Average cost of car insurance in September 2024

Shannon Martin is a licensed insurance agent and Bankrate analyst with over 15 years of experience in the industry. She enjoys helping others navigate the insurance world by cutting through complex jargon and empowering readers to make strong financial decisions independently.

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• • Property and Casualty

• • Auto insurance
• • Comparing insurance policies

Lisa McArdle is an insurance editor who joined the Bankrate team in 2023. She has more than 15 years of experience writing, editing and managing content in a variety of industries, including insurance, auto news and pop culture.

Reviewed by

Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.

Edited by

• • Property and Casualty

• • Auto insurance
• • Comparing insurance policies

Lisa McArdle is an insurance editor who joined the Bankrate team in 2023. She has more than 15 years of experience writing, editing and managing content in a variety of industries, including insurance, auto news and pop culture.

Reviewed by

Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.

The monthly average cost of car insurance for drivers in the U.S. is $196 for full coverage and $53 for minimum coverage.

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How much does car insurance cost by state? How much is car insurance by company? How much does car insurance cost by age? How does driving record impact the cost of car insurance? How much does car insurance cost by credit score? How much does car insurance cost by vehicle type? What other things affect my car insurance price? How to lower your car insurance costs Frequently asked questions Methodology

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• Car insurance costs by state
• Car insurance costs by company
• Car insurance costs by age and gender
• Car insurance costs by driving record
• Car insurance costs by credit score
• Car insurance costs by vehicle
• What other things affect my car insurance price?
• How to lower your car insurance cost
• Frequently asked questions
• Methodology

How much is car insurance?

According to Bankrate’s extensive research, the average cost of car insurance in the U.S. is $2,348 per year. Minimum coverage, on the other hand, has an average annual cost of $639. However, car insurance is like a fingerprint: although your circumstances may seem similar, your personalized rating factors will cause your premium to vary from that of friends, family and the national average. Still, knowing the average cost of car insurance might give you the information you need to ensure you’re not overpaying for this necessary financial protection.

Key insights from Bankrate's 2024 car insurance cost analysis:

• Full coverage car insurance costs an average of $2,348 per year, while minimum coverage is $639 per year. On a monthly basis, full coverage averages $196, with minimum coverage averaging $53 per month.
• USAA, Auto-Owners and Geico offer some of the cheapest full coverage car insurance but are not all available to all drivers.
• Men tend to pay more than women for car insurance, on average, since data show they are more likely to engage in riskier driving behaviors.
• Some vehicles experience higher average insurance premiums than others because of MSRPs, safety features, repair costs, parts availability and other variable characteristics.

What factors impact the cost of car insurance?

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Bankrate closely tracks the average cost of auto insurance premiums. For the past several years, our research has shown that rates are on the rise. If you’re struggling to wrap your head — or your budget — around this increase, we’re here to help.

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ZIP codes examined

How much does car insurance cost by state?

The average cost of car insurance varies between states for many reasons, like accident and claim frequency, the cost of labor and vehicle parts, vehicle theft frequency and even road conditions. The coverage levels you choose also play a significant role. Here, we cover the two most common coverage limits for a holistic view of average rates — full coverage and minimum coverage. It is typical for drivers who have leases or loans on their vehicles to have comprehensive and collision coverage, along with higher liability limits of 100/300/50, and for drivers of older cars to have liability-only limits at the state-required amounts.

Keep in mind that there are various degrees of coverage between these two options. Even if you are driving an older vehicle, liability coverage helps protect your financial future if you are found at fault for an accident. And insurance experts agree that carrying more liability coverage offers better financial protection at a relatively low cost to you. While making the jump from minimum coverage to full coverage can throw a wrench in your budget, raising your liability limits can be an affordable way to protect your finances if you are at fault for an accident. You may want to speak with a licensed insurance agent to better understand the limits that will work best for you.

Average car insurance cost by state in 2024

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Average auto insurance premiums based on a 40-year-old driver with a clean driving record and good credit.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

What are the cheapest states for car insurance in 2024?

Drivers in Idaho, Vermont, Ohio, Maine and Hawaii pay the cheapest annual full coverage car insurance rates in the nation, on average. Factors like cheaper cost of living, lower probability of accidents and claims, and less traffic congestion could contribute to these states' lower average premiums.

• Idaho: $1,326 per year — 44 percent below national average
• Vermont: $1,396 per year — 41 percent below national average
• Ohio: $1,492 per year — 37 percent below national average
• Maine: $1,528 per year — 36 percent below national average
• Hawaii: $1,548 per year — 35 percent below national average

What are the most expensive states for car insurance in 2024?

Based on our research, drivers in New York, Louisiana, Florida, Nevada and Colorado have the highest average annual cost of full coverage car insurance. This could be due in part to frequent claims for common losses in these states, making drivers riskier to insure overall.

• New York: $3,757 per year — 58 percent above national average
• Louisiana: $3,683 per year — 55 percent above national average
• Florida: $3,450 per year — 45 percent above national average
• Nevada: $3,111 per year — 31 percent above national average
• Colorado: $3,022 per year — 27 percent above national average

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Estimate your monthly car insurance cost

Despite car insurance being a highly individualized product, there are ways to help estimate car insurance costs. By understanding how insurance companies calculate rates, you can be better prepared to shop for car insurance and find a competitive price. While the rate you get from the calculator below is not an exact quote, it can help you budget better. Our rates database is updated monthly and represents the most accurate estimates based on rate change approvals insurers file with state insurance departments.

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These factors have the largest impact on your payment and are used to provide a personalized estimate. Based on the state you live in, some rating factors may not apply.

We calculated your estimate by comparing your provided details to data from similar drivers. Our estimate assumes 2020 Toyota Camry, 12,000 miles annually, and 100/300/50 liability limits with $500 comprehensive and collision deductibles.

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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

How much is car insurance by company?

On average, car insurance from some of the top insurance carriers in the nation ranges from around $1,300 to $2,800 per year for full coverage, some of the cheapest rates being from Auto-Owners, Erie and Geico. But because car insurance companies have their own proprietary underwriting systems, the cost of car insurance for each individual will vary from carrier to carrier. This can make choosing an insurer a difficult decision.

For drivers looking for the best car insurance company, keep in mind that the coverage you choose plays a role, too. The average cost of full coverage car insurance is about 268 percent more than minimum coverage. The table below showcases the average annual and monthly full and minimum coverage premiums from some of the largest car insurance companies in the nation by market share.

• Full coverage
• Minimum coverage

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

How much does car insurance cost by age?

Car insurance companies use many different rating factors to determine your premium, and in most states, your age significantly impacts how much you pay for coverage. Statistically speaking, younger drivers (especially teens) are more likely to be involved in an accident and engage in distracted driving. Because of the added risk, younger drivers tend to pay more for auto insurance compared to drivers with more experience behind the wheel.

Average rates tend to decrease from ages 25 to 60 but begin to creep back upward when a driver reaches their 70s. Advanced age can cause decreased reaction time and poorer eyesight, which in turn can increase the likelihood of an accident. Because of this, senior drivers typically see elevated insurance rates.

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

How much is auto insurance based on gender?

• Male drivers ages 20 and 25 pay about 11 percent more and 5 percent more for car insurance, respectively.
• By age 40, the national average full coverage car insurance cost for men is only 2 percent more than for women.

Not all states allow gender to be a factor in rates, though. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina or Pennsylvania, your gender does not affect how much you pay for car insurance because of state regulations prohibiting this rating factor.

How does driving record impact the cost of car insurance?

Drivers with an at-fault accident on their driving record pay around 44 percent more for car insurance on average compared to drivers with a clean driving record. This average increase is even higher for drivers with a DUI conviction, at 94 percent more, showing how the severity of an incident and being considered a high-risk driver could impact your premium.

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

• Speeding ticket: Earning a speeding ticket conviction may be one of the most common driving infractions and it can increase your full coverage premiums by, on average, 22 percent more. Every car insurance carrier will have its own algorithm for determining rates after a speeding ticket. For example, even after a speeding ticket conviction, Erie and Auto-Owner’s average car insurance rates are both well below the national average cost of auto insurance.
• At-fault accident: An at-fault accident on your record could raise your monthly full coverage car insurance payment from $196 to $281, and increase your annual premium by, on average, 44 percent more. If this is your first accident and you’ve previously added optional coverage like accident forgiveness to your policy, you may be able to avoid the surcharge.
• DUI conviction: Being convicted of a DUI could cause your monthly full coverage premium to be 94 percent more, and stay on your driving record for 10 years or more. The amount surcharged will also vary in each state. For example, the average cost of car insurance after a DUI for a full coverage policy is $2,192 per year in Idaho, but around $7,724 per year in Michigan.

How much does car insurance cost by credit score?

Drivers with poor credit pay nearly 85 percent more for full coverage car insurance compared to those with good credit. This is because drivers with poor credit are seen as more likely to file claims and thus pose a larger financial risk to an insurer versus a driver with good credit. In states where using a credit-based insurance score as a rating factor is allowed, insurers review your insurance credit tier, which is not necessarily identical to your credit score from services like Experian, TransUnion or Equifax.

Regulations in California, Hawaii, Massachusetts and Michigan prohibit or severely limit auto insurers from using credit as a factor when setting rates.

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

How much does car insurance cost by vehicle type?

The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents, how much damage your vehicle could cause during an accident and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are well-suited for a variety of lifestyles and budgets.

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

The vehicles listed above are representative of common model types seen across the United States. Our list includes a variety of luxury and standard brands and a broad selection of model sizes. Some vehicle makes and models are considered more expensive to insure by insurance companies. These shared features can include:

• High-end vehicles, likeluxury or sports cars: High-value vehicles cost more to insure because they often cost more to replace as well as to repair. Sports cars and sporty versions of luxury models also present an added risk of at-fault accidents thanks to powerful engines and high top speeds.
• SUVs, vans and other large vehicles: While large vehicles like SUVs and vans can reduce the risk of damage to your vehicle or injuries to your passengers, they can cause more damage to other vehicles and their occupants, leading to higher liability costs.
• Common, more affordable vehicles: Economy cars may be more affordable upfront, but their lack of advanced security and safety features could increase your risk of claims. Cheap Hyundai and Kia models, for instance, are common theft targets due to a lack of key security features.
• Hybrid and electric vehicles: The insurance cost gap between electric and hybrid cars and their gas-powered counterparts is closing, but not gone. EVs come with steep repair costs thanks to expensive parts and specialized labor, which can lead to higher rates for comprehensive and collision coverage.
• Vehicles with low safety ratings: Opting for a car with lower safety ratings could raise the base rate you pay for insurance, since these vehicles may have a higher chance of getting into accidents and can sustain more damage in the event of a crash.

What other things affect my car insurance price?

Your car insurance price can also be influenced by less apparent elements such as your occupation, annual mileage and even your marital status. Certain professions may be considered lower risk, leading to lower premiums. Similarly, the number of miles you drive annually can impact your rate, with lower mileage often resulting in cheaper insurance due to reduced exposure to potential accidents. Additionally, married individuals typically receive lower rates compared to single drivers, as insurers often associate marriage with more stable and safer driving behaviors. Many states allow insurance providers to consider gender, but a handful of states have banned this practice. Every state except Hawaii and Massachusetts allows insurance companies to consider age as a factor for insurance pricing. Other things like where you park your car, whether in a garage or on the street, can also affect your insurance costs, as vehicles kept in secure locations are less likely to be stolen or damaged.

• Auto Car Guides

Coverage selections

Your car insurance coverage options have a significant effect on your rate. If you select higher liability limits, choose lower deductible levels or add optional coverage types like comprehensive and collision coverage, your rates will likely be higher.

Insurance history

If you’ve had continuous car insurance for the length of time you’ve been a licensed driver, you may pay lower rates. Lapses in your coverage (unless you did not own a car during that time) can be an indication of high-risk behavior and may increase your premium.

Annual mileage

The more you drive, the more likely you are to get into an accident. Policyholders who drive fewer miles a year often qualify for lower rates (typically less than 7,500 miles per year, but it could vary by carrier).

Number of policy members

Insuring multiple drivers on a policy may help lower rates. Data from Quadrant Information Services indicates that married couples pay 6 percent less than the national average for a full coverage policy and 4 percent less for minimum coverage

How to lower your car insurance costs

If you're looking to save when buying car insurance, there are several simple strategies you can use to lower your costs:

• Compare multiple quotes: Every auto insurance company calculates rates differently, and these systems change. Regularly comparing quotes can help you find the best coverage at the most competitive price in a shifting market.
• Bundle your policies: If you also have a home, renters or life insurance policy (or another type of insurance).
• Reduce your mileage: Driving less than the average annual mileage reduces your risk of accidents. If you’re able to work from home, carpool or switch to another form of transportation, you may qualify for a lower rate based on your mileage.
• Raise your deductible: If you have full coverage on your vehicle, increasing your deductibles — the amount you pay out of pocket to make a claim — can lower your monthly premium.
• Look for discounts: Layering multiple car insurance discounts can significantly reduce your premium. Most insurers offer discounts, but the number, type and availability of discounts varies, so do your research when you shop.

Auto insurance discounts

• Claims-free discounts: Drivers who have no auto claims on their record for the past three to five years typically qualify for savings. This could include either a claims-free or safe driving discount.
• Good student discounts: Drivers under age 25 who are enrolled full time in high school, college or graduate school may qualify for discounted auto insurance rates from many major insurers.
• Discounts for paying in full: Some insurance providers offer discounts to policyholders who pay their premium as a single annual or semiannual lump sum rather than monthly or quarterly payments.
• Telematics discounts: Telematics programs use GPS technology to track your driving habits like speeding, harsh braking and phone use. Many insurers offer a discount to drivers who share telematics data with their provider and avoid these unsafe behaviors.
• Paperless policy discounts: Many insurance providers offer savings when policyholders agree to receive their bills and policy documents electronically instead of through the mail.
• Automatic payments plan: While not technically a discount, the majority of insurance companies charge service fees any time a payment is processed on an insurance policy, unless the customer opts to pay the bill in full each renewal. Many companies will waive or lower the service fee if the account is set up on auto pay through a checking account instead of a credit or debit card.
• Bundling discounts: The home and auto bundle is not the only kind of bundling discount available. Depending on your insurer, you may also be able to bundle your auto policy with a renters, umbrella, motorcycle or other insurance lines.

The cheapest car insurance companies in 2024

Whether you are looking for the lowest car insurance rates or more specialized policies, Bankrate can help find the best cheap car insurance option for you.

How are car insurance rates changing?

Record inflation, unprecedented supply chain issues and increased post-pandemic claims contributed to rising insurance rates in 2022. Although signs point to cooling inflation in 2024, Bankrate has found that rates are continuing to increase in 2024, due to factors like social inflation and increased claim severity. Computer chip and vehicle production shortages continue to present a challenge. While there’s no guarantee that your rate will increase (or decrease) in 2024 due to the highly personalized nature of insurance, you may want to prepare for your car insurance bill to be a little higher than it was last year.

Our industry experts weigh in

How is inflation impacting the auto insurance industry compared to the economy as a whole?

• Kenneth Chavis IV
• Jon Schnautz

Kenneth Chavis IV

Senior wealth advisor at Versant Capital Management

"Inflation has impacted the auto insurance industry similarly to many other industries. Over the last few years, we’ve seen a sharp rise in the cost of premiums for auto insurance driven in part by inflation. This is specifically due to higher labor and parts costs for repairs and higher replacement costs for vehicles."

Assistant Vice President of State Affairs for National Association of Mutual Insurance Companies

“Unfortunately, leading economists do not anticipate supply chain stabilization in the near future. Additionally, many of the costs driving auto insurance rates stem from the realities drivers face on the roads, which are both behavioral in nature and constantly fluctuate. There is no single solution to the inflationary challenges facing auto insurers. While efforts at tort reform and keeping medical costs in check will help, auto insurers are ultimately subject to many of the same inflationary pressures as other businesses, with limited ability to affect meaningful changes to economic reality. However, there are still steps legislators and regulators [might] take to help soften inflationary blows. Auto insurers continue to support policies that embrace matching rate to risk and enhancing road safety and consumers’ right to repair their vehicles as they see fit."

Frequently asked questions

What's the difference between minimum and full coverage?

A minimum car insurance policy is one where the coverage limits are only enough to meet the state requirements for a car to be legally driven on public roads. This usually refers to bodily injury and property damage liability, but some coverage limits vary based on state law. While there isn't an industry standard definition for full coverage, a full coverage policy typically includes both collision and comprehensive coverage. The main difference between the two is that minimum coverage does not include coverage to help pay for damage to your vehicle, while full coverage does. There is also a significant price difference between the two policy types. Because it offers financial protection for both the damage your vehicle does and the damage done to your vehicle, a full coverage policy is more expensive than a minimum coverage one.

What limits should my car insurance policy have?

Your auto insurance policy should protect your assets and finances, but the exact amount required to cover your insurance needs will be different for everyone. Consider the potential costs of an at-fault accident, the value of your current assets and your future income potential when selecting your liability limits. For most drivers, state minimum limits won’t cover an accident with serious injuries or damage to a high-value vehicle. People who own property, stocks or businesses may want to inquire about additional coverage with an umbrella policy. Work with your insurance agent to understand the best limits for your situation.

Does your car insurance go down after your car is paid off?

Just paying off your car won’t automatically cause your insurance premiums to go down. However, owning your vehicle outright gives you the added flexibility of choosing your coverage and coverage limits. Lending institutions generally require drivers who finance their vehicles to carry comprehensive and collision insurance. You may also have a limit on how high of a deductible you can select. When you own your car, whether you add these coverage types becomes solely up to you.

It may be tempting to remove comprehensive and collision coverage and opt for a more affordable liability-only policy, but most insurance professionals recommend keeping full coverage in place if you can afford to do so. Collision and comprehensive coverage may save you from extensive out-of-pocket costs if your vehicle is damaged in an accident or other covered event.

Does car insurance decrease every year?

Car insurance rates usually fluctuate each renewal based on changes in several factors, most of which are out of your control. Even if your driving has stayed the same, factors such as the cost of vehicle repairs and medical expenses tend to increase every year. When this happens or your insurance company has had substantial losses from a catastrophic event, your rates may increase. However, there are some years when insurance companies pay less in claims than anticipated due to better weather or improved driving within a certain area. That is when you may see your rates decrease. There are times when the rate can decrease a few years in a row. Typically this happens to drivers who are 16 or 17 years old. As they gain driving experience, their insurance rates usually decrease a little each year until they move from the high-risk youthful driver risk pool into the standard risk pool. Also, drivers with surcharges on their policies usually see their rates decrease slightly over three years until the surcharge falls off the policy.

Which car insurance company is the cheapest?

According to our research, NJM, Auto-Owners, Erie and Geico rank as some of the cheapest car insurance companies on average. However, car insurance isn't one size fits all. Factors like driving record, location, annual mileage, driving experience and coverage types can all affect how much car insurance is. Additionally, the cheapest carrier for a driver that wants to purchase many endorsements may be different from the cheapest company for a driver seeking liability-only coverage. Obtaining car insurance estimates from several providers and comparing coverage types and benefits is usually the best way to find the provider that meets your desired coverage and budget requirements.

How can I get cheaper car insurance?

Saving money on car insurance may begin before you even purchase a vehicle. Comparing quotes from different carriers for the makes and models of cars you are interested in might give you an idea of what vehicle type may help you save on your premium. You may find cheaper insurance for vehicles you already own by taking advantage of discounts and telematics programs. Another option is to review your policy and ensure you still need all the coverage you have. If you have more than one car or access to another vehicle, for example, you may not need to pay for rental reimbursement coverage. Additionally, depending on your state, improving your credit score may also bring down your premium over time.

Methodology

Bankrate utilizes Quadrant Information Services to analyze September 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and coverage levels: