Car insurance is a required expense in every state (except New Hampshire for liability). Rates vary enormously based on where you live, how old you are, and your driving record. Here’s the complete breakdown.
Average Car Insurance Cost by State (All 50 States)
| Rank | State | Avg. Annual (Full Coverage) | Avg. Monthly | Avg. Annual (Min. Coverage) |
|---|---|---|---|---|
| 1 | Louisiana | $4,210 | $351 | $1,460 |
| 2 | Michigan | $3,840 | $320 | $1,280 |
| 3 | Florida | $3,480 | $290 | $1,190 |
| 4 | New York | $3,120 | $260 | $980 |
| 5 | Nevada | $2,940 | $245 | $920 |
| 6 | Georgia | $2,860 | $238 | $880 |
| 7 | California | $2,780 | $232 | $840 |
| 8 | Texas | $2,720 | $227 | $870 |
| 9 | Connecticut | $2,680 | $223 | $810 |
| 10 | New Jersey | $2,640 | $220 | $820 |
| 11 | Colorado | $2,580 | $215 | $760 |
| 12 | South Carolina | $2,520 | $210 | $780 |
| 13 | Maryland | $2,460 | $205 | $740 |
| 14 | Kentucky | $2,400 | $200 | $730 |
| 15 | Arizona | $2,340 | $195 | $710 |
| 16 | Rhode Island | $2,300 | $192 | $700 |
| 17 | Mississippi | $2,260 | $188 | $680 |
| 18 | Oklahoma | $2,220 | $185 | $670 |
| 19 | Delaware | $2,180 | $182 | $660 |
| 20 | Alabama | $2,140 | $178 | $640 |
| 21 | Oregon | $2,100 | $175 | $630 |
| 22 | Missouri | $2,060 | $172 | $620 |
| 23 | Washington | $2,020 | $168 | $610 |
| 24 | Tennessee | $1,980 | $165 | $600 |
| 25 | Illinois | $1,940 | $162 | $590 |
| 26 | West Virginia | $1,900 | $158 | $580 |
| 27 | Pennsylvania | $1,860 | $155 | $560 |
| 28 | Arkansas | $1,840 | $153 | $560 |
| 29 | Montana | $1,800 | $150 | $540 |
| 30 | Minnesota | $1,760 | $147 | $520 |
| 31 | New Mexico | $1,720 | $143 | $510 |
| 32 | Alaska | $1,680 | $140 | $500 |
| 33 | North Carolina | $1,640 | $137 | $490 |
| 34 | Nebraska | $1,620 | $135 | $480 |
| 35 | Indiana | $1,600 | $133 | $470 |
| 36 | Kansas | $1,580 | $132 | $460 |
| 37 | Utah | $1,560 | $130 | $450 |
| 38 | South Dakota | $1,540 | $128 | $440 |
| 39 | Virginia | $1,500 | $125 | $430 |
| 40 | Massachusetts | $1,480 | $123 | $420 |
| 41 | Hawaii | $1,460 | $122 | $410 |
| 42 | Wisconsin | $1,440 | $120 | $400 |
| 43 | North Dakota | $1,400 | $117 | $390 |
| 44 | Wyoming | $1,360 | $113 | $380 |
| 45 | Iowa | $1,340 | $112 | $370 |
| 46 | New Hampshire | $1,300 | $108 | $360 |
| 47 | Ohio | $1,280 | $107 | $350 |
| 48 | Vermont | $1,240 | $103 | $340 |
| 49 | Idaho | $1,200 | $100 | $330 |
| 50 | Maine | $1,040 | $87 | $290 |
Car Insurance by Age
| Age | Avg. Annual (Full Coverage) | Monthly | Why |
|---|---|---|---|
| 16 | $6,380 | $532 | Inexperienced, highest risk |
| 18 | $5,120 | $427 | Still very high risk |
| 20 | $3,840 | $320 | Risk decreasing |
| 25 | $2,280 | $190 | Rate drops significantly |
| 30 | $1,940 | $162 | Continued decrease |
| 35 | $1,860 | $155 | Near lowest rates |
| 40 | $1,820 | $152 | Lowest rate period |
| 50 | $1,880 | $157 | Slight increase |
| 60 | $1,920 | $160 | Gradual increase |
| 70 | $2,180 | $182 | Higher risk, reaction time |
| 80+ | $2,640 | $220 | Highest adult rate |
The cheapest auto insurance years are typically ages 35-50.
See also:Average Cost of a Car in 2026 (New and Used)·Average Auto Loan Payment in America (2026)·Average Car Loan Interest Rates by Credit Score (2026)
Car Insurance by Coverage Level
| Coverage Level | What It Includes | Avg. Annual Cost |
|---|---|---|
| State minimum liability | Bodily injury + property damage only | $660 |
| Basic full coverage | Min liability + collision + comprehensive, $1,000 deductible | $1,680 |
| Standard full coverage | 100/300/100 liability + collision + comp, $500 deductible | $2,014 |
| Enhanced full coverage | 250/500/250 + collision + comp + umbrella, $250 deductible | $2,640 |
What Each Coverage Means
| Coverage | What It Pays For | Recommended Minimum |
|---|---|---|
| Bodily injury liability | Other people’s injuries if you cause an accident | $100K per person / $300K per accident |
| Property damage liability | Other people’s property damage you cause | $100K |
| Collision | Damage to your car (any accident) | Yes, if car value > $5K |
| Comprehensive | Theft, weather, animals, falling objects | Yes, if car value > $5K |
| Uninsured motorist | Covers you if hit by uninsured driver | Match your liability limits |
| Medical payments/PIP | Your medical bills (regardless of fault) | $10K-$25K |
| Gap insurance | Pays difference if car totaled and underwater | If you owe more than car is worth |
How Credit Score Affects Car Insurance
In most states, insurers use credit-based insurance scores:
| Credit Range | Avg. Annual Premium | vs. Excellent Credit |
|---|---|---|
| Excellent (800+) | $1,560 | Baseline |
| Good (670-799) | $1,920 | +23% |
| Fair (580-669) | $2,580 | +65% |
| Poor (300-579) | $3,480 | +123% |
States that ban credit-based insurance pricing: California, Hawaii, Massachusetts, and Michigan.
How to Save on Car Insurance
| Strategy | Potential Savings |
|---|---|
| Shop and compare every year | 15-40% |
| Bundle home + auto | 5-25% |
| Increase deductible ($500 → $1,000) | 10-20% |
| Good driver discount (no accidents 3-5 years) | 10-25% |
| Good student discount (GPA 3.0+) | 5-15% |
| Defensive driving course | 5-10% |
| Low mileage discount | 5-15% |
| Pay annually instead of monthly | 5-10% |
| Improve credit score | 10-40% |
| Remove unnecessary coverage on old cars | Varies |
| Ask about all available discounts | 5-30% |
When to Drop Collision/Comprehensive
Consider dropping collision and comprehensive coverage when:
- Your car’s value is under $5,000
- The annual premium for collision/comprehensive exceeds 10% of car’s value
- You have enough savings to replace the car
Car Insurance for Young Drivers
| Strategy | Savings |
|---|---|
| Stay on parents’ policy | 30-50% cheaper than own policy |
| Good student discount | 5-15% |
| Take a defensive driving course | 5-10% |
| Drive a safe, boring car (Honda Civic, not BMW) | 20-40% |
| Maintain a clean record | Biggest long-term savings |
| Use telematics/usage-based program | 10-30% |