Car Insurance: Average Cost in 2022 – GOBankingRates | CarTailz

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You hope you never need it, but auto insurance is required in almost every state. New Hampshire is the only exception to this rule, but drivers who choose not to have coverage must show they have the means to meet the state’s financial requirements if they cause an accident.

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So how much does car insurance cost per month? This number will be different for everyone because, according to Allstate, several variables can affect your auto insurance premiums, including your car, your driving habits, demographics, and your coverages.

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Average cost of car insurance

According to The Zebra, the average cost of auto insurance in the US is $124 per month, or $1,483 per year. Of course, as mentioned above, the amount you pay will depend on many factors, including the level of cover you choose.

Each state has a minimum amount of auto insurance coverage that drivers must carry. Most states have a mandatory minimum of liability coverage, and some states also require additional coverage, including personal injury coverage or uninsured/underinsured coverage.

Here’s a look at the states with the cheapest and most expensive six-month minimum and comprehensive insurance premiums, according to The Zebra.

States with the cheapest minimum insurance premiums

Federal State Minimum insurance for six months
Iowa $150
South Dakota $158
Vermont $166
Wyoming $167
Ohio $174
Wisconsin $181
New Hampshire $185
North Dakota $190
Virginia $197
Idaho $199
Tennessee $199
North Carolina $201

States with the cheapest comprehensive insurance premiums

Federal State Full coverage for six months
Ohio $463
New Hampshire $480
North Carolina $505
Virginia $513
Vermont $528
Hawaii $540
Wisconsin $540
Maine $550
Iowa $575
Indiana $594
Washington $604
Idaho $628

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States with the most expensive minimum insurance premiums

Federal State Minimum insurance for six months
Michigan $613
Florida $539
Louisiana $483
Rhode Island $451
Nevada $437
Delaware $436
new York $417
Kentucky $388
New Jersey $371
Connecticut $360
Arizona $334
Maryland $333

States with the most expensive comprehensive insurance premiums

Federal State Full coverage for six months
Michigan $1,267
Florida $1,162
Louisiana $1,152
Rhode Island $937
Kentucky $925
California $911
Nevada $872
Arkansas $851
Colorado $849
new York $846
Missouri $844
Delaware $808

So if you’re wondering, “Is $200 a month a lot for auto insurance?” The answer is yes. When broken down into a monthly payment, the average cost of comprehensive motor vehicle insurance exceeds this amount in only three states.

Car insurance rates by age

What is the monthly car insurance rate? As mentioned above, this number is different for everyone.

However, age is a factor that affects car insurance rates. Younger and older drivers tend to pay the most, while those in between often pay lower rates.

Here’s a look at the average car insurance cost by age group, according to data from The Zebra.

age group Bonus for six months costs per month
16-19 $2,286 $381
20-29 $943 $157
30-39 $724 $121
40-49 $697 $116
50-59 $649 $108
60-69 $658 $110
70-79 $762 $127
80-85 $882 $147

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As you can see, age doesn’t seem to have much of an impact on car insurance rates — with the exception of teenage drivers.

Of course, the above rates are just the national averages. Some states have higher mean rates for these age groups, while others are lower.

For example, if you’re trying to figure out, “How much is auto insurance in Connecticut for a 17 year old?” you might be in for a pleasant surprise.

According to US News, Geico offers the cheapest auto insurance for teen drivers in the state. Teenage girls pay an average annual rate of $2,697 – $224.75 per month – while average rates for boys are significantly higher at $3,138 per year – $261.50 per month.

On the other hand, if you’re trying to figure out, “How much does auto insurance cost in Pennsylvania for a 22-year-old,” you might be paying exactly the national average. According to The Zebra, Pennsylvania drivers in their 20s have an average annual auto insurance premium of $1,789.79 – $149.90 per month.

Cheap car insurance

When asked “How much does car insurance cost per month?” You will find that this varies greatly by company. So it’s important to shop around to find the best prices for you.

You may find that a friend close to you with similar demographics is getting a lower auto insurance rate than you from a particular company. For example, Geico is, on average, the cheapest car insurance for good drivers, but if you get a speeding ticket, State Farm offers the lowest rates, according to US News.

However, some auto insurance companies tend to have lower rates than others. Here’s a look at the national average rates for annual car insurance, according to US News.

company costs per year
all states $2,047
farmers $1,917
Progressive $1,533
American family $1,372
traveler $1,371
nationwide $1,327
district farm $1,267
geiko $1,148
USAA $1,000

The best car insurance

When looking for auto insurance, price is likely to be an important factor. However, it shouldn’t be the only variable that matters.

When you need to claim your insurance, you want a company that will make the process as seamless as possible. In 2022, US News surveyed more than 10,000 drivers to learn about their auto insurance experience, including topics such as customer service, claims processing, and customer retention.

Here’s a look at the 10 top-rated auto insurance companies of 2022 according to the survey.

company US news rating Average annual rate
USAA 4.3 $1,000
district farm 4.2 $1,267
farmers 4.1 $1,917
nationwide 4.1 $1,327
geiko 4.1 $1,148
all states 4.0 $2,047
traveler 4.0 $1,371
Progressive 3.9 $1,533
AAA 3.9 $2,409
American family 3.7 $1,371

Importance of car insurance

It’s easy to think of auto insurance as just another expense, but it’s so much more than that.

It’s important to be informed when adjusting your policy because you need to be prepared for the unexpected. If you are involved in a car accident and found guilty, you could be responsible for paying legal fees, medical expenses for the injured party and their lost income.

Liability insurance – or sufficient liability limits – can mean the difference between your insurance company covering these costs and having to pay them out of pocket. It can also offer protection to occupants in your car as they may be able to get health insurance coverage and personal injury coverage to cover their costs in the event of an accident.

After all, car insurance is very personal and individual. When shopping, it makes sense to ask, “How much does car insurance cost per month?” This gives you a baseline comparison.

You can’t stick too closely to average numbers, however, as factors like your driving history, age, vehicle type, and other demographics combine to determine your auto insurance cost. Some companies offer cheaper coverage than others, but it’s important to read the fine print and really understand your policy.

You don’t want to find out the hard way that you don’t have the coverage you thought you had when you really need it. Therefore, it is best to look for a policy that offers comprehensive coverage at the most affordable price.

Information is correct as of November 23, 2022.

Our in-house research team and on-site financial experts work together to create content that is accurate, impartial and timely. We verify every single statistic, quote, and fact against trusted primary sources to ensure the information we provide is accurate. Learn more about GOBankingRates’ processes and standards in our editorial policy.

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