Average Cost of Auto Insurance [2024]
Drivers pay around $150 a month for full coverage, but the average cost of auto insurance varies based on factors such as age, driving record, and vehicle. Lower auto insurance rates by reducing coverage, raising deductibles, and adding discounts.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Feb 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- The cost of auto insurance varies based on personal factors like age and driving record
- Drivers pay around $150 a month for full coverage auto insurance
- Save money on auto insurance by raising deductibles and adding discounts
The average cost of auto insurance is about $150 a month, but rates vary based on factors like driving record, credit score, and vehicle. In addition, the state you live in and the amount of coverage you choose also affect rates.
Keep reading to learn more about the cost of auto insurance and how to get the lowest rates possible.
What is the average cost of auto insurance?
Rates can be costly, which makes finding cheap auto insurance essential. However, you can adjust to get the most affordable coverage once you learn what factors impact your rates.
Many factors affect your auto insurance rates, including some that may surprise you. So let’s dive into the factors used to calculate rates and how to lower them.
Rates by Coverage
Most states require that drivers carry at least a minimum amount of coverage, including liability auto insurance. In addition, some states require that drivers have uninsured/underinsured motorists, medical payment, and personal injury protection coverage.
On the other hand, full coverage auto insurance offers more protection. In addition to state-mandated coverage, full coverage includes collision and comprehensive insurance.
Collison pays for your vehicle damage from an accident, such as hitting another car or object or a single-car wreck. Comprehensive pays for damage to your vehicle from occurrences unrelated to an accident, such as theft, vandalism, and acts of nature like floods and hail.
This table compares top companies’ average monthly auto insurance rates for minimum coverage.
Average Monthly Minimum Coverage Rates for the Top Auto Insurance Companies
| Insurance Company | Average Minimum Coverage Rates |
|---|---|
| Allstate | $50 |
| American Family | $48 |
| Farmers | $56 |
| Geico | $24 |
| Liberty Mutual | $64 |
| Nationwide | $49 |
| Progressive | $40 |
| State Farm | $34 |
| Travelers | $39 |
| Average | $45 |
As you can see, full coverage is significantly more expensive than minimum coverage. However, minimum coverage leaves you with significant out-of-pocket expenses if your car is damaged or stolen.
Although drivers with older or inexpensive vehicles may choose minimum coverage, full coverage is best if you can’t afford to repair or replace your car yourself. In addition, many lenders require full coverage. So drivers with a loan or lease may not have a choice.
Rates by Driving Record
Your driving record is one of the most significant factors impacting auto insurance rates. Drivers with clean records get the lowest rates, but drivers with accidents, tickets, and DUIs see much higher rates. In addition, some states require high-risk drivers to carry SR-22, which shows they have at least the minimum amount of insurance.
This table shows average monthly rates based on driving records.
Average Monthly Auto Insurance Rates by Driving Record and Company
| Companies | Monthly Rates with a Clean Driving Record | Monthly Rates w/ One Speeding Violation | Monthly Rates w/ One Accident | Monthly Rates w/ One DUI Conviction |
|---|---|---|---|---|
| Geico | $179 | $220 | $266 | $406 |
| American Family | $224 | $252 | $310 | $361 |
| Nationwide | $229 | $259 | $283 | $379 |
| State Farm | $235 | $266 | $283 | $303 |
| Progressive | $283 | $334 | $398 | $331 |
| Travelers | $287 | $355 | $357 | $478 |
| Farmers | $288 | $340 | $377 | $393 |
| Allstate | $318 | $374 | $416 | $522 |
| Liberty Mutual | $398 | $475 | $517 | $634 |
Although one speeding ticket only causes your rates to increase a little, an at-fault accident raises them even more. And one DUI can cost you hundreds of dollars extra each month in addition to any fines you might face.
Fortunately, infractions on your driving record don’t raise your auto insurance rates forever. In most states, accidents and tickets stop raising rates in three to five years. However, a DUI can affect your rates for up to 10 years in some states. Drivers with multiple at-fault accidents, tickets, and DUIs will also see rates skyrocket.
Finding affordable auto insurance for high-risk drivers can be challenging. Most insurers charge high-risk drivers very high rates. However, comparing rates from multiple companies helps drivers with poor driving records find the cheapest rates.
Rates by Age, Gender, and Marital Status
It’s no secret that younger drivers pay much more for auto insurance. Insurers realize that new drivers lack the experience necessary to avoid risky driving and accidents. Therefore, how age affects the cost of auto insurance. So as drivers age, their auto insurance rates tend to decrease. In addition, females and married people tend to see lower rates because they take fewer risks statistically.
This table shows the average monthly rates for various demographics from top insurers.
Average Monthly Full Coverage Auto Insurance Rates by Age and Gender
| Companies | 18-Year-Old Female | 18-Year-Old Male | 30-Year-Old Female | 30-Year-Old Male | 65-Year-Old Female | 65-Year-Old Male |
|---|---|---|---|---|---|---|
| Allstate | $448.45 | $518.62 | $168.42 | $176.48 | 158.33 | 156.53 |
| Farmers | $597.48 | $628.61 | $160.08 | $167.16 | 136.18 | 135.62 |
| Geico | $219.55 | $253.62 | $89.87 | $86.79 | 78.16 | 78.45 |
| Liberty Mutual | $521.90 | $625.59 | $174.23 | $199.56 | 167.43 | 170.04 |
| Nationwide | $302.66 | $387.17 | $124.10 | $136.19 | 110.55 | 112.22 |
| Progressive | $590.85 | $661.74 | $130.78 | $136.05 | 109.30 | 102.84 |
| State Farm | $229.17 | $283.98 | $93.53 | $102.85 | 84.15 | 84.15 |
| Travelers | $530.19 | $739.74 | $99.18 | $107.67 | 95.53 | 96.76 |
| USAA | $180.43 | $202.79 | $74.09 | $79.42 | 57.68 | 57.39 |
Rates vary greatly by age and gender. For example, a 16-year-old male driver pays almost five times as much as a 25-year-old male. In addition, a 16-year-old male pays around $30 a month more than a female of the same age.
It should be noted that some states, like Hawaii, don’t allow insurance companies to look at gender, marital status, or age to calculate rates.
Rates by Vehicle Type
Your vehicle also affects auto insurance rates. New or expensive cars cost more to insure because repair and replacement costs are much higher than for a standard vehicle. In addition, newer vehicles have more technology that is costly to repair.
In addition to the cost of repairs, insurance rates can be higher due to the vehicle’s characteristics. For example, drivers tend to speed more in sports cars, which can lead to accidents. In addition, larger vehicles, like some SUVs and trucks, can cause more damage in an accident, resulting in more claims.
Rates by Credit Score
Many drivers don’t know that their credit score impacts more than their interest rates. Statistically, drivers with a higher credit score are more likely to pay for damages themselves and avoid filing claims. On the other hand, drivers with a low score tend to file more claims and are unable to pay for damages out of pocket.
This table shows how your credit score affects auto insurance rates from top companies.
Average Monthly Full Coverage Auto Insurance Rates by Credit Rating
| Insurance Company | Rates with Poor Credit | Rates with Fair Credit | Rates with Good Credit |
|---|---|---|---|
| Allstate | $295.92 | $196.83 | $166.08 |
| American Family | $202.67 | $136.25 | $115.50 |
| Farmers | $269.42 | $160.50 | $139.50 |
| Geico | $148.42 | $99.75 | $82 |
| Liberty Mutual | $354.67 | $226 | $176.67 |
| Nationwide | $165.67 | $132.92 | $120.42 |
| Progressive | $205.92 | $137.92 | $109.17 |
| State Farm | $199.83 | $117.58 | $90.92 |
| Travelers | $193.58 | $127.83 | $107.25 |
| USAA | $128.75 | $75.83 | $62.75 |
| Average | $226.25 | $148.42 | $123.08 |
On average, drivers with bad credit pay around $160 more each month than drivers with good credit. However, some states, like Hawaii and California, don’t allow insurance companies to use credit scores to calculate rates.
Rates by State
The state you live in plays a significant role in the cost of auto insurance. While most states require that drivers carry at least a minimum amount of insurance, the mandated coverage and limits differ in each state. And since each state sets its auto insurance requirements, rates vary.
This table details each state’s average monthly minimum and full coverage auto insurance rates.
| Insurance Company | Average Minimum Coverage Rates | Average Full Coverage Rates |
|---|---|---|
| Allstate | $50.42 | $166.08 |
| American Family | $48.50 | $115.50 |
| Farmers | $56.17 | $139.50 |
| Geico | $24.17 | $82.00 |
| Liberty Mutual | $64.25 | $176.67 |
| Nationwide | $49.00 | $120.42 |
| Progressive | $40.33 | $109.17 |
| State Farm | $34.00 | $90.92 |
| Travelers | $39.25 | $107.25 |
| USAA | $19.83 | $62.75 |
| Average | $45.00 | $123.00 |
South Dakota has the lowest minimum coverage rates, and New Hampshire has the lowest full coverage rates.
Rates by Company
Each auto insurance company creates its own formula to calculate rates. While most look at the same factors, each one weighs those factors differently. So drivers will find a variety of rates when they shop around.
This table shows average monthly rates from some of the top insurance companies. As you’ll see, rates vary greatly.
| Insurance Company | Average Minimum Coverage Rates | Average Full Coverage Rates |
|---|---|---|
| Allstate | $605 | $160 |
| American Family | $582 | $117 |
| Farmers | $674 | $139 |
| Geico | $290 | $80 |
| Liberty Mutual | $771 | $173 |
| Nationwide | $588 | $115 |
| Progressive | $484 | $105 |
| State Farm | $408 | $86 |
| Travelers | $471 | $99 |
| USAA | $238 | $753 |
| Average | $541 | $120 |
While USAA tends to have the cheapest rates, only military members and their families are eligible for coverage. Geico and State Farm are typically the cheapest insurers that provide auto insurance to all drivers.
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Why do auto insurance rates vary?
Does your auto insurance seem high? Auto insurance companies use many different items to determine your rates, such as your age, driving record, and credit score. These factors help the insurance company determine how risky you are to cover. As a result, dangerous drivers see higher rates.
For example, male drivers tend to take more risks and are in more accidents. Therefore, males see higher rates until well into adulthood. Married drivers are in fewer accidents statistically , so they receive lower rates.
However, teens are more likely to be in serious car accidents. Since they are also more likely to file a claim, insurers charge higher rates.
What other factors affect the cost of auto insurance?
Many other factors impact your auto insurance rates other than age. The insurance company looks at all the factors combined to determine your rates.
Factors that affect auto insurance rates include:
- Age: As discussed above, younger, inexperienced drivers see higher rates. Rates decrease in adulthood, but senior drivers may see rate increases due to medical concerns and impaired reactions.
- Driving record: Drivers with accidents, tickets, and DUIs have higher rates than drivers with clean records. Rates increase significantly for risky drivers.
- Credit score: Most states allow auto insurance companies to look at your credit history. Statistically, drivers with higher credit scores are less likely to file claims and can pay for vehicle repairs themselves.
- Vehicle: New or expensive cars incur higher insurance rates since they are more costly to repair or replace. However, many insurers offer discounts for safety features available on newer vehicles.
- Coverage: More coverage means higher rates. While full coverage is more expensive, it provides help when paying for vehicle damage from such occurrences as an accident, theft, vandalism, or acts of nature.
- ZIP code: Where you live affects auto insurance rates. Drivers who live in high-traffic, high-theft, or extreme weather areas see higher rates because their vehicles are more likely to be damaged.
- Insurance history: Drivers with a lapse in coverage or a significant number of claims receive higher rates. Insurance companies consider these drivers to be risky and to likely cost them money.
Since each auto insurance company weighs these factors differently, shopping around is essential. Compare rates and discounts from various insurers to find the cheapest auto insurance available.
Read more: What factors affect the cost of Auto Insurance?
How can you get the cheapest auto insurance?
No matter your auto insurance rates, saving money is important. Fortunately, there are several ways drivers can easily lower rates.
First, consider your coverages, limits, and deductibles. For example, if you have full coverage with high limits, you might consider removing extra coverage and lowering limits. In addition, increase your deductibles in order to lower rates. However, less coverage and higher deductibles mean more out-of-pocket costs if your vehicle is damaged.
Next, take advantage of auto insurance discounts. Most insurers provide numerous discounts based on the policy, driver, and vehicle. For example, you may qualify for multi-car, safe driver, and vehicle safety feature discounts. Bundle them for the most significant savings.
Finally, shop around to find affordable auto insurance. Because each auto insurance company weighs your factors differently, rates vary widely. To get the cheapest insurance, compare rates and discounts from multiple companies.
Average Cost of Auto Insurance: The Bottom Line
The average cost of auto insurance varies by the driver based on personal factors like age, driving record, vehicle, and coverage. While drivers can control some aspects, such as their driving records, other factors, like age, can’t be changed.
Drivers can lower their auto insurance rates by avoiding infractions on their driving records, reducing coverages, raising deductibles, and taking advantage of auto insurance discounts.
The best way for drivers to find cheap auto insurance is to shop around. Compare coverages, rates, and discounts from various insurers to get the best deal.
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Frequently Asked Questions
What’s the difference between minimum and full coverage auto insurance?
Minimum auto insurance meets your state’s mandatory requirements. Minimum coverage includes liability and other coverage such as uninsured/underinsured motorists, medical payments, and personal injury protection. Full coverage consists of all mandatory coverage, collision, and comprehensive, which pay for your vehicle damage.
How much more is full coverage auto insurance?
Full coverage can be as much as twice as expensive as minimum coverage. However, full coverage helps you avoid high out-of-pocket costs if your vehicle is damaged. So for many drivers, it makes sense to pay for more coverage and have fewer expenses for repairs.
Are auto insurance rates less on a vehicle that’s paid for?
While auto insurance companies don’t charge lower rates on a paid-for vehicle, your rates may go down since you don’t need as much coverage. For example, your lender may require full coverage and gap insurance. Once your car is paid for, you can change to minimum coverage and drop gap insurance, which lowers rates significantly.
However, keeping full coverage even when your car is paid off may be a good idea. Without collision and comprehensive, you’ll have to pay out of pocket for repairs or a replacement vehicle if yours is damaged.
What is the cheapest auto insurance company?
Unfortunately, there is no cheapest auto insurance company for every driver. Rates vary based on personal factors like age and driving record. These factors differ for every driver, and insurers use their formula to calculate rates. So each driver gets different rates from each insurer.
The cheapest insurer for you depends on your factors and how the company weighs them. The most affordable auto insurance company for you might be different for your friend.
Do auto insurance rates decrease each year?
While your rates may go down as you age, your other factors may cause them to increase. For example, even if your rates decrease at age 25, an accident or DUI can raise them significantly.
How much is auto insurance for a new driver?
New drivers have some of the highest auto insurance rates out there. Since they lack the necessary experience to avoid accidents and risky driving, insurers charge higher rates.
Teen drivers pay more than double for auto insurance than 25-year-old drivers. Fortunately, as drivers gain more experience behind the wheel, rates decrease.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.