How much is car insurance? [2022 cost guide] – MarketWatch

February 20, 2022 By admin

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When insurers calculate premiums, they consider factors like your location, driver profile, vehicle and desired coverage. So, how much is car insurance, on average, in the U.S.?
According to the 2021 Auto Insurance Database Report published by the National Association of Insurance Commissioners (NAIC), the average annual car insurance premium in the U.S. was $1,056.55 in 2018 (the most recent year covered in the report). However, your own costs may vary.
The quickest way to find out how much a car insurance policy would cost you is to use a quote calculator tool. Enter your zip code below to receive free, instant insurance quotes from some of the best car insurance companies in your area.
All states set their own car insurance regulations and requirements. Different states also have different driving conditions, which can impact the cost of car insurance.
To give you some idea of what drivers in each state spend annually on car insurance, the table below shows the average cost of car insurance by state, according to the 2021 NAIC Auto Insurance Database Report.
State
Average Annual Liability Premium
Average Annual Total Premium
Alabama
$511.13
$904.56
Alaska
$576.09
$965.44
Arizona
$646.75
$1,046.40
Arkansas
$486.72
$898.89
California
$616.51
$1,034.05
Colorado
$687.40
$1,132.81
Connecticut
$784.70
$1,216.55
Delaware
$900.32
$1,291.39
District of Columbia
$809.41
$1,429.43
Florida
$1,009.94
$1,426.46
Georgia
$797.80
$1,212.04
Hawaii
$479.27
$829.15
Idaho
$425.89
$722.06
Illinois
$515.94
$916.49
Indiana
$442.69
$767.72
Iowa
$348.87
$700.71
Kansas
$421.78
$805.15
Kentucky
$611.54
$936.91
Louisiana
$1,015.36
$1,545.82
Maine
$374.59
$686.25
Maryland
$737.73
$1,211.83
Massachusetts
$658.47
$1,167.16
Michigan
$952.15
$1,469.73
Minnesota
$499.48
$872.65
Mississippi
$538.35
$971.19
Missouri
$520.45
$913.81
Montana
$435.81
$825.87
Nebraska
$429.35
$796.87
Nevada
$900.40
$1,260.43
New Hampshire
$436.76
$847.58
New Jersey
$955.93
$1,385.61
New Mexico
$576.81
$915.62
New York
$920.25
$1,425.00
North Carolina
$391.29
$734.06
North Dakota
$307.97
$686.08
Ohio
$448.59
$794.91
Oklahoma
$508.89
$915.49
Oregon
$689.74
$990.21
Pennsylvania
$555.42
$991.23
Rhode Island
$885.33
$1,333.12
South Carolina
$702.37
$1,093.97
South Dakota
$333.44
$721.67
Tennessee
$477.07
$855.78
Texas
$659.47
$1,152.25
Utah
$601.77
$941.14
Vermont
$376.99
$778.29
Virginia
$492.68
$853.78
Washington
$689.18
$1,035.34
West Virginia
$521.74
$938.71
Wisconsin
$422.28
$755.97
Wyoming
$356.25
$765.81
The data in the table above represents state averages, and it was also collected in 2018. Car insurance rates typically rise year after year (generally between 2 and 5%), so 2021 auto insurance costs are likely higher.
According to the NAIC, the five states with the highest average annual premiums are:
According to the NAIC, the five states with the cheapest average annual premiums are:
To see how much car insurance would cost for your vehicle, you can click below to get free quotes from providers in your state.
Car insurance costs are determined based on a number of factors. How heavily each factor impacts your final premiums can vary from provider to provider, which is why it’s important to compare rates from multiple insurers.
Factor
Impact on Car Insurance Premiums
Age
Drivers typically see the highest rates between ages 16 and 25. Rates gradually decrease and see a slight increase again around 65.
Gender
Insurers may set rates based on your gender, except in the states of California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania, where insurers have been banned from using gender as a rate factor.
Credit History
Drivers with good credit are often offered lower rates. In California, Hawaii, Massachusetts, Michigan and New Jersey, insurers are not allowed to set rates based on credit score.
Marital Status
Married drivers sometimes receive cheaper car insurance rates compared to single drivers.
Location
Both your city and state impact the cost of your car insurance premium. If you live in an area with especially high crash or theft rates, you may see higher premiums.
Type of Car
If your car model has high theft or crash rates — as do many sports cars — your insurance premium may be higher. Your car’s value is also used to determine the cost of comprehensive and collision premiums.
Driving Record
Those with a history of speeding tickets, accidents, traffic violations or DUIs are charged more for insurance. A violation will stop affecting your rates after it falls off your record, which typically happens after three years.
Driving Habits
Driving less often can mean lower rates. Many insurers offer usage-based discounts to reward low-mileage drivers.
Coverage Level
Each state sets its own minimum insurance requirements, but you can get additional coverage if you want to be fully protected. Shopping for full coverage insurance with higher policy limits will increase your car insurance quotes.
Deductible
Collision and comprehensive insurance policies typically include a deductible. Choosing a higher deductible will result in a lower premium and vice versa.
Discounts
The discounts for which you are eligible affect your rate. Common car insurance discounts include a homeowner’s discount, military discount, multiple policy discount and pay-in-full discount.
If you’re shopping around for car insurance online and are receiving quotes that are outside your budget, here are several strategies for reducing your car insurance rates:
The cost of car insurance is an important thing to consider when choosing a provider. Of course, you’ll also want to pick a reputable insurer that offers good coverage and has a simple claims process. There are several insurers that fit that description in the U.S.
To find the best option for you, request and compare car insurance quotes from a few companies.
Geico offers low premiums across the country. When conducting our insurance cost research, we often found Geico to be the cheapest insurer. The company also has a good customer service reputation — it is accredited and has an A+ rating from the Better Business Bureau (BBB).
Geico offers the six standard types of auto insurance (liability, collision, comprehensive, underinsured/uninsured motorist coverage, personal injury protection and medical payments), as well as the following add-on coverage options:
Learn more about the provider in our complete Geico car insurance review.
Progressive doesn’t have the same service reputation as Geico, but it is nonetheless a well-regarded national insurer. According to our research, Progressive is a particularly good option for high-risk drivers such as young drivers, elderly drivers and drivers with a DUI on record. We found that Progressive tends to offer the most competitive rates for these types of drivers, who will often find insurance policies quite expensive.
Progressive sells all standard insurance policies as well as the following add-on coverages:
Learn more about the provider in our complete Progressive car insurance review.
The monthly cost of car insurance is different for every driver and depends on a number of factors including your age, driving history, vehicle, location and coverage level. According to the NAIC, the average American spent $1,056.55 on car insurance in 2018, which comes out to about $88 per month.
Younger drivers are typically more expensive to insure. While a 20-year-old may see significantly lower rates than 16- to 19-year-olds, rates will still be fairly high compared to other drivers.
Insurance on a new car depends on the type of car and type of insurance that you purchase. Many insurers typically offer new car discounts as well as discounts for safety features and anti-theft features more likely to be included on newer vehicles. This means liability insurance for a new car is typically less expensive than for an older car.
However, collision and comprehensive insurance policies are based on the value of your vehicle. Because a new car will have a high value, these policies may be more expensive.
The cheapest cars for insurance are those that are known for reliability and are statistically less likely to be involved in an accident or stolen. Cars with a lower value will be cheaper to insure with comprehensive and collision policies.
There are a number of strategies for making your insurance cheaper, including:
Contact your insurance agent to ask about other potential discounts.
It is better to pay for your car insurance in full if you can afford it. Most insurance companies provide a discount on your premium if you pay it in full.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
*Data accurate at time of publication.
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