How much does car insurance cost per month on average

The Average Cost of Car Insurance Is $1,730 Per Year for Full Coverage. However, Certain Personal Factors Like Your Driving History Will Impact Your Costs

What’s the average cost of car insurance in the United States? In this article, we at the Home Media Reviews team will explain average car insurance costs by state and how to keep your rates low. We also recommend two of the best car insurance companies worth considering in the sections below.

How Much Does Car Insurance Cost?

The average cost for full coverage insurance is $1,730 per year or $144 per month, while minimum liability coverage averages to $635 per year or $53 per month. However, your own auto insurance costs may vary based on your specific personal information. This is because insurers consider factors like your location, driver profile, vehicle and desired coverage when they calculate premiums.

How Much Is Car Insurance in Your State?

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.

Car Insurance Cost by State

To give you some idea of what drivers in each state pay for average annual premiums, we collected data from the Quadrant Information Services and found the average car insurance cost by state. The cost estimates in the table below include estimates for minimum coverage and full coverage car insurance.

Most Expensive Car Insurance by State

Here are the top five most expensive states for full coverage car insurance:

States With the Cheapest Car Insurance

And here are the five least expensive states for full coverage car insurance:

The best way to see how much car insurance would cost for your vehicle is by comparing free quotes from providers in your state.

Auto Insurance Pricing

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 average car insurance rates from multiple insurers.

Factors That Affect Car Insurance Rates

The table below contains the primary factors that generally determine the cost you will pay for auto insurance:

How To Lower Car Insurance

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:

• Shop around: It is worth comparing rates from several insurers, especially if something that might impact your rates has recently changed. For example, after you get married, purchase a house or if your credit score improves, you should see if you can get a lower car insurance premium.
• Bundle Plans: Bundling your home and auto insurance policies typically results in premium discounts. You can also save money for insuring multiple vehicles under the same car insurance policy.
• Pay upfront: Most insurers offer a pay-in-full discount. If you are able to pay your entire premium at once, it’s often a more cost-effective option.
• Take a class: Every state offers state-approved driver safety programs. Depending on the state, these classes are around six or eight hours long. Most insurers offer discounts for the completion of these programs.
• Use a monitoring app: Several providers offer usage-based discounts or usage-based insurance programs. After signing up, you’ll monitor your driving habits through an app that tracks things like braking distance, average speed and driving times and rewards you for good behavior on the road.
• Reduce coverage: As your vehicle ages, you may no longer need comprehensive and collision insurance policies. The rule of thumb is that you should drop coverage when your annual premium exceeds 10% of your vehicle’s total value.

Car Insurance Cost: Conclusion

After conducting in-depth industry research, our team found that the average full coverage policy costs $1,730 per month on average. This is higher than minimum liability coverage because it incorporates liability, comprehensive and collision insurance. 

To find the best car insurance price, we recommend shopping around and comparing car insurance rates from reputable insurance providers.

Best Price Car Insurance: Recommended Providers

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: Editor’s Choice

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:

• Emergency roadside service
• Rental reimbursement
• Mechanical breakdown insurance
• Rideshare insurance

Learn more about the provider in our complete Geico car insurance review.

Progressive: Low Rates for High-Risk Drivers

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:

• Loan/lease payoff
• Rental car reimbursement
• Custom parts and equipment value coverage
• Rideshare coverage
• Roadside assistance

Learn more about the provider in our complete Progressive car insurance review.

Auto Insurance Price: FAQ

Other Types Of Insurance To Consider

• Homeowners Insurance
• Renters Insurance
• Travel Insurance
• Pet Insurance
• Boat Insurance
• Home Appliance Insurance
• Dental Insurance

Our Methodology

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:

• Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

*Data accurate at time of publication.