Average Cost Of Car Insurance For 2021 – Car insurance is a necessary expense in most states, but how much is car insurance? In the United States, the average car insurance cost is $1,674 per year for full coverage, or about $139.50 per month, according to 2021 data pulled from Quadrant Information Services. Minimum coverage costs an average of $565 per year. However, car insurance rates vary based on numerous factors, including your location, the type of car you drive and driving record, so you may pay more or less than the average.
Bankrate’s insurance editorial team analyzed car insurance rates by state, company, vehicle manufacturer, age, driving record and gender (where allowed). The car insurance prices provided here might help you understand how much your auto insurance policy could cost. That knowledge could help you find an insurance provider that fits your budget.
* The national average cost of full coverage car insurance in the U.S. is $1,674 a year or $139.50 per month.
* Americans spend about 2.44% of their household income on car insurance every year.
* Car insurance rates are on the rise, increasing an average of 4.68% over the most recent 5 years of data.
* A speeding ticket will increase your annual full coverage car insurance premium by an average of 23%, an accident will increase it by about 38% and a DUI will increase it by about 87%.
Table Of Contents
- 1 Average car insurance cost by state
- 2 Most expensive states for car insurance
- 3 Average car insurance cost by company
- 4 Average car insurance cost by manufacturer
- 5 Average cost of car insurance by driving record
- 6 Additional factors that determine your rate
- 7 Coverage selections
- 8 Credit score
- 9 Frequently asked questions
- 10 Is full coverage insurance worth it?
- 11 How can I find the best rate for my car insurance premium?
- 12 Methodology
- 13 Bankrate Scores
Average car insurance cost by state
The answer to the question “How much does car insurance cost?” is a bit complicated. There are numerous factors that can impact how much you pay, including the state you live in.
Most expensive states for car insurance
Louisiana has the highest average car insurance cost for full coverage at $2,724 annually or $227 per month. Louisiana drivers also pay the highest percentage of their median household income toward car insurance, a whopping 5.27%. Other high-cost states include Florida, New York, Michigan and Nevada.
Average cost of full coverage car insurance State Annual cost Monthly cost % of median household income spent Louisiana $2,724 $227 5.27% Florida $2,364 $197 4.05% New York $2,321 $193 3.23% Michigan $2,309 $192 3.60% Nevada $2,246 $187 3.17% Least expensive states for car insurance
Maine has the lowest average cost of full coverage car insurance, at $965 per year or about $80 per month, which is just 1.45% of their median household income. Other low-cost states are Ohio, Idaho, Hawaii and Washington.
Average cost of full coverage car insurance State Annual cost Monthly cost % of median household income spent Maine $965 $80 1.45% Ohio $1,034 $86 1.60% Idaho $1,045 $87 1.58% Hawaii $1,127 $94 1.28% Washington $1,176 $98 1.43% Car insurance rates by state
Car insurance prices vary by location. Even within a state, your ZIP code can influence your premium (except in California and Michigan). Car insurance rates are affected by local factors, including traffic, the likelihood of accidents and the crime rate.
Average car insurance cost by company
Each auto insurance company has its own proprietary rating system, so the cost of car insurance varies from carrier to carrier. To find the best car insurance company for your needs, get quotes from different providers to compare rates and features.
Below is a table showcasing the average annual and monthly premiums for some of the largest car insurance companies in the nation by market share. We’ve given each company a Bankrate Score on a scale of 0.0 to 5.0. The Scores incorporate information about average prices, coverage offerings, discounts and third-party rankings. A higher Bankrate Score means the company scored more highly in each rating category.
Average car insurance cost by manufacturer
The type of vehicle you drive has a large impact on your car insurance premium. The price and availability of parts, the price of labor, the statistical likelihood of accidents and the vehicle’s safety and crash prevention features could all influence the premium you pay. The vehicle makes and models in the table below are the five most popular vehicles in the country.
Top-selling rank Make and model Average annual full coverage premium 1 Ford F-150 $1,442 2 Chevrolet Silverado $1,682 3 Ram 1500 $1,697 4 Toyota RAV4 $1,510 5 Honda CR-V $1,369 Average cost of car insurance by age
Age is perhaps one of the biggest factors for how much you will pay for car insurance, with young drivers paying the highest premiums. Teenage drivers have crash rates that are almost four times that of more experienced drivers. Insurance companies are aware of the fact that teens and young drivers — as well as the elderly — are more likely to get in an accident, so the car insurance costs that these drivers pay are typically higher to compensate for the greater risk.
Note that if you live in Hawaii, your age will not affect your premium. Hawaii bans the practice of using age as a car insurance rating factor.
*Combined 2021 rate for teen ($2,531) added on parents’ auto insurance policy
*18-year-old driver rate reflects renters (not homeowners) calculated on their own policy.
Average cost of car insurance by driving record
After a driving violation, you may be deemed a high-risk driver and your premium could increase accordingly. The severity of your infraction and how many incidents you have on your record will impact how much your car insurance premium increases. For example, the average full coverage premium increases over $1,400 per year after a DUI conviction, but only by $388 annually for a speeding ticket.
Average cost of full coverage car insurance by driving record Driving record Annual premium Monthly cost % more expensive than national average Dollar amount over the national average Clean driving record $1,674 $140 0% $0 DUI conviction $3,139 $262 87% $1,465 At-fault accident $2,311 $193 38% $637 Speeding ticket $2,062 $172 23% $388 Average cost of car insurance for men and women
Men typically cost more to insure than women. Men generally engage in riskier driving behaviors than women, which can lead to more severe accidents. However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina or Pennsylvania, your gender should not affect how much you pay for car insurance.
Additional factors that determine your rate
In addition to your state requirements, vehicle type, age (except in Hawaii), driving record and gender (in most states), the following factors may impact your car insurance premium.
Your car insurance coverage options have a significant effect on your rate. If you select higher liability limits, choose lower deductible levels or take advantage of endorsements, your rates will likely be higher.
The statistics show that drivers with poor credit file more claims and more expensive claims than drivers with good credit. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on a variety of factors; it will likely not exactly match the scores from Experian, TransUnion or Equifax. The table below showcases how credit can affect your annual full coverage car insurance premium.
California, Hawaii, Massachusetts, Michigan and Washington do not allow credit to be factored when setting auto insurance rates.
Poor Average Good Excellent National average $3,873 $1,865 $1,674 $1,487 How to save money on car insurance
Discounts are one of the best ways to save on car insurance. Most car insurance carriers provide discounts that can lower the cost of your insurance premium. Here are some of the most common insurance discounts:
* Claims-free: Drivers who have no claims on their record in the past several years usually qualify for savings.
* Bundling insurance policies: You can often reduce your car insurance premium when you bundle your car insurance policy with a home insurance policy.
* Good student discounts: Many insurance carriers offer discounts for young drivers with good grades in school.
* Paying in full: If you can afford to pay your car insurance premium in full, you may save money.
Because every company offers a different suite of discounts, talking with a representative about your situation might help you find multiple savings opportunities.
Frequently asked questions
What discounts are available for car insurance?
There are a lot of discounts available for car insurance, such as for maintaining a clean driving record, bundling your insurance policies, having an anti-theft device in your car and paying your premium in full. Consider asking your carrier about the auto insurance discounts it offers to see how you can qualify.
Is full coverage insurance worth it?
Full coverage car insurance means you are adding coverage for damage to your vehicle by adding comprehensive and collision. In many circumstances, full coverage car insurance may be worth it. It is typically more expensive than minimum coverage, but it can help you pay for the cost of your vehicle repairs or replacement after a covered loss. Full coverage can be required if your car is financed or leased.
How can I find the best rate for my car insurance premium?
To find the best car insurance rate, you might want to shop around and get quotes from different auto insurance providers. By comparing quotes from different providers, you could find the coverage you are looking for at a more competitive price.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
* $100,000 bodily injury liability per person
* $300,000 bodily injury liability per accident
* $50,000 property damage liability per accident
* $100,000 uninsured motorist bodily injury per person
* $300,000 uninsured motorist bodily injury per accident
* $500 collision deductible
* $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
*2021 rates for 16-year-old are based on a driver of this age added to their parents’ policy.
*2021 rates for 18-year-old are based on a driver of this age that is a renter (not a homeowner).
Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base).
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania. Read Also : Average Car Insurance Cost 2021
Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA, MI, WA
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings. Average Car Insurance Cost 2021