Average Car Insurance Rates By Age And State (May 2022)

How much is car insurance in your state?

All states set their own car insurance regulations and requirements. Different states also have different driving conditions, which can impact the cost of car insurance.

To give you some idea of what drivers in each state spend annually on car insurance, the table below shows the average cost of car insurance by state, according to the 2021 NAIC Auto Insurance Database Report.

What else can affect average car insurance rates?

We’ve discussed how the following factors have the biggest impact on your car insurance premiums:

Company State Policy coverage Age Vehicle type Accident and credit history

But there are even more factors that can affect how much your car insurance costs:

Driving experience Address and ZIP code Insurance and claims history Annual mileage Discounts

If you’re a 30-year-old who’s had an insurance policy and been licensed since you were 16, you’re likely to get a cheaper rate than another 30-year-old who just took up driving.

Driving experience: Age affects car insurance rates, but so does the number of years you’ve been insured and driving.

Location within a state: Auto insurance is regulated differently in each state, leading to average prices for a full-coverage policy ranging from just under $1,200 (Maine) to over $7,000 (Michigan). But even within a state, insurers considered certain locations — or territories, in insurance terms — to be higher risk.

If you live in an area an insurer considers higher risk due to its rate of crashes, weather or crime, you may be subject to a higher rate than an equivalent driver living elsewhere.

Insurance and claims history: If you’ve maintained continuous auto insurance coverage, your insurer will be more confident that you’ve protected yourself and will usually charge a lower rate. Similarly, if you have a history of having auto insurance policies without filing claims, you’ll get cheaper rates than someone who has filed claims in the past.

Mileage: Cars that are driven less frequently are less likely to be involved in a crash or other damaging event. Vehicles with lower annual mileage may qualify for slightly lower rates.

Discounts: Auto insurance companies offer a variety of discounts for those who take steps to become safer drivers or demonstrate responsible behavior. For example, adults can take defensive driving lessons, while young adults can qualify for good student discounts.

Video

Tips for reducing your car insurance rates

If you’re shopping around for car insurance online and are receiving quotes that are outside your budget, here are several strategies for reducing your car insurance rates:

  • Shopping around: It is worth comparing rates from several insurers, especially if something that might impact your rates has recently changed. For example, after you get married, purchase a house or if your credit score improves, you should see if you can get a lower car insurance premium.
  • Bundling: Bundling your home and auto insurance policies typically results in premium discounts. You can also save money for insuring multiple vehicles under the same policy.
  • Paying upfront: Most insurers offer a pay-in-full discount. If you are able to pay your entire premium at once, it’s often a more cost-effective option.
  • Taking a class: Every state offers state-approved driver safety programs. Depending on the state, these classes are around six or eight hours long. Most insurers offer discounts for the completion of these programs.
  • Using a monitoring app: Several providers offer usage-based discounts or usage-based insurance programs. After signing up, you’ll monitor your driving habits through an app that tracks things like braking distance, average speed and driving times and rewards you for good behavior on the road.
  • Reducing coverage: As your vehicle ages, you may no longer need comprehensive and collision insurance policies. The rule of thumb is that you should drop coverage when your annual premium exceeds 10% of your vehicle’s total value.

What is the average car insurance cost?

There are a wide variety of factors that influence how much car insurance costs, which makes it difficult to get an accurate idea of what the average person pays for car insurance. According to the American Auto Association (AAA), the average cost to insure a sedan in 2016 was $1222 a year, or approximately $102 per month.[1]  Keep in mind that this is a ballpark figure based on nationally collected data; depending on your situation, it could be more or less.

Nationwide not only offers competitive rates, but also a range of discounts to help our members save even more.

More Ways To Save On Auto Insurance

You can’t control your age, and you probably don’t want to move states just to save on car insurance. Fortunately, there are a number of other discounts that you might be able to capitalize on right now. Here are a few of them:

  • Good driver: Many companies give you the biggest discount for having a good driving history. 
  • Multi-policy: Also called bundling, you can get lower rates for holding more than one insurance policy with the same company.
  • Multi-car: The same thing goes for insuring multiple cars with one company.Homeowner: If you own a home, you could get a homeowner discount from a number of providers.
  • Loyalty: Get a discount for sticking with the same company for multiple years. Here’s a secret: You can always compare rates each term to see if you’re getting the best price, even with your loyalty discount.
  • Usage-based: Programs like Progressive car insurance’s Snapshot track your driving habits and can issue discounts based on good driving. However, some can also raise your rates if it turns out you’re not a good driver.
  • Financial stability: Some companies give you a discount for having a good credit score. 

When searching for a quote, it’s a good idea to call the insurance company and ask if there are any more discounts that apply to you. Sometimes, online quote forms might not account for your unique situation.

What Other Factors Affect Car Insurance Rates?

Your age and your home state aren’t the only things that affect your rates. Insurers use a variety of factors to determine the cost of your premiums. Here are some of the most important ones:

  • Driving record: If you have a clean driving record, you’ll find much better rates than if you’ve had any recent accidents or traffic violations like speeding tickets.
  • Vehicle usage: You’re at risk every time you get on the road, so the more you drive, the more likely it is you’ll have an accident. Some insurers may offer discounted rates if you don’t use your car much. Others offer usage-based insurance that may save you money.
  • Vehicle type: Insurers factor the likelihood of a vehicle being stolen or damaged as well as the cost of that vehicle into your premiums. If your car is one that has a likelihood of being stolen, you may have to pay more for insurance.
  • Credit history: Some states have made laws that prevent insurers from using your credit score as part of your rates calculation. But in others, having bad credit could cause the cost of your insurance premiums to rise dramatically.
  • Gender: Not every state allows insurers to use the gender listed on your driver’s license as a determining factor in your premiums. But in ones that do, female drivers typically pay a little less for insurance than male drivers.
  • Auto insurance coverage: Of course, how much insurance and what kind of insurance coverage you buy has a direct effect on how much you pay. Policies that only meet state minimum coverage requirements will be the cheapest. Additional coverage will cost more.

How much does car insurance cost by credit score?

Statistically, drivers with poor credit file more claims and have higher claim severity than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on various factors; it probably won’t exactly match the scores from Experian, TransUnion or Equifax as it is a credit-based insurance score, not a credit score. The table below showcases how credit can affect your annual full coverage car insurance premium.

Regulations in California, Hawaii, Massachusetts and Michigan prohibit auto insurers from using credit as a factor when setting rates. The state of Washington continues to evaluate whether or not credit will be banned as a rating factor, but currently allows its use.

Average cost of full coverage car insurance by credit score
Poor Average Good Excellent
National average $3,873 $1,865 $1,674 $1,487

How can I get a discount on my car insurance?

There are a variety of ways you can get cheaper car insurance. Many insurers offer discounts for having more than one policy with them, in addition to insuring more than one vehicle. Check out the list of car insurance discounts available from Progressive to see even more ways you can save.

How much car insurance rates cost by age and gender

Auto insurance quotes also vary depending on the driver’s age and years of experience. Young and inexperienced drivers tend to get in more accidents behind the wheel, which is why young drivers have higher auto insurance rates.

For example, an 18-year-old driver pays more than three times as much as a 25-year-old driver for auto insurance, with all other factors equal.

Average rates gradually decrease each year until a driver reaches age 25.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations. *2021 rates for 16-year-old are based on a driver of this age added to their parents’ policy. *2021 rates for 18-year-old are based on a driver of this age that is a renter (not a homeowner) and on their own policy.

Model: To determine the cost by vehicle type, we evaluated our 2021 base profile with the following vehicles applied: Ford F-150, Chevrolet Silverado, Ram 1500, Toyota RAV4, Honda CR-V and Toyota Camry (base).

Incidents: Rates were calculated by evaluating our 2021 base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.

Credit-Based Insurance Scores: These 2021 rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit insurers from using credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan. Washington State currently permits credit as a rating factor, but a ban on its use is currently on hold in the courts.

Bankrate scores

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Tags