Car insurance: average cost in 2022

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You hope you never need to use it, but auto insurance is required in almost every state. New Hampshire is the only exception to this rule, but drivers opting out of coverage are required to prove they have the funds 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 several variables can affect your car insurance rates, including your car, your driving habits, demographic factors and your coverages, according to Allstate.

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Average cost of car insurance

The average cost of car insurance in the United States is $124 per month or $1,483 per year, according to The Zebra. Of course, as stated above, the amount you pay will vary depending on many factors, including the amount of coverage you choose.

Each state has a minimum amount of auto insurance coverage that drivers are required to have. Most states have a mandatory minimum for liability coverage, and some states also require additional coverage, including bodily injury protection 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 coverage insurance premiums

State Minimum coverage 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 full-coverage insurance premiums

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

State Minimum coverage for six months
Michigan $613
Florida $539
Louisiana $483
Rhodes 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 Full Insurance Premiums

State Full coverage for six months
Michigan $1,267
Florida $1,162
Louisiana $1,152
Rhodes 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 car insurance?” The answer is yes. When broken down into a monthly payment, the average cost of a full-coverage auto insurance premium exceeds that amount in only three states.

Car insurance rates by age

How much does monthly car insurance cost? As stated 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 average car insurance costs by age group, according to data from The Zebra.

age range Premium for six months Cost 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 a huge impact on auto insurance rates, with the exception of teenage drivers.

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

For example, if you are trying to determine “How much does car insurance cost in Connecticut for a 17 year old?” you might have a pleasant surprise.

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

On the other hand, if you try to figure out “How much does car insurance cost in Pennsylvania for a 22-year-old,” you might find yourself paying around the national average. Specifically, Pennsylvania drivers in their 20s have an average annual auto insurance premium of $1,789.79 — $149.90 per month — according to The Zebra.

Cheap car insurance companies

To the question “How much does car insurance cost per month?” you will find that this varies widely from company to company. Therefore, it is important to shop around to find the best rates for you.

You might find that a friend with similar demographics in your area gets a lower car insurance rate than a certain company. For example, on average, the cheapest car insurance for good drivers is Geico, but if you get a speeding ticket, State Farm has 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 an annual auto insurance policy, according to US News.

Company Cost per year
Allstate $2,047
Farmers $1,917
progressive $1,533
american family $1,372
travelers $1,371
At national scale $1,327
state farm $1,267
Geico $1,148
USAA $1,000

Best car insurance companies

When shopping for car insurance, price is probably a big factor. However, that shouldn’t be the only variable that matters.

If you need to use your insurance, you’ll want a company that makes the process as seamless as possible. In 2022, US News surveyed more than 10,000 drivers to learn more about their auto insurance experience, including issues such as customer service, claims handling and customer retention.

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

Company US news ranking Average annual rate
USAA 4.3 $1,000
state farm 4.2 $1,267
Farmers 4.1 $1,917
At national scale 4.1 $1,327
Geico 4.1 $1,148
Allstate 4.0 $2,047
travelers 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 car insurance as just an expense, but it’s so much more than that.

It’s important to be informed when customizing your policy because you need to be prepared for the unexpected. If you are involved in a car accident and found liable, you may be required to pay the injured party’s legal fees, medical bills, and loss of income.

Having liability coverage – or sufficient liability limits – can be the difference between asking your insurance company to pay these costs or having to pay them out of pocket. It can also provide protection for the passengers in your car, as they could get medical coverage and bodily injury protection to help pay for their expenses in the event of an accident.

Ultimately, an auto insurance policy is very personal and personalized. When shopping, it makes sense to ask “How much does car insurance cost per month?” so you have a basic comparison.

You can’t stick to the average numbers too closely, however, because factors like your driving history, age, type of vehicle, and other demographics will work together to determine the cost of your car insurance. Some companies offer cheaper coverage than others, but it’s important to read the fine print and fully 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 competitive rate.

Information is accurate as of Nov. 23, 2022.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.

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