January 5, 2022

What’s the Average Cost of Auto Insurance in [year]?

How much should you pay for your coverage?

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Everyone who has a car in the U.S. needs auto insurance, but most people don’t know what’s a fair price. Choosing auto insurance isn’t a decision that you’ll make lightly, but if you don’t know how much you should be paying, you may end up paying much higher premiums than necessary.

That’s where we come in. Using our network of thousands of local agents, we’ve compiled information on all the variables that impact the price of your auto insurance, no matter your state, driving record, age, and other factors.

Let’s dig into some average car insurance rates.

The Cost of Auto Insurance: What Affects Premiums?

The national average annual cost of auto insurance in 2020 was $1,202 for full-coverage insurance.

Most people intend to shop for the least expensive plan, but finding a great price isn’t always easy. Many factors affect your monthly auto insurance costs, so there’s no one-size-fits-all pricing. Here’s what affects the cost of your car insurance:

Company

Certain auto insurance companies are more expensive than others, based on a number of factors. Read about the cheapest car insurance to find lower-cost companies.

Credit Score

Your personal credit score has a major impact on the price you’ll pay for car insurance. If you have bad credit and need auto insurance, your average annual premium and auto insurance rates will be higher than the rates for an otherwise similar person with good credit.

Vehicle

The kind of car you drive is a major factor in your auto insurance cost. Insurance providers create vehicle safety ratings based on industry reports and customer claims. Safer vehicles cost less to insure, as they’re less susceptible to damages, injuries, and thefts.

Not only does the manufacturer matter, but also the type of vehicle. See the full coverage insurance cost for drivers paying for different types of vehicles in 2020.1

Type of vehicle Full-coverage insurance cost
2020 weighted average of all types of vehicles $1,202
Half-ton/crew pickup truck (42D) $1,242
Electric vehicle $1,227
Hybrid vehicle $1,212
Large sedan $1,264
Medium sedan $1,245
Medium SUV (4WD) $1,118
Minivan $1,096
Small sedan $1,342
Small SUV (FWD) $1,087

Demographics

It doesn’t stop there. Auto insurance costs are also influenced by a variety of individual life factors, including some that you can’t control, like your age and sex.

FYI

You can get a car insurance quote with no credit check.

Coverages

What your auto insurance covers affects the amount you’ll pay monthly for insurance coverage, known as your premium rates. Every state requires minimum coverage for property damage, and every state except Florida and New Jersey requires bodily injury liability, but if you add supplementary coverage, your costs will go even higher.

Driving Record

If you’ve had traffic tickets, car accidents, or a DUI citation in the past, your auto insurance costs will rise. Likewise, they’ll reduce if you have a clean driving record. Learn more about how much auto insurance costs after an accident.

More Factors

A ton of other factors can affect the cost of car insurance, including these:

  • Auto laws in your state
  • Auto repair costs
  • How often you drive
  • Gaps in coverage
  • Medical/legal costs
  • Owning vs. leasing cars, as auto insurance costs more for non-owners
  • Per capita disposable income
  • Population density
  • Rate and form filing laws
  • The distance you drive
  • Traffic density
  • Underwriting and loss adjustment expense
  • Use of telematics

Note

Some factors won’t affect your car insurance premium costs on their own, like having kids or retiring (unless you drive more or less as a result of either life change).

How to Calculate Your Car Insurance Cost

With so many factors in the cost of your car insurance, it’s hard to add it all up. We’ve created an auto insurance cost calculator to help you along the way. While you’re at it, check out our auto loans calculator to see how you can finance your vehicle.

How to Save on Car Insurance

Want to lower the cost of your auto insurance? You can adjust your deductible, drop supplemental coverage, or get an auto insurance discount.

We’ve seen all sorts of savings, from discounts for defensive driving courses to discounts for students with good grades. You can also save money by bundling different types of coverage together, like buying your home and auto insurance from the same provider. Even though auto insurance can be expensive, there are ways to lower your costs.

Recap

That’s all we have on what auto insurance costs, but if you have done your research and are ready to shop around, check out our pages on cheap auto insurance coverage, how to find cheap car insurance companies, and the best cheap auto insurance for young people. Keep reading for some auto insurance FAQs below.

As we said, pricing your auto insurance isn’t the most transparent process in the world, but hopefully, armed with our data, you can pay the least amount possible for the most comprehensive coverage.

Frequently Asked Questions

Read on to find even more information about car insurance costs.

How much does car insurance usually cost monthly?

The average cost of car insurance is around $78 to $88 monthly, as of 2018. However, the average car insurance cost varies greatly by state and other factors. For example, those with bad credit may have higher rates, or someone in an urban area may have a higher rate based on their ZIP code. That’s because people in cities are more likely to file a claim than someone living in, say, rural North Carolina.

How do I reduce the cost of auto insurance? 

These are some ways you can reduce the cost of your auto insurance:

  1. Take advantage of your insurance provider’s discount offers. For example, it might give you a discount if you take a safe driving course or buy an annual policy.
  2. Drop coverages that aren’t required in your state.
  3. Increase the size of your deductible.
  4. Improve your credit score.
  5. Move to a state with fewer auto insurance requirements and lower minimums.
  6. Get married.

What are some reasons the cost of auto insurance could change? 

These are some reasons that the cost of your auto insurance could change:

  • You get married, divorced, separated, or widowed.
  • Your credit score changes.
  • You move cities or states.
  • You get into an accident.
  • You get a ticket.
  • You get a DUI.
  • Your license is suspended or revoked.
  • You turn 25.
  • You add or drop coverages.
  • Your commute changes.

How do I figure out the cost of auto insurance? 

To figure out the cost of auto insurance, you can use AutoInsurance.com’s auto insurance calculator. Enter the required information to get quotes from the top providers in your area.

Citations

  1. How Much Does it Really Cost to Own a New Car? AAA. (2020, Dec).
    https://newsroom.aaa.com/wp-content/uploads/2020/12/2020-Your-Driving-Costs-Brochure-Interactive-FINAL-12-9-20.pdf

  2. Auto Insurance Database Report 2017/2018. NAIC. (2021, Feb).
    https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf