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Average cost of car insurance in July 2022

Updated Jul 07, 2022
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How much is car insurance?

The average cost of car insurance is $1,771 per year for full coverage, according to 2022 rate data. But because auto insurance premiums are based on more than a dozen individual rating factors, the actual cost will differ for every driver.

Here are some key facts about car insurance rates:

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Key takeaways
  • Full coverage car insurance costs an average of $1,771 per year, while minimum coverage is $545 per year.
  • USAA, Geico and Erie offer some of the cheapest full coverage car insurance, but are not all available to all drivers.
  • Having a severe infraction like a DUI on your motor vehicle record could increase your car insurance premium by 93% on average.
  • Teen male drivers may pay $807 more for car insurance on average compared to teen female drivers.

How much does car insurance cost by state?

When determining, “How much does car insurance cost?,” the answer can be complicated, as premiums vary depending on multiple factors. In addition to individual rating factors, location and the state where you live is important. Traffic volumes, accident and claim reporting rates, as well as theft and vandalism rates, vary in every city.

Cost of living can also impact car insurance premiums. When it comes to repairing a vehicle, the expense of labor and parts can cause repair costs to skyrocket, further increasing premiums in some locations compared to others.

Based on Bankrate’s analysis of 2022 data from Quadrant Information Services, the five most expensive and cheapest states for full coverage car insurance, on average, include the following:

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How much does car insurance cost by company?

Each auto insurance company has its own proprietary underwriting rating system, so the cost of car insurance varies from carrier to carrier. To find the best car insurance company for your needs, get quotes from several auto insurers to compare rates and features.

Requesting quotes from different carriers gives you the advantage of understanding how much you might expect to pay. Shopping around for full coverage, for example, tends to cost less than $150 monthly on average from many top providers. The coverage you choose plays a role too; the average cost of full coverage car insurance is about 225% more than minimum coverage.

The table below showcases the average annual and monthly premiums for some of the largest car insurance companies in the nation by market share. We’ve also calculated a Bankrate Score on a five-point scale for each insurance company. The Scores reflect performance data in regards to average prices, coverage offerings, discounts and third-party ratings, including customer satisfaction and financial strength. A higher Bankrate Score reflects a better ranking in the assessed rating categories.

Company Annual average cost of car insurance Monthly average cost of car insurance
Allstate $2,438 $203
American Family $1,627 $136
Amica $1,495 $125
Auto-Owners $1,305 $109
Erie $1,321 $110
Farmers $1,524 $127
Geico $1,297 $108
Mercury $1,483 $124
Nationwide $1,383 $115
Progressive $1,561 $130
State Farm $1,397 $116
The Hartford $2,002 $167
Travelers $1,447 $121
USAA $1,209 $101
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How much does car insurance cost by age and gender?

Insurers typically consider age as a significant factor in setting auto insurance rates, with young drivers paying the highest premiums on average based on 2021 rates. Auto insurers use actuarial data to determine that teens and young adult drivers — as well as the elderly — are more likely to get in an accident, so the car insurance costs that these drivers pay are typically higher to compensate for the greater risk. Note that your age will not affect your premium if you live in Hawaii or Massachusetts, as state regulations prohibit auto insurers from using age as a rating factor.

Additionally, gender impacts your premium in most states. Men typically cost more to insure than women. This is because men generally engage in riskier driving behaviors than women and have a higher rate of accident severity, according to the Insurance Information Institute (Triple-I). However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina or Pennsylvania, your gender does not affect how much you pay for car insurance because of state regulations prohibiting this rating factor.

*18-year-old driver rate reflects renters (not homeowners) calculated on their own policy.

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Why rates vary

Men are statistically riskier drivers than women — as supported by crash rate fatalities data from 1975 to 2019 — resulting in higher insurance premiums on average. Based on data from the U.S. Department of Transportation’s Fatality Analysis Reporting System, the Insurance Institute for Highway Safety (IIHS) found that in 2019, male drivers accounted for 71% of passenger vehicle driver deaths, while female drivers accounted for 29%.

Other key IIHS report findings include:

  1. Male drivers have more frequent fatal accidents. Male drivers between the ages of 30-59 were involved in the most fatal vehicle crashes in 2017 compared to all age and gender demographics.
  2. Male drivers have more alcohol-involved accidents. 32% of driver fatalities in 2019 were connected with male drivers with a blood alcohol level at or above .08. Female drivers accounted for an estimated 21%.
  3. Male drivers have more speeding-related accidents. Male drivers accounted for 27% of driver fatalities caused by speeding, compared to female drivers at 24%.

What you need to know about driving records

After a moving violation, you may be deemed a high-risk driver by your insurer, and your premium could increase accordingly. The severity of your infraction and how many incidents you have on your MVR will impact how much your car insurance premium increases. For example, the average full coverage premium increases by $1,650 per year after a DUI conviction but only by $367 annually for a speeding ticket conviction.

  • Speeding ticket: Receiving a speeding ticket conviction may be one of the most common ways that your car insurance rate can be affected. The length of time your insurance may be surcharged and how long it stays on your driving record may depend on the speed at which you were traveling.
  • At-fault accident: Being involved in an at-fault accident will typically have an effect on your car insurance unless your insurer has an accident forgiveness program, which protects your rate from increasing after your first at-fault collision. The amount of time it will stay on your driving record depends on the severity of the accident and state regulations.
  • DUI conviction: As one of the most serious moving violations, receiving a DUI conviction typically increases your car insurance premium more than an at-fault accident or speeding ticket. This also may stay on your driving record for up to 10 years or possibly your entire lifetime, depending on the state you live in.

How much does car insurance cost by credit score?

Statistically, drivers with poor credit file more claims and have higher claim severity than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on various factors; it probably won’t exactly match the scores from Experian, TransUnion or Equifax as it is a credit-based insurance score, not a credit score. The table below showcases how credit can affect your annual full coverage car insurance premium.

Regulations in California, Hawaii, Massachusetts and Michigan prohibit auto insurers from using credit as a factor when setting rates. The state of Washington continues to evaluate whether or not credit will be banned as a rating factor, but currently allows its use.

  Poor Average Good Excellent
National average $3,002 $1,907 $1,771 $1,556

How much does car insurance cost by vehicle type?

The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, cost of labor, statistical likelihood of accidents and the vehicle’s safety and crash prevention features could all influence how much you pay for coverage. The vehicle makes and models in the table below are well-suited for a variety of lifestyles and budgets.

Some vehicle makes and models are considered more expensive to insure by insurance companies. These shared features can include:

  • High-end vehicles, like luxury or sports cars: The high price tag of these vehicles often comes with expensive parts and specialized knowledge to repair in the event of a claim. Sports cars also have higher speed maximums compared to standard vehicles, which insurance companies may deem more expensive to insure because of the increased risk of accidents or harm.
  • Vehicle size: Larger vehicles, such as an SUV or pickup truck, can be more expensive to insure than sedans. In an accident, their increased size and weight may create more damage to other drivers and property. Most drivers who own a larger vehicle may also have space for more passengers, which also poses a higher risk in accidents.
  • Common, more affordable vehicles: Though economy cars may be easier on a budget, their popularity and sheer number of them on the road contribute to the statistical likelihood that they will be involved in more accidents. They may also be easier for thieves to break into and steal, raising the cost of comprehensive claims that an insurance company would need to pay out.
Make and model Annual cost Monthly cost
BMW 330i $2,270 $189
Ford F-150 $1,523 $127
Honda Odyssey $1,542 $129
Toyota Prius $1,924 $160

What affects my car insurance price?

In addition to your state requirements, vehicle type, age (except in Hawaii and Massachusetts), driving record and gender (in most states), several other common rating factors will impact your auto insurance premium. By looking at these rating factors, car insurance companies can get a sense of your risk profile and what it might cost to insure you.

Additional factors that affect car insurance rates

How to find the best car insurance rates

Buying car insurance doesn’t have to mean breaking the bank; there are ways to save. Discounts are one of the best ways to lower your premium. Most major car insurance carriers offer discounts. Here are some of the most common insurance discounts in the U.S.

  • Claims-free: Drivers who have no auto claims on their record for the past 3-5 years typically qualify for savings.
  • Bundling insurance policies: You can often reduce your auto insurance premium when you bundle your car insurance policy with a home insurance policy or another type of policy offered by your insurer, earning discounts on both policies.
  • Good student discounts: Many auto insurers offer discounts for young drivers who earn good grades in high school or college.
  • Paying in full: If you can afford to pay your car insurance premium in full, versus monthly or quarterly, it may reduce your premium.
  • Telematics: Most car insurance companies offer telematics programs where you can allow them to track your driving habits with an app or device for possible savings.

Because every auto insurer offers a different suite of discounts, speaking with your insurance agent or company representative may be the best way to learn about savings opportunities.

Additionally, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost vastly different amounts with different providers. Comparing quotes might help you find the lowest price for the coverage you need.

Frequently asked questions

Bottom line

When shopping for car insurance, knowing the average cost of car insurance, both nationally and within your state, can be useful for comparing quotes. Ultimately, your various individual rating factors, such as your driving record, where you live, and the type of vehicle you drive directly influence what you’ll actually pay. Each company has a different method of weighing factors and calculating rates so by requesting quotes from more than one company, you’ll be able to gauge what a reasonable premium range for you looks like and which company offers you the best price and coverage for your needs.

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Written by
June Sham
Insurance Writer

June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute