Average cost of car insurance in November 2023
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BLUEPRINT
Updated 1:28 p.m. UTC Nov. 2, 2023
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Key points
- Drivers with a clean record will pay an average of $2,067 a year ($172 a month) for full car insurance coverage.
- USAA, Auto-Owners and Geico have the lowest average car insurance prices; drivers spend the most on insurance from Allstate and Mercury.
- Drivers can expect lower car insurance prices if they have a clean record, are between the ages of 30 and 70, drive a Subaru or live in Idaho, Vermont or Ohio.
How much is car insurance?
The average annual cost of car insurance is $2,067 for a fully insured driver with a clean record. That’s $172 a month that responsible drivers must set aside for full coverage — on top of other driving costs like car payments, fuel, maintenance and repairs.
This represents a sharp increase over average car insurance prices even a year ago. The Consumer Price Index (CPI) reported a 7.7% year-over-year increase in car insurance premiums at the end of October 2022. Costs for car insurance can vary considerably depending on which state you live in, your driving record, your age and gender, the vehicle you drive and the car insurance provider you select.
- Average car insurance cost for full coverage – We based our average annual car insurance cost — $2,067 — on a good driver with full coverage auto insurance. Though coverage details can vary state to state and company to company, a full coverage auto insurance policy typically means carrying everything your state requires plus comprehensive and collision insurance. It might also include additional optional coverages.
- Average car insurance cost for minimum coverage – A year of full coverage car insurance is expensive ($2,067) while minimum coverage is only $513 a year on average. Carrying the state-required minimum coverage can keep you from getting in legal trouble and may be enough to pay the bills for injuries and property damage you may cause. But sometimes, minimum coverage is insufficient if you cause an expensive accident.
How much does car insurance cost by state?
Several factors impact how your car insurance cost, including your location:
- Individual states set their own minimum requirements for car insurance policies, which can impact your final car insurance costs.
- Cost of living varies dramatically across the country, which can increase or decrease local insurance costs compared to the national average.
- Some states are more densely populated or have a higher number of accidents, which can yield higher car insurance premiums.
Did you know: Where you live in a state or even in a city can affect how much you pay for car insurance. ZIP codes with more reported collisions and break-ins may yield higher insurance prices.
Average cost of car insurance by state
What are the most expensive states for car insurance?
Car insurance costs are significantly higher for drivers in New York, Florida, Louisiana, Pennsylvania and Maryland.
- New York
- Full coverage: $4,769.
- Minimum coverage: $1,016.
- Florida
- Full coverage: $4,326.
- Minimum coverage: $1,286.
- Louisiana
- Full coverage: $3,629.
- Minimum coverage: $930.
- Pennsylvania
- Full coverage: $3,600.
- Minimum coverage: $506.
- Maryland
- Full coverage: $3,349.
- Minimum coverage: $855.
Carrying car insurance in New York is expensive. We’ve found that drivers with a clean record can get the lowest annual premium on full coverage by going with NYCM Insurance as their provider. The average annual cost for New York drivers carrying full coverage with NYCM is $2,986.
What are the cheapest states for car insurance?
Car insurance costs are much cheaper for drivers in Idaho, Vermont, Ohio, Maine and Iowa.
- Idaho
- Full coverage: $1,021.
- Minimum coverage: $341.
- Vermont
- Full coverage: $1,037.
- Minimum coverage: $278.
- Ohio
- Full coverage: $1,112.
- Minimum coverage: $345.
- Maine
- Full coverage: $1,216.
- Minimum coverage: $396.
- Iowa
- Full coverage: $1,238.
- Minimum coverage: $275.
Idaho has the cheapest average car insurance prices for full coverage. In fact, the average cost of full coverage car insurance in Idaho ($1,021) is more affordable than minimum coverage in Florida ($1,286).
We’ve found the most affordable policies in Idaho come from American National, where the average annual cost of full coverage insurance is just $422 for safe drivers.
Average cost of car insurance by company
Annual car insurance premiums vary significantly by insurance provider. We’ve found that USAA offers the lowest insurance premiums, though USAA restricts membership to active and retired members of the military (including honorably discharged veterans) and their eligible family members.
Read more: Best car insurance companies of 2023
Average car insurance costs by insurance provider
Of those car insurance providers without strict eligibility requirements, the cheapest are Auto-Owners and Geico. The most expensive are Mercury and Allstate
Average car insurance cost by age and gender
In most states, car insurance providers use data about your gender to inform car insurance price decisions. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania are exceptions.
Age is also a major factor in determining cost of car insurance, and the two data points go hand-in-hand. For example, an 18-year-old male driver can expect an average insurance rate of $6,640 compared to an 18-year-old female driver, who would pay $5,657.
Both are tremendously high when you look at what they might pay when they’re 25, just seven years later:
- A 25-year-old male driver pays an average of $2,537.
- A 25-year-old female driver pays an average of $2,385.
Cost of car insurance by age and gender
Female drivers almost always get lower car insurance rates — and it makes sense. Analyzing data from the U.S. Department of Transportation, the Insurance Institute for Highway Safety found that men not only drive more miles than women, but they’re also more likely to speed, drive under the influence of alcohol, drive without wearing a seat belt and, as a result, die in motor vehicle crashes. In rare cases, male drivers do get lower car insurance rates.
Average cost of car insurance by driving record
Drivers with clean records — no accidents or tickets in recent years — can earn cheaper rates on their car insurance. Some companies may even discount your insurance over time as a reward for continued safe driving.
On the flip side, drivers with accidents, tickets, DUIs and even poor credit scores can expect higher insurance costs.
Read more: Car insurance after DUI in 2023
Average car insurance cost with driving incidents
Remember that a driver with a clean record will pay $2,067 a year on car insurance. Drivers with a DUI can expect to pay 70% more for car insurance than drivers with a clean record, but surprisingly, a poor credit score — which is not directly related to one’s driving record — has an even greater impact, with costs increasing by 79%.
Average cost of car insurance by vehicle
The type of vehicle you drive, including the make, model and even fuel source, can impact your overall insurance cost each month.
Average car insurance cost by type of vehicle
The cheapest type of vehicle to insure is a minivan, with full-size vans not far behind. Sporty vehicles like convertibles and coupes are unsurprisingly among the most expensive vehicle types to insure, but wagon insurance prices are also high.
Average car insurance cost by fuel type
Vehicles that are gas-powered are slightly more expensive to insure than their electric counterparts, though hybrids — at $2,802 a year for full coverage — are the most expensive of all.
Average car insurance costs for the most sold cars
The make and model of the vehicle you drive can have a substantial impact on the average cost of car insurance.
For example, the luxurious 2022 Audi R8 Performance pulls in the highest annual insurance cost ($6,552) while policies for the 2022 Subaru Forester, the cheapest model to insure, are nearly 4 times more affordable ($1,704). In fact, the three cheapest vehicles to insure from the 2022 model lineup are all Subarus.
Maintaining low car insurance costs
The average cost of car insurance per month is now $179, which can take a chunk out of your monthly budget. So how can you get a lower rate on car insurance?
Shop around (but remember that loyalty matters)
Car insurance policies usually last six months. As you near the end of a policy, it can be a good idea to compile quotes from different insurers to see if you can get a better deal. Car insurance comparison sites can do the work for you, but independent (human!) agents are also able to investigate options for you, and give you actual advice about the coverages and limits for you.
A couple of caveats to comparison shopping:
- Insurance hopping — that is, signing up for new policies every year or even every couple of years — may keep you from earning loyalty or safe driving discounts offered by your current insurer after a set period of time.
- Price is an important consideration, but it shouldn’t be your only consideration. Think about the ease of the claims process, the quality of customer service, and any discounts you might have for bundling other insurance products. These and other factors should also hold some weight in your final decision.
And remember: If you’re shopping for lower car insurance costs, make sure you’re comparing policies with the same level of coverage. That means the same deductibles and coverage limits. Otherwise, it’s not a true apples-to-apples comparison, and a lower price can be misleading.
Looking for car insurance? Compare the best car insurance quotes online
Raise your car insurance deductible
Car insurance costs have an inverse relationship with deductibles. The higher your deductible, the lower your monthly cost. If you have enough cash stashed away in emergency savings to cover a higher deductible, you could shave a lot of cash off your monthly rate.
“The first place I look to create savings is usually in the deductibles in each policy,” explained Brian Carden, an independent insurance agent and author of “Castles & Moats: Insurance, Investment and Life Planning Simply Explained.” He said, “Too many people carry very low deductibles on their auto policies.”
Carden simulated two quotes for me to demonstrate. Even though one of the policies offered significantly higher coverage limits than the other, he was able to get a significantly lower quote on that policy by bumping the deductible up from $100 to $500 (comprehensive) and $250 to $1,000 (collision).
Take advantage of car insurance discounts
It’s possible you qualify for several discounts with your current insurance provider that you’re not taking advantage of. If you like your current policy but want to lower the price, talk to an agent or customer service representative about all the discounts they offer and see if you qualify for any.
Try a new kind of policy
Usage-based car insurance policies can result in lower car insurance costs if you’re a good driver. Your insurance provider will monitor your driving habits, like braking, acceleration, miles driven and the typical time of day that you drive. Good driving habits can yield serious discounts on your insurance.
Another policy that’s growing in popularity is pay-per-mile auto insurance. These policies are great for drivers who rarely get behind the wheel but still need insurance for when they do drive.
While not as widely available as traditional car insurance policies, pay-per-mile is gaining steam. Even major insurers like Nationwide and Allstate offer it in select states (called Nationwide SmartMiles and Allstate Milewise, respectively).
Annual cost of owning a car
Insurance coverage is a major factor when calculating the cost of vehicle ownership — one of many to keep in mind when shopping for a new car. With ongoing supply chain issues and rampant inflation, the cost of owning a car has gone up dramatically in recent years.
AAA reports that car ownership costs have reached a new milestone: more than $10,000 a year. In addition to the price of car insurance, drivers should factor in costs like:
- Monthly car payments (for financed or leased vehicles): Experian reports that the average monthly car payment is $567 for leased vehicles and $700 for financed vehicles; that’s $6,804 and $8,400 a year, respectively.
- Annual registration: Rates vary by state. Most states charge a flat rate, but some states price registration based on the vehicle’s weight, value or age.
- Routine maintenance and unexpected repairs: Oil changes and tire rotations might not be a major drain on your finances, but unexpected repairs, if not covered by a warranty, can add up, especially if you opt for high-deductible insurance.
- Fuel prices: At the peak of last year’s record gas prices, Yardeni Research reported that Americans were spending an average of $417 a month on gas. Gas prices are easing, but can remain unpredictable as the geopolitical climate continues to waver.
Most states have a required minimum coverage amount for auto insurance. For drivers living paycheck to paycheck, minimum coverage may be the only option. If you’re financing or leasing a vehicle, however, the lender may require collision and comprehensive coverage.
If you can afford full coverage, you should carry it, regardless of legal requirements. Carrying full coverage gives you significantly more protection on the road. Without it, you may find yourself paying for property damage or hospital bills — and your assets are fair game if you can’t foot the bill.
Some experts recommend shopping for new car insurance every time your policy is up for renewal, i.e., every six months. For others, that’s too frequent — every one to three years will do.
Keep in mind that you may be eligible for discounts the longer you stay with an insurance provider, but you may also be missing out on lower rates with another provider.
Online comparison tools and independent human insurance agents may be able to help you determine if you can find the same level and quality of coverage at a lower price point.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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