120+ moreMany factors affect car insurance rates, so premiums can vary widely among drivers. The national average monthly cost of car insurance is $184 for full coverage and $104 for liability-only coverage, according to Insurify data.
Car insurance costs increased by 15% in 2024, and Insurify’s data scientists predict another 5% increase in 2025, but comparing quotes can help you find cheaper premiums.
Insurers consider many factors when setting premiums. Your driving record is a major factor — the better your record, the lower your premium. Your location, credit history, age, gender, and the car you drive also affect the cost of your car insurance.1
Insurers may consider personal factors when setting rates, but an Insurify report found other factors affect bottom lines before you even get a quote.
Car insurance companies are losing money. Insurance companies are experiencing record losses, paying more in claims than they collect in premiums. Insurers pass those costs onto consumers to offset the loss.
Repair costs are higher than ever. Mechanic shortages, hard-to-repair car technology, and the increasing average vehicle age contribute to rising costs.
Climate disasters cause expensive claims. Areas with frequent severe weather, like floods, earthquakes, and wildfires, typically have higher rates due to more expensive claims.
Disposable income, urban population, and miles driven per number of highway miles are all correlated with state auto insurance premiums.2 The number of uninsured drivers on the road also influences how insurers set rates.
To explore and download more auto insurance data, visit Insurify’s data center.
Premiums can vary down to the ZIP code, but here are the cheapest monthly liability-only and full-coverage rates for each state.
Teen drivers and drivers in their early 20s typically pay the highest auto insurance rates. That’s partly due to teens’ lack of experience, and the characteristics of teen fatal crashes include driver error, speeding, and night driving, according to the Insurance Institute for Highway Safety.
Rates typically decrease with age, but costs start to increase again slightly when drivers reach age 70. Fatal crash rates are highest for senior drivers older than 80, followed by drivers aged 16–19 and 20–24, according to the National Highway Traffic Safety Administration.3 Age-related changes to vision and physical functioning, as well as diseases and medications, may affect older adults’ driving ability.
These are the national average monthly car insurance premiums by age group.
Your driving record affects your car insurance premiums significantly. Drivers with a clean record pay about 7% below average, and drivers with a DUI pay 67% above the national average rate, according to Insurify data.
A DUI is among the worst things that can happen to your driving record. It can increase your premium by 67%, per Insurify data. In some states, it stays on your record permanently, so avoid drinking and driving, and practice safe driving habits to lower your likelihood of an incident.
Most states have a driver’s license points system, which assigns a point value to various traffic offenses. For instance, a Florida driver could earn three points for failing to yield or six for a hit-and-run. Accumulating 12 points in 12 months means a 30-day license suspension, and so on. Not all states use the points system, but each has a way to track violations.
Rate increases following an incident typically last three to five years, so ask your insurer about when you can expect a decrease or shop for new quotes around that time to find cheaper coverage.
Just like insurers assess your driving record and credit history, they’re also interested in your insurance history. Your claims and coverage history can provide information about your risk.
Filing a claim could increase your premium, especially if you’re at fault, but it’s still best to report an incident. Not doing so could jeopardize your insurance coverage. Filing a claim can raise premiums by 35%, Insurify data shows.
Most insurers charge more if you’ve gone without coverage. Insurify data shows premiums increase by 9% after a coverage lapse of less than 30 days.
Going without coverage is a bigger problem than higher rates or lost discounts. Most states have minimum liability insurance requirements and serious consequences for driving without coverage, such as fines, license suspension, or even jail time. And if you cause an accident while you’re uninsured, you’ll have to shoulder the financial consequences on your own.
These are the current national averages for car insurance in the U.S., according to Insurify data.
The coverage you choose significantly affects how much car insurance costs. A full-coverage policy costs about 105% more than liability-only coverage, according to Insurify data. New Hampshire is the only state that doesn’t require car insurance, but if you lease or finance your car, your lender may require you to buy full-coverage car insurance.
State-minimum coverage typically includes bodily injury and property damage liability coverage. No-fault states typically also require personal injury protection and uninsured/underinsured motorist coverage. Here’s what those cover:
To insure against damages to your vehicle, you’ll need full coverage, which typically includes collision and comprehensive insurance. Collision insurance damages from a crash with another vehicle or object when you’re at fault, while comprehensive insurance protects you against vehicle theft, fire, floods, and things like falling trees. Some policies include glass coverage, or you can buy supplemental coverage.
Every insurance company has a different way of calculating premiums, though most consider the same factors. Besides personal risk factors, some factors affecting costs for all drivers include inflation, upticks in riskier driving, severe weather, and reinsurance rates. Reinsurance is basically insurance that helps insurance companies cover their losses following a year of high claims.
You can find dramatically different rates between insurers, so it’s always good to compare quotes.
Most states allow insurers to use credit history to set rates. California, Hawaii, Massachusetts, and Michigan don’t permit insurers to use any credit information to set auto insurance premiums. In Maryland, Oregon, and Utah, credit history can affect rates, but insurers can’t use it to deny, cancel, or non-renew your policy.
When insurers consider your credit, they’re not actually looking at your credit score. Instead, they use information in your credit history to generate a credit-based insurance score, which in turn helps them estimate your likelihood of filing a claim.
Different types of insurance scores may use different factors and weighting, but all use information from your credit report. That can include payment history, balances, credit limits, and more. Insurers use these scores to predict your likelihood of filing insurance claims.
As average car insurance rates continue to increase, here are some ways to get more affordable car insurance.
Maintain a clean driving record. Safe driving habits and a clean record will save you money on premiums. Drivers with a clean record pay 7% below average and 42% less than drivers with an incident, according to Insurify data.
Look for discounts. Many insurers offer discounts for installing safety features, bundling your policies, taking a defensive driving course, and more. That savings can add up, so ask your agent what your insurer offers.
Compare car insurance rates. Prices vary between insurers, so you should get quotes from at least three different companies. Compare costs when buying a car or renewing your policy to see if you can get a better deal.
Improve your credit. A good credit history can mean lower rates. Pay bills on time, pay down balances, and use different types of credit to improve your score.
Adjust your coverage. Choosing a higher comprehensive and collision deductible or reducing coverage amounts often means cheaper premiums, but these can come with higher out-of-pocket costs after an accident. Assess your finances to ensure the new policy works for you.
Consider telematics. If you’re a safe driver or drive fewer miles, a telematics program could help you save money. Some insurers offer usage-based policies that provide discounts for safe driving habits or driving fewer miles in a month.
Several other factors can affect the cost of car insurance:
How much you drive: The more you drive, the more opportunities you have to be in a car accident. So you’ll pay more for car insurance if you drive your car for work or have a long daily commute.
Selected coverages: Many insurance companies offer additional coverages beyond liability, comprehensive, and collision coverages. Adding glass coverage, gap insurance, custom equipment coverage, roadside assistance, or rental reimbursement coverage will increase your monthly premiums.
Your deductible: The higher your deductible, the lower your monthly premiums. But higher deductibles also mean higher out-of-pocket costs when you file a claim, so it’s important to consider your financial situation when selecting a deductible.