Average cost of car insurance (2024)

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By

Andrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Edited by

Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
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Reviewed by

Fabio Faschi, PLCS, SBCS, CLCSFabio Faschi, PLCS, SBCS, CLCSLicensed Property & Casualty Insurance ExpertFabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.
Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.

How much is car insurance?

Car insurance costs an average of $136 per month for a full-coverage policy and $51 per month for minimum coverage. That means that the average driver pays $1,638 a year for full coverage and $617 a year for minimum coverage.

But that's just an overall average — what you’ll actually pay for auto insurance is based on personal details like your age, driving history, and ZIP code.

Key things to know about car insurance costs

We calculated how much car insurance costs using rates from across the U.S. Our analysis takes into account the range of factors that can affect your policy, so you can understand how much auto insurance really costs — and compare car insurance rates based on your needs.

If you're looking for new car insurance because your rates have gone up, you're not alone. Auto insurance costs have been on the rise thanks to factors like inflation and supply-chain disruptions, and that trend has continued in 2023. Knowing the average car insurance rates for your profile can help you be sure you're finding the best price.

A bar graph showing the average cost of car insurance per month for most drivers compared with seniors, drivers who have been in a past accident, and drivers under 25 years old.
Why you can trust our average car insurance rates

Methodology

How we calculated average car insurance rates

Our team of data and insurance experts at Policygenius found the cost of car insurance for different types of drivers by analyzing hundreds of thousands of rates from every ZIP code and every state (including the District of Columbia).

Our rates for most people used the sample profile of a 30-year-old driver of a 2017 Toyota Camry with a clean driving record. This sample policy included coverage limits of:

  • Bodily injury liability: $50,000 per person, $100,000 per accident

  • Property damage liability: $50,000 per accident

  • Uninsured/underinsured motorist: $50,000 per person, $100,000 per accident

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In addition to finding the costs for most people using this information, we also determined how much car insurance costs for other drivers based on which states they live in; whether they have an accident, DUI, or other violation on their record; their gender; age; and coverage limits.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

Are car insurance prices going up? What you need to know

Drivers across the country may notice serious rate increases when it’s time to renew their car insurance policies — even if they didn't file a claim or change anything about their coverage. 

A 2023 Policygenius survey conducted in April found that 43% of U.S. drivers reported paying more for car insurance than at the same time the previous year.

Auto

What do the experts say?

"The premium increases over the last year seem so drastic because we went through a several-year period of slow rate growth."

— David Siebold, a property and casualty insurance expert at Policygenius

Most drivers didn't see car insurance rate increases during the first years of the COVID-19 pandemic, and some companies even offered car insurance refunds since so many drivers were staying home. 

But with American drivers back to work and a recent period of high inflation, companies are working overtime to catch up, and rate increases may hit some states harder than others. "In some states like North Carolina, insurance companies are looking to increase auto rates by as much as 25% this year," Siebold said. 

If your rates have recently gone up, take some time to check with your car insurance company that they have the right information about your mileage and vehicle usage, and see if there are any other available discounts. But a rate hike may also mean it’s a good time to shop around for new car insurance.

2023-05 Auto insurance affordability survey Artist Michelle Kondrich

Rates on the rise

The 2023 Policygenius Car Insurance Affordability Survey found that 43% of American drivers were paying more for car insurance in April 2023 than they were a year earlier, and more than half of drivers are worried about being able to afford car insurance.

Read the full report

How much car insurance costs in each state

Where you live, including your state, city, and even your ZIP code are some of the most important factors that determine your car insurance rates. 

The average cost of car insurance is $1,638 per year, but we found that the cost of car insurance in the most and least expensive states is separated by $1,786 per year.

A shaded map of the United States showing the average cost of car insurance per month in each state.

Car insurance costs by state

There are a few reasons why the cost of car insurance varies so much based on your location. If your area is more densely populated, has higher crime rates, lots of uninsured drivers, or frequent natural disasters, that means more claims — and higher rates.

Average cost per month

Average cost per year

Alabama

$144

$1,728

Alaska

$116

$1,393

Arizona

$133

$1,600

Arkansas

$147

$1,768

California

$153

$1,837

Colorado

$154

$1,852

Connecticut

$155

$1,856

Delaware

$179

$2,144

District of Columbia

$150

$1,802

Florida

$233

$2,794

Georgia

$135

$1,625

Hawaii

$101

$1,208

Idaho

$91

$1,094

Illinois

$111

$1,332

Indiana

$101

$1,215

Iowa

$97

$1,158

Kansas

$128

$1,532

Kentucky

$182

$2,181

Louisiana

$211

$2,531

Maine

$91

$1,096

Maryland

$149

$1,784

Massachusetts

$129

$1,553

Michigan

$202

$2,425

Minnesota

$118

$1,422

Mississippi

$139

$1,664

Missouri

$132

$1,588

Montana

$158

$1,902

Nebraska

$135

$1,617

Nevada

$183

$2,198

New Hampshire

$107

$1,284

New Jersey

$185

$2,225

New Mexico

$122

$1,460

New York

$171

$2,048

North Carolina

$90

$1,084

North Dakota

$117

$1,405

Ohio

$84

$1,008

Oklahoma

$143

$1,713

Oregon

$120

$1,443

Pennsylvania

$139

$1,672

Rhode Island

$153

$1,830

South Carolina

$168

$2,018

South Dakota

$124

$1,487

Tennessee

$111

$1,329

Texas

$152

$1,818

Utah

$130

$1,555

Vermont

$87

$1,047

Virginia

$112

$1,349

Washington

$144

$1,730

West Virginia

$135

$1,615

Wisconsin

$92

$1,109

Wyoming

$116

$1,394

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Average rates for male and female drivers ages 30, 35, and 45. Rates provided by Quadrant Information Services. Rates provided are a sample of costs. Your actual quotes may differ.

The most expensive states for car insurance

On average, auto insurance is most expensive in Florida, where rates are 71% more expensive than for most drivers nationwide. We found that the cost of car insurance in Florida is $96 more expensive per month, or $1,156 per year, compared to the national average.

Louisiana, Michigan, New Jersey, and Nevada are also among the most expensive states for car insurance.

A bar graph showing the most expensive states for car insurance. These states are Florida, Louisiana, Michigan, New Jersey, and Nevada.

What if car insurance costs are too high in your state?

You can still get affordable coverage in states where average insurance costs are high. You can keep costs low by avoiding accidents and tickets, taking advantage of discounts, and by comparing quotes when it’s time to renew your policy — and switching companies if you find a better deal.

The cheapest states for car insurance

Ohio is the cheapest state for car insurance. The average cost of a full-coverage policy in Ohio is $84 per month (or $1,008 per year), which is $630 cheaper than the national average.

Car insurance costs are also low in Vermont, North Carolina, Idaho, and Maine, according to our analysis.

A bar graph showing the states that have the cheapest average costs of car insurance. Displayed are Ohio, Vermont, North Carolina, Idaho, and Maine.

States that have the lowest insurance costs sometimes have lower minimum coverage requirements, making it tempting to opt out of certain types of coverage. But this is a bad way to save money, since going without enough insurance can leave you on the hook for after an accident.

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

How much does car insurance cost by city?

The cost of car insurance also varies by city, even within the same state. Average rates in one city can be hundreds or even thousands of dollars more expensive than another city in the same state, so you should be sure to compare quotes and estimate your costs before buying coverage.

The city with the most expensive car insurance prices is Detroit, where coverage costs $467 per month, or $5,609 per year — that’s $3,971 more each year than the national average rate. New York City, Miami, Philadelphia follow Detroit as the most expensive cities for car insurance.

Average cost per month

Average cost per year

Detroit, MI

$467

$5,609

New York, NY

$378

$4,534

Miami, FL

$335

$4,015

Philadelphia, PA

$258

$3,096

Las Vegas, NV

$241

$2,888

Jacksonville, FL

$225

$2,706

Palm Coast, FL

$224

$2,690

Los Angeles, CA

$218

$2,613

Fort Myers, FL

$207

$2,483

Naples, FL

$194

$2,324

Houston, TX

$186

$2,231

Gainesville, FL

$183

$2,198

Seattle, WA

$182

$2,182

Denver, CO

$181

$2,173

Dallas, TX

$181

$2,170

San Francisco, CA

$180

$2,161

Colorado Springs, CO

$176

$2,109

Phoenix, AZ

$170

$2,045

Boston, MA

$164

$1,966

Oklahoma City, OK

$163

$1,956

Chicago, IL

$162

$1,950

San Antonio, TX

$161

$1,938

Corpus Christi, TX

$157

$1,889

Fort Worth, TX

$157

$1,888

Plano, TX

$156

$1,877

Austin, TX

$153

$1,836

San Jose, CA

$151

$1,808

Washington, DC

$150

$1,802

El Paso, TX

$149

$1,790

San Diego, CA

$146

$1,754

Memphis, TN

$142

$1,700

Albany, NY

$125

$1,503

Nashville, TN

$114

$1,370

Indianapolis, IN

$110

$1,320

Charlotte, NC

$106

$1,274

Cleveland, OH

$99

$1,191

Columbus, OH

$96

$1,153

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Cities sorted from most to least expensive.

How much does car insurance cost by company?

Car insurance can cost thousands of dollars more per year at one insurance company compared to another. Our analysis found that the average cost of auto insurance can vary by as much as $91 per month (or $1,090 per year) across the largest companies.

A bar graph showing the average cost of car insurance from the 10 largest companies in the country.

While many top auto insurance companies use the same factors to set your rate — including your location, age, and driving history — not every provider evaluates these factors the same way.

In our analysis, USAA has the best car insurance rates among the largest providers. But since USAA is only an option for people in the military, GEICO more often has the most affordable insurance rates for most people. 

Smaller insurers, like Auto-Owners Insurance, or even local companies, may have cheap rates, too.

Average cost per month

Average cost per six month

Average cost per year

MAPFRE

$87

$520

$1,040

USAA

$87

$522

$1,044

State Farm

$95

$571

$1,141

Auto-Owners Insurance

$97

$583

$1,165

Erie

$98

$591

$1,181

GEICO

$99

$596

$1,192

NJM

$105

$631

$1,262

Travelers

$113

$676

$1,351

COUNTRY Financial

$118

$708

$1,416

Nationwide

$123

$738

$1,475

American Family

$123

$739

$1,479

Farm Bureau

$129

$774

$1,547

Amica

$131

$787

$1,574

Shelter

$147

$882

$1,764

Progressive

$148

$890

$1,780

Kemper

$149

$891

$1,783

Auto Club Michigan

$169

$1,014

$2,029

Allstate

$171

$1,027

$2,055

Farmers

$174

$1,042

$2,084

AAA

$178

$1,067

$2,134

Hartford

$193

$1,160

$2,319

CSAA

$202

$1,213

$2,426

Mercury

$215

$1,289

$2,577

Sentry

$262

$1,570

$3,139

The Hanover

$340

$2,037

$4,075

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Car insurance companies with at least $1 billion in written premiums, ordered from cheapest to most expensive.

Average cost of car insurance by coverage type and amount

Your car insurance rates also depend on how much insurance you get. A full-coverage policy (which includes comprehensive and collision coverage in addition to liability) can raise your premiums by hundreds of dollars a year.

Average cost per month

Average cost per year

Liability

$54

$644

Collision

$32

$378

Comprehensive

$14

$168

Car insurance rates also depend on what other extras or endorsements you add to your policy — extra coverage options like gap insurance and roadside assistance can mean more protection, but also higher costs.

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

On average, car insurance rates initially increase by 174% when you choose a full-coverage policy over minimum coverage, but your premiums only go up by 6% when you double your liability coverage.

Minimum coverage

Full coverage (50/100)

More coverage (100/300)

Alabama

$51

$144

$167

Alaska

$36

$116

$127

Arizona

$53

$133

$149

Arkansas

$44

$147

$166

California

$50

$153

$170

Colorado

$45

$154

$176

Connecticut

$79

$155

$165

Delaware

$82

$179

$189

District of Columbia

$57

$150

$161

Florida

$104

$233

$264

Georgia

$68

$135

$157

Hawaii

$35

$101

$106

Idaho

$33

$91

$104

Illinois

$47

$111

$129

Indiana

$38

$101

$112

Iowa

$26

$97

$106

Kansas

$41

$128

$147

Kentucky

$78

$182

$203

Louisiana

$83

$211

$283

Maine

$37

$91

$107

Maryland

$75

$149

$166

Massachusetts

$51

$129

$147

Michigan

$74

$202

$210

Minnesota

$46

$118

$124

Mississippi

$45

$139

$160

Missouri

$47

$132

$146

Montana

$41

$158

$172

Nebraska

$35

$135

$158

Nevada

$80

$183

$203

New Hampshire

$39

$107

$108

New Jersey

$96

$185

$205

New Mexico

$38

$122

$139

New York

$81

$171

$191

North Carolina

$35

$90

$90

North Dakota

$34

$117

$124

Ohio

$32

$84

$95

Oklahoma

$41

$143

$163

Oregon

$64

$120

$132

Pennsylvania

$42

$139

$149

Rhode Island

$72

$153

$175

South Carolina

$65

$168

$178

South Dakota

$28

$124

$143

Tennessee

$38

$111

$126

Texas

$54

$152

$168

Utah

$56

$130

$140

Vermont

$32

$87

$106

Virginia

$48

$112

$123

Washington

$52

$144

$156

West Virginia

$52

$135

$157

Wisconsin

$29

$92

$97

Wyoming

$27

$116

$125

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Monthly car insurance rates based on different coverage amounts of bodily injury liability coverage. Minimum coverage includes enough insurance to meet the state's legal requirements, while the "full" and "most" columns are for $50,000 per person/$100,000 per accident and $100,000 per person/$300,000 per accident in bodily injury liability coverage.

Full coverage vs minimum coverage car insurance costs

On average, a full-coverage car insurance policy costs about $1,000 more per year than a minimum-coverage policy. Full coverage is more expensive because it includes more protection, specifically comprehensive and collision coverage, which pay for damage to your own car after an accident or another kind of incident.

This is why you shouldn’t get minimum-coverage car insurance just to avoid paying higher premiums. Even though it’s cheaper, minimum coverage can also leave you unprotected after an accident.

If you only get minimum coverage, you won’t have insurance to cover certain types of damage that would have been covered by comprehensive or collision — like damage from a falling tree branch, an at-fault accident, or reimbursement if your car is stolen.

A graphic explaining full-coverage car insurance. Full coverage means a car insurance policy that includes comprehensive and collision coverage in addition to liability coverage.

→ Read more about the differences between minimum and full coverage

How much does car insurance cost by age?

Along with your location and the amount of insurance you have, age is one of the most important factors when it comes to auto insurance rates. Drivers under 25 tend to pay much more for coverage because of their inexperience behind the wheel.

The average cost of car insurance before you turn 25 can be thousands of dollars more expensive per year than for older drivers. For example, car insurance costs a newly licensed 16-year-old $378 more per month ($4,541 per year) than someone who’s 25.

A bar graph showing how the cost of car insurance decreases as the driver insured by the policy gets older.

Join an existing policy for lower insurance costs

One of the best ways that you can find lower car insurance costs as a young driver is by joining your parents’ existing policy. We found that it’s $225 cheaper per month ($2,699 per year) for a teen to join an existing policy than to get their own.

Gen Zers have the most expensive costs of car insurance of any age group. Rates are $203 more expensive each month than average for these drivers and $200 more expensive than for the next youngest generation, millennials, and $213 higher than rates for Gen X.

Average cost per month

Average cost per year

Gen Z

$339

$4,063

Millenials

$139

$1,666

Gen X

$126

$1,509

Baby boomers

$125

$1,501

→ Read more about getting cheap coverage as a young driver

How much does car insurance cost by gender?

Gender can also have a small effect on your car insurance rates. On average, male drivers pay just $10 more per month than female drivers for coverage (but effectively the same amount each month). And after age 25, the price is nearly equal for male and female drivers.

Average cost per month

Average cost per year

Male

$136

$1,638

Female

$136

$1,628

A handful of states prohibit insurers from setting rates according to gender, including:

  • California

  • Hawaii

  • Massachusetts

  • Michigan

  • North Carolina

  • Pennsylvania

→ Read more about how your gender can affect your average car insurance cost

How much does car insurance cost by marital status?

Your car insurance costs can be affected by whether you’re married, divorced, or single. We found that the cost of auto insurance is lowest for married drivers. If you’re married, your rates cost $5 less than average per month.

Being single or divorced means that your insurance costs will be more expensive. Car insurance costs drivers who are single $6 more per month than average, while rates are about $5 more expensive than average for single drivers.

Average cost per month

Average cost per year

Divorced

$144

$1,723

Married

$133

$1,591

Single

$143

$1,721

Average cost of car insurance after a driving violation

Your average car insurance costs will almost certainly get more expensive after a driving violation, like an accident or ticket. On average, a violation increases auto insurance rates by $69 per month, or $822 each year.

A bar graph showing the cost of car insurance after a speeding ticket, at-fault accident, driving with a suspended license, and a DUI.

The average cost of car insurance changes differently depending on the violation. More serious violations usually lead to higher rate increases. For example, car insurance prices after a hit-and-run are $78 per month more expensive than for a driver cited for speeding.

Average cost per month

Average cost per year

Increase vs. average

At-fault accident

$213

$2,555

55%

Driving with a suspended license

$260

$3,117

89%

Driving with an open container

$207

$2,485

50%

Driving with expired registration

$172

$2,068

25%

DUI

$263

$3,153

91%

Failure to stop at a red light

$177

$2,122

28%

Hit and run

$265

$3,182

93%

Illegal turn

$177

$2,123

29%

Improper passing

$179

$2,152

30%

Not-at-fault accident

$149

$1,784

8%

Reckless driving

$251

$3,013

82%

Speeding ticket

$190

$2,277

38%

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Table sorted alphabetically by violation.

When do you need an SR-22?

After a DUI or serious driving violation, your state may require you to prove that you have insurance by getting an SR-22 or FR-44 form. Both of these forms carry an additional fee on top of your increased insurance costs.

→ Find the best companies for drivers with spotty records

Average cost of car insurance by credit score

How much your car insurance is depends in part on credit score. Having poor credit can increase your insurance rates by as much — or more — than some serious driving violations.

The average cost of car insurance for drivers with poor credit is $260 per month. That’s $123 more expensive than the national monthly average.

On the other hand, your car insurance rates go down as your credit score improves. We found that for drivers with an excellent credit rating auto insurance costs $25 less each month than someone with a good rating.

Credit score

Credit range

Average cost per month

Average cost per year

Excellent

800-850

$117

$1,400

Very Good

740-799

$129

$1,550

Good

670-739

$142

$1,703

Fair

580-669

$173

$2,073

Poor

300-579

$260

$3,117

In some states, car insurance companies aren’t allowed to use your credit score to calculate your rates, so if you live in California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Utah, or Washington your credit score won’t matter when it comes to car insurance.

What’s the difference between an insurance score and your credit score?

Insurance companies use your auto insurance score to estimate how likely you are to make a claim. It’s different — but very similar — to your credit score. If you have a lower credit score, you can assume that your insurance score is lower, too.

Average cost of car insurance by vehicle

We found that the cost of car insurance can change by hundreds of dollars a year depending on the car that you drive. Our analysis shows that electric cars cost $49 more each month than an SUV does. In fact, the costs to insure a small and regular-sized SUV are nearly the same.

The cost of car insurance for electric vehicles is $68 more than average per year, making these EVs the most expensive vehicles to insure.

A bar graph showing the cost of car insurance by vehicle type. Pictured are rates for an SUV, small SUV, pickup truck, sedan, and electric sedan.

The average cost of car insurance for SUVs is the cheapest, but we found that the Ford F-150 (a truck) is the most affordable vehicle to insure. Auto insurance rates for Teslas tend to be much more expensive. Insurance for a Tesla Model 3 and Y costs $1,000 more per year than for a Ford truck.

Average cost per month

Average cost per year

Ford F-150

$146

$1,753

Honda CR-V

$148

$1,779

GMC Sierra

$151

$1,808

Toyota Tacoma

$152

$1,821

Subaru Outback

$152

$1,822

Chevrolet Equinox

$153

$1,841

Ford Escape

$155

$1,859

Jeep Wrangler

$156

$1,871

Toyota Highlander

$157

$1,885

Jeep Grand Cherokee

$160

$1,914

Ford Explorer

$160

$1,923

Subaru Forester

$161

$1,932

Nissan Rogue

$162

$1,939

Chevrolet Silverado

$164

$1,964

Toyota RAV4

$167

$2,005

Nissan Leaf

$170

$2,040

Honda Civic

$174

$2,084

Chevrolet Bolt EV

$174

$2,085

Toyota Camry

$174

$2,088

Toyota Corolla

$174

$2,090

Ram 1500

$176

$2,106

Honda Accord

$177

$2,121

Tesla Model 3

$231

$2,771

Tesla Model Y

$248

$2,974

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How the cost of car insurance changes over time

Car insurance tends to get more expensive each year — even for good drivers. From 2012 to 2021, the only year when costs fell was in 2020, when COVID unexpectedly changed the insurance industry.

Even by the first half of 2022, you can see that the cost of car insurance coverage had already increased by 4.6% compared to the previous year. [1]

H1 change

H2 change

Annual change

2012

3.0%

4.2%

3.6%

2013

4.6%

3.9%

4.2%

2014

4.1%

4.4%

4.2%

2015

5.4%

5.4%

5.4%

2016

5.8%

6.6%

6.2%

2017

7.4%

8.0%

7.7%

2018

8.7%

6.2%

7.4%

2019

1.7%

0.2%

0.9%

2020

-4.9%

-4.4%

-4.6%

2021

3.7%

3.9%

3.8%

2022

4.6%

--

--

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More from Policygenius about car insurance costs

If you want to learn more about what drives the cost of car insurance, you can check out more of the news and research we’ve done about average costs, rate changes, and factors that cause drivers to pay more for insurance coverage.

Save

Car insurance rate changes

Nearly every year the cost of car insurance get more expensive for everyone, but what's to blame for higher prices?

Security

Car theft statistics

It's more expensive to get car insurance in areas where auto thefts are most common, even if your car hasn't been stolen.

Policy

Road rage and insurance

Aggressive driving makes the cost of car insurance 40% more expensive, but it can be more depending on the state.

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Auto insurance trends

Curious about how the auto insurance landscape changes? See how prices and the market have changed in recent years.

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DUIs and insurance costs

Places with higher-than-average numbers of DUIs or DWIs have more expensive car insurance, even if you have a clean record.

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Cost of car accidents

Car insurance costs are often higher in places where roads are more crowded and accidents happen more frequently.

What else affects car insurance prices?

There are even more factors that can affect your car insurance rates besides location, coverage levels, age, gender, marital status, car type, driving history, and credit score. The cost of car insurance can also be influenced by:

  • The company you choose: Even if you live in a state where rates are higher than average, some companies offer more competitive rates than others, which is why it’s important to shop around.

  • Discounts: Some of the most common car insurance discounts include savings for bundling policies, completing a driving safety course, and paying your annual policy in full.

  • Insurance history: You may pay more for car insurance if you've had past coverage with a high-risk provider or if you have a lapse in coverage on your record. If you have a history of consistent coverage and on-time payments, on the other hand, you could see lower rates.

  • Your annual mileage: If you use your car often, your auto insurance will cost more than for someone who drives infrequently. 

  • Your job and education: In some states it's illegal for insurers to use your occupation and education to set rates. However, in many places you could pay more for car insurance if you're unemployed or if you didn't graduate from college

How to save money on car insurance

From the moment you start shopping around for auto insurance, there are a number of ways you can save. Even if you already have an existing car insurance policy, there are still some steps you can take to lower your premiums.

  1. Bundle your home and auto insurance: Combining multiple policies (like your home and auto insurance) with the same company can earn you serious savings.

  2. Take advantage of car insurance discounts: Check with an agent to make sure you’re getting every discount you can, including discounts for having certain safety features in your car, or for taking a defensive driving course.

  3. Change your coverage limits: Not every driver needs the highest level of every coverage. We recommend liability levels of $100,000 per person, $300,000 per accident in bodily injury liability and $100,000 per accident in property damage liability, typically written as 100/300/100 on your insurance policy.

  4. Raise your deductible amount: A higher comprehensive or collision deductible (meaning the amount you have to pay out of pocket per claim) means lower premiums — just remember you may actually have to pay that amount when you file a claim

  5. Shop around once a year: Even if you’re happy with your coverage, shopping for car insurance annually with Policygenius can help you save big and make sure you’re not paying too much for coverage.

→ Learn more about how to lower car insurance rates

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Policygenius made the process easy!

Policygenius made the process easy to navigate. The representatives were helpful and attentive to my questions. They were persistent in trying to help me find the best insurance for my current life goals. Once they connected me with insurance agents, the application process was relatively quick and, again, easy to navigate. I'd recommend them to anyone!

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References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. Bureau of Labor Statistics

    . "

    CPI for All Urban Consumers - Auto Insurance Costs

    ." Accessed July 27, 2022.

Author

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Editor

Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

Expert reviewer

Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.

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