In the US, the average yearly premium for auto insurance is $1,982. Here are some possible costs dependent on company, state, kind of automobile, and other factors.
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Foolish Conclusion
- The average annual cost of full coverage and minimum coverage for auto insurance in the country is $1,982 and $549, respectively.
- Average vehicle insurance prices are higher for young drivers, drivers with a history of DUIs, and drivers with poor credit.
- Although average auto insurance rates might serve as a useful guide for determining how much you can afford to spend for coverage, the actual cost will probably differ.
What is the cost of auto insurance? Answering this topic is challenging because there are so many variables that affect driver rates. It can be challenging to consider auto insurance costs without feeling as though you are overpaying for coverage. Answering this challenging issue can be made easier by being aware of the average cost of auto insurance for various driver types.
However, a number of variables, including your age, driving record, region, preferred level of coverage, and the type and model of your vehicle, will affect the cost of your auto insurance. Below, we’ll go over how these and other elements could impact your prices.
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What is the cost of auto insurance?
NerdWallet’s analysis of 2024 rates indicates that the average annual cost of auto insurance is $1,982 nationwide. This means that the average monthly cost of auto insurance is approximately $165. The state mandates that drivers have liability, comprehensive, collision, and excess insurance; these rates are for full coverage insurance.
However, it is just for a motorist who is 35 years old, has excellent credit, and has no past traffic violations. Rates vary greatly based on your driving record and the type of coverage you select.
This is a quick look at the average cost of auto insurance in the country based on driving record, credit history, and level of coverage.
As you can see, full coverage auto insurance typically has a far higher average cost than basic coverage.
However, you can only learn so much about your personal auto insurance costs from averages. Your payment ultimately depends on a number of personal factors, both within and outside of your control.
Because NerdWallet is unable to forecast which factors will apply to you, unless otherwise noted, we have utilized a typical driver profile in this article:
Age 35 years.
Good driver. characterized as someone who has never had an accident, a DUI, or any other traffic infraction.
Excellent credit. drivers with a favorable credit report. In most jurisdictions, insurers utilize an insurance score based on credit, which is comparable to your personal credit score, to determine prices.
What is the cost of auto insurance in my state?
Due to state-specific regulations, the place you call home can significantly affect the cost of your auto insurance. To get the average annual rates in your state, utilize the interactive state map provided below.
The following states offer full coverage auto insurance at the lowest cost:
Wyoming: $1,069 annually, or roughly $89 monthly.
Vermont: $1,251 annually, or roughly $104 monthly.
Massachusetts: $1,348 annually, or roughly $112 each month.
Idaho: $1,361 annually, or roughly $113 monthly on average.
Ohio: $1,380 annually, or roughly $115 monthly.
The most costly states for full-coverage auto insurance are as follows:
Florida: $3,797 annually, or roughly $316 monthly.
Louisiana: $3,608 annually, or roughly $301 per month.
Rhode Island: $3,341 annually, or roughly $278 each month on average.
Texas: $2,966 annually, or roughly $247 per month.
Kentucky: $2,965 annually, or an average of $247 each month.
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How much does a company’s auto insurance cost?
Numerous variables, such as your driving history, geography, vehicle, and demographics, are taken into account by each auto insurance provider when determining premiums. They are estimating the likelihood that you will submit a claim and adjusting their pricing appropriately.
Every insurer takes a different approach to each factor. One insurer may charge you 10% extra for a coverage if you have terrible credit, while another may charge you 40% more. In the past few years, companies have offered claim-free discounts that might save you 20% at one business and 5% at another.
Everybody pays a different price as a result of all this. For this reason, the business that gives your friend a very low premium might not be the best value for you.
These are the yearly average rates for full and minimal coverage from a number of the biggest vehicle insurance providers in the country.
Average annual car insurance cost for big companies
|
Company |
Full coverage |
Minimum coverage |
|---|---|---|
|
Allstate |
$2,665 |
$656 |
|
American Family |
$1,791 |
$687 |
|
Farmers |
$3,106 |
$938 |
|
Geico |
$1,846 |
$491 |
|
Nationwide |
$2,279 |
$785 |
|
Progressive |
$2,112 |
$590 |
|
State Farm |
$1,976 |
$471 |
|
Travelers |
$1,681 |
$520 |
|
USAA* |
$1,432 |
$362 |
|
*USAA is available only to active-duty military members, veterans and their families. |
||
It’s possible that smaller insurers’ rates are less expensive than those of national providers. Nevertheless, a lot of regional insurers are restricted to specific states. To give all readers the most up-to-date information possible, we examined rates from significant insurance firms.
What is the cost of auto insurance depending on your driving history?
Your auto insurance premiums may go up if you have a recent driving incident on your record since insurers will view you as a higher risk driver than someone with a spotless record. Your record may be impacted by traffic infractions and auto accidents for three to five years.
These are the typical auto insurance premiums for drivers with a history of speeding tickets, DUIs, or at-fault collisions.
After an at-fault collision, how much does auto insurance cost?
The average cost of auto insurance for an at-fault driver following an accident is:
$2,936 a year for comprehensive insurance.
$817 a year for the most basic coverage.
NerdWallet’s research indicates that the average cost of full coverage auto insurance is almost 48% higher than that of a motorist without an accident.
|
Type of policy |
Clean record |
After one at-fault accident |
|---|---|---|
|
Full coverage |
$1,982 |
$2,936 |
|
Minimum coverage |
$549 |
$817 |
The extent of the damage and whether your insurance contains an accident deductible or a “good driver” deductible that you can lose will also affect how much your rates increase. In our research, the hypothetical collision was quite small, with $10,000 in property damage and no injuries. Accidents can cause significant rate hikes as well as high medical expenses.
After an accident, it’s critical to compare insurance quotes from several providers because they all base their rates on various criteria, including the nature of the collision.