Average Cost Of Car Insurance 2025

The national average cost of car insurance is $2,026 per year or $169 per month, according to Forbes Advisor’s 2025 analysis of full coverage rates. The national average for state minimum coverage is $638 per year or $53 per month. 

Car insurance is required to drive legally in nearly all states, so knowing what you can expect to pay for coverage is helpful. We analyzed rates from the best car insurance companies to find the average cost of auto insurance by:

• State
• Age
• Gender
• Company and coverage amount
• Driving history
• Vehicle type
• Usage

All of these factors are taken into account by car insurance companies when pricing policies.

How Much Is Car Insurance?

The national average cost for car insurance is $2,026 per year, according to our analysis. This rate is for full coverage car insurance, which includes optional coverage for theft and damage to your vehicle from a collision and other non-crash events, such as a fire or flooding.

Drivers with the minimum amount of liability car insurance required by their state pay an average of $638 per year. Liability insurance pays only for damage or injuries you cause others if you cause an accident.

Average Car Insurance Rates by State

Car insurance rates by state vary because where you live factors into costs. For instance, car insurance companies look at the number of claims in your area and how much the claims cost,  including claims from accidents, theft and weather damage.

The minimum car insurance requirements also vary by state. Be aware that if you move, higher limits or more coverage types may be mandated in your new state.

State	Average annual full coverage cost	Average annual minimum coverage cost	State minimum liability requirements
Alabama	$1,975	$578	25/50/25
Alaska	$1,913	$518	50/100/25
Arizona	$2,110	$708	25/50/15
Arkansas	$2,295	$550	25/50/25
California	$2,768	$731	15/30/5
Colorado	$2,591	$594	25/50/15
Connecticut	$2,252	$1,088	25/50/25
Delaware	$2,405	$1,107	25/50/10
Florida	$3,865	$1,529	10/20/10
Georgia	$2,003	$815	25/50/25
Hawaii	$1,369	$423	20/40/10
Idaho	$1,246	$400	25/50/15
Illinois	$1,903	$629	25/50/20
Indiana	$1,627	$476	25/50/25
Iowa	$1,559	$318	20/40/15
Kansas	$2,032	$600	25/50/25
Kentucky	$2,496	$799	25/50/25
Louisiana	$3,545	$1,060	15/30/25
Maine	$1,361	$477	50/100/25
Maryland	$2,210	$1,004	30/60/15
Massachusetts	$1,804	$567	20/40/5
Michigan	$2,372	$1,173	50/100/10
Minnesota	$2,016	$677	30/60/10
Mississippi	$1,917	$537	25/50/25
Missouri	$2,434	$726	25/50/25
Montana	$2,354	$544	25/50/20
Nebraska	$1,709	$412	25/50/25
Nevada	$2,496	$920	25/50/20
New Hampshire	$1,390	$518	25/50/25
New Jersey	$2,438	$1,237	25/50/25
New Mexico	$2,082	$551	25/50/10
New York	$2,612	$1,114	25/50/10
North Carolina	$1,470	$528	30/60/25
North Dakota	$2,190	$626	25/50/25
Ohio	$1,434	$389	25/50/25
Oklahoma	$2,741	$567	25/50/25
Oregon	$1,748	$824	25/50/20
Pennsylvania	$2,353	$530	15/30/5
Rhode Island	$2,080	$755	25/50/25
South Carolina	$2,172	$776	25/50/25
South Dakota	$2,075	$381	25/50/25
Tennessee	$1,843	$547	25/50/25
Texas	$2,609	$796	30/60/25
Utah	$2,050	$771	25/65/15
Vermont	$1,158	$313	25/50/10
Virginia	$1,755	$621	30/60/20
Washington	$1,525	$547	25/50/10
West Virginia	$1,942	$542	25/50/25
Wisconsin	$1,655	$424	25/50/10
Wyoming	$1,531	$319	25/50/20

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Least and Most Expensive States for Full Coverage Car Insurance

Our analysis of average car insurance rates by state finds that Vermont is the cheapest state for full coverage car insurance. The cheapest states are:

• Vermont: $1,158 a year
• Idaho: $1,246 a year
• Maine: $1,361 a year
• Hawaii: $1,369 a year
• New Hampshire: $1,390 a year

The most expensive state for full coverage auto insurance is Florida. The top most expensive states are:

• Florida: $3,865 a year
• Louisiana: $3,545 a year
• California: $2,768 a year
• Oklahoma: $2,741 a year
• New York: $2,612 a year

Least and Most Expensive States for Minimum Liability Car Insurance

Drivers in Vermont pay the least for minimum liability coverage car insurance compared to the rest of the country. The cheapest states are:

• Vermont: $313 a year
• Iowa: $318 a year
• Wyoming: $319  a year
• South Dakota: $381 a year
• Ohio: $389 a year

Florida drivers pay the most when they buy their state’s minimum liability car insurance. The most expensive states are:

• Florida: $1,529 a year
• New Jersey: $1,237 a year
• Michigan: $1,173  a year
• New York: $1,114 a year
• Delaware: $1,107 a year

How Much Does Car Insurance Cost by Age?

The average cost of car insurance is $6,045 a year for an 18-year-old driver. It’s $2,204 a year for a 30-year-old and $1,847 a year for a 60-year-old for full coverage, based on our research. 

Car insurance costs start high in your teen years but begin to decrease as you get older and gain more driving experience. The average rate for 16-year-old drivers with their own policy is $8,420 a year. Average rates for 17-year-olds clock in at $6,736 a year. That’s about 20% lower than what 16-year-olds pay.

Young and inexperienced teen drivers see higher rates because they’re more likely to be in accidents and file claims. That makes it critical to shop for the best cheap car insurance for teen drivers.

Senior drivers have experience on their side but reaction times may decrease. Car insurance companies consider those in their 70s and older to have a higher likelihood of getting into accidents. As long as your driving record is clear of accidents or tickets, your rates should get cheaper as you age until you approach your 70s and rates start to rise again.

Age	Average annual cost per year	% difference from 40-year-old cost
16-year-old	$8,420	308% higher
17-year-old	$6,736	227% higher
18-year-old	$6,045	193% higher
19-year-old	$4,593	123% higher
20-year-old	$4,174	102% higher
25-year-old	$2,456	19% higher
30-year-old	$2,204	7% higher
40-year-old	$2,062	N/A
50-year-old	$1,932	6% cheaper
60-year-old	$1,847	10% cheaper
70-year-old	$2,048	1% cheaper
80-year-old	$2,538	23% higher

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Average Car Insurance Rates for a Parents’ Policy With Teen Added

The cheapest way to insure teen drivers is usually by adding them to your policy. Still, it can double the parents’ auto insurance costs. Our analysis found that listing a 16-year-old driver on a parent policy increased the rate by an average of 91%. The annual cost for the parents’ policy jumped from $2,592 to $4,951 a year. That’s a $2,359 per year increase. 

Age of teen driver	Parents’ average annual car insurance cost after adding teen driver
16-year-old	$4,951
17-year-old	$4,530
18-year-old	$4,198
19-year-old	$3,769

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Average Cost of Car Insurance by Gender

Car insurance companies find that young males are more likely to engage in unsafe driving behavior, so they pay more than females initially. This rate gap for males tends to close around age 25 and become nearly on par with their female counterparts—but creep up again for males in their 70s or 80s.  

Gender can be used in pricing car insurance in all states except California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania.

Average Car Insurance Rates by Age and Gender

Our analysis of car insurance rates for males and females ages 18 to 80 found that males tend to pay more when young and old.  Car insurance companies’ data finds these male age groups exhibit riskier driving patterns than females. More risk equals higher rates.

Age	Gender	Average annual cost	% difference males pay compared to females	$ difference males pay per year compared to females
18	Female Male	$5,646 $6,443	N/A 14% more	N/A $797 more
25	Female Male	$2,407 $2,505	N/A 4% more	N/A $98 more
40	Female Male	$2,071 $2,054	N/A 1% less	N/A $17 less
60	Female Male	$1,832 $1,861	N/A 2% more	N/A $29 more
80	Female Male	$2,437 $2,638	N/A 8% more	N/A $201 more

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Related: How Gender And Age Affect Car Insurance Rates

How Much Is Auto Insurance by Company?

We found that the average cost of auto insurance ranges from around $1,300 to $3,000 per year for full coverage. Each auto insurance company assesses risk differently, which means prices can vary significantly among companies. 

USAA—one of the best military car insurance companies—is the cheapest for both full coverage and state minimum. The next cheapest full coverage car insurance comes from Nationwide, followed by Travelers. Erie and Auto-Owners have the next lowest rates for state minimum insurance. 

Company	Average annual cost for full coverage car insurance	Average annual cost for state minimum car insurance
USAA*	$1,364	$373
Nationwide	$1,436	$640
Travelers	$1,521	$667
Geico	$1,597	$481
Erie	$1,642	$437
Progressive	$1,826	$656
Auto-Owners	$1,855	$445
Westfield	$1,984	$481
State Farm	$2,025	$617
Mercury	$2,210	$847
Direct Auto (formerly Safe Auto)	$2,889	$817
Allstate	$2,896	$895
Farmers	$3,093	$938

*USAA auto insurance is only available to the military, veterans and their families.

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Average Cost of Car Insurance by Driving History

Car insurance companies reward those with clean driving records with cheaper rates because good drivers typically file few claims, so they’re generally cheaper to insure.

Auto Insurance Rates For Clean Driving Record

If you can maintain a clean driving record, car insurance companies will consider you a good driver and offer you their best rate.

Driver type	Average annual full coverage cost
Teen driver with clean driving record (age 17)	$6,273
Young driver with clean driving record (age 21)	$3,215
Adult driver with clean driving record (age 40)	$2,069
Senior driver with clean driving record (age 70)	$2,009

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Average Car Insurance Rates After a Speeding Ticket

Expect to pay more for car insurance after a speeding ticket. For example, a 40-year-old will see an average annual hike of around $500 per year after a speeding ticket.

Driver type	Average annual full coverage cost
Teen driver with speeding ticket (age 17)	$7,396
Young driver with speeding ticket (age 21)	$3,918
Adult driver with speeding ticket (age 40)	$2,595
Senior driver with speeding ticket (age 70)	$2,588

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Average Car Insurance Rates After a DUI

Car insurance rates after a DUI increase by an average of around $1,300 a year—from $2,069 to $3,413 a year for a 40-year-old, based on our analysis.

Driver type	Average annual full coverage cost
Teen driver with DUI (age 17)	$8,730
Young driver with DUI (age 21)	$4,978
Adult driver with DUI (age 40)	$3,413
Senior driver with DUI (age 70)	$3,431

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Average Car Insurance Cost After an At-Fault Accident

Car insurance rates after an accident increase an average of 49% for a 40-year-old driver who caused injury to others. That spikes their average rate by over $1,000 a year, from $2,069 to $3,072. 

Many car insurance companies offer an accident forgiveness benefit as part of being a loyal customer or for a fee. It spares you from a rate increase after your first auto accident. But if you have two accidents, don’t expect a pass on the second one.

Driver type	Average annual full coverage cost
Teen driver after an accident with injury (age 17)	$7,979
Young driver after an accident with injury (age 21)	$4,435
Adult driver after an accident with injury (age 40)	$3,072
Senior driver after an accident with injury (age 70)	$3,114

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Average Cost of Car Insurance Based on Credit Score

Insurers say drivers with lower credit are more likely to file claims, which is why car insurance rates for drivers with bad credit are often very high. Our analysis found that drivers with poor credit pay an average of 88% more than drivers with good credit.

Not all states allow insurers to use credit to price car insurance. Using a credit-based auto insurance score is banned from auto insurance rate calculations in California, Hawaii, Massachusetts and Michigan.

Credit Score	Average annual cost	% difference from good credit average annual cost
Excellent	$1,676	19% cheaper
Good	$2,068
Fair	$2,558	24% higher
Below fair	$3,117	51% higher
Poor	$3,889	88% higher

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Average Cost of Car Insurance by Car Type 

The type of car you drive affects auto insurance rates, particularly collision and comprehensive coverage costs. It’s cheaper to insure vehicles with better safety records and cheaper repair bills and that are less costly to replace if totaled in an accident.

Minivans are the generally cheapest type of vehicle to insure.

Car type	Average annual cost
Minivan	$2,041
Van	$2,168
Trucks	$2,234
Hatchback	$2,298
SUV	$2,378
Sedan	$3,184
Convertible	$3,393
Wagon	$3,438
Coupe	$3,894

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Average Car Insurance Rates by Fuel Type

Hybrid and electric car insurance is more expensive than insurance for gas-powered cars because they can be more expensive to repair. Mechanics may need specialized training and parts can be more costly.

Car fuel type	Average annual cost
Gas	$2,567
Hybrid	$2,802
Electric	$3,547

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Average Car Insurance Costs for Top-selling Vehicles

The Honda CR-V and Subaru Outback have an average annual rate of $1,723. That’s $1,405 a year cheaper than the insurance cost of the most expensive vehicle on our list.

Tesla Model Y insurance is the most expensive at $3,128 a year, followed by Tesla Model 3 insurance at $3,053 a year. The Tesla Model Y car insurance costs are 82% more than the Honda CR-V or Subaru Outback. The value of the vehicles and repair costs are a couple of reasons the Tesla models are so expensive to insure.

Rank	Vehicle	Annual average cost
1	Ford F-150 XL	$1,769
2	Chevrolet Silverado 1500 Limited WT	$1,812
3	Ram 1500 Classic Express	$1,963
4	Toyota RAV4 LE	$1,835
5	Tesla Model Y Long Range	$3,128
6	Toyota Camry SE	$2,095
7	Honda CR-V EX	$1,723
8	Chevrolet Equinox LS	$1,856
9	Toyota Tacoma SR	$1,990
10	GMC Sierra 1500 Pro	$1,827
11	Ford Explorer	$1,979
12	Tesla Model 3	$3,053
13	Jeep Wrangler Sport	$1,807
14	Toyota Corolla L	$2,099
15	Toyota Highlander LE	$1,990
16	Jeep Grand Cherokee Laredo	$1,960
17	Hyundai Tucson N Line	$1,868
18	Kia Sportage EX	$1,831
19	Subaru Outback	$1,723
20	Nissan Altima 2.5 SV	$2,316

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Average Auto Insurance Cost by Usage

How much you drive and how you use your vehicle will affect your car insurance rates. For example, if you drive a convertible mainly on weekends and it’s designated for pleasure use, your auto insurance rates will differ from the car you designated as your daily commuter.

If you use your car for business purposes, such as making deliveries, you normally need commercial auto insurance instead of a personal auto policy. 

Average Car Insurance Cost by Annual Mileage

If you drive your car fewer miles annually because you are retired, work from home or merely don’t drive much, you should see reduced auto insurance rates. You’re on the road less, so you pose less risk of being in an accident and filing claims.

Drivers in the U.S. travel an average of nearly 13,500 miles annually, according to data from the Federal Highway Administration. The FHA data reveals that male motorists drive more miles annually (16,550 miles) than females (10,142 miles). Here’s a look at the average car insurance costs per year based on miles driven.

Average annual mileage	Average annual insurance cost
3,000 miles	$1,996
6,000 miles	$2,015
8,000 miles	$2,046
11,000 miles	$2,065
13,000 miles	$2,087
16,000 miles	$2,103
25,000 miles	$2,138

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Factors That Affect Car Insurance Prices

Most auto insurers use these main factors that affect car insurance rates, though how each item is weighed varies among insurers.

	Age   Young drivers under 25 usually pay more due to inexperience, and senior drivers over 65 typically pay higher rates because their driving abilities may be declining.
	Car Insurance History   Continual car insurance coverage gets you better prices, while a lapse in coverage will lead to higher rates.
	Claims History   Drivers with past claims are more costly to insure.
	Coverage and Limits Selections   Choosing higher limits and adding optional coverage to a policy will increase the price. To keep costs down, ensure the coverage you select matches your needs and skip add-on benefits you may not use.
	Credit   Insurers say drivers with poor credit are more likely to file claims, so they adjust rates accordingly. The use of credit in pricing car insurance is controversial because consumer advocates say it's discriminatory. California, Hawaii, Massachusetts and Michigan prohibit this practice.
	Driving Record   A driving record with traffic violations or accidents is a sign to insurers that you’re a risky driver, so they’ll charge you higher rates.
	Gender   Males typically pay more for auto insurance than females when they’re young (ages 16 to 25) and older (65 and over) because they are more accident-prone. California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania all ban the use of gender as a rating factor.
	Vehicle Model   Your car’s make and model affect car insurance. If the model is expensive to repair or replace, you’ll usually pay more for insurance. Insurers also look at theft rates and claims records for your vehicle model to predict how likely it is that you’ll make a claim.
	Years of Driving Experience   The less experience you have, the more likely you’ll get into an auto accident, so you’ll pay more. Hawaii doesn’t allow age or driving experience to be used as rating factors.
	Location   You’ll see higher average car insurance costs if your area has more claims or high claim costs, such as bills for repairs or medical expenses.

Learn more: Why Is My Car Insurance So Expensive?

EXPERT TIPS

How to Save Money on Car Insurance

Penny Gusner

Insurance Senior Writer

Amy Danise

Insurance Managing Editor

Michelle Megna

Insurance Lead Editor

Jason Metz

Insurance Lead Editor

Shop Around with Multiple Companies

The hands-down best way to save money on car insurance is to shop around. I recommend shopping with at least three auto insurance companies to see who offers the best rates.

Penny Gusner

Insurance Senior Writer

Pay in Full

Whether you’re buying a 6-month or 12-month car insurance policy, paying the policy term in full will usually lead to a discount vs. paying monthly. Ask your insurance agent what car insurance discounts you’re eligible for—there may be some you can get by making small changes.

Amy Danise

Insurance Managing Editor

Raise Your Deductible

A car insurance deductible is the amount deducted from your insurance check for a comprehensive or collision claim. I find choosing a higher deductible reduces costs because the insurer is responsible for paying a little less on claims I may make.

Michelle Megna

Insurance Lead Editor

Keep a Clean Driving Record

Drivers with a clean driving record are offered the best rates, so I remind myself to ease up on the gas to avoid speeding tickets. If you do get a ticket, you can still try to save by comparing car insurance quotes to see what company offers the lowest rates to drivers with a violation on their records.

Jason Metz

Insurance Lead Editor

Types of Car Insurance Discounts

Discounts help lower the average cost of car insurance. Look for these common discounts and ask your agent if there are any other discounts you’re eligible for to get cheap car insurance.

• Advance shopping discount: Getting quotes before your current policy expires can earn you a discount. It’s best to shop seven to 14 days in advance to receive this savings.
• Defensive driving class. If you’re 55 or older, you may earn a discount for sharpening your skills with an approved driving course. Make sure your insurer approves of a specific course for a discount before taking it.
• Good driver discount: A driving record free of tickets and accidents can qualify you for a good driver discount. Some insurers refer to it as a safe driver discount.
• Membership discount: Ask about a discount based on associations or organizations you’re a member of, such as college alumni associations or a union.
• Multi-policy discount: You can reduce your rates by bundling home and auto policies, meaning you bought them from the same company. Discounts vary between 6% and 23%, according to our research.
• Multi-vehicle discount: Having more than one vehicle on the same car insurance policy gets you a multi-car insurance discount.
• Online quote: Save with some insurers by getting an online quote and then buying a policy.
• Paid in full discount: Pay your car insurance bill upfront instead of paying monthly to save money.
• Paperless discount: Choosing to go paperless with your bills and policy documents may get you a small discount. The discount is usually under 5% but is easy to obtain.
• Vehicle safety features: Some auto insurers give discounts if your car has specific safety equipment, such as airbags, anti-lock brakes or daytime running lights. 

If you have a teen or young adult on your policy, ask about:

• Receiving a discount if your child completes an approved driver training program.
• A good student discount if your young driver does well in school (high school or college).
• A reduction in rates for a “student away at school” if your child is off to college at least 100 miles away from home and is without a car.

Related: Best Car Insurance for College Students

Methodology

We used data from Quadrant Information Services to find average rates for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, low-mileage drivers, for adding a teen driver, senior drivers and young drivers. 

Unless otherwise noted, rates for full coverage are based on insuring a new Toyota RAV4 and coverage of:

• $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
• Uninsured motorist coverage of 100/300.
• Collision and comprehensive insurance with a $500 deductible.
• Any other insurance required in a state.

State minimum coverage rates reflect the minimum amount of auto insurance required in each state.