Key Takeaways
- Based on our research, the typical yearly expense for a car insurance policy is $2,068.
- Traffic violations, such as speeding tickets and driving under the influence, can greatly raise average insurance costs.
- Young drivers, particularly teenagers, tend to have the highest insurance premiums, whereas older adults benefit from more affordable rates.
The average cost of car insurance across the companies we deemed ‘cheapest’ clocks in at $2,068. However, it’s vital to understand that this is a broad average, and your specific premiums are unlikely to mirror this precisely. Insurers employ a complex formula, considering factors like your location, age, the type of car you drive, your credit score, and your driving record, all of which contribute to a highly individualized rate.
USAA offers the cheapest average car insurance at $1,335, but it’s only for military members. Most drivers will need to look elsewhere for the best average rates.
Erie’s average rate is $1,532, the second-cheapest, followed by Auto-Owners at $1,619. Allstate had the highest sample rate at $3,374.
Average Annual Rates for Car Insurance
Here are the average annual car insurance premiums for the 10 cheapest insurers we reviewed.
| COMPANY | NATIONAL AVERAGE RATE* |
| USAA | $1,335 |
| Erie | $1,532 |
| Auto-Owners | $1,619 |
| Nationwide | $1,621 |
| Geico | $1,778 |
| Progressive | $1,848 |
| American Family | $2,170 |
| Farmers | $3,253 |
| Allstate | $3,374 |
| Average | $2,068 |
Car insurance companies consider several factors when setting your policy’s cost:
Age
The cost of car insurance tends to be steepest for younger drivers. This is attributed to their limited driving history, which insurers often correlate with a greater statistical likelihood of involvement in vehicular incidents
Gender
In certain states, insurance providers may incorporate gender into their rate calculations. Statistically, female drivers often experience lower premiums compared to their male counterparts, attributed to a lower incidence of reported accidents. However, this is not a universal rule
Driving record
Insurers often increase rates for drivers with speeding tickets, car accidents, DUIs, or other violations on their record, as these indicators suggest a higher risk profile
Location
The cost of car insurance is heavily influenced by location. Regions characterized by higher crime levels and more frequent accidents typically experience increased auto insurance rates
Vehicle type
Insurers evaluate your vehicle when setting your premium, considering factors such as the potential cost of repairs and the car’s safety features and ratings
Annual mileage
Insurers generally consider drivers with lower mileage to be less of a risk, potentially leading to cheaper car insurance compared to individuals with higher driving frequencies
Credit History
Your credit standing can influence your car insurance expenses in some states. Individuals with less favorable credit histories might face elevated premiums. Notably, specific states have enacted restrictions on the use of credit-related data for setting car insurance rates
The cost of your auto insurance is also contingent upon the specific coverage types, deductible amount, and coverage limits you select. While opting for the state’s minimum coverage often results in the lowest premium, additional protection may be necessary or desired. For example, financing or leasing a vehicle typically necessitates the inclusion of collision and comprehensive coverage. Furthermore, while a higher deductible and lower limits generally translate to reduced rates, these choices come with potential drawbacks, increasing your out-of-pocket expenses during a claim
Our state car insurance guides provide average costs, but your actual rate will depend on your specifics. Use these averages as a starting point and then compare quotes from different insurers to find an affordable policy
| State | Average Annual Car Insurance Rate |
| Alabama | $1,354 |
| Alaska | $1,294 |
| Arizona | $1,626 |
| Arkansas | $1,814 |
| California | $1,782 |
| Colorado | $1,663 |
| Connecticut | $1,567 |
| Delaware | $2,231 |
| Florida | $2,553 |
| Georgia | $1,432 |
| Hawaii | $1,241 |
| Idaho | $992 |
| Illinois | $1,266 |
| Indiana | $1,190 |
| Iowa | $1,215 |
| Kansas | $1,486 |
| Kentucky | $2,104 |
| Louisiana | $2,734 |
| Maine | $949 |
| Maryland | $1,468 |
| Massachusetts | $1,399 |
| Michigan | $1,920 |
| Minnesota | $1,460 |
| Mississippi | $1,505 |
| Missouri | $2,055 |
| State | Average Annual Car Insurance Rate |
| Montana | $1,525 |
| Nebraska | $1,569 |
| Nevada | $1,913 |
| New Hampshire | $1,530 |
| New Jersey | $1,706 |
| New Mexico | $1,530 |
| New York | $1,808 |
| North Carolina | $1,165 |
| North Dakota | $1,300 |
| Ohio | $1,083 |
| Oklahoma | $1,638 |
| Oregon | $1,281 |
| Pennsylvania | $1,395 |
| Rhode Island | $1,831 |
| South Carolina | $1,813 |
| South Dakota | $1,813 |
| Tennessee | $1,264 |
| Texas | $1,716 |
| Utah | $1,407 |
| Vermont | $1,053 |
| Virginia | $1,280 |
| Washington | $1,285 |
| Washington, D.C. | $1,727 |
| West Virginia | $1,532 |
| Wisconsin | $1,145 |
Average Car Insurance Rates
For drivers with a clean driving history, the average national car insurance cost is $2,068 per year. USAA stands out as the most economical option, boasting a sample rate that is 35% below this average. Individuals who do not meet USAA’s membership criteria should consider Erie, which provides an average annual rate that is 26% more affordable than the national average. Auto-Owners also features among the top choices for clean-record drivers, with a rate approximately 22% below the national standard
| Company | Average Rate for Good Drivers |
| USAA | $1,335 |
| Erie | $1,532 |
| Auto-Owners | $1,619 |
| Nationwide | $1,621 |
| Geico | $1,778 |
| Progressive | $1,848 |
| Average | $2,068 |
| State Farm | $2,150 |
| American Family | $2,170 |
| Farmers | $3,253 |
| Allstate | $3,374 |
Average Car Insurance Rates for
| Company | Average Rate After a Speeding Ticket |
| USAA | $1,623 |
| Erie | $1,765 |
| Auto-Owners | $1,937 |
| Nationwide | $2,032 |
| Geico | $2,299 |
| State Farm | $2,344 |
| Progressive | $2,389 |
| Average | $2,503 |
| American Family | $2,617 |
| Allstate | $3,864 |
| Farmers | $4,164 |
Average Car Insurance Rates for
Car insurance averages $2,940 after an accident. Rates will likely rise, but vary by insurer. USAA is cheapest (35% below average), then Erie (33% below), and Auto-Owners (24% below)
| Company | Average Rate After One Accident |
| USAA | $1,908 |
| Erie | $1,964 |
| Auto-Owners | $2,246 |
| Nationwide | $2,425 |
| State Farm | $2,526 |
| Geico | $2,781 |
| Progressive | $2,827 |
| Average | $2,940 |
| American Family | $3,068 |
| Allstate | $4,724 |
| Farmers | $4,926 |
Average Car Insurance Rates for
A DUI carries a hefty financial penalty in the realm of car insurance, as evidenced by the average annual rate of $3,538 for affected drivers – a staggering $1,478 more than those with clean records. This stark difference underscores the significant premium hike associated with a DUI. Nevertheless, the cost varies by insurance provider. Progressive offers the most budget-friendly sample rates for those with a DUI, 35% below the national average. USAA and Erie also present competitive pricing, approximately 28% below the national average
| Company | Average Rate After One DUI |
| Progressive | $2,296 |
| Erie | $2,541 |
| USAA | $2,567 |
| State Farm | $2,762 |
| Auto-Owners | $3,244 |
| Nationwide | $3,281 |
| American Family | $3,300 |
| Average | $3,538 |
| Geico | $4,323 |
| Allstate | $5,146 |
| Farmers | $5,919 |
Average Car Insurance Rates for Drivers With Poor Credit
Drivers with poor credit encounter considerably higher car insurance costs, averaging $4,381 per year, a difference of $2,286 compared to those with good credit. For those seeking more affordable options, Nationwide emerges as the leader, offering sample rates that are a substantial 48% below the national average. USAA and Geico also provide competitive pricing for this demographic, with sample rates 42% and 32% below the average, respectively
| Company | Average Rate with Poor Credit | Average Rate with Fair Credit | Average Rate with Good Credit |
| Nationwide | $2,268 | $1,852 | $1,593 |
| USAA | $2,521 | $1,597 | $1,342 |
| Geico | $2,878 | $2,135 | $1,813 |
| Progressive | $3,191 | $2,299 | $1,850 |
| Erie | $3,515 | $2,074 | $1,532 |
| American Family | $4,272 | $2,634 | $2,204 |
| Average | $4,381 | $2,647 | $2,095 |
| Auto-Owners | $4,515 | $2,307 | $1,619 |
| Allstate | $5,442 | $4,041 | $3,443 |
| Farmers | $6,070 | $4,062 | $3,359 |
| State Farm | $9,139 | $3,471 | $2,192 |
Average Car Insurance Rates
Insuring teen drivers typically incurs some of the steepest premiums in our analysis, averaging $6,410 annually for females and a more substantial $7,377 for males. This is primarily due to insurers’ perception of younger, less experienced drivers as higher-risk individuals. However, Erie stands out as a more affordable option, with average annual rates for female teen drivers 54% below the national average for their demographic, and for male teen drivers, a remarkable 59% below. USAA and Auto-Owners also present competitive pricing in this category
| Company | 17-year-old Female | 17-year-old Male |
| Erie | $3,478 | $4,351 |
| Auto-Owners | $3,655 | $4,673 |
| USAA | $4,164 | $4,424 |
| Geico | $4,908 | $5,463 |
| American Family | $5,267 | $6,654 |
| Nationwide | $5,297 | $6,358 |
| State Farm | $5,551 | $6,816 |
| Average | $6,410 | $7,377 |
| Progressive | $8,875 | $9,726 |
| Allstate | $10,102 | $11,282 |
| Farmers | $12,806 | $14,022 |
Average Car Insurance Rates
Car insurance premiums generally trend downwards as drivers mature beyond their teenage and early twenties. For 25-year-old drivers, the average annual rates are $2,387 for females and $2,526 for males. USAA provides the most affordable sample rates in our study for this demographic, with average annual premiums approximately 33% below the national average for both genders. For young adults not eligible for USAA membership, Nationwide and Geico also present attractive options, with Geico offering rates 20% below average for females and 22% for males, and Nationwide providing savings of 21% and 20%, respectively
| Company | 25-year-old Female | 25-year-old Male |
| USAA | $1,612 | $1,685 |
| Nationwide | $1,892 | $2,031 |
| Geico | $1,921 | $1,952 |
| Auto-Owners | $1,946 | $2,035 |
| Erie | $1,977 | $1,898 |
| Progressive | $2,273 | $2,324 |
| State Farm | $2,318 | $2,612 |
| Average | $2,387 | $2,526 |
| American Family | $2,444 | $2,758 |
| Farmers | $3,734 | $4,076 |
| Allstate | $3,750 | $3,885 |
Average Car Insurance Rates
Adult drivers can generally expect lower car insurance costs, with the average annual rates for 35-year-old married individuals being $1,951 for females and $1,976 for males. Significant savings are available by choosing the right insurer. USAA provides the most substantial discounts, with sample rates more than 37% below the national average for both genders. Erie and Nationwide also offer considerable reductions, with Erie’s rates 27% (females) and 30% (males) below average, and Nationwide’s rates 23% (females) and 21% (males) below average
| Company | 35-year-old Female | 35-year-old Male |
| USAA | $1,224 | $1,232 |
| Erie | $1,427 | $1,388 |
| Nationwide | $1,505 | $1,554 |
| Auto-Owners | $1,507 | $1,528 |
| Geico | $1,713 | $1,772 |
| Progressive | $1,778 | $1,729 |
| Average | $1,951 | $1,976 |
| American Family | $2,004 | $2,078 |
| State Farm | $2,093 | $2,093 |
| Farmers | $2,960 | $3,117 |
| Allstate | $3,297 | $3,271 |
Average Car Insurance Rates
Senior drivers, specifically married individuals aged 60, benefit from some of the most economical car insurance premiums, with the national average standing at $1,756 per year for females and $1,813 for males. USAA consistently offers the most affordable rates in our analysis for this demographic, with sample premiums 36% and 38% below the average for female and male seniors, respectively. Erie and Nationwide also present competitive pricing, with Erie’s rates 27% and 32% below average, and Nationwide’s rates approximately 25% and 22% below average for female and male seniors
| Company | 60-year-old Female | 60-year-old Male |
| USAA | $1,125 | $1,131 |
| Erie | $1,277 | $1,224 |
| Nationwide | $1,321 | $1,423 |
| Auto-Owners | $1,339 | $1,359 |
| Progressive | $1,480 | $1,503 |
| Geico | $1,625 | $1,686 |
| Average | $1,756 | $1,813 |
| American Family | $1,827 | $1,909 |
| State Farm | $1,893 | $1,893 |
| Farmers | $2,683 | $2,948 |
| Allstate | $2,987 | $3,053 |
The average national cost for a low-coverage car insurance policy is $1,997 per year, as per our research. While USAA provides the most budget-friendly sample rates at 36% below average, its eligibility is limited to military personnel and their families. For most drivers, Erie offers the most cost-effective minimum coverage, with rates 26% below the national average. Regardless of your choice, it’s essential to confirm that your policy satisfies your state’s minimum insurance requirements and any specific demands from your lender or lessor if applicable
| Company | Average Rate Low Coverage |
| USAA | $1,272 |
| Erie | $1,483 |
| Auto-Owners | $1,614 |
| Geico | $1,644 |
| Nationwide | $1,658 |
| Progressive | $1,756 |
| Average | $1,997 |
| State Farm | $2,042 |
| American Family | $2,069 |
| Farmers | $3,202 |
| Allstate | $3,227 |
Average Car Insurance Rates
Higher car insurance coverage costs more, averaging $2,150 annually. For this, Erie is the second cheapest (27% below average), after USAA. Nationwide is third, at 25% below average
| Company | Average Rate for High Coverage |
| USAA | $1,402 |
| Erie | $1,574 |
| Nationwide | $1,621 |
| Auto-Owners | $1,661 |
| Geico | $1,926 |
| Progressive | $1,967 |
| Average | $2,150 |
| American Family | $2,195 |
| State Farm | $2,275 |
| Farmers | $3,340 |
| Allstate | $3,537 |
Average Car Insurance Rates
Our rate analysis confirms that drivers who log fewer miles typically benefit from reduced car insurance premiums. The average annual rate for a driver traveling 6,000 miles per year is $1,973, representing a $95 annual saving compared to the national average for those covering 12,000 miles. USAA offers the most affordable insurance for low-mileage motorists, with a rate 37% below the national average. For those without USAA eligibility, Erie and Nationwide also provide attractive options, at 34% and 19% below the average, respectively
| Company | Average Rate for Low Mileage |
| USAA | $1,247 |
| Erie | $1,293 |
| Nationwide | $1,607 |
| Auto-Owners | $1,610 |
| Geico | $1,682 |
| Progressive | $1,792 |
| State Farm | $1,954 |
| Average | $1,973 |
| American Family | $2,096 |
| Farmers | $3,212 |
| Allstate | $3,236 |
what is the best car insurance?
USAA and Auto-Owners earned the top spots in our ranking of the best car insurance companies, showcasing excellence in crucial aspects such as customer service and claims handling, alongside providing affordable premiums to a broad spectrum of individuals. While USAA’s offerings are limited to the military community, Auto-Owners stands out as a top-tier option accessible to most drivers. Other notable performers in our evaluation were Nationwide, securing the No. 3 position, and State Farm at No. 4.
Who normally has the cheapest car insurance?
Through a review of over 8 million auto insurance quotes, we determined that USAA, West Bend Mutual, Auto-Owners, and Erie are generally the most affordable for both full and minimum coverage policies.
What is the minimum term for car insurance?
Temporary car insurance offers flexible short-term cover, from 1 hour to 30 days. It’s great for borrowing cars, shared driving, or work trips.
Which car has most expensive insurance?
- Audi R8 Quattro Performance.
- Tesla Model S Performance.
- Tesla Model X.
- Dodge Charger.
- Lexus RC F.