According to NerdWallet’s 2022 rate research, the average cost of vehicle insurance in the US is $1,630 per year.
This equates to an average monthly vehicle insurance premium of $136.
KEY TAKEAWAYS
- A bulk rate reduction for insuring numerous vehicles and drivers at once is one strategy to reduce the cost of auto insurance.
- Lower auto insurance prices may also be available if you have other insurance plans with the same carrier.
- Keeping a clean driving record is essential to get reduced auto insurance rates.
These costs apply to full coverage insurance, which covers liability, comprehensive, collision, and any other insurance that may be necessary for accordance with a state’s insurance requirements. However, there are a number of variables that will affect your personal auto insurance rate, including your driving record, where you live, the coverage you choose, and the make and model of your vehicle.
How much is car insurance?
According to our estimate of prices for 2022, the average cost of auto insurance is $1,630 annually. However, it only applies to good drivers with good credit; premiums can vary greatly based on your past and the type of coverage you choose.
How Much Does Car Insurance Cost?
Full coverage insurance often costs $1,730 a year, or $144 monthly, while minimum liability insurance typically costs $635 annually or $53 monthly. However, depending on your own personal details, the cost of your individual auto insurance may differ. This is because while determining premiums, insurers take into account things like your location, driver’s history, car, and desired coverage.
How Much Is Car Insurance in Your State?
Each state establishes its own rules and standards for auto insurance. Additionally, driving conditions vary from state to state, which might affect how much vehicle insurance costs.
Car Insurance Cost by State
We gathered information from Quadrant Information Services and calculated the average cost of auto insurance by the state in order to give you an idea of what motorists in each state pay for typical yearly premiums. Cost estimates for both basic coverage and full coverage auto insurance are included in the table below.
Cost of auto insurance
The price of auto insurance is controlled by a variety of variables. It’s crucial to compare average auto insurance prices from various insurers because the degree to which each aspect affects your ultimate premiums can differ from one provider to another.
For full coverage policies, the national average vehicle insurance rates are:
- A skilled driver with good credit can get $1,630.
- A skilled driver with bad credit can get $2,792.
- $2,462 for a motorist with good credit but an at-fault collision
- A driver with a recent DUI and good credit can get $3,139.
- The national average vehicle insurance prices for the bare minimum coverage are:
- $561 will get you a decent credit driver.
- $973 will buy a reliable driver with bad credit.
- $862 for a driver with good credit but an at-fault accident.
- For a driver with a recent DUI and decent credit, $1,134 is offered.
As you can see, based on our data, full coverage insurance premiums are typically more than twice as expensive as minimal coverage.
However, averages don’t tell you anything about your personal auto insurance prices. Numerous individual circumstances, both under your control and outside of it, cause rates to increase or decrease until they are completely tailored to you.
And since NerdWallet can’t predict which factors will apply to you, unless otherwise specified, we used a specific driver profile throughout this article:
- a 35-year-old.
- A good driver is someone who has a spotless driving record, which includes no accidents, DUIs, or other moving infractions.
- Good credit: Drivers with a “good credit” rating. In most jurisdictions, insurers base their premiums on a credit-based insurance score that is comparable to your standard credit score. Your credit score can be an excellent predictor of your credit-based insurance score, even if they are not the same.
The reason NerdWallet can be trusted is that our writers and editors adhere to strong editorial standards to ensure objectivity and accuracy in our writing and data analysis. Because our data analysts take stringent steps to weed out outliers and inaccuracies in pricing data, which includes rates from every location in the nation where coverage is provided and data is available, you can have confidence in the costs we display. We only alter one variable at a time when comparing rates for various coverage amounts, ages, and backdrops so that you can quickly observe how each element influences cost. Read about our approach.
What is the cost of auto insurance in my state?
Because each state has distinct laws, your place of residence can have a significant impact on your auto insurance prices.
Here is what our state-by-state examination of 2022 auto insurance premiums for those with solid credit who haven’t recently been in an accident reveals:
- Idaho is the cheapest state for full coverage vehicle insurance with an annual average rate of $1,027, followed by Ohio and Vermont.
- Following Florida and Nevada in cost is Louisiana, where full coverage auto insurance averages $2,986 annually.
- With an average annual vehicle insurance cost of $237, Iowa has the lowest minimum necessary coverage costs, followed by South Dakota and Idaho.
- With an average cost of $1,085 per year, Florida has the highest minimum needed coverage costs, followed by Nevada and New Jersey.
How To Lower Car Insurance
Here are some methods for lowering your auto insurance rates if you’re looking around for coverage online and finding quotes that are too expensive:
- Compare rates from several insurers: It pays to shop around, especially if something that could affect your premiums recently changed. You should check to see whether you can get a lower auto insurance rate, for instance, after you get married, buy a house, or if your credit score rises.
- Package Deals: Usually, you can get premium discounts when you combine your auto and house insurance plans. By insuring more than one vehicle under the same auto insurance policy, you can also save money.
- The majority of insurers provide a discount for advance payment. It’s frequently a more economical choice if you have the ability to pay your complete payment all at once.
- Attend a course: State-approved driver safety programs are available in every state. These seminars last between six to eight hours, depending on the state. The majority of insurers provide discounts for finishing these programs.
- Use a surveillance app: Many carriers provide usage-based insurance packages or discounts. After registering, you’ll use an app to track your driving behavior and earn prizes for safe driving. The app measures factors like braking distance, average speed, and driving times.
- Reduce coverage: As your car matures, you might find that your comprehensive and collision insurance policies are no longer necessary. As a general guideline, you should discontinue coverage when your annual premium surpasses 10% of the total worth of your car.
- Car Insurance Cost: Conclusion
- Our experts discovered that the typical full coverage policy costs $1,730 per month after doing extensive market research. Due to the fact that it includes liability, comprehensive, and collision insurance, this is greater than the required minimum liability coverage.
We advise browsing around and contrasting auto insurance rates from trustworthy insurance companies to discover the best deal.
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