IvoryscholarshipThis tutorial discusses the average cost of auto insurance, the factors that influence premiums, and how to discover low-cost options. We also compare top vehicle insurance companies to help you find the best fit for your needs.
Why Trust the MarketWatch Guides Team?
We reviewed 130 providers, analyzed 8,500 data points, conducted 800 research hours, and surveyed 12,500 customers.
Average Automobile Insurance Costs
Full coverage is $223 per month or $2,681 annually.
Minimum coverage: $72 per month or $869 annually.
These figures are for a 35-year-old motorist with good credit and a clean driving record.
Factors influencing car insurance rates
Urban areas typically have greater rates.
Age: Younger and older drivers typically pay more.
Driving record: Accidents and fines raise rates.
Credit Score: Lower scores can result in higher premiums.
Provider: Different companies have different charges.
Coverage Level: More coverage equals higher cost.
Vehicle: The kind and value of your car influence your rates.
Car Insurance Costs by State
Insurance rates differ by state due to local regulations and risk variables. Below are samples of average monthly full-coverage rates:
Alabama charges $171.
Alaska: $176.
Arizona charges $261.
Arkansas charges $200.
California: $253.
The Most Expensive States for Auto Insurance
The states with the highest insurance rates include:
Louisiana: $363 a month.
New York costs $343 per month.
Michigan: $339 per month.
No-fault insurance legislation, high fraud rates, and high vehicle theft rates are all common causes of high rates.
Cheapest States for Car Insurance
States having the lowest insurance prices are:
Maine costs $122 per month.
Vermont: $128 a month.
Hawaii: $132 per month.
These states have low population densities and lower levels of uninsured drivers.
Car Insurance Cost by Provider:
Rates differ by provider, and some of the lowest average rates come from:
USAA costs $145 per month (military only).
Erie insurance costs $158 per month.
Geico costs $166 each month.
Car Insurance Costs By Age
Insurance prices vary by age group. Younger drivers pay more due to their inexperience, while seniors may also face higher charges. Here are the average full coverage prices by age:
16: $519 per month.
21: $349 each month.
35: $223 per month.
65: $202 a month.
75: $232 per month.
Car insurance rates for high-risk drivers
Drivers with infractions or poor credit pay more for insurance. The following are the average rates for a 35-year-old for numerous violations:
Clean Record: $223 each month.
Speeding ticket costs $270 each month.
DUI costs $323 each month.
At-fault Accident: $299 per month.
Bad credit: $446 per month.
Tips for Finding Low Prices:
Compare Quotes: Shop around for the best deals.
Ask for Discounts: Look for discounts on safe driving behaviors, defensive driving classes, and bundling insurance.
Consider different providers: Progressive and State Farm are frequently affordable for high-risk drivers.
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