The only downside is that it's usually the most expensive time to buy an auto insurance policy. Are you looking for a financial advisor? Take our 3-minute quiz and talk to an advisor today. June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as an authorized producer drafting policies for cars, properties, umbrellas and earthquakes.
Mark Friedlander is director of corporate communications at III, a non-profit organization that focuses on giving consumers a better understanding of insurance. Our mission is to provide readers with accurate and unbiased information, and we have editorial guidelines to ensure that this is the case. Our editors and reporters thoroughly verify editorial content to ensure that the information you're reading is accurate. We maintain a firewall between our advertisers and our editorial team.
Our editorial team does not receive direct compensation from our advertisers. The Bankrate editorial team writes on behalf of YOU, the reader. Our goal is to provide you with the best tips to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content isn't influenced by advertisers.
Our editorial team doesn't receive any direct compensation from advertisers, and our content is thoroughly verified to ensure accuracy. So, whether you're reading an article or a review, you can trust that you'll get credible and reliable information. Our experts have helped you control your money for more than four decades. We continuously strive to provide consumers with the expert advice and tools needed to succeed along life's financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning publishers and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial team is objective, fact-based and not influenced by our advertisers. With inflation reaching record highs, Bankrate knows that perhaps now more than ever, the cost of your car insurance is at the top of your mind.
Our editorial team includes four licensed agents, and we've leveraged our 47 years of experience in the industry in the real world to help you better understand the average cost of car insurance and the science behind calculating rates. To find the average cost of car insurance, Bankrate's insurance editorial team evaluated dozens of companies based on a variety of factors. These included car insurance rates by state, insurance company, vehicle manufacturer, driving history, age and gender of the driver (when allowed), among other factors. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions.
We have maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the actions to take next. Our insurance team is comprised of agents, data analysts and customers like you. They focus on the points that consumers are most concerned about: price, customer service, policy features and savings opportunities so you can be sure which provider is right for you. On average, drivers in Maine, Vermont, Idaho, New Hampshire and Ohio pay the cheapest full-coverage car insurance rates in the country.
Factors such as the lower cost of living, the lower likelihood of accidents and claims, and less traffic congestion could be contributing to lower average premiums in these states. According to our research, drivers in New York, Louisiana, Florida, Nevada and Michigan have the highest average annual cost of car insurance with full coverage. This could be due in part to the frequent loss claims common in these states, making drivers riskier to insure overall. Get a quick estimate to make sure you're not overpaying.
Answer a few questions to disclose your payment. We are unable to estimate your payment. The table below shows the annual and monthly average of the total coverage premiums of some of the country's largest auto insurance companies, by market share. Car insurance companies use many different qualifying factors to determine your premium, and in most states, your age can significantly affect the amount you pay for coverage.
Statistically speaking, younger drivers and older people are more likely to be involved in an accident, so these groups tend to pay more for car insurance. The table below shows the average cost of car insurance for various age groups. It's important to note that your age won't affect your premium if you live in Hawaii or Massachusetts, as state regulations prohibit auto insurers from using age as a qualifying factor. Gender also affects your premium in most states.
It generally costs more to insure men than women. This is because men tend to adopt riskier driving behaviors than women and have a higher accident severity rate, according to the Insurance Information Institute (Triple-I). However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina, or Pennsylvania, your gender doesn't affect the amount you pay for car insurance due to state regulations that prohibit this qualifying factor.
The table below shows the difference in premiums that men and women can expect to pay at different ages. Notice how the price difference between genders narrows as people age, but begins to increase again once drivers reach old age. The type of vehicle you drive has a significant impact on your car insurance premium. The price and availability of parts, the cost of labor, the statistical likelihood of accidents, and the safety and crash prevention features of the vehicle could influence how much you pay for coverage.
The vehicle makes and models in the table below are suitable for a variety of lifestyles and budgets. In addition to state requirements, vehicle type, age (except Hawaii and Massachusetts), driving history, and gender (in most states), several other common qualifying factors will affect your car insurance premium. By analyzing these rating factors, auto insurance companies can get an idea of your risk profile and how much it might cost to insure you. Buying car insurance doesn't have to mean going broke; there are ways to save.
Discounts are one of the best ways to lower your premium. Most major auto insurance companies offer discounts. Here are some of the most common insurance discounts in the U.S. UU.
Not all auto insurers offer homeowners insurance (or the same discounts). Talking to your insurance agent or company representative may be the best way to learn about savings opportunities. In addition, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost very different amounts with different providers.
Comparing quotes can help you find the lowest price for the coverage you need. Every state has minimum coverage requirements for car insurance. This typically refers to liability for bodily injury and property damage, but some may also require personal injury protection (PIP) or coverage for uninsured motorists. While buying minimal coverage may result in a cheaper premium, it also means that drivers can have minimal financial protection in the event of an accident.
For this reason, insurance professionals generally recommend considering car insurance with full coverage. While there is no industry standard for full coverage, it typically involves higher liability limits with collision and comprehensive coverage to insure your vehicle, which your lender may require if your vehicle is leased or financed. You can also add medical payment coverage for you and the passengers of your vehicle, as well as reimbursement for the towing and rental of each vehicle. These types of additional coverage may come at an additional cost, but they offer more financial protection in various claim scenarios.
While paying for your car is an exciting milestone, the law itself doesn't affect your car insurance premiums. However, you have more flexibility in choosing coverage options once you are the full owner of your vehicle. When you finance a car, you generally have to carry an all-risk and collision policy to meet the requirements of your mortgage lender. When you own your car, the decision to add these types of coverage is solely up to you.
While the reduction in the full payment and the collision may lower your premium, you may want to consider if this risk is worth it. Without comprehensive and collision insurance, your insurance policy will not cover damage to your vehicle if you have an accident or if your vehicle needs repairs due to damage caused by the weather, the blow to an animal, theft, or vandalism. If your car is only a few years old, this protection could exceed the additional premium it costs to maintain it. Before you decide to take out an exclusive liability policy, you may find it helpful to consult with your agent to review your options.
On average, car insurance tends to be higher for new and young drivers, and then declines steadily in each consecutive age group. However, while this is a visible trend as a whole, it doesn't mean that your car insurance will decrease every year. On the other hand, since car insurance rates are based on a wide variety of factors, you're more likely to see fluctuations in your car insurance premium from year to year. Your location, vehicle make and model, annual mileage, and more influence your car insurance premium.
In addition, if you have been involved in an at-fault accident or have received a conviction for a traffic violation, this will cause an increase in your car insurance premium. There may also be factors outside your control that affect your premiums, such as the loss rate in your area. When insurance companies face more claims due to increased repair costs, they may decide to request rate increases with the state Department of Insurance, which may result in higher premiums for some policyholders. Every driver brings something unique when it comes to car insurance.
Rates can vary greatly depending on where you live, the type of car you drive, your credit score, age, gender, and more. Therefore, the company that offers the lowest rates for one person may not be the cheapest for everyone. However, Bankrate conducted an extensive study to find the most affordable rates. Our research shows that Auto-Owners, USAA, Geico, Amica and Erie may be among the cheapest car insurance companies.
When considering the companies that offer the cheapest monthly car insurance, there are several things to consider. State Farm is the largest auto insurance company in the United States and, on average, has cheaper quotes than any other large company and many regional companies. Full-coverage car insurance offers more protection at a higher price than liability only auto insurance. However, USAA only sells car insurance to members of the military, veterans, and their families, so most drivers can't buy a USAA policy.
Even if you're taking out car insurance with the cheapest monthly payment, you might not expect to have to pay out of pocket in advance. California, Hawaii, Massachusetts and Michigan don't allow insurers to use credit to determine auto insurance rates. Even if you moved to a more expensive area to get car insurance, comparing prices can help you get cheaper coverage. For policies that include collision coverage and comprehensive coverage, the premium will be higher, but your car will be covered in the event of damage or theft.
The best auto insurance companies for full coverage combine cheap quotes, reliable service, and useful coverage options for newer cars. To get the cheapest car insurance, you'll want to compare policies from a variety of companies each year. Look for cheap car insurance quotes online three to five years after any accident, traffic violation, or traffic violation. These types of coverage pay if your car is stolen or damaged in an accident that you cause, among other scenarios.