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What is the Average Cost of car Insurance in America?

There are a lot of factors that go into the price and The Average Cost Of Car Insurance, including the kind of car you drive, where you live, the insurance laws and regulations in your state, your age and gender, and of course, your driving record. Insurance companies are notoriously secretive about the factors they use to determine rates, but there are still some consistent factors that can help savvy consumers spot patterns.

What Is the Average Cost of Car Insurance?

The average annual cost of car insurance in the United States is $1,416, according to the data in our study. That’s the short answer. The long answer is that the average cost depends on a variety of key factors, many of which we’ve outlined in the sections below. These include your driving record, credit history, and coverage limits, as well as your insurer.

Auto insurance quotes vary widely based on individual rating factors. The Zebra’s team of licensed insurance experts crunched the numbers using a composite user profile and gathered rates from the top auto insurance companies to develop these figures. Dive into the data below to see how age, gender, location and vehicle type affect auto insurance premiums.

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Which car insurance companies are the most affordable?

As part of our car insurance rate analysis, we compared premiums from some of America’s most popular insurers. Check out average car insurance rates from the best car insurance companies below. Keep in mind your rates will vary, depending on your driving history.

Insurance Company6-Month PremiumMonthly Premium
Liberty Mutual$863$144
State Farm$646$108

Among the surveyed car insurance companies, Nationwide was the cheapest based on our average profile. GEICO came in as second-cheapest. Our individual profile might not reflect your rates, but you can use our auto insurance premiums as a jumping-off point to explore options from multiple car insurance companies.

Average car insurance rate by coverage level

Depending on your level of coverage, your premium will vary. The average auto insurance policy includes liability insurance with limits of $50,000/$100,000 for bodily injury and $50,000 for property damage coverage, alongside collision and comprehensive deductibles at $500. If you’re leasing or financing your vehicle, you might be required to carry gap insurance as well.

We grouped coverage levels by categories of best, good, and minimum, along with average rates for a six-month policy by top insurance companies. See more details per coverage tier:

  • Best: Liability limits of 100/300/100, $500 deductible for collision and comprehensive coverage (full coverage)
  • Good: Liability limits of 50/100/50, $1,000 deductible for collision and comprehensive coverage (full coverage)
  • Minimum: State minimum liability only, no comprehensive and collision coverage

At every coverage level, Nationwide was the cheapest insurance company but GEICO was not very far behind. Continue reading below to see a breakdown of average premiums for each coverage tier.

Average premiums for “best” full coverage car insurance coverage level

We recommend carrying full coverage if you have assets to protect, multiple drivers on your policy (especially teenagers), drive a high-performance or luxury car, or are currently leasing or financing a vehicle. Due to the high liability limits and physical protection provided for your own car at this coverage level, it’s typically the most expensive.

Insurance Company6-Month PremiumMonthly Premium
Liberty Mutual$900$150
State Farm$690$115

Not carrying enough liability coverage can leave you at risk of being sued if you cause enough damage to eclipse your liability limits — leaving any assets vulnerable. A $500 deductible is the most common, but you can further decrease your premium by upping your deductible because of the inverse relationship they share — see this illustrated below at the “good” coverage level with a $1,000 deductible.

Average premiums for “good” full coverage car insurance coverage level

We generally recommend keeping your liability limits to at least 50/100/50. This middle-of-the-road level of full coverage also provides comprehensive and collision coverage for your own vehicle with a $1,000 deductible.

Insurance Company6-Month PremiumMonthly Premium
Liberty Mutual$767$128
State Farm$595$99

While a $500 deductible is the most common, you can further decrease your premium with a higher, $1,000 deductible because of the inverse relationship they share.

Average premiums for “minimum” liability-only car insurance coverage level

Liability limits are set by each state. You must carry at least the state-mandated minimum level of liability insurance in order to be a legal driver in that state. However, keep in mind that this does expose you to more risks:

  • A history of having just the minimum level of coverage can reflect negatively on you as a driver in the eyes of an insurance company. They could charge you higher rates because insurers view drivers who consistently carry the minimum amount of insurance as riskier clients.
  • In the event of an at-fault accident in which your liability limits aren’t sufficient to cover the other driver’s injuries and/or property damage, you would be underinsured. You could then be sued to cover the remaining amount.
  • If your own vehicle is damaged in an at-fault accident by an uninsured driver or by a comprehensive claim incident (like theft, weather and animal-related damage), you would have no coverage.

Opting for minimum coverage — without comprehensive and collision to cover damage to your own vehicle — is the cheapest tier of auto insurance you can buy.

Insurance Company6-Month PremiumMonthly Premium
Liberty Mutual$315$53
State Farm$250$42

The less coverage you have, the less your premium will cost. However, it’s generally recommended to keep your liability coverage as high as possible to ensure your assets are protected. If your vehicle has any considerable value or you’re thinking of selling it in the future, make sure you add comprehensive and collision coverage.

See Also: Does Insurance Cover A Stolen Car? Everything You Need To Know

What other factors affect my car insurance cost?

After all these rates and pricing factors, it could be hard to figure out what other factors affect your insurance rates. Here are some of them:

  • More specific location data such as your ZIP code or city.
  • Your occupation, in many states.
  • Your previous insurance company. If it was a nonstandard insurer specializing in high-risk drivers, you might see higher insurance rates with some companies.
  • Continuous insurance coverage. Companies charge more for drivers with lapses in coverage.
  • Annual mileage driven per car.
  • Your marital status. Single people — even widows, widowers and divorced folks — tend to have higher insurance rates.
  • Whether you own your home (and whether you bundle home insurance with auto).
  • How much education you’ve completed.
  • Additional coverage options you choose, such as new-car replacement coverage and gap coverage.
  • Discounts you’re eligible for, which vary widely by company.
  • Whom you live with. Some companies won’t allow you to exclude people such as roommates or non driving adults from your policy.

1 thought on “What is the Average Cost of car Insurance in America?”

  1. Hi, yeah this article is in fact pleasant and I have learned lot of things from it on the
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