What the Average American Auto Insurance Premium Costs?

The average monthly costs of American auto insurance for a regular driver is $172. Numerous factors determine whether you’ll spend more or less than that amount. We discovered that drivers in Maine and Idaho, as well as older citizens, those with excellent credit scores, and those with minimal mileage, had the lowest average auto insurance prices.

With the help of our comprehensive insurance rate study below, you can discover the average cost of auto insurance in your state and what other drivers usually pay.

What Does Auto Insurance Cost?

According to our ranking of the cheapest American auto insurance providers, the average yearly premium for American auto insurance is $2,068. However since American auto insurance prices vary widely, your rates will probably be different from those in our analysis. When determining rates, insurers take into account several variables, including your location, age, kind of car, credit history, and driving record.

According to our research, USAA offers the lowest average yearly rate of $1,335 for auto insurance. Most drivers will have to look elsewhere to find the most reasonable average rates, as USAA exclusively provides coverage to military personnel and their families.

At $1,532 a year, Erie has the second-cheapest sample rate that we could find. No. 3 Auto-Owner’s rate, $1,619, is likewise significantly less than the national average. The highest average sample rate we could find was $3,374 per year from Allstate.

Average Annual Car Insurance Premiums

*Annual rate

What Elements Affect the Cost of American Auto Insurance?

American Auto insurance providers typically evaluate the following elements to calculate the cost of your policy:

• Age
• Gender
• Driving record
• Location
• Vehicle type
• Vehicle use (e.g., commute to/from school or work, average annual mileage)
• Credit history

The kind of coverage, deductible, and limit you select will also affect your auto insurance costs. The least expensive option is frequently minimum coverage, but you could need or want to buy more coverage. For example, if you lease or finance your car, your lessor or lender will probably insist that you have full coverage, which covers liability as well as collision and comprehensive coverage. Compared to a liability-only policy, a full-coverage policy will cost more.

smaller rates are usually the result of a greater deductible and a smaller limit. Yet there are disadvantages. When you file a claim, you will have to pay more out of cash if you select a larger deductible. Lower limits also mean that your insurer may not pay as much for claim-related costs (like auto repairs after an accident).

It’s important to remember that some states prohibit the use of credit-related data in calculating how much drivers must pay for an insurance policy, and some prohibit the consideration of gender for determining rates for auto insurance.

The State-specific Average Price of American Auto Insurance

Numerous factors affect car insurance prices, one of which is your residence. Our state-specific recommendations include the average cost of auto insurance for each state in the union, as well as the District of Columbia.

Keep in mind that these sample prices may not accurately reflect your actual auto insurance costs; instead, they aim to provide you with a basic idea of what to expect. Comparing quotes from multiple insurers is the easiest way to determine your approximate cost for auto insurance. You can locate a reasonable policy that meets your needs by doing some comparison shopping.

Average Costs of Auto Insurance for Safe Drivers

Among the lowest rates found in our research are those for drivers with spotless records. For safe drivers, the average annual rate across the country is $2,068.

In this category, USAA offers the lowest sample rate, which is 35% less than the national average. Individuals who are ineligible for membership in USAA may wish to consider policy choices offered by Erie, as their average yearly rate is 26% less than the average.

For drivers with a spotless record, Auto-Owners offers the third-cheapest sample cost, with a rate that is almost 22% less than the national average.

Average Cost of Auto Insurance for Drivers Having Just One Speeding Ticket

The cost of American auto insurance can increase dramatically after even one speeding ticket. According to our data, drivers who receive a single speeding ticket pay $2,503 yearly on average for insurance.

But the insurer you select will also have a big influence on how much you pay after receiving a ticket. In our analysis, USAA has the lowest sample rate for drivers with speeding tickets—it outperforms the national average by 35%. Erie and Auto-Owners offer average annual rates that are 23% and 30% lower than the national average, respectively.

Average Costs of Auto Insurance for Drivers in One Incident

After an accident, it can be extremely crucial to shop around and compare estimates. According to our research, after one collision, the average yearly cost of auto insurance rises to $2,940.

Regardless of your insurer, it’s likely that your premiums will go up, but the price of auto insurance after an accident varies greatly between providers.

The lowest sample rate in our analysis is 33% below the national average for Erie, except USAA, which had a sample rate 35% below the average. We found that auto owners had the third-cheapest post-accident rate, with an average yearly rate that was 24% less than average.

Average Costs of Auto Insurance for Drivers With Just One DUI

Our examination of American auto insurance rates shows that the average annual cost for drivers with a history of DUIs is $3,538 nationwide. That is $1,478 more annually than the average premium for a driver with an accident-free record. That discrepancy serves to highlight just how much a DUI might affect your auto insurance premium.

However, the rates charged by various insurance vary. For drivers following a DUI, Progressive offers the most affordable sample rates. For drivers with a DUI conviction on their record, its premiums are 35% less than the national average.

Additionally, USAA and Erie provide affordable rates; sample costs are around 28% less than the national average.

Average Prices for Drivers with Bad Credit on Auto Insurance

A driver with bad credit will typically pay $4,381 for insurance coverage each year, whereas a driver with good credit will pay $2,095; this represents an annual difference of $2,286.

For drivers with bad credit, Nationwide’s sample rates are the lowest at 48% less than the national average. With sample prices 42% and 32% below the national average, respectively, USAA and Geico may offer the most reasonable premiums for other drivers in this group.

Average Teen Drivers’ Auto Insurance Prices

The average yearly prices for young drivers’insurance are high in our study’s sample expenses. For females, the average is $6410. For males, it is $7,377.What accounts for this group of drivers’ high sample premiums? because younger, less experienced drivers are often seen by insurance companies as being riskier to insure.

The average yearly rate for female teen drivers in Erie is 54% lower than the national average. The average annual rate for male teen drivers in Erie is 59% lower than the national average. Additionally, USAA and Auto-Owners provide competitive prices.

The average cost of auto insurance for young adults who drive

As drivers get older and beyond their teens and early 20s, their premiums for auto insurance usually go down. For drivers under 25, the average yearly rate is $2,526 for men and $2,387 for women.

USAAs have the lowest sampling rates among the young adult drivers in our study, who are classified as single 25-year-olds. For young adults, both male and female, its average yearly premiums are roughly 33% less than the national average.

Young adult drivers who are not part of the military community can find significantly lower rates from Nationwide and Geico. The rates offered by these companies are lower than the national average. For all genders, Geico’s sample rates are 22% and 20% below the national average. For male and female drivers, nationwide is 20% and 21% less expensive than average, respectively.

Average Prices for Adult Drivers’ Auto Insurance

In general, adult drivers—defined as 35-year-old married individuals—pay less for auto insurance than teenagers and young adults. Our data shows that the national average rate for female adult drivers is $1,951 annually. The national average rate for male adult drivers is $1,976 annually, according to our data.

USAA has the lowest sample rates for adult drivers in our research. For both male and female adult drivers, the average annual rates are about 37% lower than the national average. Erie ranks second with 30% less than the national average for adult females. For adult males, Erie has $27% less than the national average.

Nationwide’s sample rates are 21% cheaper than the national average for men. Nationwide’s sample rates are 23% cheaper than the national average for women.

Senior Drivers’ Average Auto Insurance Prices

Married drivers aged 60 and older benefit from reasonable national average rates. The rates we found for female senior drivers are $1,756. The rates for male senior drivers are $1,813.

The lowest sample rates from USAA are 36% and 38%. These rates are less expensive than the average for senior female drivers and male drivers, respectively.

In this group, Erie and Nationwide also provide competitive rates. While Nationwide’s rates for female drivers are roughly 25% less than the national average and 22% less than the average for male drivers, Erie’s sample rates for senior drivers are 27% and 32% less than the norm.

Average Prices for Limited Coverage Auto Insurance

Our analysis shows that the average annual cost for a low-coverage policy nationwide is $1,997.

At 36% less than the national average, USAA offers the lowest sample rate for minimal coverage. However, only active duty personnel and their families are eligible for USAA. At 26% less than the national average, Erie offers the most reasonable rates for the majority of drivers.

Ensure that the insurance you purchase complies with your state’s regulations. If you’re seeking low-cost or minimum coverage, follow your state’s regulations. Additionally, always confirm the requirements of your lender or lessor if you’re financing or leasing your car.

Average Costs of High Coverage Auto Insurance

More expensive yet more protective coverage tiers are available. According to our data, the average annual cost for high coverage across the country is $2,150.

With the exception of USAA, Erie offers the second-cheapest prices for drivers looking for higher levels of coverage. Its prices are 27% less than the average for the country. With a sample rate that is 25% less than the national average, nationwide is the third most cheap.

Average Car Insurance Prices for Drivers with Low Miles

Low-mileage drivers pay less for auto insurance, per our pricing research. According to our research, a driver who logs 6,000 miles year would pay $1,973 on average. That is $95 less than the average annual premium for drivers in the country who log 12,000 miles.

At a premium 37% less than the national average, USAA offers the lowest insurance for drivers with minimal miles. Drivers who are not eligible for USAA membership could consider Nationwide or Erie, as their sample rates are 19% and 34% lower than the national average, respectively.

Ways to Get the Cheapest Auto Insurance Rate

It could need more work to save money on auto insurance. But it’s worthwhile to hunt for the cheapest deal.

Any life event that can impact your premium should be reported to your insurer. For instance, moving, graduating from college, changing employment, or getting married are all qualifying life events that should be reported. Ensure the information in your policy is correct. Contact your insurance agent to confirm adequate coverages.

Here are a few additional methods to save:

• Obtain many quotations. The best method to locate a decent deal for your particular circumstance is to compare prices.
• Combine your policies. If you choose a particular insurance company for your house, life, or other insurance coverage, many of them will reward your loyalty with cheaper premiums.
• Raise the amount of your deductible. Higher premiums are typically associated with lower deductibles. If you are comfortable paying more out of pocket in the event that you file a claim, raise your deductible.
• Remove any extraneous covering. It’s not always advisable to go with the bare minimum coverage. However, you can remove any features or add-ons that you won’t utilize.
• Permit your insurer to follow you. A usage-based insurance policy could help you save money by incentivizing you to drive less miles. A tracking device for your vehicle insurance is another way to potentially reduce your expenses.
• Improve your credit rating. 92% of insurers, according to Nationwide, take credit scores into account when determining premiums. To raise your score over time, strive to make regular, on-time payments and cut back on your usage.
• Look for sales. Given the range of discounts on offer, you may be eligible for more than you might have imagined. Check your policy or ask your agent whether there are any that you may have overlooked.

Kinds of Discounts on Auto Insurance

American Auto insurance companies like to reward their clients with lower premiums for safe driving, high grades, minimal mileage, and other behaviours. Here are several discount categories to look into that could result in further financial savings.

• Safe driving practices for drivers without accidents or claims
• For student drivers who obtain good marks, good student status (as established by the insurer)
• Low mileage for drivers that do little to no driving
• Drivers who have ties to alumni or professional groups can become affiliated
• Driving instruction for those who finish a defensive driving course authorised by the state
• Option for drivers: Set up automatic payments from their bank account. Or, pay premiums in full up front.
• Paperless statements for drivers who choose to get their statements and policies by email
• Many cars for drivers who own several vehicles at the same residence and are covered by the same insurance provider
• Multi-policy for drivers who combine their auto insurance with other policies. These policies can include, for example, life, home, or renters insurance from the same provider.

Methodology: How Our Auto Insurance Rates Were Collected

In order to help readers make some of the most difficult decisions of their lives, U.S. News & World Report ranks the Best Hospitals, Best Colleges, and Best Cars. Using the same impartial methodology, our 360 Reviews team rates the products you use on a daily basis. To create our rankings, we examined over forty-three auto insurance providers and agencies. We also examined ten independent review sites. Additionally, we polled 4242 customers who had either opened a policy or made a claim over the previous five years. Customer service was addressed in the survey questions. Claim status communication was also addressed. Claim resolution was another topic in the survey. Convenience of filing a claim was also considered. Overall value was addressed in the survey questions. We also enquired as to whether they intended to renew their coverage and if they would suggest the business.

Each sample product is donated after it has been reviewed.

After review, every sample product that was given is donated. Furthermore, we have a distinct business team that does not shape our approach or suggestions.

While not all of the major national American auto insurance companies and agencies operate in every state, U.S. News analysed a report on insurance rates in all 50 states from Quadrant Information Services in order to obtain comparative insurance rates for this study. Car insurance companies submit rate information to state regulators, and Quadrant received this information. The characteristics of male and female drivers in the ages of 17, 25, 35, and 60 form the basis of our study rates. The 2018 and 2023 Ford F-150, 2018 and 2023 Honda Civic, and 2018 and 2023 Toyota RAV4 are among the vehicles used; their yearly mileage ranges from 6,000 to 12,000 miles. Credit tiers of good, fair, and poor were also employed, along with three levels of auto insurance coverage. Certain driver archetypes were derived from driving records. Some of these records were spotless. Others contained just one collision, speeding infraction, or DUI.

We calculated the mean rate for male and female drivers aged 25, 35, and 60 who drive 12,000 miles annually, have medium coverage, decent credit, and a spotless driving record in order to arrive at the study rates displayed here. The rates displayed here should not be regarded as the “average” rates that each insurer offers; rather, they are merely meant to be used as a comparison. Your auto insurance rates will be different from the rates displayed here because they are determined by a variety of unique factors.

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