"Facts + Statistics: Auto insurance.\"
National Highway Traffic Safety Administration. \"Young Drivers.\"
Insurance Information Institute. \"Background on: Insurance scoring.\"
Federal Trade Commission. \"You now have permanent access to free weekly credit reports.\"

Methodology

Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage

Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:

Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

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