Many factors account for auto insurance rates. While the average car insurance cost per month in the US is about $79.58, your full coverage auto insurance payments can vary depending on many factors. Some of the elements that determine indemnity rates for automobiles include; your credit rating, where you live, your driving history, gender and age, the type of vehicle you drive, and your state insurance regulations, among others.
Insurers are notorious for being secretive concerning the dynamics of calculating indemnity rates. However, some consistent factors can assist non-savvy customers in spotting the patterns for computing their coverage. For example, most undergraduates rely on free car insurance cost calculator on the internet to find the best Car Insurance For College Students.
Although we’ll be reviewing the average auto insurance prices from across the country, it’s vital to keep in mind that individual states have independent industry regulations. The laws also establish minimum auto coverage requirements in each region. It’s one of the reasons some No Down Payment Car Insurance companies are exclusive to a select number of states like Florida and California. You’re likely going to pay more or less than the averages we’ll site here because of the significantly different state insurance requirements.
The National Association of Insurance Commissioners, for example, cites the average car insurance cost per month at $117. But those rates don’t account for states’ average car insurance rates by age and gender, among other driver profiles.
Note that each state has obligatory vehicle insurance conditions, defining the prerequisites to drive legally. But these minimums don’t always offer sufficient protection during accidents like a full coverage auto insurance plan. It’s still best to talk to your agent when shopping for insurance. Doing so will help you decide if your region’s essential auto coverage requirements are enough for you the cost of purchasing an enhanced protection policy. It also means that you might pay more to cover your vehicle than the average car insurance cost per month we’ll show here, which is still worth it for the long haul.
Average Car Insurance Cost Per Month: Everything You Should Know
The national annual median insurance rate is $1,427, which works out to about $119 in average car insurance cost per month. But these prices are for a forty-year-old motorist who has a good driving record and a strong FICO score. It means the average rates can differ significantly for other driver profiles, such as:
- $1,781 annually or $148 monthly, following a speeding ticket.
- $2,506 annually or $209 a month for an excellent driver with poor credit.
- $2,106 annually or $176 per month for a fifty-year-old married couple with two vehicles.
- $1,427 annually or $119 monthly for an excellent driver with good credit.
- $2,146 annually or $179 a month following an at-fault incident.
- $2,531 annually or $211 every month following a DUI.
- $3,906 annually or $326 monthly for a married couple with a teen driver, with two vehicles.
These prices represent full coverage policies that come with comprehensive, uninsured or underinsured motorist protection, liability, collision, and any other state-mandatory coverage.
The national intermediate rates for the minimum insurance requirements are:
- $606 annually or $51 monthly for an excellent driver with strong credit.
- $910 annually or $76 a month, following an at-fault accident.
- $1,079 annually or $90 per month, following a DUI.
- $755 annually or $63 monthly, following a speeding ticket.
- $1,078 annually or $90 every month for an excellent driver with poor credit.
The average car insurance cost per month for a forty year old driver who has an excellent driving history and strong credit can be $50, while the same motorist with a recent DUI will pay $90. The averages above do not say much about your auto coverage prices. Various personal factors, within and beyond your control, will vary the rates down or up until you get a personalized cost.
Factors That Affect Your Average Car Insurance Cost Per Month
You’re probably aware that insurers calculate car insurance rates by age and gender. In this section, we’ll explore other factors that are likely to affect your average car insurance cost per month.
- Age: Usually, the older you are, the less likely you are to cause an accident
- Coverage Limits: Your insurance rates will depend on whether you’re getting the state’s minimum coverage requirements or purchasing extra protection for your vehicle.
- Creditworthiness: Insurers look at your credit history to determine the likelihood of claims in property damage because of lack of income
- Driver Experience: Experienced motorists are often better drivers, who get fair auto insurance premiums
- Gender: Statistics show that young, unmarried male motorists have more accident rates than their young, unmarried female counterparts
- Home Ownership: Owning a home shows you’re a stable person with less careless driving
- Marital Status: Underwriters offer comparatively cheaper rates for married people because they have fewer possibilities of causing accidents
- Occupation: Auto coverage carriers consider some trades like a bar attendant to be riskier than others.
- Previous Driving Record: Insurance companies often flag bookings for drivers under the influence since it reflects habits that could result in further accidents.
- Vehicle Type: Underwriters will calculate your average car insurance cost per month, depending on the year, make, and model of your car.
What Is The Average Car Insurance Cost Per Month in My State?
Where you stay can significantly impact the average car insurance cost per month since individual states have different auto insurance regulations. Our research, for example, shows the most expensive regions paying up to four times more than the cheapest states. Besides, the level of coverage you want will also matter. According to our research, full coverage auto policy is often more than double the cost of minimum insurance. The following is our state by state breakdown of the average car insurance cost per month and yearly rates for motorists with no recent incidents and good credit.
- Maine is the most affordable state in terms of full coverage vehicle insurance at $76 and $916 monthly and annual averages, respectively, on top of Idaho and Virginia.
- Iowa State has the best affordable rates for the minimum required insurance at $26 and $309 monthly and annual averages, respectively, ranking above South Dakota and Vermont.
- The state of Louisiana has the costliest full coverage car insurance rates at $248 and $2,971 monthly and annual averages, respectively, beating Florida and Michigan.
- Michigan State has the most expensive minimum required coverage costs at $107 and $1,285 monthly and annual averages, respectively, coming before Florida and Louisiana.
- The insurance, banking, healthcare, and securities departments in Vermont report auto coverage rates at around $104 and $1,250 monthly and yearly, respectively.
- The insurance department in New Hampshire estimates drivers are paying monthly and annual averages of $83 and $1,000, respectively.
- In Minnesota, the state commerce department reports the auto insurance rates at $100 and $1,200, monthly and yearly, respectively.
- Motorists in Oklahoma, the District of Columbia, Mississippi, and New York, comparatively have the highest premiums for vehicle coverage on average.
- The Department of Financial Services in New York State says drivers are paying about $225 every month and $2,700 annually for auto coverage premiums.
The following table compares the average car insurance cost per month and yearly rates for minimum and full coverage, from the cheapest to the most expensive states.
|Cheapest To Most Expensive State||Minimum Coverage Costs||Full Coverage Costs||Price Difference|
|District of Columbia||$63||$755||$127||$1,527||$64||$772|
Keep in mind that you cannot select a full coverage policy from a list. However, it usually comes with collision and comprehensive protection along with any state specific coverages like liability insurance.
8 Category Based Average Car Insurance Cost Per Month
We’ve already told you about the various factors that can influence individual auto coverage rates. Now, let’s see how some of those items will affect your average car insurance cost per month.
1) Average Car Insurance Cost Per Month Following A Speeding Ticket
An excellent driving record is the best way to keep your auto coverage costs down. And one speeding ticket may not be as damaging to your insurance rates as you may think. You’ll be looking at an averagely 25 percent premium hike with a speeding ticket that exceeds up to sixteen miles above the set limit.
Here how a speeding ticket will influence your average car insurance cost per month and annual rates:
|Level of Coverage||Good Driving Record||A Single Speeding Ticket||Cost Difference|
The prices will vary from one state to another. For example:
- The rates increase with less than $200 annually in Iowa, Texas, Virginia, Alaska, Pennsylvania, and Vermont, with a single speeding ticket.
- Michigan State has a whole $90 per month or $1,085 annual increase for a motorist with one speeding ticket.
It’s always best to shop around after you get a ticket. Some insurers hardly increase the rates for motorists with a speeding ticket, while others will dramatically hike your premiums. Erie and American Family auto insurers, for instance, usually apply a fee of fewer than sixty dollars annually for drivers with a ticket. The Hanover and Auto Club Group, on the other hand, will charge over a $120 monthly or $1,200 annual raise on average.
2) Average Car Insurance Cost Per Month With An At Fault Incident
An at fault accident can raise your average car insurance cost per month by almost twice that of a speeding ticket. The following are the average vehicle coverage rates for a motorist after causing a wreck:
|Level of Coverage||Good Driving Record||A Single At Fault Incident||Cost Difference|
The rates go up following an accident across all states by between 30 percent and 60 percent, save for North Carolina, California, and Massachusetts. The prices can increase by between 70 percent and 80 percent in these exception states on average, resulting in an additional $108 a month or $1,300 annually in California.
Note than causing an at fault incident can hike your insurance premiums for between three and five years, depending on the provider.
3) Average Car Insurance Cost Per Month For Good and Bad Credit Motorists
Bad credit has a significant impact on the average car insurance cost per month in most states. Poor credit customers pay at least 75 percent more than their excellent credit counterparts.
|Level of Coverage||Excellent Credit||Bad Credit||Cost Difference|
Auto insurance carriers have a credit-based coverage score, which is similar to a credit score for setting the rates in most states. The system applies all the factors of an ordinary credit score, including timely payments and defaults on installments.
The impact of your credit score on your average car insurance cost per month will depend on your state and the insurer. The law prohibits using credit history to set car insurance prices in Massachusetts, Hawaii, and California.
However, the average costs usually more than double in some areas, such as Connecticut, Michigan, New Jersey, South Carolina, Arizona, Maine, New Hampshire, New York, and Utah. It’s also advisable to shop for insurance quotes because some underwriters are more lenient to bad credit customers than others like in the following examples:
- The Hanover triples the rates for a bad credit customer in Maine, New Hampshire, Connecticut, and Michigan.
- The National General Auto insurer will charge a-dollar-a-month extra for poor credit clients.
4) Average Car Insurance Cost Per Month Following A DUI
Driving under the influence will automatically raise your insurance prices. The rates for a motorist with a recent DUI can increase by about 77 percent.
|Level of Coverage||Good Driving Record||A Fresh DUI||Cost Difference|
Our research shows at least a $42 monthly or $500 annual increase, on average, following a DUI in most states. However, Michigan and North Carolina record an average increase of over $250 every month or $3000 annually.
You’ll want to shop around for the cheapest car insurance quotes to lessen the blow of a DUI offense. The average car insurance cost per month and annual rates among the largest insurers after a DUI can range between $116 monthly or $1,397 annually at American Family and $455 a month or $5,454 a year at the Auto Club Group. There’s a difference of over $4,000 annually between the two carriers.
You can also switch to the minimum auto coverage requirements in your state to reduce the rates. The minimum coverage prices following a DUI can range between $43 monthly or $520 annually at Erie and $252 per month or $3,028 a year at Auto Club Group.
5) Average Car Insurance Cost Per Month For Young Motorists
Underwriters find less experienced motorists to pose bigger risks to which they respond by applying heftier prices. The average car insurance cost per month is $17 more for a young, twenty-five-year-old motorist than a forty-year-old. It means inexperienced drivers can pay over $200 per year higher than their middle-aged adult counterparts.
Here are the statistics for a twenty-five-year-old driver who has an excellent history of driving and good FICO scores.
|Young Driver Profile||Full Auto Coverage||Minimum coverage|
|Excellent driver with strong credit||$139||$1,663||$57||$682|
|A single speeding ticket||$171||$2,054||$70||$841|
|A single at-fault crash||$204||$2,451||$84||$1,008|
While it’s vital to know what to expect, these rates should only be a foundation for young drivers searching for the best affordable auto coverage. Below is the average car insurance cost per month for a young motorist purchasing full coverage from the ten biggest insurance carriers:
- Allstate: $165 a month
- American Family: $116 a month
- Farmers: $174 a month
- Geico: $119 a month
- Liberty Mutual: $193 a month
- Nationwide: $128 a month
- Progressive: $163 a month
- State Farm: $145 a month
- Travelers: $142 a month
- USAA: $104 a month
Young drivers should check with multiple providers to find the best average car insurance cost per month.
6) Average Car Insurance Cost Per Month For Families & Couples
You’ll spend more to insure two cars than one vehicle, mainly if you include a teen driver in the mix. The table shows average car insurance cost per month and annual rates for a fifty year old couple with two automobiles.
|Couple / Type of Family||Average Rates||Price Over Standard Couples Policy|
|Family with a teen daughter||$310||$3,725||$135||$1,619|
|Family with a teenager son||$341||$4,086||$165||$1,980|
The family is going to pay more for adding a male teen driver to their policy. Young male drivers are high-risk customers in the eyes of auto insurers as they have a higher possibility of causing accidents than other drivers. However, regional and small carriers often have the cheapest car insurance prices for families and couples. Erie is one of the best affordable providers among major companies with an average car insurance cost per month of $104 and $1,251 annually. The carrier also charges $193 a month or $2,311 every year for a family with a teen.
7) Average Car Insurance Cost Per Month By Gender
Gender has a lower impact on the average car insurance cost per month compared to differences by state, driving record, company, and credit score. But it doesn’t mean that a price difference because of gender would be insignificant. It’s just that a lot of national statistics don’t illustrate it well as a pricing factor.
Insurance laws and regulations in seven states ban gender based auto coverage pricing. The states include; Hawaii, Montana, Pennsylvania, California, Massachusetts, North Carolina, and partly Michigan.
For states that allow the practice, our average coverage rates for women and men show that:
- Men pay around $4 every month or $51 yearly, more than women at the age of 25.
- Women pay about $3 more every month than men at the age of 40, which translates to $37 more per year.
8) Average Car Insurance Cost Per Month By Vehicle Type
The make and model of your car are going to affect the average car insurance cost per month. Auto coverage providers apply vehicle-based pricing for specific cars, such as:
- Sports Autos: The vehicles are available in higher speed options whose owners often drive fast, increasing the possibility of a traffic offense or an accident. A speeding ticket is likely to hike the rates further because insurers believe you’re more likely to cause an accident.
- Luxury Vehicles: Underwriters charge more to insure these cars due to the expensive details and components, which are costlier to replace in case of a crash.
- Electric Cars: The autos have quite costly engine components to replace, more so the batteries that can cost thousands of dollars each.
- Highly-target theft vehicles: The cars often have higher comprehensive insurance rates to pay out if your vehicle is stolen or damaged in non-traffic incidents like vandalism, floods, or fire.
The table below summarizes the average car insurance cost per month for the twenty-five most popular brands. We’ve also included annual coverage fees for the same vehicles.
|Vehicle Brand||Average insurance premium|
|Chevrolet Silverado 1500||$139||$1,665|
|GMC Sierra 1500||$130||$1,563|
What Other Factors Affect Your Average Car Insurance Cost Per Month?
After looking at all the costs and pricing factors, it might be difficult trying to figure out the other elements that influence your average car insurance cost per month. Here are some more factors that could determine your policy premiums:
- Specific area data like your city or ZIP code, which include crime rates in your location
- Underwriters, in many states, look at your occupation.
- The previous insurer. If your last auto cover was from a non-standard provider focusing on high-risk motorists, you’re likely to see higher insurance prices with some carriers.
- Uninterrupted auto insurance. Most insurers apply higher rates for motorists with lapses in their car insurance.
- Your annual mileage will determine the average car insurance cost per month. The more miles you drive per year, the more you’ll pay for vehicle coverage.
- Marital status is an essential part of auto insurance pricing. Underwriters often charge more for single people, including widowers, divorcees, and widows.
- Insurance companies will calculate your rates on your level of education. Higher education levels indicate that one is more responsible and less likely to cause accidents.
- Added policy plans like new-car replacement insurance or gap coverage can increase your average car insurance cost per month.
How To Save Money On Car Insurance
You’ve probably already noticed that the average car insurance costs per month have very minimal significance with your own rates. It is a correct assumption because no matter how many monthly rates you compare to, the same disclaimer will be true: ‘Your monthly auto coverage prices will be different.’
However, you can always find the best prices by shopping around for new rates yearly, and whenever there’s a significant change or event in your life, such as a new job, purchasing a new car, marriage, or moving to a different location. Moreover, it’s advisable to shop and compare various quotes after a recent DUI, at-fault incident, or any other traffic offense. Be sure to shop by checking out the cheapest insurers in your state under several motorist profiles.
You can also use the following ways along with the above tips to save on the average car insurance cost per month:
- You can net some impressive savings by taking part in safe driver programs. Most insurance companies provide significant discounts for drivers who qualify under those programs.
- Try to pay for your six-month auto coverage as a one-off installment instead of monthly payments. Your insurer is likely to offer a discount on subsequent payments.
- Consider pooling at two coverage policies to receive discounts on your car insurance rates. You can choose to insure more than one car with the same carrier to qualify for a discount. Alternatively, you might want to combine home and auto coverage with the same company for reduced rates.
- Improve the safety features in your vehicle to bring down your auto coverage rates. A car with state of the art safety features is likely to get cheap coverage. The features reduce the likelihood of a motorist causing an accident.
- Now that you have more details about saving some big bucks on your average car insurance cost per month, let’s look at some of the frequently asked questions below.
Frequently Asked Questions (FAQ)
What factors determine car insurance cost?
How much is car insurance for an 18 year old?
Which car insurance companies have the most affordable rates?
How much does car insurance cost in Ontario per month?
How much is full coverage on a new car?
The Bottom Line
Determining the average car insurance cost per month is a complicated process owing to the multiple variables in computing your average monthly auto coverage rates. It’s advisable to have a basic understanding of auto coverages to help you know how much to pay for your policy. The majority of customers only understand that vehicle coverage is a mandatory law requirement.
Besides, individual states have independent minimum coverage requirements that every driver must meet to drive legally. And people buy different coverage levels depending on the value of their car. The various driver profiles also play a critical factor in determining your own average monthly insurance cost. You may want to talk to the local police to reduce your number of points if you have received tickets or caused an at-fault incident recently. In this way, you can bring down your monthly premiums significantly.
The average car insurance cost per month is going to vary greatly according to your state and area. Big cities with dense traffic, high incidents of vandalism, and high crime rates often see higher auto coverage rates than others. On the other hand, those living in off the grid farm towns with little to no incidents will enjoy the lowest average car insurance rates per month.