Buying a car is a sizable investment but there are many other ongoing costs that must be considered before you make your purchase. There’s the cost of maintenance, repairs, gas, and loan repayments. In addition, there’s also the cost of car insurance to keep in mind.
The monthly average cost of car insurance for drivers in the US is $52 for minimum coverage and $168 for full coverage.
If you’d like to know a little more, keep reading because this post will answer some important questions, some of which may be relevant to you.
How Much is Insurance for a Car?
If you’re wondering how much is insurance on a car, let’s see if we can answer the question before we look at what can affect the cost of insuring a car.
According to an analysis by Forbes Advisors, the national average for car insurance in the US is $2,150 per year. This rate is for full coverage car insurance. It also includes optional coverage for theft and damage to your own vehicle.
What exactly does full coverage include? There’s no standard definition, but generally, you can expect it to include the following:
- Liability insurance: Liability insurance pays the cost of other people’s injuries and property damage should you cause an accident. It also covers the cost of your legal defense, judgments, and settlements should you be sued.
- Collision insurance: Collision insurance helps pay for collision damage to your car. It makes no difference who was at fault.
- Comprehensive insurance: Comprehensive insurance helps pay for non-collision damage to your car. Damage might include fire or flooding damage.
- Uninsured motorist coverage: Uninsured motorist coverage will pay for you and your passengers’ medical bills should there be any injuries following an accident caused by an uninsured driver.
The basic cost of insurance varies based on several factors including preferred coverage, driving history, location, and car make and model. Keep reading to find out how each factor might affect car insurance rates.
How Much is Car Insurance a Month Per State?
Where you live makes a massive difference to the cost of car insurance. This is because each state has different regulations. The cheapest states for full coverage motor insurance are as follows:
- Maine: About $110 a month, on average, or $1,323 a year.
- Idaho: About $112 a month, on average, or $1,349 a year.
- Vermont: About $115 a month, on average, or $1,376 a year.
- Massachusetts: About $116 a month, on average, or.$1,394 a year.
- Ohio: About $119 a month, on average, or.$1,423 a year.
The most expensive states for full coverage car insurance are as follows:
- Florida: About $300 a month, on average, or $3,605 a year
- Louisiana: About $283 a month, on average, or $3,399 a year.
- Kentucky: About $280 a month, on average, or. $3,357 a year.
- Rhode Island: About $275 a month, on average, or $3,300 a year.
- Michigan: About $269 a month, on average., or.$3,229 a year.
The average annual car insurance for minimum coverage is typically much less.
How Much is Car Insurance Per Month For Bad Drivers With Poor Credit?
The figures given above are for good drivers with good credit. The rate you can expect to pay varies depending on your history as well as the type of coverage you choose.
Let’s take a quick look at the average cost of car insurance based on credit history, driving history, and breadth of insurance coverage.
- A good driver with good credit: Average annual cost of full coverage is $2,148 compared with $685 for minimum coverage.
- A good driver with poor credit: Average annual cost of full coverage is $3,455 compared with $1,118 for minimum coverage.
- A driver with an at-fault accident and good credit: Average annual cost of full coverage is $3,164 compared with $1,044 for minimum coverage.
- A driver with a recent DUI and good credit: Average annual cost of full coverage is $3,933 compared with $1,403 for minimum coverage.
The figures given above clearly indicate the difference between full and minimum coverage. As you can see, full coverage is generally more than twice the cost of minimum coverage.
However, keep in mind that personal factors within and outside your control impact the final price individual drivers pay.
How Much is Average Car Insurance by Company?
Every car insurance company is different. They set their rates based on many factors such as driving history, vehicle, demographics, and location. When they set their rates, they’re making an educated assessment. They’re guessing how likely you are to file a claim and will base your price on what is essentially a guess.
Individual companies treat individual factors differently. For example, people with poor credit might be charged 10% extra for a policy with one company, while another might charge 30% or more. If you happen to be a claim-free driver, you might be entitled to a discount of 20% with one company while another might only offer a 5% discount.
What this means is that insurance coverage prices differ from one person to the next. Your friend might get a super-low premium from one company, but it might not be the cheapest for you.
How Much is Car Insurance for Teens?
Insurance providers tend to look at young drivers as more of a risk which means they tend to charge higher prices. The term young drivers includes anyone between the age of 16 and 25. However, some companies charge anyone under 30 years old high prices.
In general, once you get past your 20s, insurance rates tend to go down right up until you’re in your 70s.
For a driver who is 20 years old, with a clean driving record, and good credit, the average car insurance rates are $4,372 for full coverage and $1,491 for the minimum required coverage.
A driver of the same age but with a less-than-perfect driving history and poor credit, will likely have to pay considerably more for their car insurance.
How Much is Monthly Car Insurance By Gender?
Would it surprise you to learn that car insurance rates differ by gender? Well, they do, but in today’s world of equality, the difference is small especially when compared with differences according to state, credit score, company, and driving history.
In seven US states, gender-based pricing is banned by law. These states include Hawaii, California, Michigan, Massachusetts, Montana, Pennsylvania, and North Carolina.
In all other states, when it comes to gender-based pricing, the discrepancy for young adults is much wider. And for full coverage insurance, men pay more than women across all age groups.
The Average Cost of Car Insurance by Vehicle
The rates you pay for your car insurance are affected by the make and model of your car. Insurers also have a tendency to charge more to cover certain cars. Here are a few examples:
- Luxury cars: Luxury cars tend to have expensive parts. Many of the details are also more expensive to replace should the car be damaged in an accident.
- Sports cars: Owners of sports cars tend to drive faster which increases the risk of a traffic violation or wreck. It’s not uncommon for insurers to consider drivers who get speeding tickets to be more likely to cause an accident.
- Electric vehicles: Electric vehicles cost more to insure because parts are expensive to replace. For example, the cost of a replacement battery can run into the thousands of dollars.
- Cars that are more likely to get stolen: The cars that are at most risk of being stolen tend to be a country’s most popular makes and models. Comprehensive insurance is generally more expensive for these cars. This is because full insurance pays out if your car is damaged by something not traffic-related or stolen.
Other Factors That Affect the Cost of Car Insurance
Additional factors that insurance companies will take into consideration include the following:
- In many states, your occupation makes a difference
- The city or ZIP code where you live
- Whether or not your previous insurance coverage has been continuous
- The previous company you insured your car with
- Whether or not you are married
- How many miles you drive your car every year
- Your education level
- Home owners sometimes pay less for their insurance
- What additional coverage options you choose
- Discounts you might be eligible for
- Who you live with
If you want to find the best car insurance price, USTrans recommends shopping around. As well as looking at prices, you should also look for an insurance company that’s got a good reputation, offers good coverage, and has a simple claims process.
How much is car insurance in Florida?
A 35-year-old driver with a clean driving record and good credit can expect to pay an average annual minimum liability premium of $1,343. For full-coverage, the average annual premium rises to $2,947.
How much is car insurance in California?
In California, a 35-year-old driver with good credit and a clean driving record will pay, on average, $627 annually for minimum liability insurance. For full coverage, the average annual cost rises to $2,087.
How much is car insurance in Texas?
In Texas, the average annual premium for minimum liability insurance is $642. This figure is for a 35-year old driver with a clean driving history, and good credit. Full insurance coverage for a similar driver is $1,752.
How much is car insurance in NY?
The average annual price of minimum liability insurance in New York is $1,472. For full coverage, the price is $2,783. These prices are for a 35-year old driver with good credit and clean driving history.
How much is car insurance for a new driver per month?
How much a new driver pays for their car insurance depends on their age. A 16-year-old may find themselves paying around $633 per month. A 35-year-old, on the other hand, will pay around $257 per month.
How much is car insurance for a 16-year-old?
According to Forbes, the average car insurance cost for a 16-year-old driver with their own policy is around $8,000 per year. If they are added to a parent’s car insurance policy, the annual cost drops to around $2,700 per year.
How much is car insurance for an 18-year-old per month?
According to MarketWatch, full coverage car insurance costs, on average, around $5,000 per year.