What is the average car insurance cost per month?

The average car insurance cost per month in the U.S. is $86, but the average auto insurance monthly payment varies based on your driving history, credit, and other factors. Pay attention to your driving records, credit reports, and the automobiles you buy. Learn more about the average car insurance rates today.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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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 Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 14, 2021

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Things to Remember...

  • Many factors affect the average car insurance cost per month.
  • The state that you live in can significantly affect the cost of your monthly premium.
  • Other factors, such as your car’s safety rating, may affect the cost of your premium as well.

The average car insurance cost per month is $86 in the United States. However, the average monthly payment varies based on your driving history, crediting rating, provider, and other factors that affect auto insurance rates.

Most drivers want to manage essential recurring costs to save money. Registering and driving a vehicle requires the owner to present proof of financial responsibility.

Continue reading to learn more about the average monthly car insurance rates. If you’re ready to shop around, enter your ZIP code in the free comparison tool above to find affordable average monthly auto insurance costs right now.

Table of Contents

What does the average monthly auto insurance cost?

How much is car insurance per month? Here are the average costs per month based on:

  • Your Driving Record:
    • Clean driving record: $258.51 per month
    • One at-fault accident: $339.72 per month
    • One DUI: $407.95 per month
    • One speeding ticket: $303.45 per month
  • Your Credit Score:
    • Good credit: $258.68 per month
    • Fair credit: $304.10 per month
    • Poor credit: $430.91 per month
  • Your Age and Gender:
    • Teen female driver: $624.24 per month
    • Teen male driver: $734.70 per month
  • Your Work Commute:
    • Short work commute: $323.70 per month
    • Longer work commute: $331.11 per month

Your rates will vary greatly based on your unique history, as you can see.

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What are the average auto insurance costs by company?

Every car insurance company sets rates based on many factors including your driving history, location, vehicle, and demographics. This information provides statistical information regarding how likely you are to file a claim in the future.

Each insurance company treats each data point about you differently. This results in very different rates between each individual. The company that gives your friend their super affordable monthly auto insurance rates might not be the cheapest for you.

Here are the average annual rates for many of the nation’s largest insurance companies. Keep in mind your rates will vary, depending on your history.

Average Annual Auto Insurance Rates by Company

Insurance CompaniesU.S. Annual Average Rates
American Family$1,282.72
Travelers$2,173.97
USAA$2,388.05
Farmers$2,549.46
Nationwide$2,908.82
GEICO$3,215.01
State Farm$3,260.00
Progressive$3,798.13
Allstate$4,887.95
Liberty Mutual$5,120.76
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State regulations affect prices and some companies are primarily available in “cheap” or “expensive” states for auto insurance.

How do auto insurance costs vary by state?

The National Association of Insurance Commissioners (NAIC) puts the national average annual cost of full coverage auto insurance at $1,030 (about $86 a month).

The NAIC’s research has also found that drivers have saved money on coverage in recent years because of competition between insurers.

However, costs can vary by state due to several factors. Rather than using a calculator, scroll over the map below to see the state minimum requirements and the average cost of coverage in each state.

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According to Vermont’s Department of Banking, Insurance, Securities, and Healthcare, drivers in Vermont pay an average of $1,250 a year (about $104 a month).

Comparatively, drivers in New York, the District of Columbia, Louisiana, Michigan, and New Jersey pay the highest average premium rates.

According to New Hampshire’s Insurance Department, drivers in New Hampshire pay approximately $1,000 a year ($83 a month). New York drivers pay an average of $2,700 per year ($225 per month), reports New York’s Department of Financial Services.

According to Minnesota’s Department of Commerce, drivers in Minnesota pay about $1,200 a year (about $100 a month).

What states have above-average auto insurance rates?

Note that average rates for Louisiana, Michigan, New Jersey, and D.C. are considerably over the national average. The rates for Iowa and North Dakota fall well below it.

Typically, urban areas with a lot of traffic have higher rates than rural areas with sparser populations and fewer cars.

New Jersey and D.C. rank one and two in the nation for the highest average price of full coverage, while Iowa and North Dakota rank 49th and 50th. New Jersey and D.C. are almost entirely urban, while Iowa and North Dakota have vast rural landscapes.

Of course, North Dakota and Iowa have some mid-sized cities. Auto insurance rates are likely higher than the state average in Bismark and Sioux City, whereas rates in the rural areas likely fall below the average.

How can I save money on my monthly auto insurance rates?

Take a look at the list below for some great ways to save big bucks on auto insurance.

  • Participating in safe driver programs can net impressive savings for good drivers (15 percent or more, according to AAA).
  • Buy at least six months of coverage at once, rather than paying monthly insurance premiums. Companies may offer a discount for prepayments.
  • Combine at least two policies for discounted rates.
  • Consider your vehicle’s safety record. Your car’s safety rating may affect the price of your monthly premium.

Let’s take a closer look at the NAIC’s national average auto insurance rates to determine auto insurance costs by coverage type.

Average Auto Insurance Rates by Coverage Type
Basic Auto Insurance Coverage TypesAverage Annual Auto Insurance Insurance RatesAverage Monthly Auto Insurance Rates
Comprehensive$148$12
Collision$327$27
Liability$555$46
Full$1,030$86
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Now that you’ve got more information, you can stop wondering “How much should I pay in auto insurance?” and compare rates to save money.

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How do I find the average cost of auto insurance?

Figuring the average cost of car insurance is a complicated process because there are so many variables in calculating your average monthly cost. There are many different calculators online that you can use for estimation purposes.

Having a little background information will help you determine how much to pay for insurance.

In most states, car insurance is required by law.

The laws that establish the necessity for insurance are set individually by state, so costs vary by state.

An insurance company that operates in several different states must file rate applications in each state.

Compare auto insurance the quick and easy way: simply enter your ZIP code into the free tool above to get started.

What factors affect your monthly auto insurance rates?

Several factors determine your rates, most of which have to do with how risky the provider believes you will be to insure. Check out the list of factors below.

  • Age – In most cases, with age comes driving experience; younger drivers are riskier to insure.
  • Gender – Statistically, young, unmarried males have more accidents than young, unmarried females.
  • Marital status – Married people are less likely to have accidents than unmarried people.
  • Number of years licensed – Experienced drivers are typically better drivers.
  • Credit history – Insurers believe that drivers with good credit scores present less of a risk.
  • Homeownership – If you own your own home, you are likely to be more stable and less careless in your driving.
  • Occupation – Some occupations are riskier than others.
  • Past driving history – If you’ve committed infractions on the road before, insurers believe you are more likely to get into an accident.
  • Good grades – If a younger driver has Bs or better in school, insurers believe they are responsible; the reward is a discount on auto insurance.

When you fill out an application, it is sent to an underwriter who examines it for areas that may indicate risk. Drivers with elevated risk levels are more likely to file claims that cost the company money.

If nothing flags the underwriter’s attention, your application responses are sorted into categories and your rate is determined.

Insurance companies order a copy of your driving record and your credit record routinely. Sometimes, they will send investigators out to gain more information about how you live and your reputation in the community.

This type of report is usually only ordered if the underwriter spots discrepancies between your application and the other records that are found.

What are the average auto insurance rates by age and gender?

The average costs by age and gender vary like all other factors that determine the rates someone pays. Let’s take a closer look.

Average Auto Insurance Rates by Age and Gender

Who’s likely to pay more for coverage? Let’s look at rates by age, gender, and marital status.

Average Monthly Auto Insurance Rates Based on Age, Gender, and Marital Status
Age, Gender, and Marital StatusAverage Monthly Auto Insurance Rates
Married 60-year-old female$187/month
Married 60-year-old male$192/month
Married 35-year-old male$204/month
Married 35-year-old female$204/month
Single 25-year-old female$225/month
Single 25-year-old male$241/month
Single 17-year-old female$630/month
Single 17-year-old male$752/month
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Younger drivers have more expensive rates, while older drivers pay much less. Single drivers also pay more for auto insurance, while married drivers pay cheaper rates.

As a rule, young drivers will pay more for their auto insurance.

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What is the average auto insurance cost by marital status?

Insurance companies usually provide more affordable monthly auto insurance quotes to married drivers. Married individuals are perceived as more financially stable and risk-averse than single drivers.

Take a look at this table comparing the 10 best auto insurance companies with their average annual auto insurance rates for single and married drivers.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Marital Status

Insurance CompanySingle Average Annual Auto Insurance RatesMarried Average Annual Auto Insurance Rates
Allstate$3,497.90$1,497.65
American Family$2,491.69$1,977.81
Farmers$2,994.12$2,108.58
GEICO$2,320.88$2,126.14
Liberty Mutual$4,231.40$2,128.07
Nationwide$2,787.76$2,273.20
Progressive$2,728.20$2,286.45
State Farm$2,445.26$2,474.98
Travelers$2,408.23$3,045.78
USAA$2,057.33$3,696.29
Average$2,796.28$2,361.49
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Across 10 of the best auto insurance companies, single drivers pay an average of $435 more for auto insurance per year compared to married drivers.

What are the average rates by vehicle?

When you fill out your application, you will provide the year, make, and model of your automobile, as well as the level of coverage desired.

The cost of the vehicle has some influence on the rates you’ll be charged, within certain parameters.

Purchasing a Lamborghini with a base price of $400,000 or more can affect your rates because experience with that type of vehicle is statistically rare. The standard rating methods are not applicable for vehicles with a value over $100,000.

The table below shows the average monthly auto insurance cost of popular vehicles in the United States.

Average Monthly Full Coverage Auto Insurance Rates of Popular Vehicles
Most Popular VehiclesAverage Monthly Full Coverage Auto Insurance Rates
Chevrolet Malibu$115/month
Honda Accord$109/month
Nissan Altima$121/month
Honda Civic$128/month
Toyota Corolla$308$117/month
Ford Explorer$109/month
Ford Focus$111/month
Chevrolet Impala$112/month
Subaru Impreza$119/month
Toyota RAV4$110/month
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The Honda Accord and the Ford Explorer are the cheapest vehicles to insure. While the average may seem low when you do comparison shopping, you need to understand why the average is the way it is.

The national average includes all cars in the United States including luxury vehicles that exceed $100,000 and $2,000 commuter cars.

How are average rates affected by credit history?

Did you know your credit score can determine how much you’ll spend on auto insurance? The best companies, even the small ones, will factor your credit score into your auto insurance.

Why? According to Experian, there’s a correlation between your credit score and your risk as a driver. Let’s review the average annual rates based on credit history.

Average Monthly Auto Insurance Rates by Credit History
Credit HistoryAverage Monthly Auto Insurance Rates
Good Credit Score$264/month
Fair Credit Score$307/month
Poor Credit Score$429/month
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People with poor credit will likely pay more for auto insurance, but those with fair, good, or excellent credit will pay much less.

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How are average rates affected by driving history?

Another big factor in car insurance is your driving record. Auto insurance companies will want to know how good you are behind the wheel. A driver’s license and registration won’t be enough to get lower rates. Let’s examine how auto insurance cost is affected by driving record.

Average Monthly Auto Insurance Rates Based on Driving Record
Driving Record SummaryAverage Monthly Auto Insurance Rates
Clean Driving Record$260/month
With One Speeding Violation$306/month
With One Accident$341/month
With One DUI$358/month
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A clean record will give you the cheapest auto insurance rates. Accidents and DUI convictions on your driving record will produce expensive car insurance rates.

How do coverage limits affect your rates?

Every state has a required minimum amount of bodily injury coverage, property damage coverage, medical payments coverage, and uninsured/underinsured motorists coverage.

  • Bodily Injury Coverage – gives you protection if you are legally liable for bodily injury damage to others
  • Property Damage Coverage – provides protection if you are legally liable for property damage to property owned by others
  • Medical Payments Coverage – pays for the medical expenses incurred by you and your passengers after an accident

Remember, these are the basic liability coverages required by law.

The legal requirement isn’t the only reason to purchase auto insurance. Insurance protects you and your financial stability.

If each of us had to pay individually for automobile accidents, it could cause extreme financial distress.

Not many of us could produce liquid cash to pay a $150,000 hospital bill incurred because of an accident we caused.

Therefore, as individuals, we cannot afford to accept only the minimum protection required by law, even though it may cost less.

How much is auto insurance a month?

Your auto insurance rates vary greatly based upon a number of factors, but one of those is what car you drive.

This list shows how much your rates can change based on just your vehicle.

  • Audi R8- $226.67/ mo.
  • Acura NSX- $215.67/ mo.
  • Porsche 911 Turbo- $202.67/ mo.
  • Audi TT- $154/ mo.
  • Dodge Charger R/T- $142.67/ mo.
  • Nissan Frontier- $126.83/ mo.
  • GMC Yukon Denali- $122.33/ mo.
  • Nissan Pathfinder- $101.50/ mo.
  • Honda Fit- $91.00/ mo.

Think about it: why should it cost the same to insure a 2002 Toyota Corolla versus a 2020 Ferrari Portofino? If it costs more to repair and replace, it will cost more to insure.

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How much should I pay for auto insurance?

Shopping for a new auto insurance policy can be a daunting task, even for the most seasoned drivers. Most people don’t understand what goes into a policy’s cost.

  • Your past driving record is the biggest factor in determining premium cost because all insurance companies operate off a risk model.
  • When you’re buying your insurance coverage, you have the option to pay it monthly, bi-monthly, every six months, or for the entire year in some cases.
  • Shopping for auto insurance can be a long and tedious process, but getting the right coverage is essential if you want to protect yourself financially.

While a policy may seem like a great deal, it may not offer the same amount of coverage compared to other policies with similar rates. That’s why it’s best to know the average auto insurance policy costs before you start to shop.

Why is there a difference in rates?

First of all, each state has its own laws on the minimum coverage that a person must carry to drive legally. Also, people carry different insurance policies based on what their vehicle is worth to them.

Suppose a vehicle is only worth $2,000. In that case, most people will not carry full coverage insurance, opting instead for the minimum required by law. That means their vehicle won’t be covered by comprehensive or collision coverage, but the vehicle isn’t worth much anyway.

How much is full coverage insurance for a 20-year-old? On average, someone that young will pay $5,333 for their annual premium. The amount you pay will vary based on your age.

Your past driving record is the biggest factor in determining premium cost.

If you have received tickets or recently had an accident, try to talk with local law enforcement first to reduce the number of points you have. If you succeed, your premium will drop.

Finally, costs vary greatly based on where you live. If you live near a big city that has a high crime rate and dense traffic, you’re going to pay a higher premium.

If you live in a small farm town with no problems whatsoever, you’ll enjoy lower average insurance rates.

How do you start looking for coverage?

Before you even start to look for insurance providers online, you need to determine what type of coverage you need.

Do you want to cover your vehicle if it gets totaled or needs serious work? Do you just want to cover the liability portion if you were involved in an accident?

Suppose you’re currently financing or leasing your vehicle. In that case, you’ll likely need to purchase comprehensive and collision insurance to take care of your vehicle since most lenders will require this.

Once you’ve determined the type of insurance you want, go online and start looking around at all the insurance companies you can find.

There are many companies available, so it may be efficient to find a site that compares multiple insurers.

This will save you a lot of time in the process because you won’t have to fill out your information at 10 different sites just to get quotes.

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How do you select your coverage?

After you’ve found a site to get quotes, you need to select the type of coverage you would like to have on your policy.

Many companies will try to help you by having many packages already pre-selected for you, ranging from minimum coverage to the most comprehensive coverage.

The following features can greatly change the average price of car insurance. Here are some things to look for in a policy:

  • Deductibles – If you don’t mind paying later, you can save a lot of money in the short term — the higher deductible, the lower your insurance rates.
  • Maximum Coverage Amount – When you’re purchasing liability, comprehensive, or collision coverage, you will need to specify how much you want that policy to cover. Liability is required to drive, but the other two are optional.
  • Medical Benefits – This is a solid option for your policy because you get a certain amount of money for medical bills, no matter who was at fault for the accident. It covers a variety of medical and hospital bills and adds very little to your monthly premium.
  • Uninsured/Underinsured Coverage – You may be a great driver, but not everyone on the road is like you. That means you may get in an accident with someone who doesn’t have insurance or doesn’t have enough coverage; this coverage protects you against this.
  • Rental Car and Roadside Assistance – If you need extensive work on your vehicle, this may be a good option to have. They give you a rental car when your car is being worked on.

While these pre-selected packages are a great starting point, you need to look into what these packages offer to be a smart consumer.

How do you purchase your policy?

Now that you’ve gone through this rigorous process of researching policies, you’ll need to purchase your policy. This is not as straightforward as it may seem, as you now need to complete a good amount of paperwork to get your policy active.

Again, this is where the average cost of a policy can change.

When you’re buying your insurance coverage, you have the option to pay your premium monthly, bi-monthly, every six months, or for the entire year at once in some cases.

Some companies offer car insurance discounts if you choose their favorite payment method.

You’ll enter your vehicle information, security protection for your vehicle, and any driver courses that you may have completed recently. This can change the amount of your premium, so make sure to provide accurate information.

How can you find your best rates?

Comparing the prices offered by different companies is your best bet for finding cheap auto insurance rates. Fortunately, this is very easy to do these days.

You can find online quote systems that will tell you how much your coverage will cost from the comfort of your computer or even your smartphone.

Some of these systems are offered by individual insurers. Others can offer multiple quotes because they are independent and not owned by any particular company.

The independent sites are pretty useful because they can deliver a handful of comparison quotes from multiple companies.

Alternatively, you might call a local insurance agent. These trained professionals should be able to offer you free price quotes. They can also offer you advice about the type and amount of coverage you should purchase.

Does it pay to comparison shop for auto insurance rates?

Some people never bother to shop around for auto insurance because they think that all companies are very similar.

The truth is that some companies do offer better prices for certain types of customers than others. This can be true if you have a clean driving history or have had a few accidents.

For example, did you even know that insurers can consider your credit report when they determine how risky you are to cover? Some of the top insurers in the country offer discounts for things like driving an eco-friendly car.

It might not seem like a credit report should have anything to do with driving, but insurers say that people with good credit tend to make fewer claims. They also contend that people who purchase “green” cars tend to have fewer accidents.

Enter your ZIP code into the free tool below to start comparing average monthly auto insurance costs in your area.

What else should you know about auto insurance costs?

Do you want to learn more about the average monthly auto insurance cost? We’ve answered frequently asked questions in the final section of this review.

#1 – How much is auto insurance per month for an 18-year-old?

The average monthly auto insurance cost for an 18-year-old driver is $175 per month.

#2 – What auto insurance is the cheapest for full coverage?

USAA auto insurance arguably the cheapest insurance company for full coverage, but this company is only available to members of the military. If this doesn’t apply to you, check out GEICO or State Farm.

#3 – How much is auto insurance for a 16-year-old?

The average auto insurance cost for a 16-year-old driver is $6,930 per year ($578 per month) for full coverage and $2,593 per year ($216 per month) for minimum coverage.

#4 – Who really has the cheapest auto insurance?

USAA, GEICO, State Farm, and Progressive are known to have some of the nation’s cheapest rates.

#5 – How much is the AAA insurance quote for a supercar?

Supercar insurance with AAA car insurance company or any other insurer could cost $760 to $1,700 per month.

#6 – How much is full coverage insurance monthly?

Full coverage could be as low as $86 per month. However, your rates could be much higher, depending on your location and the company you’re with.

#7 – How much is auto insurance a month for a 25-year-old?

The average monthly auto insurance cost for a 25-year-old driver is $233 per month.

#8 – How much is the cheapest auto insurance per month?

The cheapest car insurance option is liability-only insurance, which costs about $46 per month.

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State Minimum Auto Insurance Rates Nationwide
State Minimum Auto Insurance Rates Nationwide