How much does car insurance cost a month in 2024?

When budgeting for car expenses, understanding the monthly cost of car insurance is crucial for every driver. Car insurance premiums can vary widely based on factors such as your location, driving history, age, and the type of vehicle you drive.

The average car insurance policy for full coverage in the U.S. is $158 a month. For a state minimum policy that offers bare-bones coverage, the rate is $42 per month. However, your actual rate may vary because rates are based on your unique profile. Shop around for the cheapest coverage to save money on the monthly cost of car insurance.

How much is car insurance per month?

If you are a preferred driver, you will likely pay the lowest rates, but the average monthly rate for car insurance in the U.S. is $158 a month.

Methodology

Insure.com commissioned Quadrant Information Services to calculate average auto insurance rates for vehicles from 2006 to 2023.

Our hypothetical driver is a 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage.

Rates for vehicles up until 2021 includes uninsured motorist coverage (since some states require it, we do it for all) and PIP or Medical Payments, if it is required by state law. This hypothetical driver has a clean record and good credit.

For liability 100/300 is rates the same hypothetical driver but with liability limits of 100/300/50, uninsured/underinsured motorist in matching amounts and PIP or MedPay, if required by state. We recommend limits this high, even if you have only liability coverage. A state-minimum policy includes only the basic state liability limits and any other state-required coverages, such as uninsured motorist or PIP.

Averages were calculated using data from six large carriers, such as Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm. Rates were averaged across multiple ZIP codes and insurance companies. Average rates are for comparative purposes; your rate will depend on your personal factors.

A standard driver is considered average risk and should have higher rates than a preferred or low-risk driver. A non-standard driver is high-risk and will pay more for car insurance. Of course, other components, like your age, driving history and ZIP code affect your monthly car insurance costs, too. See state minimum and liability-only rates in the table below.

Average car insurance rates by state

Car insurance rates vary widely from driver to driver, but where you live also makes a difference. Some states are no-fault states and some states are tort states, which affects the cost. Furthermore, state minimum insurance requirements vary by state. See the average annual and monthly rates in the table below.

Top 10 states with the highest car insurance rates

Louisiana, Florida and Michigan tend to be a few of the most expensive states nationwide for car insurance – the data bear that out. Natural disasters like hurricanes along the Gulf Coast and tornadoes in the Midwest affect property and casualty rates for home and auto insurance.

Louisiana is the most expensive state with an average monthly premium of $240 per month. Florida is second-most expensive at $224, with California at $201 per month.

See the 10 states with the most expensive full coverage car insurance rates in the table below.

Average cost of car insurance by vehicle type

Vans are the cheapest cars to insure, followed by SUVs, minivans, hatchbacks, sedans and trucks. The average monthly premium for a van is $150 and the rate goes up to $269 monthly for a sports car. 

Luxury cars/SUVs, performance SUVs, electric vehicles and sports cars are the most expensive cars to insure. See the annual average and monthly rates by car type in the table below.

Average cost of car insurance by age and gender

In their teens, males will pay $40-$50 per month more for car insurance. However, rates start to level out once drivers turn 25 and there’s no difference in rates by gender at age 40. 

Compounding the higher cost is that younger people generally do not have experience shopping for financial products such as insurance.

“In my studies of financial literacy among college students, we have found many of them lacking,” says James Brau, the Joel C. Peterson professor of finance and editor-in-chief of the Journal of Entrepreneurial Finance at Brigham Young University’s Marriott School of Business. “This general finding most likely can be extended to understanding car insurance among college students as well. Anecdotal evidence from when I teach this topic in class suggests over half of my students do not fully understand auto insurance.” 

Even so, Dr. Brau points out that greater familiarity with computers and the internet can be a way younger people can make up for being new to shopping for financial products. 

“Computer literacy seems to compensate to some degree for lack of financial literacy,” he says. “Motivated students can scour the internet to compare insurance products. They can also Google around to learn terms and concepts they have never been taught.”

See how age and gender affect the cost of monthly car insurance in the table below.

How much is car insurance for an 18-year-old male per month?

Car insurance for an 18-year-old male costs $461 per month or $5,533 per year. 

How much is car insurance for an 18-year-old female per month?

Car insurance for an 18-year-old female costs $412 per month or $4,943 per year. 

How much is car insurance for a 19-year-old per month?

Car insurance for a 19-year-old male costs $363 per month or $4,360 per year. Car insurance for a 19-year-old female costs $323 per month or $3,871 per year. 

How much is car insurance for a 20-year-old female per month?

Car insurance for a 20-year-old male costs $328 per month or $3,935 per year. Car insurance for a 20-year-old female costs $294 per month or $3,527 per year. 

How much does car insurance cost with a speeding ticket?

If you get a speeding ticket, the average increase in car insurance rate is 39% – an average difference of $751 per year. However, this number varies widely from insurer to insurer and from state to state.

How to get affordable car insurance

One way to keep your monthly car insurance costs in check is to comparison shop. Call providers directly or obtain a quote online from several insurance companies to develop a price range. 

Have vehicle and driver information available so you can provide it to the insurance agency – the make and model of your vehicle, how often and how far you typically drive it and the coverage levels you’re seeking.

Dr. Brau says consumers tend to make many mistakes when shopping for car insurance. He says the most common error is that they don’t fully understand minimum state requirements and the options for collision and comprehensive insurance.

“I encourage everyone to use online insurance calculators and tools to determine the optimal types and limits of their insurance packages,” he says. 

Get quotes for various liability coverages to see what is most affordable. Ask about discounts to decrease your car insurance per month rates, such as: 

• Homeowner
• Military member
• Loyalty discounts
• Vehicle discounts, such as anti-theft devices, anti-lock brakes, alarm systems, etc.
• Automatic payment/paperless discounts
• Good/safe driver
• Good student/student away at school

Talk to your insurance agent to find out what discounts can work in your favor.

What are the cheapest car insurance companies?

You’ll benefit from shopping around for the cheapest monthly car insurance cost. Some insurance companies will provide better rates for you than others, depending on your personal situation. 

USAA, Nationwide and Travelers have the cheapest monthly premiums. Please note: USAA is only available for military members and their families. See the table below for the cheapest national insurance rates. 

Our take on the cost of car insurance

Affordable car insurance per month is within your reach. What’s reasonable for you will depend on your driving history, state of residence, required liability limits, number of previous driving accidents and more. 

You can find car insurance that costs $150 or less a month when you have a good driving record and a typical vehicle – stay away from luxury vehicles and sports cars.

“I don’t believe there is a set average for what a driver should expect to pay per month for car insurance,” says Lauren McKenzie, insurance broker/agent with A Plus Insurance in Sierra Vista, AZ. “There are several factors such as age, location, gender, vehicle information, and coverage options that go into determining insurance premiums.

Shop your policy every six months or annually, ask about discounts, and maintain a safe driving record and good credit to pay the least for car insurance.

Resources & Methodology

Methodology

Insure.com editors in 2024 collected rates from Quadrant Information Services for a 40-year-old male driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductible. We analyzed 51,088,003 records, 34,588 ZIP codes and 167 insurance companies nationwide.