Average Car Insurance Cost and the Factors Affecting It
Average Car Insurance Cost: The national average cost of car insurance is $1,621 per year. Although this can vary, depending on some individual factors, factors ranging from; your age, state, gender, vehicle type, credit score, accident history, and so on.
For example, if you are 16 years old and getting insurance on your own, car insurance will cost a whopping $8,226 a year. But at age 45, you’ll pay just $1,929 per year for the same insurance.
So, this brings us to the main question. How much exactly is average cost of car insurance, when considering each of these factors? On this article; to each factors I will be highlighting each of their cost.
Average Car Insurance Cost
Each factor affecting the average car insurance cost has a range, and I will be highlighting all of it in detail.
Company
The cost of car insurance can vary from carrier to carrier. Below are the list of available company with their car insurance cost.
| Insurance Provider | Average Annual Premium |
| Allstate | $4,370 |
| Esurance | $2,558 |
| Farmers | $3,448 |
| Geico | $3,240 |
| Liberty Mutual | $4,542 |
| Nationwide | $3,178 |
| Progressive | $2,962 |
| State Farm | $2,376 |
| USAA | $2,102 |
State
The average annual premium fluctuates from state to state and even from zip code to zip code. Premiums are affected by local factors including the amount of traffic in the area and crime/theft rate.
| State | Average Annual Premium |
| Alabama | $1,387 |
| Alaska | $1,198 |
| Arizona | $1,295 |
| Arkansas | $1,496 |
| California | $1,815 |
| Colorado | $1,682 |
| Connecticut | $1,550 |
| Delaware | $1,828 |
| Florida | $1,496 |
| Georgia | $2,059 |
| Hawaii | $1,547 |
| Idaho | $1,081 |
| Illinois | $1,018 |
| Indiana | $1,222 |
| Iowa | $1,150 |
| Kansas | $988 |
| Kentucky | $1,476 |
| Louisiana | $1,898 |
| Maine | $2,339 |
| Maryland | $896 |
| Massachusetts | $1,327 |
| Michigan | $1,277 |
| Minnesota | $2,693 |
| Mississippi | $1,288 |
| Missouri | $1,537 |
| Montana | $1,410 |
| Nebraska | $1,387 |
| Nevada | $1,284 |
| New Hampshire | $1,915 |
| New Jersey | $1,105 |
| New Mexico | $1,671 |
| New York | $1,352 |
| North Carolina | $1,688 |
| North Dakota | $947 |
| Ohio | $1,325 |
| Oklahoma | $1,032 |
| Oregon | $1,560 |
| Pennsylvania | $1,393 |
| Rhode Island | $1,390 |
| South Carolina | $2,110 |
| South Dakota | $1,369 |
| Tennessee | $1,342 |
| Texas | $1,427 |
| Utah | $1,827 |
| Vermont | $1,209 |
| Virginia | $1,075 |
| Washington | $918 |
| West Virginia | $1,205 |
| Wisconsin | $1,420 |
| Wyoming | $1,070 |
Coverage Level
Depending on your level of coverage, your premium will vary. If you’re leasing or financing your vehicle, you might be required to carry gap insurance as well. Below are some average auto insurance rates based on your coverage level across the US.
| Coverages | 6-Month Premium | Monthly Premium |
| State Minimum | $302 | $50 |
| 50/100/50 BI/PD | $350 | $58 |
| 100/300/100 BI/PD | $398 | $66 |
| State Min with 1000 Comp/Coll DED | $607 | $101 |
| 50/100/50 BI/PD with 1000 Comp/Coll DED | $653 | $109 |
| 100/300/100 BI/PD with 1000 Comp/Coll DED | $700 | $117 |
| State Min with 500 Comp/Coll DED | $689 | $115 |
Age
Age is a major component of auto insurance premiums. It is a reliable indicator of how risky a driver you will be to your insurance company. In fact, every year you celebrate a birthday, you should consider it an opportunity to shop around for cheaper car insurance rates. Below shows the relationship between car insurance and your age.
| Age Group | 6-month Premium | Monthly Premium |
| 16-19 | $2,608 | $435 |
| 20-29 | $989 | $165 |
| 30-39 | $724 | $121 |
| 40-49 | $698 | $116 |
| 50-59 | $648 | $108 |
| 60-69 | $662 | $110 |
| 70-79 | $778 | $130 |
| 80-85 | $923 | $154 |
Driving Record
Getting any type of violation even a minor one can have major impacts on your premium. For an at-fault accident, the average rate increase in 2018 was $309 per six-month policy or $618 per year. Most insurance providers will raise rates for three to five years after any violation, ticket, or claim.
Credit Score
In all but a handful of states, your credit score is a major rating factor. According to the Federal Trade Commission, drivers with low credit not only file more claims than drivers with high credit but their claims tend to be more expensive.
| Credit Level | 6-Month Premium | Monthly Premium |
| Very Poor (300-579) | $1,364 | $227 |
| Fair (580-669) | $1,120 | $187 |
| Good (670-739) | $920 | $153 |
| Very Good (740-799) | $769 | $128 |
| Exceptional (800-850) | $654 | $109 |
Vehicle
It goes without saying: your vehicle contributes to the cost of your car insurance. Every single vehicle will generate a unique premium based on its vehicle identification number (VIN). Insurance companies use the VIN to assess your vehicle’s mileage, accident history, and other characteristics that are factored into your premium.
| Vehicle Type | 6-Month Premium |
| Truck | $810 |
| Van | $829 |
| SUV | $901 |
| Car | $1,058 |
| Luxury | $976 |
| Green | $1,008 |
How to Save Money on Car Insurance
Most car insurer’s carriers provide many avenues for scoring discounts on your annual insurance premium. Popular ways to save money with car insurance discounts include:
- Safe Driver Discounts: Most car insurance providers offer safe driver discounts for drivers who have completed an eligible safety course within the past couple of years.
- Multi-car discounts: If your household has multiple vehicles, consider placing them all on one insurance policy to qualify for multi-car discounts.
- Bundling insurance policies: You can often score better insurance premiums overall when you bundle your car insurance policy with a life or renter’s insurance policy.
- Good student discounts: Many insurance carriers offer discounts for young drivers with good grades in school. For example, Nationwide extends its good student discount to those drivers aged 16-24 enrolled full-time in high school or college who sustain a B average. You’ll just need to provide academic evidence in the form of an up-to-date grade report or a form signed by a school administrator.
- Paying the annual lump sum: Many insurance companies provide a discount for those drivers willing to pay upfront because it is more convenient and requires less processing for them.
Summary
Car insurance is designed and priced to suit each individual, accurately estimating the risk they represent to an insurer. While car insurance quote pricing varies by driver, it also varies by company. Between the cheapest company and the most expensive, you might find a substantial price gap.
Take the national average cost of car insurance with a grain of salt. To find an affordable policy, consult an insurance agent or compare as many companies as possible online.