The national average car insurance cost is $2,150 annually, according to Forbes Advisor analysis. This price is for comprehensive car insurance, which includes optional coverage against theft and damage to your vehicle. According to our analysis, drivers with the minimum liability required by their state pay an average of $467 per year.
Full Coverage vs. Minimum Coverage
Minimum Coverage Auto Insurance is a policy that provides automobile liability coverage for the state-mandated amount you are legally required to drive. This is a basic program and doesn’t cover damage to your vehicle, so it’s generally the cheapest type of car insurance.
Depending on which state you live in, minimum coverage may also include uninsured motorist coverage, personal injury coverage, or medical coverage. These are all policies that cover many aspects of medical expenses you may incur if you are injured in a car accident.
Fully comprehensive auto insurance includes liability coverage, including collision and collision coverage, to help repair or replace your vehicle.
Liability insurance, which pays the cost of others’ injuries and property damage when you cause an accident and for your legal defense, judgments and settlements if you’re sued.
Average Cost of Car Insurance for Teens
Average rates for 17-year-olds clock in at $6,829 a year. That’s about 22 percent less than what a 16-year-old would pay.
The cheapest way to protect young drivers is often to add them to your policy. However, this will double the cost of the parent’s car insurance. For example, our analysis found that adding a 16-year-old driver to a parent’s policy increased premiums by an average of 82 percent. The annual cost of parental benefits increased from $2,948 to $5,367. Increased by $2,419
Average Car Insurance Cost by Company
Every car insurance company evaluates risk differently, which means prices vary from company to company. That’s why comparing auto insurance quotes from multiple companies can help you find the best price for your specific situation.
Average Car Insurance Rates by Company for Full Coverage
The cheapest full coverage car insurance ranges from $1,412 to $3,233 a year, on average, among the companies we analyzed.The next cheapest is Auto-Owners ($1,628 a year), followed by Geico ($1,716 a year).
Average Cost of Car Insurance by Driving History
But if you get busted for speeding, expect to pay more for car insurance after a speeding ticket—an average annual hike of nearly $500. That brings the average rate after a speeding ticket to $2,633 a year.
Average Car Insurance Rates After a DUI
Car insurance rates after an accident increase an average of 40% for drivers who cause property damage. This increased the average price by more than $850 per year, from $2,150 to $3,005.
Some state laws prohibit minor accidents by increasing the rate. In New York, for example, car insurance companies are not allowed to raise rates if the total damage from the accident is less than $2,000 and no one is injured.
Some insurance companies are prohibited from increasing rates even if state law does not apply. Even minor events will not affect your rates. For example, in many states, Progressive will not increase premiums if your accident claim totals $500 or less.
Many car insurance companies offer accident waivers, either as part of the fairness or premium, which can save you from increased rates after your first car accident. But if you have two requirements, don’t expect to pass the second one.
Average Insurance Rates by Credit
Car insurance companies say drivers with poorer credit are more likely to file a claim. That’s why car insurance rates for drivers with bad credit are often very high.