How much does a typical American spend on auto insurance? When taking into account both age and gender, what is the typical cost of auto insurance?
In order to answer these questions, we compiled information from a wide variety of reputable auto insurance databases. Some findings confirmed our preconceptions; for instance, teen drivers face significantly higher insurance premiums.
There were also several unexpected findings, such as the correlation between a low credit score and insurance rates that are almost as terrible as driving under the influence (DUI).
Keep reading to learn the most up-to-date details on the typical price of car insurance 2022.
The typical annual premium for full coverage auto insurance is $1,569.
Car insurance 2022 costs more than twice as much for teenagers as they do for drivers of any other age group.
Drivers in their 50s have the cheapest car insurance premiums
Young male drivers face greater rates than their female counterparts, although this gap closes significantly after drivers reach age 25.
Insurance costs for hybrids are the highest of any vehicle class, followed by sedans.
The average annual cost of auto insurance in Michigan is $3,096; this is approximately $700 more than the cost in second-place Louisiana.
At $885 annually, USAA has the lowest vehicle insurance rates of any major insurer.
The typical increase in insurance costs due to DUI is 75%.
Except in the few areas that don’t allow carriers to utilize credit scores for computing rates, drivers with negative credit pay 71% more than those with good credit.
Contrasting the various forms of auto coverage
First, we’ll go over the various kinds of automobile insurance out there, and then we’ll get to the average premiums people pay.
There are essentially four distinct kinds of auto insurance:
If an accident causes damage to another person’s property and the policyholder is found to be at fault, this type of coverage will reimburse the victim for those costs.
When an accident occurs and the policyholder is at fault, bodily injury liability pays for the medical expenses of the injured party.
Damage to the policyholder’s car caused by an accident for which they are at fault is covered by collision insurance.
Damage to the insured vehicle that is not the result of an accident, such as that caused by theft or natural disasters, is covered under comprehensive coverage.
Liability insurance is mandatory in all but two states (New Hampshire and Virginia). Even in the two states that don’t mandate it, motorists should have financial resources to cover the costs of any accidents they cause. Even though some jurisdictions don’t mandate it, liability insurance is still the smart choice for most motorists.
Different states have different requirements for what is known as “minimum coverage” in terms of liability insurance. One state may require at least $10,000 in property damage liability and $25,000 in bodily injury liability as minimum coverage.
A policy is considered “full coverage” if it provides protection in all four of the areas listed above. The options and costs of these plans range widely from one motorist to the next.
The national average for auto insurance premiums is $1,569.
Based on research from Coverage.com, Insure.com, The Zebra State of Auto Insurance 2019, and U.S. News, the average annual premium for full coverage is $1,569.
When broken down, monthly premiums for car insurance average $131. Plan on it being a rough estimate if you’re shopping for auto coverage.
Coverage estimates that the average annual cost of minimum coverage is $545
The cost of auto insurance often rises with each passing year. The Zebra reports that car insurance rates have increased by 29.6 per cent since 2011. However, there may be large fluctuations from one year to the next. The average cost of insurance policies fell by 6.3% in 2013. Prior years saw gains as high as 6.9%.
How Age Affects Auto Insurance Premiums Various Ages Rate per annum, on average (full coverage) Teens $5,023 20s $1,989 30s $1,532 40s $1,474 50s $1,365 60s $1,384 70s $1,611 80s $1,880
The Zebra is used as a data source (2020).
There is a correlation between the age of the driver and the cost of insurance. This is mostly because they have less driving experience and are more likely to act recklessly.
The insurance premiums of drivers who don’t cause any accidents will go down quickly. A 16-year-old pays an average annual premium of $6,600, but a 20-year-old pays less than $2,000.
Insurance premiums, on average, differ greatly across the sexes
It’s commonly accepted that male drivers incur higher premiums than female drivers. Unfortunately, that’s not exactly accurate.
According to Zebra’s research, male teen drivers pay more than female teen drivers for car insurance on average. Male teenage drivers typically incur a 14% premium over their female counterparts. In addition, male drivers between the ages of 20 and 24 pay 8 per cent more than their female counterparts in the same age range.
Once a person reaches the age of 25, there is no longer a sizable age gap in vehicle insurance premiums. When comparing rates for seasoned drivers, here is how much men and women should expect to pay:
Average yearly rate by gender (full coverage) $1,480 for women; $1,470 for men
Equus zebra (2020).
Insurance companies in seven states can no longer use a customer’s gender as a rating factor when setting premiums. Many states now permit citizens to select nonbinary gender classifications, so it’s probable that many more will follow suit.
If you believe you are being charged more for auto insurance due to your gender, it is in your best interest to shop around and locate the policy that best suits your needs.
Typical Insurance Premiums by Vehicle Class Type of Car Rate per annum, on average (full coverage) The $2,343 Hybrid Price range from: Sedan $2,242 SUV $1,868 Truck $1,741 Van $1,602
Information was gathered from Insure.com and The Zebra (2020).
Insurance for a van is the most affordable option, saving drivers $640 per year compared to the insurance for a sedan.
Saving money at the gas pump isn’t worth paying extra for insurance on a hybrid. This is due to the greater expense involved in fixing them.
Insure.com revealed that the average premium for Tesla insurance is $3,110 per year. The Tesla Model S averaged an insurance premium of $3,476 per year, placing it 10th most expensive on The Zebra’s list of 100 most expensive cars to insure.
State-by-state breakdown of average vehicle insurance premiums Rate per annum, on average (full coverage) Rate per annum, on average (minimum coverage) Price: $1,450; Value: $554; State: Alabama $1,275 in Alaska. $478 everywhere. One Thousand Four Hundred Seventy-Four Dollars And Sixteen Dollars In Arizonian $1,698 $608. $1,868 + $648 = California $1,757.67. Colorado. $673. Price in Connecticut: $1,696 ($816) 1,803 dollars and $922 cents in Washington, DC $1,383 $633 Two thousand, thirty nine dollars and one hundred and ten dollars for Florida Two thousand, thirty nine dollars and The Total Cost in Georgia: $1,609 $679 Cost of Vacation in Hawaii: $1,045 $411 Idaho $1,164 $394 $1,303 in Illinois $464 Hoosier State: $1,165 $438 Iowa $1,106 $304 Dollars and cents: $1,622 and $483 in Kansas $2,208.973 in Kentucky. Two Thousand Three Hundred Ninety-Eight Dollars and Eighty-Thre Maine $935 $374 $1,415.691 in Maryland $1,463 $606 for the state of Massachusetts $3,096.45. $1,745.40 Michigan A total of $1,319 in Minnesota and $534 from other sources $1,587.621. in Mississippi St. Louis $1,736 $614 Price: $1,534; Discount: $455 $ 1,370 in Nebraska $386 The State of Nevada $1,974 $926 $1,037.384.80 New Hampshire Dollars and cents: New Jersey $1,592 $820 A total of $1,334 $506 was spent in New Mexico. The Big Apple $2,004 $1,826 $955.00 $520.00 North Carolina $1,379 in ND, $417 in OH, $414 in OK, and $1,787 in OK. Salem, Oregon $1,463 $727 In the state of Pennsylvania $1,475 $514 $2,103 minus $1,002 in Rhode Island State of South Carolina $1,414 $633 South Dakota $1,708 $385 The cost in Tennessee is $1,570 whereas in Texas it is $1,415. Utah $1,306 $641 $1,156 in Vermont $367 in Massachusetts Virginia $1,005 $380 Washington $1,368 $669 West Virginia $1,536 $586 Wisconsin $1,181 $385 Wyoming $1,439 $339
The Zebra is used as a data source (2020).
Where drivers live has a huge impact on their car insurance rates — just ask anyone who has moved and seen their premiums go way up.
Michigan is by far the most expensive state for car insurance, with rates almost twice as high as the national average. Even minimum coverage in Michigan costs more than full coverage in all but 10 other states.
Maine has the best car insurance rates for full coverage policies at an average of $935. For minimum coverage, Iowa is the clear winner with an average of just $304.
Average cost of car insurance by insurance company Insurance company Cheapest rates for a medium level of coverage USAA $885 Geico $1,168 State Farm $1,234 Travelers $1,267 Progressive $1,373 American Family $1,391 Farmers $1,682 Nationwide $1,864 Allstate $1,880
Data source: U.S. News (2020).
This shows why it’s so important for drivers to compare auto insurance rates from different carriers. Choosing the right insurance company could amount to hundreds of dollars in savings.
USAA has traditionally gotten high marks for the quality and pricing of its car insurance policies, and it has the lowest rates on average. This carrier is only available to members of the military (active or veterans) and eligible family members.
How driving record affects car insurance rates Negative item on driving record Average premium increase Speeding ticket 22% Accident 43% Driving under the influence (DUI) 75% Bad credit 71%
Data source: U.S. News.
Auto insurance is much more expensive for consumers who don’t have clean driving records. A single ticket, accident, or DUI can lead to a big rate hike.
Insurance carriers also use credit scores to determine rates, except in a handful of states that have banned this. Since drivers with bad credit are more likely to file insurance claims, they get charged more.
The shocking part is how much more. A bad credit score will cost a driver almost as much as a DUI.
We also have data on how much rates increase on average with the most popular car insurance providers.
Carrier Cheapest rates for a medium level of coverage Speeding ticket Accident DUI Bad credit USAA $885 $1,041 (+17.6%) $1,229 (+38.9%) $1,683 (+90.2%) $1,653 (+86.8%) Geico $1,168 $1,510 (+29.3%) $1,802 (+54.3%) $2,958 (+153.3%) $1,855 (+58.9%) State Farm $1,234 $1,375 (+11.4%) $1,487 (+20.5%) $1,681 (+36.2%) $2,745 (+122.4%) Travelers $1,267 $1,721 (+35.8%) $1,842 (+45.4%) $2,430 (+91.8%) $2,095 (+65.4%) Progressive $1,373 $1,803 (+31.3%) $2,324 (+69.3%) $1,793 (+30.6%) $2,308 (+68.1%) American Family $1,391 $1,497 (+7.6%) $1,684 (+21.1%) $1,726 (+24.1%) $2,277 (+63.7%) Farmers $1,682 $2,099 (+24.8%) $2,446 (+45.4%) $2,640 (+57.0%) $2,669 (+58.7%) Nationwide $1,864 $2,263 (+21.4%) $2,766 (+48.4%) $4,011 (+115.2%) $2,549 (+36.7%) Allstate $1,880 $2,212 (+17.7%) $2,673 (+42.2%) $3,252 (+73.0%) $3,025 (+60.9%)
Data source: U.S. News.
Different carriers weigh negative items in different ways. State Farm is much more lenient with rate increases after a speeding ticket, accident, or DUI. But it’s also much stricter for drivers with bad credit.
Geico and Nationwide, on the other hand, don’t charge drivers with bad credit as much, but their rates skyrocket if a driver has a DUI.
How many uninsured motorists are on the road?
While the number of uninsured motorists has been going down over the past decade, there is still a lot out there.
An Insurance Research Council study found that 13% of motorists were uninsured in 2015. Some states were significantly higher than average, with almost 27% of Florida drivers having no auto insurance.
Uninsured or underinsured motorist coverage provides extra coverage if drivers are in an accident caused by an uninsured motorist or someone who doesn’t have enough insurance coverage.
A cost that all motorists must bear on a regular basis
Even though there are a lot of things drivers can’t do anything about, there are still numerous things they can do to save money on car insurance.
If people want to save money, they can shop around for insurance with several providers and even change their coverages to find the best possible deal. They can also take steps to better their credit to increase their chances of getting the lowest feasible interest rates. Every motorist has to shop around for the best car insurance rate.
Also, the way individual drives can have a significant impact on their auto insurance premium. One long-term benefit of driving safely and accident-free is lower insurance premiums for safe drivers.