How Much Is Car Insurance ?

The national average cost of car insurance is $1,427 per year, according to NerdWallet’s 2020 rate analysis.

That works out to an average car insurance rate of about $119 per month for 40-year-old drivers with good credit and a clean driving record. But average costs vary widely for other types of drivers.

National average car insurance rates are:

  • $1,427 for a good driver with good credit.
  • $1,781 after a speeding ticket.
  • $2,146 after an at-fault wreck.
  • $2,506 for a good driver with poor credit.
  • $2,531 after a DUI.
  • $2,106 for a 50-year-old married couple with two cars.
  • $3,906 for a married couple plus a teen driver, with two cars.

These rates are for full coverage policies, which include liability, comprehensive, collision, uninsured/underinsured motorist protection and any additional state-mandated coverage.

For minimum required coverage, national average car insurance rates are:

  • $606 for a good driver with good credit.
  • $755 after a speeding ticket.
  • $910 after an at-fault wreck.
  • $1,078 for a good driver with poor credit.
  • $1,079 after a DUI.

That’s about $51 per month for a 40-year-old driver with good credit and a clean driving record, ranging up to $90 per month for a driver with a recent DUI for minimum coverage car insurance.

But averages don’t say much about your own car insurance rates. A number of personal factors, both within and outside of your control, inch rates up or down until your price is totally personalized.

How much does car insurance cost in my state?

Where you live can have an enormous impact on auto insurance rates, because each state has different regulations for auto insurance. Average prices in the most expensive states are three to four times higher than those in the cheapest ones.

How much insurance you have matters, too: Full coverage car insurance is more than double the price of minimum coverage, on average, according to our analysis. Here’s what our state-by-state analysis of 2020 car insurance rates shows for drivers with good credit and no recent accidents:

  • Maine is the cheapest state for full coverage car insurance with an annual average rate of $916, followed by Idaho and Virginia.
  • Louisiana is the most expensive state for full coverage auto insurance at $2,971 per year on average, followed by Florida and Michigan.
  • Iowa is the cheapest state for minimum required coverage, at an annual average car insurance rate of $309, followed by South Dakota and Vermont.
  • For minimum required coverage, Michigan is the most expensive state at $1,285 per year, on average, followed by Florida and Louisiana.

Average car insurance costs by company

Every car insurance company sets rates based on dozens of factors, including your driving history, location, vehicle and demographics. They’re making an educated guess about how likely you are to file a claim in the future and setting your price accordingly.

Each insurer treats each factor differently. If you have poor credit, one insurer might charge you 10% more for the policy, while another would charge 40% more. A discount for being claim-free in recent years might earn you a 20% discount with one company and 5% at another.

All this results in very different rates from one person to the next. This is why the company that gives your friend super-low rates might not be the cheapest for you. Here are annual rates for many of the nation’s largest insurers, for full and minimum coverage.

Average car insurance rates after a speeding ticket

A clean driving record helps keep auto insurance prices down, but a single speeding ticket may not hurt your rates as much as you think. On average, you can expect auto insurance rates to be about 25% higher after a speeding ticket for going 16 miles over the limit, NerdWallet’s analysis found.

For a driver with one recent speeding ticket, average car insurance rates are:

  • $1,781 per year for full coverage.
  • $755 per year for minimum coverage.

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