Average Cost of Car Insurance (2023)

The cost of car insurance will be different depending on the factors used to calculate your payment. Your location, age, and the type of vehicle you drive will all determine how much your monthly payments will be. On average, within the U.S. drivers can expect to pay around $147 each month. 

There are also factors that you choose that will affect how much you pay for car insurance, such as the insurance companies you research, and the level of coverage you want for your vehicle. With the more car insurance coverage you purchase, the average cost of full coverage is more than double that of standard car insurance in some cases.

How much does car insurance cost each month? 

The amount you’ll pay for auto insurance is going to depend on the level of coverage you want. Full coverage car insurance often includes higher levels of liability coverage and other additional protection, while minimum coverage typically costs less and covers less. For full coverage car insurance, a 30-year-old male driver with a clean record will pay $138.81 each month on average. This amount changes based on which auto insurance company is used.

Geico car insurance is the cheapest with an average of $86.79. State Farm car insurance comes next with a monthly average of $102.85, and from there it becomes a gap between the other companies. Progressive, Nationwide, and American Family all cost around $135 each month, and the most expensive becomes Liberty Mutual with a monthly average of $199.56. 

Read more: What happens if I disagree with Liberty Mutual’s decision on my car insurance claim?

Keep in mind this is for full coverage, which usually includes collision and comprehensive insurance and higher overall liability limits. If you’re looking for the minimum amount of car insurance coverage, this is going to vary by state. However, it will always be less expensive given the reduction in overall protection you will have. 

The overall national average will be $52.66 for a minimum coverage car insurance policy. Geico is the cheapest, at $32.32 each month, with State Farm in second at a monthly average of $39.39. Liberty Mutual is the most expensive, with a monthly average of $77.24. 

The details of a minimum coverage policy are based on the individual insurance company, which means you’ll need to know if it will meet your state’s mandated requirements. 

How does age affect the average cost of car insurance? 

As mentioned above, the average cost of car insurance by age will also be used to determine your car insurance rates but it should be noted that it’s one of the factors that affect car insurance rates. The younger you are, the more you’ll pay for auto insurance. An older, experienced driver with a clean record is seen as less of a risk on the road. 

Young drivers who lack experience are more at risk for reckless driving, which could lead to accidents. Insurance companies will charge a higher premium to be able to recoup costs should a young driver have to file a claim. 

Looking at a 16-year-old male driver with a clean record, the monthly average is an astonishing $618.49 per month. In comparison, the 30-year-old was only paying $138.81 each month for full coverage.

Geico remains the cheapest option, cutting the average in half by charging around $311.92 each month. Progressive becomes the most expensive option, charging $813.86 each month for full coverage. Comparison shopping for a young driver is going to be the best way to save money on auto insurance. 

How much is car insurance by state? 

Each state is going to want different amounts of car insurance coverage but it’s ultimately up to you to decide what type of car insurance you want. The only state that does not require car insurance is New Hampshire, however, you must prove you have the finances to pay for bodily injury and property damage in the event of an accident so it’s often suggested that you carry insurance even though it’s not mandatory. 

The average monthly rate based on the state is around $136.05 per month. Each state is going to have requirements for drivers to be road legal. Varying levels of liability coverage are often required to help pay for any bodily injury or property damage done in the event of an accident.

Below we look at the average cost of car insurance in different states.

Geico is once again the cheapest option, with the average monthly cost of car insurance at $86.79. Liberty Mutual is more than double Geico, with a monthly average cost of $199.56. Next comes Allstate at $176.48 each month, which is only slightly more expensive than Farmers where a policy will cost $167.16 each month.

Progressive, State Farm, and American Family are all on the lower end of the price list but are still higher than Geico. 

Average Cost of Car Insurance by Insurance Company

In terms of which company will be the cheapest, it will depend on which state you live in and how old you are when you’re shopping for coverage. However, Geico and State Farm tend to be on the cheaper side, with Liberty Mutual, Farmers, and Allstate all leaning toward the more expensive.

For a 30-year-old male driver with a clean record, Geico offers a monthly cost of $86.79, and State Farm comes second with a monthly average of $102.85. These rates increase significantly the younger the driver and decrease as the driver becomes older. 

What other factors affect your car insurance rates?

There are several factors that affect your car insurance rates other than your age and location. Your credit score can be used, and your driving record will also affect your car insurance rates. If you need bad driving record car insurance, it will cost more. Age is often a major deciding factor, while gender is being used less and less. 

The type of vehicle you drive will also be considered, as will the number of miles you drive. Someone who works from home will drive less than a person who commutes and will be on the road less because of this fact. Insurance companies often look at everything that could result in a potential incident to assess the risk factor of a driver.

Average Car Insurance Cost by Vehicle

Driving a new car comes with a higher price tag on its own, but insurance will also cost more. With the value of a vehicle decreasing over time, older models tend to be cheaper to insure. The newer the vehicle, the higher the cost to repair will be unless you’re driving a classic or collector’s edition model. However, those types of cars tend to need separate classic car insurance given the scarcity of parts and difficulties with repairing them. 

Your car might be on the list of hot ticket vehicles when it comes to theft and vandalism, which will also make it more expensive to insure. Vehicles with higher amounts of technology, nicer radios, and right-off-the-lot parts can become targets for thieves.

Does your driving history affect how much you pay for car insurance? 

Drivers who have infractions on their driving records will see an increased average cost of car insurance. Things such as a DUI or an accident can impact what you pay because you become labeled as a liability to insurance carriers. 

A 45-year-old male with a DUI will see an average cost of $208.94 monthly, which is going to be $70.13 more than a 30-year-old driver with a clean record. Despite the age gap, it would still be more because a DUI will increase rates no matter your age. 

There are varying degrees of the severity of an infraction as shown by the fluctuation in rates. Below are prices based on a driver of the same age with different driving records. 

If you have a ticket or an accident on your driving record, you’ll still see an increase in your rates, but it won’t be as steep as the increase after a DUI. Learn more about the best insurance companies for people with accidents.

Will your gender affect how much you pay for car insurance? 

Your gender will affect what you pay for car insurance, with women paying less than men on average. However, age is still the larger deciding factor, as older drivers don’t typically see much of a gap dependent on their gender once they reach a certain age.

Does your credit score affect your car insurance rates? 

Your credit score can be one of the pieces of information used by insurance companies. A driver with an above-average credit score will see lower rates than someone with average or below-average credit. 

When you have good credit, insurance companies take this to mean that you will be able to pay your bill on time and that you will continue to do so for the duration of your policy. 

Does your marital status affect your car insurance rates? 

Married drivers see the same benefit as drivers with good credit, meaning that car insurance companies look at married drivers as being low-risk investments. When it comes to a single driver, full coverage insurance could cost them more each month than a married driver.

Why do car insurance rates vary? 

There are a wide number of reasons why the average cost of car insurance will vary. According to the Insurance Information Institute, not only do car insurance companies look at the model you’re driving to check its age but also to determine how much damage it could potentially cause within a collision. 

Each factor—age, location, vehicle, driving record—has other factors attached to it for several safety concerns. 

How can you get the most affordable car insurance rates? 

By comparison shopping for car insurance, you can find the best and most affordable car insurance rates currently being offered. Different companies will offer different perks, discounts, and additional coverage choices. Never hesitate to ask what discounts are available as well, and it’s never a bad idea to check in from time to time with your insurance provider on whether or not rates can be lowered according to market prices.

You can also check to see if bundling is offered. Having more than one type of insurance policy through a single insurance company is a great way to save money. Combining insurance policies is also true in this way, as having multiple people on a policy will often be cheaper than each individual having their own coverage. Keep in mind that if there is going to be a young driver included, rates might increase.

Average Cost of Car Insurance: Case Studies on Real-World Scenarios and Savings

Case Study 1: Minimum Coverage Savings

John, a young driver in West Virginia, was determined to find the most affordable car insurance option. After comparing quotes from different insurance companies, he discovered that Erie offered the cheapest rates for minimum coverage.

By opting for a liability-only policy from Erie, John was able to save approximately $1,059 per year on his car insurance compared to other companies.

Case Study 2: Full Coverage for Less

Sarah, a middle-aged driver, desired comprehensive coverage for her new vehicle without breaking the bank. Through extensive research of different insurance providers, she found that Nationwide offered the most affordable rates for full coverage in West Virginia.

By choosing Nationwide, Sarah secured a full coverage policy at an annual cost of $1,216, saving her money while ensuring adequate protection.

Case Study 3: Improving Credit Impact

Mark, a West Virginia resident with a poor credit score, was concerned about its impact on his car insurance rates. Taking proactive steps to improve his credit, he paid off debts and managed his finances responsibly.

After a year of improvement, Mark requested new quotes from various insurers and found that Geico offered the best rates for his improved credit score. By taking measures to boost his credit, Mark successfully lowered his car insurance premiums by $40 per month.

Average Cost of Car Insurance: The Bottom Line

The average cost of car insurance is going to change based on a wide number of given factors, such as your age, your location, and the type of vehicle you drive. Drivers who maintain good credit and clean driving records will see lower overall insurance rates, while teenage drivers and people with infractions on their driving history will often pay more for coverage. 

However, it’s best to remember that it’s a large market with plenty of choices for money-conscious drivers. By obtaining multiple quotes from different insurance companies, you can evaluate which policy will be the most affordable and will also keep you and your vehicle the safest.