Average cost of car insurance in December 2022 – Bankrate.com

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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
The average cost of car insurance in the U.S. is $1,771 for full coverage. 
June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.
Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work.
Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
To find the average cost of car insurance, Bankrate’s insurance editorial team evaluated dozens of carriers based on a variety of factors. These included car insurance rates by state, insurance carrier, vehicle manufacturer, driving record, driver’s age and gender (where permitted), among other factors.
Based on this in-depth study of annual premiums, the national average cost for a full coverage car insurance policy is $1,771, or about $148 per month. Minimum coverage, on the other hand, averages $545 a year, or about $46 per month.
Because car insurance rates vary so widely from driver to driver, this data can help you estimate how much your car insurance policy might cost based on where you live and your personal profile. It can also help identify which car insurance carriers best align with your budget and coverage needs.
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The average cost of car insurance is $1,771 per year for full coverage, or about $148 per month, according to Bankrate’s 2022 analysis of average quoted premiums from Quadrant Information Services. Minimum coverage costs an average of $545 per year. But because auto insurance premiums are based on more than a dozen individual rating factors, the actual cost will differ for every driver.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
On average, car insurance costs around $1,771 per year for full coverage and $545 per year for minimum coverage. However, when determining “how much does car insurance cost” in a specific area, the answer can vary depending on a variety of factors. The state where you live, individual rating factors, accident and claim reporting frequency, and even cost of labor and parts can cause one city or state to be more expensive than others.
Drivers in Maine, Vermont, Idaho, New Hampshire and Ohio pay the cheapest annual full coverage car insurance rates in the nation, on average. Factors like cheaper cost of living, lower probability of accidents and claims, and less traffic congestion could be contributing to these states’ lower average premiums.
Based on our research, drivers in New York, Louisiana, Florida, Nevada and Michigan have the highest average annual cost of full coverage car insurance. This could be due in part to frequent claims for common losses in these states, making drivers riskier to insure overall.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
On average, car insurance from some of the top insurance carriers in the nation can range from $1,200 to $2,500 per year for full coverage, the cheapest being from USAA and Geico. But because each auto insurance company has its own proprietary underwriting system, the cost of car insurance for each individual will vary from carrier to carrier. For drivers looking for the best car insurance company, keep in mind that the coverage you choose plays a role too. The average cost of full coverage car insurance is about 225 percent more than minimum coverage.
The table below showcases the average annual and monthly full coverage premiums for some of the largest car insurance companies in the nation by market share. 
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. The above quoted average annual premiums for full and minimum coverage are based on a 40-year-old driver with a clean driving record and good credit with full coverage limits and state minimum requirements. These are sample rates and should only be used for comparative purposes. 
Insurers typically consider age as a significant factor in setting auto insurance rates, with young drivers paying the highest premiums on average based on 2022 rates. Auto insurers use actuarial data to determine that teens and young adult drivers — as well as the elderly — are more likely to get in an accident, so the car insurance costs that these drivers pay are typically higher to compensate for the greater risk. Note that your age will not affect your premium if you live in Hawaii or Massachusetts, as state regulations prohibit auto insurers from using age as a rating factor.
Additionally, gender impacts your premium in most states. Men typically cost more to insure than women. This is because men generally engage in riskier driving behaviors than women and have a higher rate of accident severity, according to the Insurance Information Institute (Triple-I). However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina or Pennsylvania, your gender does not affect how much you pay for car insurance because of state regulations prohibiting this rating factor.
*16- and 17-year-old rates reflect the total cost of the teen driver added to their parent’s policy with student discounts applied.
**18- through 25-year-old rates reflect renters (not homeowners) calculated on their own policy.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates were calculated by evaluating our 2022 base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Rates for 18–25 year olds are based on a driver that is a renter (not a homeowner) and on their own policy. 16- and 17- year old rates reflect the total cost of the teen driver added to their parents’ policy with student discounts applied. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Men are statistically riskier drivers than women — as supported by crash rate fatalities data from 1975 to 2020 — resulting in higher insurance premiums on average. Based on data from the U.S. Department of Transportation’s Fatality Analysis Reporting System, the Insurance Institute for Highway Safety (IIHS) found that in 2020, male drivers accounted for 72 percent of passenger vehicle driver deaths, while female drivers accounted for 28 percent.
Other key IIHS report findings include:
The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are well-suited for a variety of lifestyles and budgets.
In addition to your state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving record and gender (in most states), several other common rating factors will impact your auto insurance premium. By looking at these rating factors, car insurance companies can get a sense of your risk profile and what it might cost to insure you.
Buying car insurance doesn’t have to mean breaking the bank; there are ways to save. Discounts are one of the best ways to lower your premium. Most major car insurance carriers offer discounts. Here are some of the most common insurance discounts in the U.S.
Because every auto insurer offers a different suite of discounts, speaking with your insurance agent or company representative may be the best way to learn about savings opportunities.
Additionally, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost vastly different amounts with different providers. Comparing quotes might help you find the lowest price for the coverage you need.
Every state has minimum coverage requirements for car insurance. This usually refers to bodily injury and property damage liability, but some may also require personal injury protection (PIP) or uninsured motorist coverage. While buying minimum coverage may result in a cheaper premium, it also means drivers may have minimal financial protection in an accident.
For this reason, insurance professionals generally recommend considering full coverage car insurance. While there isn’t an industry standard for full coverage, it usually means higher liability limits with collision and comprehensive coverage to insure your vehicle, which may be required by your lender if your vehicle is leased or financed. You may also be able to add medical payments coverage for you and any passengers in your vehicle, as well as towing and rental reimbursement on each vehicle. These additional coverage types may come with an added cost, but it does offer more financial protection in various claims scenarios.
The average monthly cost of car insurance is $147 per month for full coverage and $45 per month for minimum coverage; however, car insurance companies base rates on a perceived level of risk, so personal factors like age, driving history, and location will impact your premium.
Although paying off your car is an exciting milestone, the act itself does not affect your car insurance premiums. However, you have more flexibility in choosing coverage options once you own your vehicle outright. When you finance a car, you usually have to carry comprehensive and collision to meet your lienholder’s requirements. When you own your car, whether you add these coverage types becomes solely up to you.
Although dropping comprehensive and collision may lower your premium, you may want to consider if this risk is worth it. Without comprehensive and collision, your insurance policy will not cover damages to your vehicle if you are in an accident or if your vehicle needs repairs due to damage from weather, hitting an animal, theft or vandalism. If your car is just a few years old, this protection might outweigh the extra premium it costs to keep them. Before deciding to carry a liability-only policy, you may find it helpful to consult with your agent to review your options. 
Drivers with less years of experience face some of the highest car insurance rates. Teenage drivers have car accident rates that are almost four times higher than more experienced drivers. To compensate for this risk, car insurance companies typically charge more for teen drivers. In fact, teens are one of the most expensive age groups to insure.
On average, car insurance tends to be highest for new and young drivers, and then steadily drops for each consecutive age group. However, although this is a visible trend as a whole, it doesn’t mean that your car insurance will decrease every year.
Instead, because car insurance rates are based on a myriad of factors, it’s more likely that you’ll see fluctuations in your car insurance premium from year to year. Your location, vehicle make and model, annual mileage and more all play a role in your car insurance premium. Additionally, if you’ve been involved in an at-fault accident or received a moving violation conviction, this will cause an increase to your car insurance premium.
There may also be factors outside of your control that affect your premiums, such as the rate of losses in your area. When insurance companies face more claims with rising repair costs, they may decide to file for rate increases with a state’s Department of Insurance, which can cause higher premiums for some policyholders.
Compare rates and save on auto insurance today!
June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.
Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work.
Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
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