Average car insurance cost in 2024

If you’ve seen an uptick in your car insurance, you’re not alone. According to the Bureau of Labor Statistics, car insurance rose 1.4% in January — coming after an all-time high increase of 18% in 2023. So, how much should you anticipate paying on average?

In 2024, the average cost of a full coverage car insurance policy is $158 a month. In some states, you see rates below $100 a month.

Learn more about the average cost of car insurance, including state averages, car insurance rates by age and how violations affect your insurance cost.

What is the average cost of car insurance?

In 2024, the average cost of a full coverage car insurance policy in the U.S. is $1,895 per year – $158 per month. However, this cost varies based on several components, including where you live, your driving record, the type of vehicle you drive and your age and gender.

Our analysts have crunched numbers from nearly 30,000 cities across the U.S., based on the sample of a 40-year-old driver of a 2023 Honda Accord LX with a good driving history to calculate the average full coverage insurance cost. Therefore, this rate may not necessarily represent what you’ll pay.

The rate analysis in the following charts provides an overview of what you could expect to pay in your state for basic coverage, liability only or full coverage policies. It will also give you a good idea of how rates fluctuate based on your age, what you drive and how they can spike with various types of violations on your record.

As you learn more about the average rate of car insurance, remember that car insurance is meant to protect you and your vehicle should you be involved in an accident. While it’s important to keep costs in mind while shopping for rates, having the proper coverages in place is vital so you’re not left with a financial burden after an accident.

How much does car insurance cost each month?

Car insurance is always pricey. You’ll likely pay the lowest rates if you are a good driver with an established driving history. Where you live also has a big impact on your premiums.

For example, if you live in Maine or New Hampshire, the average monthly rate for a full coverage policy is about $100 — $98 and $105, respectively. This is well below the U.S. average monthly rate for car insurance of $158.

However, your rates could also be higher than the average for your state. Insurance companies calculate premiums based on risk. If you’re a higher-risk driver — i.e., less experienced or senior driver or you own a sports car — you can anticipate a higher rate.

Review the following monthly rates by state and coverage type in the chart below to learn how your state stacks up and for the context of what you could expect to pay for car insurance.

Our recommendations

When you’re shopping for car insurance, it can be easy to go with the cheapest rate and call it a day. However, it’s typically not the best strategy for ensuring you’re fully protected on the road should you be involved in a car accident.

While Insure.com editors recommend purchasing minimum liability limits of 100/300/100, you do have to consider your needs and budget. So, how do you go about shopping for a policy? 

According to Jim 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, it’s advisable to shop around with at least three reputable insurance companies and give them your exact personal details.

“Average car insurance costs can be tricky — because none of us are really average. For example, if one of your kids recently got a ticket or is in a wreck, each insurance firm will price this situation differently. The average basically goes out the window,” he says.

“Make sure to compare apples to apples – such as coverages, riders, etc. It’s wise to shop like this every year or two to make sure you have the most competitive policy.”

How much does car insurance cost in each state?

Car insurance rates do vary based on where you live. In general, states create their own regulations and rules around how car insurance premiums can be determined. For example, California and Hawaii restrict car insurance companies from adjusting premiums based on age.

Some states may be no-fault states requiring personal injury protection (PIP) coverage, while others require uninsured/underinsured motorist coverage. These factors all impact the premium you’re going to have to pay.

“Consider state costs versus the national average – auto insurers spend a lot of time, money, and effort running statistical models to estimate the exact risk each driver/vehicle combination costs them to insure. States differ, vehicles differ, families differ, individuals differ,” Brau says.

Learn more about the average annual state minimum insurance, liability only and full coverage insurance in the table below.

10 most expensive states for car insurance

Louisiana, Florida and California top the list of the most expensive states for car insurance in the U.S. In general, these states tend to be the priciest nationwide due to factors such as high population density or natural disasters, such as hurricanes. In the past year, inflation impacts have also contributed to high repair costs.

Louisiana is the most expensive state with an average annual premium of $2,883 per year – around $240 a month. Florida is second-most expensive at $2,694  annually and California at $2,416 annually.

Learn more about the 10 states with the most expensive full coverage car insurance rates in the table below.

10 cheapest states for car insurance

Maine, New Hampshire and Vermont made our list of the cheapest states for car insurance in the U.S. These states have the most affordable rates due to factors such as low crime rates, smaller population density and lower assessed risk of car accidents and theft.

Maine is the cheapest state in the nation for car insurance premiums – the average annual premium is $1,175 per year or just under $100 per month. New Hampshire is second-most expensive at $1,265 and Vermont car insurance costs $1,319 annually.

Learn more about the 10 states with the cheapest full-coverage car insurance rates in the table below.

Average cost of car insurance by carrier

When it comes to finding an affordable premium, shopping around is key. When you start contacting car insurance companies, it’s important to provide all your details and needs during your quote consultation. This ensures that you get quotes from the best car insurance company for you with coverage options that fit your budget. It’s also advisable to inquire about car insurance discounts that may be available to you that can save you money, too.  

USAA offers the cheapest full coverage car insurance at $1,381 per year – but USAA is only available to military members and their families.

After USAA, Nationwide offers the cheapest average full coverage car insurance rate at $1,548 annually. If you’re interested in the state minimum or liability-only coverage, Auto-Owners offers the cheapest coverage option at average rates of $337 and $412, respectively.

Learn more about the average cost of car insurance by carrier in the table below.

Average cost of car insurance by gender: Male vs. female

Car insurance rates are determined by personal factors and driving history, which indicate how risky a driver you may be to insure. One main contributing cost factor of your premium is gender. 

In some instances, rates for males and females are similar. When shopping for full coverage insurance rates, males and females will be quoted nearly the same average — annual cost — $1,895 for males and $1,894 for females. However, age can widen the gap – there’s a big difference in rates for males vs. females during the teenage years.

See additional coverage average rates in the table below.

Average cost of car insurance by age

It’s been said that with age brings experience, and car insurance companies tend to agree. In general, younger drivers and senior drivers pay more for insurance. This is due to statistics showing that inexperienced teen drivers and aging senior drivers have higher incidents of accidents.

While finding the best car insurance for teens can be tricky, it’s not impossible. In general, teen drivers will pay the most for car insurance at age 16 and it will decrease in cost until the age of 25. After that point, and considering their driving record is clean, they will be quoted at much more affordable rates.

Learn more about the average cost of car insurance for teens, young adults, standard adult drivers and seniors in the following charts.

Average cost of car insurance for teens

While getting a license is a celebratory rite of passage, it’s often a time of serious road driving skill-building. This may mean a few fender benders, distracted driving moments and potential road collisions. Car insurance for teen drivers is costly for these reasons.

Teen car insurance rates for a 16-year-old driver start at $6,094 annually, the cheapest average rate from Nationwide. Travelers’ rate of $3,391 annually is the lowest for a 19-year-old driver. Typically teen car insurance rates are calculated by risk and as teens gain more driving experience on the road, their rates tend to decrease. Teen car insurance rates also vary based on the state they reside in.

Learn more about average car insurance rates for teens, by age, in the table below.

Find the best cheap car insurance for other age groups

• Guide to the cheapest car insurance for 16-year-olds
• Guide to the cheapest car insurance for 17-year-olds
• Guide to the cheapest car insurance for 18-year-olds
• Guide to the cheapest car insurance for 19-year-olds
• Guide to the cheapest car insurance for 20-year-olds

Average cost of car insurance for young drivers 

Having several years of driving experience helps decrease your car insurance rates, but they’re still higher than an average adult driver. Comparatively speaking, a 20-year-old driver will pay 67% less annually at $3,029 ( with Travelers) than a 16-year-old driver. Additionally, a 24-year-old driver will pay 38% less than a 20-year-old driver.

Learn more about average car insurance rates for young drivers by carrier in the table below.

Average cost of car insurance for adults 

After age 25, insurance premiums begin to drop significantly. While they may fluctuate based on driving history, make and model of the car you drive or your state, your rates generally become more affordable as an adult driver through the age of 60.

As a 25-year-old driver, you still pay slightly higher rates at $1,831 annually on the low end for a Nationwide policy, and by the age of 60, you will be paying 30% less at $1,351 annually. Learn more about average car insurance rates for adult drivers by carrier in the table below.

Average cost of car insurance for seniors

After the age of 65, you likely will begin to see a rise in your car insurance premiums. This is due to age impacting on your driving capabilities — weakening eyesight, reduced reflex response and loss of hearing. Senior car insurance is calculated on risk like any other insurance; these factors make you a higher-risk driver and therefore your premiums will increase.

A 65-year-old senior driver pays 12% less at an average annual premium of $1,372 offered by Nationwide than a 40-year-old adult driver at Nationwide’s average annual premium of $1,548. However, by the time they’re 75 years old, they’re paying 12% more annually than they did at age 65 at an average of $1,557.

Learn more about senior car insurance by carrier in the following table.

Average cost of car insurance by vehicle make and model

 The cost of insurance varies widely by vehicle. 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 vehicle type

Vans are the cheapest vehicle type to insure, followed by SUVs, minivans, hatchbacks, sedans and trucks. The average annual premium for a van is $1,795 and the rate goes up to $3,229 per year for a sports car. 

How much does car insurance cost by vehicle fuel type?

Electric cars and hybrids are more expensive to insure because the vehicle components are more expensive to repair and replace. The table below shows the average annual insurance cost for various fuel types.

Average cost of car insurance for high-risk drivers

It’s no surprise car insurance rates spike after an accident or speeding ticket. How much it increases depends on the violation, ranging from 10% for an SR-22 filing to 103% for a DUI. The reason you’re seeing the increase? You’ve now entered a risky driver category.

In general, violations on your driving record follow you for a couple of years to a decade but can decrease how much you pay if you maintain a good driving record. Learn more about the average six-month premium costs for typical violations.

Once you’ve received a violation and your current premium increases, it may be wise to shop around for a new insurance carrier. This can help you save some money on your monthly insurance bill.

Final thoughts on the cost of car insurance 

While the national average car insurance rate in the U.S. in 2024 is $158 monthly, this doesn’t mean you can’t find more affordable premiums. In general, you can find cheaper car insurance by shopping around. Contact at least three to five car insurance companies for quotes and provide them with current driver/vehicle information and coverage needs.

Average car insurance rates can be impacted by where you reside, your age, gender and vehicle type. While there may be spikes in your premiums based on these factors, you can also look into car insurance discounts — such as good driver, student and low mileage — for savings, and maintain a good driving record to keep your perceived risk level as low as possible.

When shopping around, ask about the differences between state minimum, liability and full coverage insurance options. It is easy to choose the cheapest option, but discussing your personal needs and budget with an insurer can help you find the best coverage that fits your pocketbook.

Resources & Methodology

Methodology

Insure.com editors in 2023 collected rates from Quadrant Information Services for drivers of a Honda Accord LX for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles. We analyzed 5,000,736 records, 1,467 ZIP codes and 202 insurance companies nationwide. The hypothetical driver has a 12-mile commute and drivers 10K miles annually.