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In the United States, it’s illegal to drive a car without car insurance. Depending on the state you’re driving in, the consequences of doing so can range from a fine to a misdemeanor on your record. So, if you’re planning on hitting the road anytime soon, be sure to purchase car insurance to avoid penalties.
In this article, we’ve researched the average cost of car insurance by state to give you a better idea of how much to budget.
Key findings:
According to AAA, the national average cost of car insurance for a full-coverage policy was $1,588 in 2022. This figure is based on an under 65 years old driver who lives in the city or suburbs, has over six years of driving experience, and has not been involved in any accidents.
When calculating the cost of car insurance, the state you live in plays a role in how much you can expect to pay. This is because factors like population density, climate, road conditions and crime rate in your area can play a part in the likelihood that you’ll file a claim.
According to insurance.com, the cheapest states for car insurance if you’re looking for minimum coverage are Iowa, South Dakota and Wyoming costing an average of $263, $267, and $293, respectively. Meanwhile, the cheapest states for full coverage auto insurance are Ohio ($1,023), Maine ($1,116), and Idaho ($1,121).
The most expensive states for car insurance in terms of minimum coverage are New Jersey, Florida, and New York where drivers pay an average of $989, $908 and $875, respectively. For full coverage insurance, drivers in Florida ($2,560), Louisiana ($2,546), and Delaware ($2,137) pay the most in the country on average.
State | Minimum coverage | Full coverage |
---|---|---|
AK | $336 | $1,359 |
AL | $420 | $1,542 |
AR | $422 | $1,597 |
AZ | $494 | $1,617 |
CA | $582 | $2,115 |
CO | $467 | $1,940 |
CT | $773 | $1,750 |
DE | $821 | $2,137 |
FL | $908 | $2,560 |
GA | $567 | $1,647 |
HI | $389 | $1,306 |
IA | $263 | $1,321 |
ID | $326 | $1,121 |
IL | $484 | $1,578 |
IN | $384 | $1,256 |
KS | $389 | $1,594 |
KY | $717 | $2,105 |
LA | $726 | $2,546 |
MA | $523 | $1,538 |
MD | $607 | $1,640 |
ME | $330 | $1,116 |
MI | $711 | $2,133 |
MN | $479 | $1,493 |
MO | $525 | $2,104 |
MS | $434 | $1,606 |
MT | $389 | $1,692 |
NC | $396 | $1,368 |
ND | $340 | $1,419 |
NE | $350 | $2,018 |
NH | $411 | $1,307 |
NJ | $989 | $1,901 |
NM | $376 | $1,505 |
NV | $683 | $2,023 |
NY | $875 | $2,020 |
OH | $308 | $1,023 |
OK | $352 | $1,797 |
OR | $551 | $1,244 |
PA | $398 | $1,445 |
RI | $648 | $1,845 |
SC | $628 | $1,894 |
SD | $267 | $1,581 |
TN | $368 | $1,373 |
TX | $520 | $1,875 |
UT | $526 | $1,469 |
VA | $469 | $1,321 |
VT | $306 | $1,158 |
WA | $505 | $1,371 |
WI | $375 | $1,499 |
WV | $474 | $1,610 |
WY | $293 | $1,736 |
Another factor that’s going to influence how much you can expect to pay for car insurance is the specific company you purchase your plan through.
According to U.S. News & World Report, USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico, and Nationwide offer the least-expensive full-coverage insurance.
Farmers, Progressive, and Nationwide offer the most expensive minimum coverage rates while Allstate, Farmers, and Progressive offer the most expensive full coverage plans.
Insurance company | Minimum coverage | Full coverage |
---|---|---|
Allstate | $1,961 | $2,138 |
American Family | $1,327 | $1,388 |
Farmers | $1,782 | $2,059 |
Geico | $1,064 | $1,238 |
Nationwide | $1,347 | $1,338 |
Progressive | $1,440 | $1,650 |
State Farm | $1,191 | $1,348 |
Travelers | $1,290 | $1,448 |
USAA | $948 | $1,056 |
According to CarInsurance.com, the cost of both minimum and full coverage car insurance tends to decrease with age, as seen in the chart below. However, there is an uptick around age 70 where rates start to go back up.
Age | Minimum coverage | Full coverage |
---|---|---|
20 | $1,109 | $3,532 |
30 | $539 | $1,785 |
40 | $520 | $1,682 |
50 | $496 | $1,581 |
60 | $482 | $1,511 |
70 | $554 | $1,661 |
Young drivers are the most expensive age group to insure. Although there are a few exceptions, insurance rates decrease with age among young drivers.
Age | Minimum coverage | Full coverage |
---|---|---|
16 | $2,402 | $7,203 |
17 | $1,971 | $5,924 |
18 | $1,706 | $5,242 |
19 | $1,234 | $3,874 |
20 | $1,109 | $3,532 |
21 | $884 | $2,864 |
22 | $794 | $2,593 |
23 | $736 | $2,415 |
24 | $690 | $2,267 |
According to the Insurance Information Institute, your credit score is a good indicator of how many insurance claims you’ll file. As a result, insurance companies use credit scores to determine risk, and those with a good credit score pay cheaper premiums. The Zebra found that individuals with poor credit pay approximately 114% more than those with great credit.
Credit score | Average annual rate |
---|---|
Very poor (300-579) | $2,887 |
Average (580-669) | $2,296 |
Good (670-739) | $1,912 |
Excellent (740-799) | $1,606 |
Exceptional (800-850) | $1,350 |
As you can see from the above charts, the cost of car insurance varies by the following factors:
Minimum coverage car insurance — liability coverage — is required in most states and is used if you’re at fault in an accident. This coverage will pay for damages and injuries of the other party when you’re responsible for the incident.
On the other hand, full coverage insurance, or collision coverage, includes liability coverage plus damage caused to your own vehicle. Keep in mind that lenders often require you to obtain full coverage insurance before you get an auto loan.
Below, we’ve answered some common questions regarding the cost of auto insurance.
Your driving record is one of the factors that affects your car insurance rate. As a result, those with traffic violations or accidents on their record can expect to pay higher premiums.
Your care insurance cost doesn’t typically go down after your pay off your car. However, you do have the option to decrease the amount of coverage on your vehicle once it’s paid off.
As mentioned above, insurance companies that offer the cheapest plans include Geico, Auto-Owners, USAA and Erie.
For young drivers in particular, car insurance rates decrease each year you renew your policy without filing a claim. You can expect to see the biggest drop in price at age 25.
The average cost of car insurance varies by factors including state, age, insurance company and credit score. Some factors, such as your age, are beyond your control, but other factors, such as your credit score, can be improved.
Check your credit score for free today to see if it’s a reason your car insurance is high.
April 13, 2023
Insurance
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