What is the Average Cost of Car Insurance?
Car insurance rates depend on a number of factors — let’s dive into the data and learn more.
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What is the average cost of car insurance?
The average cost of car insurance is $1,483 per year. That puts the average car insurance cost per month at $124.
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 affect auto insurance premiums.
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 affect auto insurance premiums.
Key Takeaways: how much is car insurance?
- Car insurance costs an average of $1,483 per year, or $124 per month
- At $90 a month, Nationwide provides the cheapest rates on average
- Drivers aged 50-59 pay the least for car insurance on average
- The average rate increase for an at-fault accident is $335 for a six-month policy
Which car insurance companies are the most affordable?
As part of our car insurance rate analysis, we compared premiums from some of America’s best car 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.
Nationwide
Nationwide offers the cheapest average car insurance rate at $90 per month
GEICO
GEICO offers the second cheapest average car insurance rates at $94 per month.
Progressive
At $104 per month, Progressive's average car insurance rate is third cheapest among the major carriers surveyed.
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.
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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:
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.
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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 (at least 100/300/100) and physical protection provided for your own car at this coverage level, it’s typically the most expensive.
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The risks of low liability limits
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. Compare rates for higher limits, as the price difference for more protection isn’t typically much more than state minimum coverage.
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.
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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. Learn more about how to choose a deductible.
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.
Minimum liability coverage — without comprehensive and collision to cover damage to your own vehicle — is the cheapest tier of auto insurance you can buy.
Minimum liability coverage — without comprehensive and collision to cover damage to your own vehicle — is the cheapest tier of auto insurance you can buy. However, it also leaves you the most exposed to risk.
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Is liability coverage enough?
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.
Depending on your vehicle’s age and its value, your lending institution may require physical damage coverage. They may have stipulations on the amount of your deductible to ensure that you can pay your require portion should you need to file a claim.
Depending on your vehicle’s age and its value, your lending institution may require physical damage coverage. They may have stipulations on the amount of your deductible to ensure that you can pay your require portion should you need to file a claim.
Compare rates and find an affordable policy today
Average car insurance rates by driver age
Age is a major component of auto insurance premiums. Based on traffic safety data, age is a reliable proxy for risk behind the wheel. To help offset the effect of age on auto insurance and find the cheapest possible rates, we recommend comparing car insurance quotes yearly.
See below the relationship between age and car insurance rates.
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What age pays least for coverage?
Those aged 50 to 59 pay the least for car insurance, with all other variables constant. Teen drivers pay the most — about $381 per month for drivers between 16 and 19 years old. Once you turn 20, you should expect an average monthly drop in your insurance premium by about $224.
Aside from very young and very old drivers, age doesn’t have a major impact on the average cost of auto insurance. Between the ages of 40 and 60, the average difference in premium is only $45. It’s important to consider other rating factors that could have a larger impact on premiums.
Aside from very young and very old drivers, age doesn’t have a major impact on the average cost of auto insurance. Between the ages of 40 and 60, the average difference in premium is only $45. It’s important to consider other rating factors that could have a larger impact on premiums.