How Much Is Car Insurance?

How much is car insurance?

The editorial team at Bankrate looked at a number of variables to determine the average cost of auto insurance. These included the cost of auto insurance by state, insurer, and vehicle maker, as well as the age, driving history, and gender (where permitted) of the driver. With the use of this information, you may be able to determine which car insurance companies best suit your needs in terms of price and coverage, as well as estimate the cost of an automobile insurance policy based on your location and personal characteristics.

According to rate information for 2022, the average cost of auto insurance for full coverage is $1,771 per year. However, because there are more than a dozen different rating elements that go into determining vehicle insurance prices, each driver’s real cost will vary.

Key Takeaways:

  • The average cost of a year’s worth of full coverage auto insurance is $1,771; the average cost of the bare minimum is $545.
  • Some of the least expensive full coverage auto insurance is provided by USAA, Geico, and Erie, but not all drivers may use these companies.
  • The average increase in your car insurance rate following a serious offence, such as a DUI, is 93%.
  • In comparison to teen female drivers, teen male drivers may have to pay $807 more on average for auto 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.

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 rea cent 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 good driver is someone who has a spotless driving record, which includes no accidents, DUIs, or other moving infractions.

Drivers with “good credit” ratings have solid credit. 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.

Average car insurance costs by company

Every auto insurance provider bases rates on a wide range of variables, such as your driving record, location, car, and demographics. They’re calculating your premium based on an informed judgement about how probable it is that you’ll make a claim in the future.

Each element is handled differently by each insurer. One insurer may charge you 10% extra for the policy if you have bad credit, while another may charge you 40% more. You can receive a discount of 20% from one company and only 5% from another if you haven’t made any claims in the last few years.

How to estimate car insurance

For a precise vehicle insurance estimate, follow these steps:

  • Reduce the number of vehicles you like most. Discover how to choose the ideal vehicle for you.
  • Determine how much protection you require. Include collision and comprehensive, which cover loss or damage to the vehicle, if you’re purchasing a new vehicle. You’ll need this insurance if you borrow money to buy a secondhand car since the lender will require it. If you’re unsure, vehicle insurance calculators are available on the websites of several insurers to assist you in determining your coverage requirements.
  • Obtain quotes for the same level of protection for the automobiles you’re considering purchasing. You can start by using the vehicle insurance comparison tool from NerdWallet.
  • The price of auto insurance can now be taken into account while deciding.

Factors that affect the cost of car insurance

An auto insurance quote is based on a variety of factors, not only the brand and model of your car. Others consist of:

  • Age, gender, and marital status are examples of personal attributes. For instance, teen drivers typically pay more for auto insurance than any other age group.
  • the protection you select. Your insurance prices are likely to increase the more coverage you have.
  • your history of driving. Your premiums may go up if you just received a DUI, a speeding ticket, or a liability accident.
  • Your address. The legal minimums for automobile insurance vary from state to state, and the cost of your insurance will be influenced by things like the crime rate and population density in your neighbourhood.
  • your rating of credit. Car insurance premiums are often higher for drivers with bad credit. To predict whether you’ll make a claim, insurers employ a credit-based insurance score that differs from your standard credit score. Payment history and outstanding debt are two factors that go into calculating a credit-based insurance score; however, personal information like income or employment is not included. Insurance companies are not allowed to utilise credit scores when determining auto insurance prices in California, Hawaii, and Massachusetts.
  • Your background with auto insurance. This can include insurance claims, whether your auto insurance has expired, how long you’ve been a customer of your insurer, and your previous insurance provider.


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