Insurance

Average cost of car insurance in August 2022

Average cost of car insurance in August 2022

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Drivers in the U.S. pay an average of $1,771 per year for full coverage car insurance, or about $148 per month, according to Bankrate’s 2022 analysis of average quoted premiums from Quadrant Information Services. Minimum coverage costs an average of $545 per year. Since many factors are involved in car insurance rates, learning more about the average cost of auto insurance and cost-influencing factors might help you find the best car insurance for you.

To find the average cost of car insurance, Bankrate’s editorial team evaluated a variety of factors. These included car insurance rates by state, insurance carrier and vehicle manufacturer, as well as the driver’s age, driving record, gender (where allowed), among other factors. This data could help you estimate how much your car insurance policy might cost based on your area and personal profile, and identify which car insurance carriers best align with your budget and coverage needs.

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:

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.

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.

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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

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.

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.

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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.

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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

  • Coverage selections
  • Insurance history
  • Annual mileage

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.

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