Average Cost Of Car Insurance

Car insurance is a necessary expense for all drivers, but the cost of coverage can vary significantly from state to state. The average cost of car insurance in the United States is $2,118 per year, but this number can be much higher or lower depending on where you live.

Factors that can influence the cost of car insurance include the state’s minimum coverage requirements, population density, accident rates, and crime rates. Drivers in states with higher minimum coverage requirements or higher rates of accidents or car thefts can expect to pay more for their insurance than those in states with lower rates.

With this in mind, it’s important to understand the average cost of car insurance in your state and how it compares to other states across the country. In this article, we’ll break down the average cost of car insurance in all 50 states to help you better understand what you can expect to pay for coverage based on where you live.

Methodology

When researching the average cost of car insurance in all 50 states, we used a variety of sources to gather data. We began by collecting information from reputable insurance companies, government agencies, and industry experts. We then analyzed this data to determine the average cost of car insurance for each state.

Data Collection

We collected data from a variety of sources, including insurance company websites, state insurance departments, and industry reports. We focused on gathering information for full coverage car insurance, which typically includes liability, collision, and comprehensive coverage. We also collected data for minimum coverage car insurance, which typically includes only liability coverage.

For each state, we gathered data on the average cost of car insurance for drivers with clean driving records, as well as for drivers with one or more accidents or violations on their record. We also collected data on the average cost of car insurance for drivers of different ages, genders, and vehicle types.

Data Analysis

Once we had collected data for all 50 states, we analyzed it to determine the average cost of car insurance in each state. We calculated the average cost of full coverage car insurance and minimum coverage car insurance for drivers with clean records, as well as for drivers with accidents or violations on their record. We also analyzed the data to determine how factors such as age, gender, and vehicle type affected car insurance rates.

We then used this data to create a comprehensive report on the average cost of car insurance in all 50 states. Our report provides valuable information for drivers looking to compare car insurance rates and find the best coverage for their needs and budget.

Results

Average Cost by State

The cost of car insurance varies significantly depending on the state you live in. According to Forbes Advisor, as of 2023, Michigan has the highest average cost of car insurance at $5,710 per year, while Maine has the lowest average cost at $872 per year. Other states with high average costs include Louisiana, Rhode Island, and Florida, while states with lower average costs include North Carolina, Virginia, and Iowa.

How Much Is Car Insurance In Your State?

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Average Cost by Coverage Level

The amount of coverage you choose for your car insurance policy can also impact the cost. According to MarketWatch, as of 2023, the average cost for full coverage insurance is $1,730 per year or $144 per month, while minimum liability coverage averages to $635 per year or $53 per month. Keep in mind that these are just averages, and your own car insurance costs may vary depending on factors such as your age, driving record, and the type of car you drive.

National Average

According to NerdWallet’s 2023 rate analysis, the national average cost of car insurance is $2,148 per year. This is just an average, and your own car insurance costs may be higher or lower depending on a variety of factors. It’s important to shop around and compare quotes from multiple insurance companies to find the best coverage and rates for your needs.

Factors Affecting Car Insurance Costs

Age and Gender

Age and gender are two of the most important factors that affect car insurance rates. Younger drivers and male drivers typically pay more for car insurance. According to data from The Zebra, a 20-year-old male driver can expect to pay an average of $3,816 per year for car insurance, while a 20-year-old female driver can expect to pay an average of $3,192 per year.

Driving Record

Your driving record is another important factor that affects car insurance rates. Drivers with a history of accidents or traffic violations will typically pay more for car insurance than those with a clean driving record. According to The Zebra, a driver with a DUI conviction can expect to pay an average of $4,516 per year for car insurance.

Location

Where you live also plays a role in determining your car insurance rates. Insurance companies use a variety of factors to determine rates by state, including population density, crime rates, and weather patterns. For example, according to Forbes Advisor, Michigan has the highest car insurance rates in the country, with an average annual premium of $5,264, while Maine has the lowest rates, with an average annual premium of $1,040.

Vehicle Type

The type of car you drive can also impact your car insurance rates. Cars that are more expensive to repair or replace, or that have a higher likelihood of being stolen, will typically cost more to insure. According to CarInsurance.com, the most expensive car to insure in 2021 was the Mercedes-Benz S-Class, with an average annual premium of $3,490, while the least expensive car to insure was the Honda CR-V, with an average annual premium of $1,333.

Credit Score

Many car insurance companies use credit scores as a factor in determining rates. Drivers with higher credit scores are typically viewed as being more responsible and less likely to file a claim, so they may pay less for car insurance. According to Bankrate, a driver with a poor credit score can expect to pay an average of $2,155 per year for car insurance, while a driver with an excellent credit score can expect to pay an average of $1,126 per year.

Coverage Level

The level of coverage you choose will also impact your car insurance rates. Drivers who opt for higher levels of coverage, such as comprehensive and collision coverage, will typically pay more for car insurance than those who only purchase liability coverage. According to CarInsurance.com, a driver who chooses only the minimum required liability coverage can expect to pay an average of $565 per year, while a driver who chooses full coverage can expect to pay an average of $1,674 per year.

Conclusion

After analyzing the data, it’s clear that car insurance rates vary significantly by state. The national average for car insurance in 2023 is $2,014 per year for full coverage and $622 per year for minimum coverage. However, these averages can vary significantly depending on the state you live in.

For example, Michigan has the highest average car insurance rates in the country, with an average annual premium of $4,824 for full coverage. On the other hand, Maine has the lowest average car insurance rates in the country, with an average annual premium of $1,056 for full coverage.

Other states with high average car insurance rates include Louisiana, Florida, and New York. Meanwhile, states with low average car insurance rates include Idaho, Vermont, and Iowa.

It’s important to note that car insurance rates are influenced by a variety of factors, including your driving record, age, gender, and even your credit score. Additionally, the type of car you drive and the amount of coverage you choose can also impact your car insurance rates.

Overall, it’s crucial to shop around for car insurance and compare rates from multiple providers before making a decision. By doing so, you can ensure that you’re getting the best coverage at the most affordable price for your specific needs and location.