Average Car Insurance Cost By State, Company & Type

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Today we’ll show you the average car insurance cost by age, state, company, and plan type.

How much does individual car insurance cost?

The average cost of car insurance in the United States is $1,655 per year. However, the actual cost you pay will vary depending on a number of factors, including your age, driving record, the type of car you drive, and the coverage you choose.

How much does car insurance cost for families?

The average cost of car insurance for families in the United States is $2,148 per year. This is based on a 2023 rate analysis by NerdWallet. However, the actual cost you pay will vary depending on a number of factors, including your location, the type of car you drive, your driving record, and the coverage you choose.

If you have teenagers in your family, you can expect to pay more for car insurance. Teenagers are more likely to get into accidents than older drivers, so insurance companies charge more to insure them.

Also Read: Do I Have to Add My Teenager to My Car Insurance?

Average car insurance costs

By age

The average cost of car insurance varies depending on a number of factors, including your age, driving record, the type of car you drive, and the coverage you choose. However, as a general rule, car insurance costs are highest for young drivers and lowest for older drivers. This is because young drivers are more likely to be involved in accidents than older drivers.

According to a 2022 study by NerdWallet, the average cost of car insurance for drivers in the United States is $1,655 per year. However, the average cost for drivers in different age groups varies significantly. For example, the average cost of car insurance for drivers under the age of 20 is $3,192 per year, while the average cost for drivers over the age of 60 is $1,287 per year.

Also Read: At What Age Does Car Insurance Go Down

By State

The average cost of car insurance varies from state to state, depending on a number of factors, including the state's laws and regulations, the cost of living, and the number of accidents and claims. 

According to a 2022 study by Insurify, the states with the highest average car insurance rates are:

  1. Michigan ($2,245)
  2. Louisiana ($2,222)
  3. Massachusetts ($2,193)
  4. NewJersey ($2,173)
  5. Florida ($2,167)

The states with the lowest average car insurance rates are:

  1. Idaho ($522)
  2. Maine ($554)
  3. Ohio ($567)
  4. Iowa ($573)
  5. Vermont ($576)

There are a number of reasons why car insurance rates vary so much from state to state. One reason is that states have different laws and regulations governing car insurance. For example, some states require drivers to purchase certain types of coverage, such as collision and comprehensive coverage. Other states allow drivers to choose the types of coverage they want.

By Company

The average cost of car insurance varies from company to company, depending on a number of factors, including the company's risk profile, the type of coverage you choose, and your driving record. 

According to a 2022 study by Insurify, the following are the average car insurance rates for the top 10 car insurance companies in the United States:

Company Average Annual Rate
Geico $1,604
Progressive $1,817
Allstate $1,841
State Farm $1,917
USAA $1,430
Nationwide $1,950
Farmers $1,968
Liberty Mutual $1,986
Erie Insurance $2,009
Safeco $2,022

It's important to note that these are just averages, and your actual rate may be higher or lower depending on your individual circumstances. The best way to find out what your rate will be is to shop around and compare quotes from multiple companies.

By plan type

The average cost of car insurance varies depending on the type of plan you choose. Here are the average annual rates for the most common types of car insurance plans:

  • Liability only: $584
  • Collision and comprehensive: $1,627
  • Full coverage: $2,148

Liability-only insurance is the most basic type of car insurance. It covers the costs of damage you cause to other people or property in an accident. Collision and comprehensive insurance cover the costs of damage to your own car, regardless of who is at fault in the accident. Full coverage insurance includes both liability and collision and comprehensive coverage.

Check out our article "Should I File A Claim With My Auto Insurance Or Theirs?" to understand what your options are if you get in an accident.

The type of plan you choose will depend on your individual needs and budget. If you have a low-value car and you're comfortable with the risk of paying for damages out of pocket, liability only insurance may be a good option for you. However, if you have a high-value car or you want to be protected in the event of an accident, full coverage insurance may be a better choice.

It's important to shop around and compare quotes from multiple insurers before you buy car insurance. This will help you find the best rates available for the type of plan you need.

How much does private car insurance cost?

The average cost of private car insurance in the United States is $1,655 per year. However, the actual cost you pay will vary depending on a number of factors, including your age, driving record, the type of car you drive, and the coverage you choose.

Factors that impact the cost of car insurance

There are a number of factors that can affect the cost of car insurance. Some of the most important factors include:

  • Your age: Younger drivers are generally considered to be higher risk than older drivers, so they will typically pay more for car insurance.
  • Your driving record: Drivers with a clean driving record will generally pay less for car insurance than drivers with a history of accidents or traffic violations.
  • The type of car you drive: Some cars are more expensive to insure than others. This is because some cars are more likely to be involved in accidents or stolen.
  • Your annual mileage: Drivers who drive more miles will generally pay more for car insurance than drivers who drive fewer miles.
  • Your credit score: Your credit score is a measure of your creditworthiness. Insurance companies use your credit score to assess your risk as a driver. Drivers with good credit scores will generally pay less for car insurance than drivers with poor credit scores.
  • The coverage you choose: The type and amount of coverage you choose will affect the cost of your car insurance. For example, drivers who choose comprehensive and collision coverage will generally pay more for car insurance than drivers who choose only liability coverage.
  • The insurance company you choose: Different insurance companies have different rates. It's important to shop around and compare rates from multiple companies before you buy car insurance.

It's important to note that these are just some of the factors that can affect the cost of car insurance. The actual cost of your car insurance will depend on a number of factors, including your individual circumstances.

How can I find an affordable car insurance plan that meets my needs?

There are a few things you can do to find an affordable car insurance plan that meets your needs:

  • Shop around and compare quotes from multiple companies. This will help you find the best rates available.
  • Take advantage of discounts. Many companies offer discounts for things like good driving record, safety features on your car, and bundling your car insurance with other types of insurance.
  • Raise your deductible. The higher your deductible, the lower your monthly premium will be. However, be sure to choose a deductible that you can afford to pay if you need to file a claim.
  • Maintain a good credit score. Your credit score is a factor in many insurance rates, so it's important to keep your score in good shape.
  • Drive safely. Avoid speeding, reckless driving, and other violations. This will help you keep your rates low.

If you are living in the State of Florida then you can contact us too. Our team at worth insurance will help you get the right car insurance for your needs.

How can I lower my car insurance costs?

There are a number of ways to lower your car insurance costs. Here are a few tips:

  • Shop around and compare quotes from multiple companies. This will help you find the best rates available.
  • Take advantage of discounts. Many companies offer discounts for things like a good driving record, safety features on your car, and bundling your car insurance with other types of insurance.
  • Raise your deductible. The higher your deductible, the lower your monthly premium will be. However, be sure to choose a deductible that you can afford to pay if you need to file a claim.
  • Maintain a good credit score. Your credit score is a factor in many insurance rates, so it's important to keep your score in good shape.
  • Drive safely. Avoid speeding, reckless driving, and other violations. This will help you keep your rates low.
  • Take a defensive driving course. Many insurance companies offer discounts to drivers who take a defensive driving course.
  • Maintain good grades. Some insurance companies offer discounts to students who maintain good grades in school.
  • Park in a garage or secure location. If you live in an area with a high crime rate, parking your car in a garage or other secure location can help lower your insurance rates.
  • Drive a safe car. Some cars are more expensive to insure than others. This is because some cars are more likely to be involved in accidents or stolen. If you're looking to lower your insurance rates, consider driving a car that is less expensive to insure.
  • Bundle your insurance policies. If you have multiple insurance policies with the same company, you may be able to get a discount by bundling them together.
  • Pay your premiums on time. Making your payments on time can help you avoid late fees and penalties, which can also affect your insurance rates.
  • Review your policy regularly. Make sure you understand your coverage and that you're not paying for more coverage than you need. You may be able to lower your rates by reducing your coverage.

If you’re trying to find car insurance coverage with competitive pricing, reach out to our professionals at Worth Insurance. We can help you with your insurance shopping needs by providing you with quick quotes, personalized policies, and more.

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