How much is car insurance?

2020 The average cost of auto insurance in the U.S. is around $1,100 per year but depends on factors about you, your car, and where you live.

If you wonder how much car insurance is going to cost you, well, the answer is “it depends.” The rates based on your zip code, driver register, age, marital status, credit score, the ride choice, the amount of coverage and a bunch of other things you choose to buy, so it is hard to estimate for sure if you have not entered most of this information to compare car insurance quotations.

But you’re lucky if you’re trying to get a ballpark figure on how many people pay for coverage. National Association of Insurance Commissioners states that 2020, the average cost of auto insurance in the U.S. is about $1,100 per year (or about 93 dollars a month). The report, dated December 2019, contains the most recent NAIC data.

Average car insurance rates by state

Average car insurance rates by state

In almost all states, driving without at least some insurance is illegal. You can find exact information on how much car insurance is needed in all 50 states here.


For specific safety features, there are state-mandated car insurance reductions; rates increase approvals and limitations on what factors are available to set premiums. But it is not just a policy that drives state-by-state disparities in car insurance rates. Insurance companies can charge higher prices where people make more claims. And if a densely populated country has high crime rates, the weather is consistently bad, and its highways are dangerous, well, then people will have a perfect chance of filing claims on the regs.


So, where does car insurance probably cost you? Below is the NAIC report’s courtesy of the average annual cost of state auto insurance. The NAIC methodology folds the average PIP coverage into its average liability coverage, but it can be lowered according to your coverage needs by reducing coverage in liability or PIP.

How much does a cheap car insurance cost?

The cheapest car insurance states are generally the least populated. Furthermore, government car insurance minima are much less severe. For example, Idaho does not require a PIP or under-insured motorist insurance.

Because you have no government mandates to buy collision or comprehensive insurance, as above, you can purchase liability insurance only. You could save your premiums hundreds of dollars per year. But this means that you could be on the hook for tens of thousands of dollars out of the pocket so that buying low-cost car insurance is not the most cost-effective option in the long term.

What is the cost of my car insurance?


More than a dozen factors are involved in determining your car insurance rates. While each insurer will have its list of elements and its risk assessment process, you may expect to take into account some generic factors, no matter where you are shopping for auto insurance.

Who sets car insurance costs?

The main factors that are part of car insurance are your driving background, the amount and quantity of coverage, your age, race, and marital status, how far you travel, the type of care, your credit score, and the city where you live.

The editorial content of Audatex is not written by an insurance agent. It is intended for informational purposes and should not be considered legal or financial advice. Consult a professional to find out which commercial products are right for you.