The Average Car Insurance Cost in 2021: Detailed Guide

Auto insurance is a must in every state of the USA. Even though the average car insurance rate is unaffordable for a lot of drivers, they have to get the minimum coverage. The national average car insurance rates for the minimum required coverage for different profiles are:

  • Driver with a DUI$1,069 
  • A good driver with poor credit$1,068 (Some states have banned using credit score as a factor)
  • Driver with an at-fault accident$920
  • Driver with a speeding ticket$765
  • A good driver with good credit$616

These are the national average costs, but there’s no doubt that the actual average cost for the driver might be way more or less. The average car insurance cost varies for different people; several factors affect the final cost.

This blog is for all those drivers who were searching for terms like:

  • How Much is Car Insurance for me?
  • How Much To Insure A Car On Average?
  • Insurance Car How Much For My State?
  • How Much Car Insurance Rate Vary For Different Cars?
  • How Much Are Car Insurance Rates For Young Drivers?

Let’s get started with one of the most common questions we all have in our minds about car insurance;

How can the same cars with the same model get different insurance premiums?

You must have noticed that another person with the same car model as yours got a lower or higher insurance premium than you. Wondered why? The reason is; insurance companies calculate custom premium rates for every client.

The process of calculating the rates involves an analysis of several factors. Some of these factors are; driving record, marital status, education, gender, and even the locality of the driver. To understand how the average insurance rates vary, we have this detailed guide for you.

Let’s have a look at the average car insurance rates for different profiles in 2021.

Few Auto Insurance Terms to know before moving forward:

  1. Minimum Requirements Coverage: This insurance coverage allows the driver to have the minimum insurance for the vehicle required as per the state laws. Minimum Requirements Coverage is the cheapest option to buy insurance in any state.
  2. Full Coverage Insurance: This type of insurance protects your vehicle in almost all possible accidents and mishappenings. Full coverage insurance is mostly expensive as compared to Minimum insurance coverage.
  3. Risky Driver:  Insurance companies evaluate profiles of the drivers to check multiple factors like age, DUI on the record, or speeding tickets. After the evaluation, the company decides the chances that the driver can get into an accident. Drivers who are more prone to accidents and can cause high charges for the claims are hence called risky drivers.
  4. Collision Coverage: In collision coverage, if your car gets into an accident then the insurance carrier covers the cost of repair for your vehicle.

If you have any confusion about the terms we have used, you can always refer to our Auto Insurance Terms Glossary.

Average Car Insurance Cost by State

Do you know; not only states but different cities can also have different insurance rates? Even Zip codes play an important role in defining the average premium of a Car. The area where you live, where you park your car, and where you drive also have an impact.

To help you have a better understanding of how the car insurance price varies for each state, we have the below table. Check the average car insurance cost for each state for minimum coverage and rage.

How much Car Insurance Costs in Each State?

StateFull coverageMin coverage
Alabama$1,860$659
Alaska$1,566$481
Arizona$3,061$1,244
Arkansas$2,075$564
California$1,807$624
Colorado$3,130$875
Connecticut$2,733$1,155
Delaware$2,863$1,190
Florida$3,210$2,341
Georgia$2,366$664
Hawaii$1,773$624
Idaho$1,697$549
Illinois$2,208$864
Indiana$1,495$498
Iowa$1,669$418
Kansas$2,032$592
Kentucky$2,887$1,555
Louisiana$3,526$1,138
Maine$1,264$464
Maryland$2,365$1,063
Massachusetts$2,142$734
Michigan$9,055$5,722
Minnesota$2,102$1,025
Mississippi$2,177$741
Missouri$2,511$660
Montana$2,273$477
Nebraska$2,228$493
Nevada$3,071$1,021
New Hampshire$2,021$748
New Jersey$2,817$826
New Mexico$2,027$571
New York$2,756$1,364
North Carolina$1,503$435
North Dakota$2,267$524
Ohio$1,549$523
Oklahoma$2,450$608
Oregon$2,312$1,040
Pennsylvania$1,808$578
Rhode Island$3,582$1,366
South Carolina$2,052$948
South Dakota$2,435$426
Tennessee$1,857$502
Texas$2,640$921
Utah$2,386$897
Vermont$1,731$531
Virginia$1,630$630
Washington$1,736$564
West Virginia$2,104$622
Wisconsin$1,556$511
Wyoming$2,128$415

Minimum Coverage Car Insurance – The Cheapest States

Check out the top 3 states that have the highest price for minimum coverage car insurance.

StateAnnual CostMonthly Cost
Lowa$415$35
Wyoming$419$36
South Dakota$428$38

Minimum Coverage Car Insurance – The Most Expensive States

Check out the top 3 states that have the highest price for minimum coverage car insurance.

StateAnnual CostMonthly Cost
Michigan$5,722$484
Florida$2,344$195
Kentucky$1,559$137

Full Coverage Insurance – Cheapest States in the USA

Talking about full coverage insurance, there are 3 states which have the cheapest premium. Below are the monthly and yearly cost of each state:

StateAnnual CostMonthly Cost
Maine$1,269$104
Indiana$1,478$128
North Carolina$1,501$129

Full Coverage Insurance – Three States With Highest Premium in the USA

Below are the top 3 cities in the USA which have the most expensive full coverage insurance in the USA:

StateAnnual CostMonthly Cost
Michigan$9,052$753
Rhode Island$3,599$298
Louisiana$3,557$292
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Start Comparing and Get Lowest Rates for Your Full Auto Insurance Coverage Policy.

Car Insurance Cost By Company: Have A Detailed Look

Just like different states; every insurance provider has its way of calculating the insurance premium rates. And hence the rates might vary a lot from company to company. Below are the rates of the top 10 companies in the USA for car insurance:

CompanyFull-coverage rateMinimum-coverage rate
Allstate$3,572$1,243
Farmers$3,564$1,115
Travelers$3,017$1,261
MetLife$2,362$913
Progressive$2,335$795
Nationwide$2,209$922
Auto-Owners Insurance$2,183$1,017
American Family$2,149$778
GEICO$2,030$772
Farm Bureau Mutual$1,755$508

Among the top 10 insurance carriers in the USA; Farm Bureau Mutual has the cheapest insurance premium rates. While Allstate has the most expensive rates throughout the country.

Is it possible that car insurance costs vary as per the vehicle make and model?

Wondering how much is the average auto insurance cost based on the vehicle type? This section will clear your confusion.

As per our research, it was clear that Ford F 150 and the 2015 model Honda Civic EX have the cheapest rates. These two vehicles were compared with the base models of the top-selling vehicles of the USA.

ModelAverage annual rateMSRP
2015 Honda Civic EX$2,972N/A
2019 Dodge Grand Caravan GT$3,171$27,015
2019 Ford F-150 XL$2,902$28,125
2019 Kia Niro EX$3,254$23,460
2019 Mazda MX-5 Miata Club$3,147$29,540
2019 Nissan Rogue S$3,179$24,980
2019 Toyota RAV4 LE$3,068$25,550
2019 Toyota Camry L$3,353$24,195
2019 Tesla Model 3$4,247$34,900

Myth: The higher MSRP of SUVs and pickups always leads to higher insurance premiums.

Most people believe that the Manufacturer Suggested Retail Price (MSRP) affects the insurance premium which is not always true. The table above clearly shows that Ford F-150 has the cheapest insurance premium of all. The safety features and chances of total loss contribute to the insurance premium rates. In the case of the Ford F-150; it has good safety features and the chances of the vehicle going for total loss are also very low.

Do Age and Gender play a role in car insurance rates?

The impact of age on the car insurance rates

Young drivers are always considered inexperienced and risky drivers. They are more dangerous on the roads as compared to an old experienced driver. As a result, the insurance company charges young drivers more. So we can say that Age plays a good role in the calculation of car insurance rates.

An 18-year-old new driver will get almost twice the insurance premium rate as compared to a driver over 25 years of age. We can say that age is inversely proportional to the insurance rates. As age increases, the rate of auto insurance premium decreases.

On average, annual car insurance rates change the most between 18 years and 25 years. After that, the drivers are considered more experienced and less risky.

Hence; we have created a list of average car insurance rates by age. This will help you understand what we are trying to explain here:

Average Car Insurance Cost By Age

AgeAverage Insurance premium Every Year
18$7,155
19$6,003
20$5,348
21$4,441
22$4,136
23$3,860
24$3,582
25$3,215
30$2,405

The impact of gender on car insurance rates

Do you know? Young males get almost 14 percent more insurance premium rates as compared to young females. The reason behind this is; as per the insurance companies, young male drivers are more risky and dangerous on road.

Here is the average auto insurance premium of 18-year-old male and female profiles.

Driver profileAnnual average insurance premium
18-year-old female$6,745
18-year-old male$7,529
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Compare the cheapest official auto insurance rates from top carriers.

Why females get the benefit for auto insurance premium rates?

As per the multiple data trends from different resources, it is clear that young females as compared to young males:

  • Drive less often
  • Receive less DUI convictions
  • Be involved in fewer road accidents
  • Receive less driving tickets

As a result; the insurance companies usually get fewer claims from females. So the companies charge fewer insurance premiums from them.

However, it is important to note that some states have banned this practice by calling it gender discrimination. In the following states gender does not play any role in average annual insurance premium rates:

  • Montana
  • California
  • Hawaii
  • Parts of Michigan
  • North Carolina
  • Pennsylvania
  • Massachusetts

Does at-fault car accidents change the average premium rates of the driver?

The risk factor plays a significant role when it comes to calculating the average car insurance premium. As mentioned above; risky drivers always get higher premiums. Hence the more accidents the driver has the more insurance keeps on increasing.

To state our point more clearly we have this detailed table for you with the latest price increase after an accident. You can compare the rates before and after an accident from the top auto insurance companies in the USA.

The Average Cost Of Car Insurance Before and After an Accident

CompanyClean recordOne accidentPercentage increase
Travelers$3,025$3,74520%
State Farm$1,645$2,04224%
Erie$1,629$2,08025%
Auto-Owners Insurance$2,209$2,77125%
Farm Bureau Mutual$1,728$2,34633%
Farmers$3,597$5,00240%
USAA$1,295$1,83842%
Nationwide$2,210$3,30550%
American Family$2,121$3,28553%
Allstate$3,573$5,48053%
Progressive$2,333$3,58554%
GEICO$2,040$3,19158%
MetLife$2,405$4,01868%

As per the data in the table; the average car insurance cost increases by 42 percent after an accident on the record.

MetLife insurance agency has the highest jump in the price; 78 percent. On the other hand, Travelers’ insurance company penalized at least 20 percent after the first accident.

Drivers who have at-fault accidents on the record have the only option left to get the cheapest rates; shop around. The driving record, vehicle model, age combination might have higher insurance premiums in one company and lower in others. It is always recommended to shop around and compare the price before buying a policy.

The Average Car Insurance Cost for Drivers with a DUI Ticket Record

Drinking and driving are not only dangerous for you; it is dangerous for your insurance premium as well. DUI on your record will instantly result in an increment of auto insurance premium. This is because once you get DUI, the company will consider you as a risky driver. 

And we all know that risky drivers get the highest car insurance premium rates. Below is the data of how the average price increases after a DUI in different states of the USA.

How much is the impact of DUI on car insurance premiums?

StateClean recordDUI on recordPercentage increase(Approx)
Alabama$1,875$3,30577%
Alaska$1,568$2,35346%
Arizona$3,065$4,42546%
Arkansas$2,048$3,38665%
California$1,829$5,142181%
Colorado$3,138$4,50943%
Connecticut$2,774$5,520104%
Delaware$2,875$4,41152%
Florida$3,220$4,08929%
Georgia$2,381$3,84865%
Hawaii$1,753$5,662218%
Idaho$1,724$2,84764%
Illinois$2,214$3,39255%
Indiana$1,465$2,53077%
Iowa$1,639$2,64863%
Kansas$2,062$2,96248%
Kentucky$2,919$4,89266%
Louisiana$3,555$5,16248%
Maine$1,289$2,15865%
Maryland$2,394$3,20635%
Massachusetts$2,143$3,68772%
Michigan$9,041$27,250197%
Minnesota$2,126$3,73576%
Mississippi$2,178$3,75575%
Missouri$2,551$3,61945%
Montana$2,288$3,54557%
Nebraska$2,265$2,95434%
Nevada$3,048$4,88561%
New Hampshire$2,019$3,66784%
New Jersey$2,818$4,46659%
New Mexico$2,057$3,19258%
New York$2,793$3,94041%
North Carolina$1,509$6,060305%
North Dakota$2,299$3,45953%
Ohio$1,569$2,40554%
Oklahoma$2,481$3,38236%
Oregon$2,350$3,63954%
Pennsylvania$1,820$2,44533%
Rhode Island$3,575$7,555105%
South Carolina$2,052$3,28551%
South Dakota$2,436$3,75857%
Tennessee$1,856$3,04064%
Texas$2,665$4,58470%
Utah$2,419$3,65056%
Vermont$1,728$2,69752%
Virginia$1,664$2,53959%
Washington$1,759$2,87863%
West Virginia$2,113$3,80681%
Wisconsin$1,573$2,48658%
Wyoming$2,125$3,46265%

The average increase in insurance premiums after getting a DUI is 72 percent. When compared to the national average; the driver has to pay $1823 more for car insurance premiums.

As the table shows; North Carolina has the highest jump in insurance rates as compared to all other states. While Florida has the least increment in the insurance rates after DUI.

The impact of DUI clearly shows that the drivers with a DUI on record should always shop around for lower prices.

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How much does car insurance cost for drivers with good credit?

A driver who pays his bills on time, and keeps up with the credit balances gets a good credit score. The credit score shows the credibility of the driver. A driver with a good credit score is responsible and will pay the premium on time.

Every insurance agency has its way to calculate the impact of credit score. Hence we have provided the list of top insurance companies in the USA.

The table has data of the companies with the rates for drivers with poor credit and with good credit.

CompanyPoor creditVery good creditDiscount(Approx)
State Farm$2,655$94065%
Erie$2,962$1,10262%
Travelers$3,985$1,59059%
MetLife$4,565$1,98260%
Auto-Owners Insurance$2,846$1,31156%
Progressive$3,235$1,62052%
USAA$1,945$98946%
Farm Bureau Mutual$2,465$1,37947%
American Family$2,719$1,54645%
Allstate$3,843$2,25842%
GEICO$2,375$1,45141%
Farmers$3,552$2,20537%
Nationwide$2,653$1,66535%

As we can see; State Farm Insurance provides the highest insurance discount 65 percent. While Nationwide provides only 35 percent.

How much does marital status affect average auto insurance costs?

As per the article by HuffPost; married couples get less car insurance premium as compared to singles because of two reasons:

  1. Married couples are less likely to get into an accident.
  2. They are less likely to get a DUI.
  3. And they are more likely to buy additional insurance like life coverage or house coverage.
StateSingleMarried
Alabama$1,865$1,882
Alaska$1,552$1,488
Arizona$3,082$2,753
Arkansas$2,045$1,855
California$1,835$1,649
Colorado$3,138N/A
Connecticut$2,765$2,634
Delaware$2,865$2,808
Florida$3,239$3,055
Georgia$2,378$2,276
Hawaii$1,775$1,743
Idaho$1,727$1,615
Illinois$2,228$2,025
Indiana$1,495$1,432
Iowa$1,668$1,544
Kansas$2,056$1,924
Kentucky$2,928$2,749
Louisiana$3,558$2,983
Maine$1,298$1,199
Maryland$2,372$2,410
Massachusetts$2,138$2,122
Michigan$9,051$8,865
Minnesota$2,128$1,920
Mississippi$2,185$1,945
Missouri$2,520$2,381
Montana$2,278$2,265
Nebraska$2,265$1,956
Nevada$3,052$2,882
New Hampshire$2,019$1,964
New Jersey$2,815$2,720
New Mexico$2,039$1,917
New York$2,777$2,723
North Carolina$1,506$1,529
North Dakota$2,286$2,207
Ohio$1,558$1,489
Oklahoma$2,460$2,291
Oregon$2,332$2,232
Pennsylvania$1,802$1,692
Rhode Island$3,589$3,454
South Carolina$2,071$1,915
South Dakota$2,429$2,251
Tennessee$1,875$1,732
Texas$2,653$2,405
Utah$2,403$2,332
Vermont$1,735$1,622
Washington$1,748$1,624
West Virginia$2,106$1,969
West Virginia$1,642$1,497
Wisconsin$1,559$1,484
Wyoming$2,123$2,065

From the above table, you can say that getting married provides a lot of perks, and savings on car insurance can be one of them.

Other Factors that might Impact the Average Car Insurance Rates

The above mentioned were the factors that have a major impact on premium rates. Now let’s have a look at the factors which have a small impact but are important to calculate the average:

Your ZIP Code:

The area where you live, and the area where you park your car also decide your risk factor. If you live in an area where there are a lot of cases of vandalism, car theft, and accidents then your premium rates will be high. The insurance company checks the ZIP code in your address to analyze the crime rate in that area.

Mileage of Your Car:

Some insurance companies provide good discounts to drivers who don’t drive their car much. If a car doesn’t go out on the roads then the chances of getting into an accident are also low. Every company has its own defined mileage according to which they provide the rates.

Driving Experience:

Yes, age has a major impact but the experience of the driver on road also affects the premium rates. The higher experience a driver has the lower will be the risk of getting into a road accident.

Discounts: 

There are different types of discounts available for the drivers which they can ask from the company. For example; defensive driving lessons, good student discounts, elderly discounts, etc. These discounts depend entirely on the company so make sure you shop around and ask for discounts.

Insurance and Claims History:

Drivers who have maintained their insurance year after year get a good discount. The company considers such drivers as safe and responsible as compared to those who have skipped taking auto insurance. Similarly; drivers who have not filed any claims also get a good discount because it shows they drive safely.

How Can I Get an Affordable Car Insurance Rate?

The above mentioned were the average car insurance rates based on different profiles and conditions. Now you might be thinking; if the average insurance rates vary for everyone then how can I find the best insurance rates for me? The best solution for this is to shop around and compare the rates from different insurance providers.

There are two ways to get and compare the rates from different insurance companies:

  • You can do it manually: You can list out the top companies in your state, list out your requirements, and talk to agents of each company. As this method is manual this will take a lot of time; call each company, explaining your profile, asking for discounts, etc. 
  • You can do it automatically: With Car Insurance Quotes Comparison Website like RateForce; you can get instant quotes from the top companies in your state in one place. With RateForce you just have to provide your basic information and we will serve you the quotes in just a few minutes. So you don’t have to waste your time doing it manually for each company.
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Please Note: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

Randy Luton RateForce CEO
Randy Luton

Randy Luton is the Founder and CEO of RateForce LLC. He is passionate about technology enable insurance services and has in-depth knowledge about the auto insurance sector of the USA.