Average Cost of Car Insurance in the United State: Do you know that the average price of auto insurance in the US is $1,553. That might not accurately represent what you actually pay for auto insurance, though. To calculate auto insurance prices, every auto insurance provider considers a variety of variables.
In the United States, the average cost of car insurance is $1,553. However, that may not reflect what you actually pay for car insurance. Every auto insurance company evaluates a number of factors to determine car insurance rates. These include your age, location, type of vehicle, driving history, and credit score. And each insurance company weighs those factors differently.
According to our data, USAA has the lowest average rates, but its insurance products are only available to active and former members of the military and their families. For most consumers, GEICO has the second lowest average car insurance rates, while Allstate has the highest average car insurance rates.
Average Cost of Car Insurance in Your State?
Car insurance rates fluctuate due to several factors, including where you live. Florida has the most expensive rates with average annual rates of $2,393, while New Hampshire has the least expensive rates with average annual rates of $940. The table below includes the average car insurance cost for each state in the nation and the District of Columbia. Keep in mind that these rates provide a general idea of what you can expect but may not reflect what you actually pay for your own car insurance policy.
The best way to find out how much you’ll pay for car insurance is to get and compare at least three car insurance quotes. Aside from estimating the cost of a policy, shopping around can also help you find the cheapest coverage for you.
Average Car Insurance Rates for Low Coverage
|Company||Average Rate Low Coverage|
|American Family Insurance||$1,327|
Drivers looking for minimal coverage will find the lowest rates with USAA, which has an average rate that is 35% less than the national average. However, USAA is only available to active and former members of the military and their families. For most consumers, Geic has the cheapest rates, coming in at 27% lower than the national average. If you’re shopping for a low coverage auto insurance policy, make sure it meets any minimum liability requirements set by your state and , if financing your vehicle, your lender.
Average Car Insurance Rates for High Coverage
|Company||Average Rate for High Coverage|
|American Family Insurance||$1,388|
Next to USAA, Geico has the cheapest rates for drivers looking for a high-coverage policy. Its rates are 24% lower than the national average for a high-coverage policy. Nationwide’s rates are also competitive, coming in at nearly 18% lower than the national average.
Average Car Insurance Rates for Good Drivers
|Company||Average Rate for Good Drivers|
|American Family Insurance||$1,371|
Drivers with a clean driving record often have some of the lowest rates, but those looking for cheapest car insurance premiums are likely to find them with USAA or Geico. Drivers who choose those insurers can save up to $539 when compared to the national average. Good drivers are less likely to find a good deal with AAA. Its rates are $870 more than the national average.
Average Car Insurance Rates for Drivers With One Speeding Ticket
|Company||Average Rate After a Speeding Ticket|
|American Family Insurance||$1,608|
If you have a speeding ticket on your driving record, it will likely increase your rates at least for the short term. After a speeding ticket, the national average increases by 24%. As is typically the case, USAA has the lowest rates of this group of drivers, beating the national average by 37%. Those who aren’t eligible for USAA coverage are likely to find that State Farm’s rates, which are 26% less than the national average, are the lowest.
Average Car Insurance Rates for Drivers With One Accident
|Company||Average Rate After One Accident|
|American Family Insurance||$1,658|
If you’re at fault for an accident, it’s likely your rates will increase. That makes shopping around and comparing auto insurance quotes after an accident (at-fault or otherwise) a good idea. Next to USAA, which features rates that are $776 less than the national average, State Farm has the lowest premiums.
Drivers who choose State Farm save an average of $644, when compared to the national average for one accident. American Family also has fairly competitive rates, coming in at $522 less than the national average.
Average Car Insurance Rates for Drivers With One DUI
|Company||Average Rate After One DUI|
|American Family Insurance||$1,754|
A DUI on your driving record will result in increased car insurance rates. Although the national average is $2,320, you will find the cheapest rates with State Farm, whose average rates are 34% less than the national average. If you have a DUI on your record, you may also want to consider American Family Insurance, USAA, Progressive, or Travelers. Each offers car insurance rates that are lower than the national average.
Average Car Insurance Rates for Drivers With Poor Credit
|Company||Average Rate with Poor Credit|
|American Family Insurance||$2,233|
Another factor car insurance companies use to determine car insurance premiums is your credit score. In general, the higher your credit score, the lower your auto insurance rates. For drivers with poor credit, national average rates are $2,524. Though USAA often leads the pack, Geico actually has the cheapest rates for drivers with poor credit. In fact, they are more than $700 less than the national average. Nationwide, USAA, American Family Insurance, and Travelers also offer average rates less than the national average.
Average Car Insurance Rates for Teen Drivers
|Company||17-year-old Female||17-year-old Male|
|American Family Insurance||$3,619||$3,971|
Teen drivers typically have higher car insurance rates due to their inexperience behind the wheel. The national average rate for female teen drivers is $4,860, while the average for male teen drivers is $5,503. USAA has the cheapest rates for teens, with average rates that are 38% lower for female teens and 42% lower for male teens. For non-USAA members, Geico has the cheapest rates for teen drivers (36% less for females, 37% for males).
Average Car Insurance Rates for Adult Drivers
|Company||35-year-old Female||35-year-old Male|
|American Family Insurance||$1,298||$1,342|
Adult drivers looking for the lowest rates will likely find them at USAA, which is the only insurer in our study that has premiums below $1,000 for both male and female drivers. Geico’s rates are also competitive, coming in at up to $375 less than the national average.
Average Car Insurance Rates for Senior Driver
|Company||60-year-old Female||60-year-old Male|
|American Family Insurance||$1,205||$1,214|
Car insurance rates for senior drivers in their early 60s may decrease somewhat but not always. The national average rates for seniors are $1,245 for females and $1,282 for males. USAA’s rates are the lowest, but for those who aren’t eligible, Geico’s rates may be the lowest. Its average premium for female drivers is $262 lower than the state average. Male drivers who choose Geico may save around $280. Female drivers may also find competitive rates with Nationwide, while male drivers may want to consider State Farm.
What factors affect car insurance rates?
Car insurance companies generally consider the following factors when determining the cost of your policy:
- Driving record
- Vehicle type
- Vehicle use (e.g., commute to/from school or work, average annual mileage)
- Credit history
Your auto insurance rates also depend on the type of coverage, deductible, and limit you choose. Minimum coverage is often the cheapest option, but you may need or choose to purchase additional coverage. For instance, if you finance or lease your vehicle, your lender or lessor will likely require you to carry full coverage, which includes liability auto insurance as well as collision and comprehensive coverage. A full coverage policy will be more expensive than a liability policy.
A higher deductible and lower limit typically lead to lower rates. But there are drawbacks. If you choose a higher deductible, you’ll need to pay more out of pocket when you make a claim. Similarly, lower limits mean accident-related expenses may exceed the amount your insurer will cover.
How can I find the best car insurance rates?
Shopping around is the best way to find the best car insurance rates. Make sure to compare quotes from several different insurance companies. You can also keep car insurance cheaper by maintaining a good credit history and a clean driving record.
Will my car insurance cost be close to the average cost of car insurance?
Although our study determined average car insurance prices for a variety of customer groups, there are a lot of individual factors that may make your rates lower or higher than those shown here. Our U.S. News auto insurance guide can help you learn more about shopping around to find the cheapest rates, finding discounts, and other ways to cut costs.
How much does an average car insurance policy cost?
Based on our data, the average cost for an auto insurance policy is around $1,539 a year. Your costs may be higher or lower depending on various factors, including your age, location, driving record, and credit score.
The type and amount of auto insurance you choose will also determine how much you pay for insurance. For instance, a full coverage auto insurance policy will cost more than a minimum coverage policy.
Getting several auto insurance quotes can help you get an idea of how much it will cost to purchase a policy.