What is the average car insurance cost per month?
The average car insurance cost per month is $45 for liability and $123 for full coverage. Compare how auto insurance costs vary by state, age, and gender.
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UPDATED: Sep 7, 2022
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- Many factors affect the cost of average car insurance rates per month, including age and driving history
- State insurance laws can significantly affect the average cost of car insurance where you live
- You can lower your monthly auto insurance rates by reducing coverage levels and increasing your deductibles
How much is car insurance a month? That depends on the kind of policy you need. Liability-only policies average around $45 per month, while full coverage car insurance costs around $123 per month.
Other factors that affect monthly car insurance rates include personal variables like age, gender, and marital status. Age has one of the biggest impacts on auto insurance, with teens and young drivers paying the highest rates for coverage. Men also pay more for car insurance per month than women, and single drivers have higher rates than married couples.
The easiest way to find affordable auto insurance is to compare rates by age and gender with different companies in your state. Insurers will charge different rates based on where you live and the kind of driver you are — you can get the cheapest monthly rates by comparing local companies side by side.
Keep reading to compare rates for different drivers from the top insurance companies in the country. This guide offers car insurance cost calculators by age, gender, state, and driving history. We explore the additional factors influencing your auto insurance quotes and easy ways to lower your monthly car insurance costs.
What is the average auto insurance cost per month?
Most drivers generally pay between $40 and $140 per month for auto insurance coverage. However, young drivers under 25 and drivers with accidents or multiple traffic violations will pay much higher rates.
Who pays the most for auto insurance? Here is a quick breakdown of the average car insurance costs for different coverage levels and drivers:
- Minimum liability coverage. $45 per month
- Full coverage. $123 per month
- Drivers with an accident. $177 per month
- Young drivers. $574 per month
- Senior drivers. $116 per month
Young drivers pay the most for car insurance, while older drivers often pay less than average due to having more experience behind the wheel.
If you have an accident on your record, don’t worry. Insurance rates start to drop three to five years after a collision, depending on your auto insurance company.
Since so many variables impact your average monthly auto insurance rates, always compare quotes from at least three different companies. Start now with the auto insurance rate charts below and compare monthly costs by age, gender, coverage level, state, and driving history.
Average Auto Insurance Rates by Age and Gender
Compare how rates from national companies vary by age and gender in the table below. Averages are listed in the final column.
How much does auto insurance cost for an 18-year-old? On average, 18-year-old male drivers pay around $495 per month for coverage, while female drivers pay $411 monthly. These rates start to decrease when drivers turn 25, but men still pay more for car insurance than women.
Why are car insurance rates higher for men? Male drivers — especially those under 25 — present a higher risk of fatal accidents, DUIs, and reckless driving than females. This leads to increased auto insurance costs for men in every state except Montana, Hawaii, Massachusetts, California, Pennsylvania, and North Carolina, where gender-based auto insurance rates are banned.
How much is insurance for a new driver?
New and inexperienced drivers pay the highest monthly rates. Sixteen-year-old male drivers pay an average of $609 per month on car insurance, while 16-year-old females pay $558 per month.
Fortunately, you can often lower new driver insurance rates by adding teens to an existing policy. Your insurance company will raise rates due to the increased risk of taking on a new driver, but your monthly costs won't be as high as they would be if you bought a new policy.
This table compares new driver auto insurance rates on a parent’s policy vs. a new policy:
On average, new drivers can save around $125 per month ($1,500 per year) when added to a parent’s, guardian’s, or roommate’s policy.
However, GEICO and USAA each list lower quotes on new policies for teen drivers, while most national companies offer cheaper rates on an existing policy. So if you’re a new driver looking for affordable coverage, compare quotes from these and more local companies to see which insurer can save you the most money.
Average Auto Insurance Rates by Coverage Level
Average monthly car insurance payments are between $45 and $123 per month, depending on your chosen coverage level.
Nearly every state requires a minimum auto insurance policy with liability coverage. Liability insurance is the lowest level of coverage you can carry and only pays for damages to another party in an at-fault accident.
Liability insurance comes with the lowest rates, but your monthly auto insurance rates will increase if you decide to add collision and comprehensive coverage. This kind of policy is known as full coverage auto insurance.
The table below shows how much full coverage vs. liability-only car insurance costs with five top companies. The average annual auto insurance prices are at the bottom.
Full coverage auto insurance costs more per month, but you’ll pay less out of pocket if you’re involved in an accident or other incident involving your car. States do not require full coverage insurance, so some drivers can save money by carrying liability-only policies.
However, 14 states require drivers to carry personal injury protection (PIP) or medical payments (MedPay) coverage to cover the costs of medical bills after an accident.
These additional minimums will raise your monthly insurance rates, so research your state auto insurance laws and car insurance requirements before you buy coverage to ensure you’re carrying the right amount.
Average Auto Insurance Rates by State
Once you know how much auto insurance you need in your state, start comparing rates with local companies. In the table below, you’ll find car insurance rates by state. This will give you an idea of how much other drivers in your area are paying per month for coverage.
These averages are based on state minimums and a hypothetical driver with a good record. Your rates will be higher if you decide to carry more coverage or if you’ve been in an accident. DUIs and speeding tickets will also raise your rates, and your state insurance laws might dictate how much your rates can increase.
Average Auto Insurance Rates by Driving History
Insurance companies use your driving history to assess your level of risk. The more traffic violations and insurance claims on your record, the higher your monthly rates will be.
How do auto insurance companies check driving records? Risk-assessment companies like LexisNexis research driver records across states to gather information like accident history and speeding violations.
Your monthly auto insurance costs will vary by violation, with some insurers charging much higher rates than others.This table shows how each insurance company charges different rates for different offenses:
Top 10 Companies' Auto Insurance Average Annual Rates Based on Driving Record
|Insurance Company||Rates with a DUI||Rates with an Accident||Rates with a Ticket||Rates with a Clean Record|
If you have offenses on your driving record, take a closer look at the average auto insurance cost per month for high-risk drivers in the sections below.
Auto Insurance Rates After a Speeding Ticket
Most companies will increase your rates by 12%-15% after a speeding ticket.
|Insurance Company||Rates with a Ticket||Rates with a Clean Record|
Some companies raise rates more than others for speeding violations. For example, GEICO charges $20 more per month after a speeding ticket, while Liberty Mutual increases monthly rates by $40.
Auto Insurance Rates After an Accident
Most drivers pay around $177 a month after an accident, but some insurers can increase rates to $240 per month or more. However, car insurance rates after an accident can vary significantly from company to company.
|Insurance Company||Rates with an Accident||Rates with a Clean Record|
USAA charges thousands less than Progressive, but coverage is limited to military members and their families. If you don’t qualify, you can compare rates with State Farm, GEICO, Travelers, and Nationwide to find cheap auto insurance after an accident.
Auto Insurance Rates After a DUI
If an insurer is harsh with one offense, don’t assume it will be with another. Consider Progressive again in this car insurance rate chart for DUI offenses:
|Insurance Company||Rates with a DUI||Rates with a Clean Record|
DUIs will increase your rates by 19% on average, but Progressive will not raise your rates by nearly as much. In fact, Progressive raises monthly rates higher after an accident than a DUI.
If you have DUIs on your record or are otherwise considered a high-risk driver, take advantage of our comparison tool above to compare free auto insurance quotes. Keep reading to compare average auto insurance rates by company.
Average Auto Insurance Rates by Company
Since every company assesses drivers differently, it’s vital to compare them side by side to lock in the best monthly auto insurance rates possible.
Get started with this car insurance rate chart for different drivers from the top 10 auto insurance companies in the country:
Top 10 Companies Average Annual Auto Insurance Rates by Driver Type
|Insurance Company||Rates for Teen Drivers||Rates for Senior Drivers||Rates for Military Personnel|
USAA, GEICO, and State Farm are the top three cheapest auto insurance companies for the average driver with a good record. In addition, GEICO and USAA consistently offer the best rates to drivers of all ages.
While GEICO, State Farm, and USAA are available in all 50 states, remember that coverage with USAA is limited to military service members and their families. Other insurance companies are not available everywhere. You’ll want to compare national and local companies to see which offers the most affordable policy in your state.
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Additional Factors That Affect Auto Insurance Quotes
So many different variables impact your auto insurance quotes. Most of them have to do with your risk as a driver, but some factors aren’t related to driving experience or skill at all.
Personal factors like credit score, gender, marital status, and even your occupation can increase your insurance rates. These factors can also impact your eligibility for certain discounts, which could lower your monthly insurance payments if you qualify.
Mileage, coverage options, and insurance history also have a significant effect on your rates. According to the Insurance Information Institute, a 2021 study showed that the average cost to own and operate a 2021 model vehicle was $9,666 when the vehicle was driven 15,000 miles per year.
Why do credit scores and marital status affect auto insurance costs?
Credit score and marital status may not be related to your driving skills, but these variables are associated with your risk of filing a claim. Insurance companies consider drivers with low credit scores more likely to get into an accident or file a claim and will charge them higher rates accordingly.
|Insurance Company||Rates with Poor Credit||Rates with Fair Credit||Rates with Good Credit|
Drivers with good credit pay around $123 per month, while those with fair credit scores pay around $150. Drivers with poor credit pay an average of $226 per month. If you have poor credit, you can earn lower insurance rates by paying your monthly bills on time and maintaining a good driving record.
Marital status affects auto insurance rates in much the same way — insurance companies consider married couples to be less reckless behind the wheel and more financially stable than single drivers.
[TABLE OF RATES BY MARITAL STATUS & GENDER]
Rates do not vary as dramatically between married and single drivers, but this variable can make a difference, depending on your driving record and claims history.
Hawaii and Massachusetts are the only states that do not allow insurance companies to use marital status or credit scores when determining rates. Michigan insurance companies don’t use marital status but still consider credit score. On the other hand, California does not consider credit score but does use marital status.
How much does auto insurance cost by vehicle type?
Additional factors that affect auto quotes include your vehicle and how you use it. For example, leasing a car or using your personal vehicle for business deliveries can affect your insurance coverage.
Your auto insurance rates could be higher or lower depending on how you answer the following questions:
- Do you lease your vehicle? The lessor may require you to carry more than liability coverage, which will increase your monthly auto quotes.
- Do you have an auto loan? Most lenders require drivers to carry full coverage insurance for the length of the loan. You may also add GAP insurance to cover your loan in case you total the vehicle before paying it off. Both will raise your monthly insurance costs.
- Are other drivers listed on your policy? Companies assess the risk of all drivers listed on a policy, which can raise or lower rates depending on your driving records.
- Do you use your vehicle for work? Personal policies don’t cover work-related accidents, so you will need to add commercial auto insurance or shop for business add-ons. Both will raise your monthly insurance rates.
Driving a luxury or classic car will also affect your insurance quotes. These vehicles appreciate in value and often require more expensive repairs and maintenance. Premium car insurance policies for luxury autos and classic cars will provide the right amount of coverage for these valuable vehicles but come with higher monthly rates.
Auto insurance quotes will vary among standard vehicles as well. This is because insurance companies charge different rates for different vehicles based on the average cost of the car and its repairs.
For example, most companies charge drivers more for truck and SUV insurance, while sedan insurance rates remain the most affordable.
Insurance companies also consider the national safety ratings and accident statistics of your vehicle’s make and model. The cars that get into the most fatal crashes will have much higher rates than the top safety picks, so research your vehicle before you buy auto insurance to secure the lowest rates.
How to Get the Cheapest Auto Insurance
Researching insurance companies and double-checking your state insurance laws will help you find the cheapest auto insurance company near you. Once you know how much auto insurance you need, you can start comparing quotes from different local companies with our free tool below.
You should always compare auto insurance quotes from three or more insurers to get an accurate idea of what drivers in your area are paying for coverage. The cheapest auto insurance companies are USAA, GEICO, and State Farm, but a local insurer may offer you better rates than the competition.
Drivers over 25 with good records pay the lowest rates — around $45 per month for liability-only insurance. If you need full coverage insurance, look for companies offering policies for around $123 per month.
You will pay more for car insurance if you have traffic violations, auto accidents, or DUIs in your driving history. Teens are also considered high-risk drivers and can pay over $500 a month with some companies.
Follow these tips to get the cheapest monthly auto insurance rates:
- Reduce your coverage. If you can afford to only carry the state minimum liability, you will pay the lowest possible rates. However, you’ll be responsible for your own damages and medical costs if you’re involved in an accident or other incident.
- Increase your deductibles. The deductible is the amount you pay upfront before the insurance policy covers costs. Increasing this amount reduces the risk to the insurance company and lowers your average monthly rates.
- Ask about discounts. Insurance companies offer discounts for paperless billing, good grades, low mileage, and more. Ask about all the discounts you qualify for before buying to save money.
- Bundle your insurance policies. Compare auto quotes from your home or renters insurance company to get cheaper rates. Most companies offer 10% or more off your rates when you bundle home and auto insurance.
- Add yourself to an existing policy. Adding a high-risk driver to a parent’s or roommate’s policy is cheaper than buying a new policy for a single young driver with most companies.
Always reassess your driving profile and compare insurance quotes every few months. Insurance companies treat driver risk differently, and you will find the cheapest auto insurance when you regularly compare quotes from three or more companies. Use your ZIP code below to start comparing quotes from local companies for free.
Frequently Asked Questions About Auto Insurance Costs
What’s the difference between minimum and full coverage?
Minimum car insurance is required in every state except Virginia and New Hampshire. It typically includes liability-only coverage that pays for another party’s injuries and damages after an accident you cause. Depending on your state laws, minimum auto insurance may also include personal injury protection or medical payments coverage.
In comparison, full coverage includes liability, collision, and comprehensive policies to protect drivers, passengers, and other parties in the event of an accident or other incident, like a natural disaster. State laws don’t require full coverage auto insurance, but this kind of policy provides more coverage than minimum insurance.
How much more expensive is full coverage auto insurance?
On average, full coverage car insurance costs $123 per month, which is around $80 more than liability-only. Liability insurance starts at $45 per month.
Does auto insurance go down after your car is paid off?
Yes, your insurance rates can go down after you pay off your vehicle if you lower your coverage levels. Most banks and loan providers require drivers to carry more than the minimum liability insurance. Once you pay off your auto loan, you can drop any coverages you don’t want or need.
How much does auto insurance cost for a beginner?
New drivers pay the most for car insurance. Auto insurance rates for a 16-year-old average at $609 per month for teen boys and $558 per month for teen girls.
Does auto insurance decrease every year?
You will start to notice your auto insurance rates decrease after you turn 25. And while rates can drop every year after that, your costs will go up if you file an insurance claim or add additional drivers or coverages.
What is the cheapest auto insurance company?
The cheapest auto insurance company is GEICO, but it raises average auto insurance rates after an accident or DUI more than some other companies. If you’re a high-risk driver, compare multiple insurers in your area to find the cheapest auto insurance company in your state.
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