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In the United States, it’s illegal to drive a car without car insurance. Depending on the state you’re driving in, the consequences of doing so can range from a fine to a misdemeanor on your record. So, if you’re planning on hitting the road anytime soon, be sure to purchase car insurance to avoid penalties.
In this article, we’ve researched the average cost of car insurance by state to give you a better idea of how much to budget.
Key findings:
According to AAA , the national average cost of car insurance for a full-coverage policy was $1,588 in 2022.
On average, the cheapest states for full coverage car insurance are Ohio, Maine and Idaho, while the most expensive states are Florida, Louisiana and Michigan.
USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico and Nationwide offer the cheapest full-coverage insurance.
The average cost of car insurance tends to decrease with age, but starts to rise again around age 70.
Individuals with high credit scores pay lower car insurance premiums on average compared to those with poor credit.
How much is car insurance? According to AAA , the national average cost of car insurance for a full-coverage policy was $1,588 in 2022. This figure is based on an under 65 years old driver who lives in the city or suburbs, has over six years of driving experience, and has not been involved in any accidents.
Average cost of car insurance by state When calculating the cost of car insurance, the state you live in plays a role in how much you can expect to pay. This is because factors like population density, climate, road conditions and crime rate in your area can play a part in the likelihood that you’ll file a claim.
According to insurance.com , the cheapest states for car insurance if you’re looking for minimum coverage are Iowa, South Dakota and Wyoming costing an average of $263, $267, and $293, respectively. Meanwhile, the cheapest states for full coverage auto insurance are Ohio ($1,023), Maine ($1,116), and Idaho ($1,121).
The most expensive states for car insurance in terms of minimum coverage are New Jersey, Florida, and New York where drivers pay an average of $989, $908 and $875, respectively. For full coverage insurance, drivers in Florida ($2,560), Louisiana ($2,546), and Delaware ($2,137) pay the most in the country on average.
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State
Minimum coverage
Full coverage
AK
$336
$1,359
AL
$420
$1,542
AR
$422
$1,597
AZ
$494
$1,617
CA
$582
$2,115
CO
$467
$1,940
CT
$773
$1,750
DE
$821
$2,137
FL
$908
$2,560
GA
$567
$1,647
HI
$389
$1,306
IA
$263
$1,321
ID
$326
$1,121
IL
$484
$1,578
IN
$384
$1,256
KS
$389
$1,594
KY
$717
$2,105
LA
$726
$2,546
MA
$523
$1,538
MD
$607
$1,640
ME
$330
$1,116
MI
$711
$2,133
MN
$479
$1,493
MO
$525
$2,104
MS
$434
$1,606
MT
$389
$1,692
NC
$396
$1,368
ND
$340
$1,419
NE
$350
$2,018
NH
$411
$1,307
NJ
$989
$1,901
NM
$376
$1,505
NV
$683
$2,023
NY
$875
$2,020
OH
$308
$1,023
OK
$352
$1,797
OR
$551
$1,244
PA
$398
$1,445
RI
$648
$1,845
SC
$628
$1,894
SD
$267
$1,581
TN
$368
$1,373
TX
$520
$1,875
UT
$526
$1,469
VA
$469
$1,321
VT
$306
$1,158
WA
$505
$1,371
WI
$375
$1,499
WV
$474
$1,610
WY
$293
$1,736
Average cost of insurance by company Another factor that’s going to influence how much you can expect to pay for car insurance is the specific company you purchase your plan through.
According to U.S. News & World Report , USAA, Geico and State Farm offer the cheapest minimum coverage plans, while USAA, Geico, and Nationwide offer the least-expensive full-coverage insurance.
Farmers, Progressive, and Nationwide offer the most expensive minimum coverage rates while Allstate, Farmers, and Progressive offer the most expensive full coverage plans.
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Insurance company
Minimum coverage
Full coverage
Allstate
$1,961
$2,138
American Family
$1,327
$1,388
Farmers
$1,782
$2,059
Geico
$1,064
$1,238
Nationwide
$1,347
$1,338
Progressive
$1,440
$1,650
State Farm
$1,191
$1,348
Travelers
$1,290
$1,448
USAA
$948
$1,056
Average cost of insurance by age According to CarInsurance.com , the cost of both minimum and full coverage car insurance tends to decrease with age, as seen in the chart below. However, there is an uptick around age 70 where rates start to go back up.
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Age
Minimum coverage
Full coverage
20
$1,109
$3,532
30
$539
$1,785
40
$520
$1,682
50
$496
$1,581
60
$482
$1,511
70
$554
$1,661
Average cost of insurance for young drivers Young drivers are the most expensive age group to insure. Although there are a few exceptions, insurance rates decrease with age among young drivers.
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Age
Minimum coverage
Full coverage
16
$2,402
$7,203
17
$1,971
$5,924
18
$1,706
$5,242
19
$1,234
$3,874
20
$1,109
$3,532
21
$884
$2,864
22
$794
$2,593
23
$736
$2,415
24
$690
$2,267
Average cost of insurance by credit score According to the Insurance Information Institute , your credit score is a good indicator of how many insurance claims you’ll file. As a result, insurance companies use credit scores to determine risk, and those with a good credit score pay cheaper premiums. The Zebra found that individuals with poor credit pay approximately 114% more than those with great credit.
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Credit score
Average annual rate
Very poor (300-579)
$2,887
Average (580-669)
$2,296
Good (670-739)
$1,912
Excellent (740-799)
$1,606
Exceptional (800-850)
$1,350
What factors affect your car insurance rate? As you can see from the above charts, the cost of car insurance varies by the following factors:
Age: Typically, young drivers under the age of 25 and senior drivers over the age of 65 are charged more for car insurance. State of residence: Since the minimum coverage required varies by state, your location is one of the factors that will influence the price. ZIP code: In addition to your state of residence, your ZIP code will also play a role in the cost of insurance since your vehicle is more likely to be damaged in certain areas, such as ZIP codes with high crime rates. Typically, the cost of car insurance will be greater in cities than in rural areas. Marital status: Statistically, married drivers are less risky than single drivers resulting in a lower insurance cost. Gender: Based on risk, male teenage drivers tend to have the highest cost of car insurance of any demographic. Credit history: Those with a low credit score tend to pay higher premiums than individuals with good credit. Driving record: Since car insurance premiums are based on risk, individuals with a good driving record can expect to pay lower premiums, while those with a poor driving record may experience increased rates. Car make and model: You may pay less if you drive a vehicle that insurance companies deem safe. On the other hand, you’re likely to pay more if you drive a small sports car since they pose a higher risk. Mileage: Higher annual mileage increases the risk you’ll get into an accident and will likely raise your premiums. High-risk violations: Driving under the influence and at-fault accidents are examples of violations that may result in you being considered a high-risk driver.
What’s the difference between full and minimum coverage? Minimum coverage car insurance — liability coverage — is required in most states and is used if you’re at fault in an accident. This coverage will pay for damages and injuries of the other party when you’re responsible for the incident.
On the other hand, full coverage insurance, or collision coverage, includes liability coverage plus damage caused to your own vehicle. Keep in mind that lenders often require you to obtain full coverage insurance before you get an auto loan .
FAQ Below, we’ve answered some common questions regarding the cost of auto insurance.
Can my driving record affect my car insurance rate? Your driving record is one of the factors that affects your car insurance rate. As a result, those with traffic violations or accidents on their record can expect to pay higher premiums.
Does your car insurance cost go down after you pay off your car? Your care insurance cost doesn’t typically go down after your pay off your car. However, you do have the option to decrease the amount of coverage on your vehicle once it’s paid off.
Which car insurance company is the cheapest? As mentioned above, insurance companies that offer the cheapest plans include Geico, Auto-Owners, USAA and Erie.
Does car insurance decrease annually? For young drivers in particular, car insurance rates decrease each year you renew your policy without filing a claim. You can expect to see the biggest drop in price at age 25.
The average cost of car insurance varies by factors including state, age, insurance company and credit score. Some factors, such as your age, are beyond your control, but other factors, such as your credit score, can be improved.
Check your credit score for free today to see if it’s a reason your car insurance is high .
The post Average cost of car insurance by state in 2023 appeared first on Credit.com .
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