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:
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.
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.
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
|Half-ton/crew pickup truck (42D)
|Medium SUV (4WD)
|Small SUV (FWD)
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.
- Age: First-time drivers and teen drivers are statistically more likely to get into accidents, so they have higher premiums. The good news is that their rates will reduce when they turn 25. Learn more about auto insurance costs for teens, auto insurance costs for 16-year-olds, auto insurance costs for 17-year-olds, auto insurance costs for 18-year-olds, auto insurance costs for 19-year-olds, and auto insurance costs for 20-year-olds.
- Sex: Auto insurance tends to be more expensive for men, as they’re statistically more likely to get into car accidents. Single males, in particular, have higher collision rates.
- Credit: If you have bad credit and need auto insurance, your average annual premium and auto insurance rates will be higher than those of a demographically identical person with good credit.