How much is auto insurance?

Looking for auto insurance? The cost depends on your age, where you live and even your driving record. The average U.S. premium was just over $1,000 in 2015.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Nov 1, 2021

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember...

  • There are a variety of factors that can impact auto insurance rates
  • No two people have the same needs and ability to pay for car insurance
  • Make sure you know exactly how much insurance you need before you purchase

The easy and quick answer is that auto insurance prices vary.

The reasons why they are not the same for every driver are important for you to know so you can save money while shopping for car insurance.

The factors that impact car insurance include:

  1. Driving history
  2. Type of car you drive
  3. Where you live
  4. How much insurance you need to buy

Be sure to compare car insurance rates by entering your ZIP code into the FREE tool at the top of this page!

How much insurance should you buy?

The main reason for buying coverage is that it is illegal to drive without it.

The other compelling reason to have insurance is to protect your assets in case you cause an accident that injures, kills, or causes property damage.

This required insurance is known as bodily liability insurance and property damage liability insurance.

Some states are no-fault, and the insurers pay out for damages and injuries regardless of who caused what damage or injuries.

Additionally, many of these no-fault states permit the insured to still sue the other party to seek damages. No-fault insurance is also called personal injury protection, or PIP coverage.

Review any obligations from the leasing company or the lender, determine the legal minimums, and factor in your assets.

Buy more than the legal minimum, because the minimum in most states will leave you short on coverage if you cause a serious accident.

If you drive an SUV, did you know that you are likely to do more damage than someone who is driving in a sub-compact? And since that’s the case, you automatically pay more for liability insurance.

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Speed and Luxury Cost More

Along the same lines, it’s proven that if your car can go fast, you are more likely to speed. The insurance industry knows that high-performance vehicles bring out the speed in people, and so they charge additionally for sports cars.

If you drive an expensive or exotic vehicle, such as a Ferrari, the parts and the skilled mechanic who knows how to do proper bodywork and mechanical repairs cost more.

Then again, people who are driving around in a Ferrari may not be thinking about the cost of maintenance.

However, just because people have the money to pay for their luxuries does not mean they want to be taken for a ride.

Shopping around and comparing quotes is an excellent means to improve insurance costs. It’s a necessary evil and it’s proven that people can save just by being smart shoppers.


Auto Insurance Shopping Tips

Here are a few tips to keep in mind when you are shopping for car insurance:

  1. Know what you need to buy
  2. Compare quotes
  3. Scrutinize the carriers
  4. Get discounts
  5. Take safe driving classes
  6. Avoid unnecessary claims
  7. Resist the temptation to over-buy insurance

Check with your state’s insurance commissioner to learn what are the minimums you need to buy to drive legally within your state.

In addition, factor into the equation what level of assets you need to cover should you cause injuries or damage.

Buy sufficient coverage to protect you from the underinsured and uninsured motorists. Increase deductibles within a workable range for your budget.

Set aside money that you save on your policy in a savings account to help defray or pay the costs of a claim’s deductible.

The great part about buying coverage online is being able to conduct a side-by-side comparison of policies and pricing.

Take a quick look at customer preferences for the different insurance carriers you are considering including in your search.

If you ever want to drive your car again, then you want to choose a carrier who pays out efficiently and quickly on legitimate claims.

Consider dropping collision and comprehensive coverage when the cost of coverage and the deductibles and increased premiums outpace the cost to just go out and buy another vehicle.

Avoid Unnecessary Claims

Everyone has that one friend who is always making an insurance claim. They may gloat at how great it is. Light tragedy appears to follow them, or does it?

If your windshield was damaged tomorrow, would it pay to suffer higher premiums for three years, plus the cost of the deductible to use your insurance?

Weigh the options before you buy coverage. Be smart about how you use your car, too.

If you have all the electronic gadgets and bells and whistles, and your car is on the most stolen list, use an alarm, buy comprehensive, especially in areas where theft is rampant.

If you are driving a seldom stolen car and have a removable radio and that’s it, then consider skipping coverage.

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Compare Auto Insurance Quotes to Save

The best way to save is simply by being honest about what you need. Then compare quotes to make sure you are not overpaying for coverage.

That’s the simple truth about buying car insurance, whether you have a media centered-SUV, a Ferrari, or a 15-year old sub-compact.

Take the time because it may save you hundreds or thousands of dollars per year.

Take a driver safety class, buy multiple insurance policies from the same carrier, and you may find yourself maximizing your savings.

Enter your ZIP code into the FREE comparison tool located above!

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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