Average Cost of Car Insurance by State in 2024
Average Cost of Car Insurance by State in 2024
Driving without car insurance in the United States is illegal, and the penalties vary from state to state. They can range from fines to more severe charges, like a misdemeanor on your record. To avoid these consequences, it's essential to have car insurance before hitting the road.
This post breaks down the average cost of car insurance across different states to help you budget accordingly.
Key Findings:
- According to AAA, the average national cost for a full-coverage car insurance policy was $1,588 in 2022.
- The cheapest states for full coverage are Ohio, Maine, and Idaho. The most expensive are Florida, Louisiana, and Michigan.
- USAA, Geico, and State Farm offer the lowest rates for minimum coverage, while USAA, Geico, and Nationwide provide the most affordable full-coverage options.
- Car insurance costs typically decrease with age but start to increase again around age 70.
- Individuals with high credit scores pay less for car insurance on average than those with poor credit.
How Much Is Car Insurance?
The national average cost of car insurance for a full-coverage policy was $1,588 in 2022, according to AAA. This estimate is for drivers under 65 who live in urban or suburban areas, have over six years of driving experience, and have no accident history.
Average Cost of Car Insurance by State
Your state of residence significantly affects how much you'll pay for car insurance. Factors such as population density, weather conditions, road quality, and crime rates influence the likelihood of filing a claim.
- Cheapest States for Minimum Coverage: Iowa ($263), South Dakota ($267), and Wyoming ($293).
- Cheapest States for Full Coverage: Ohio ($1,023), Maine ($1,116), and Idaho ($1,121).
- Most Expensive States for Minimum Coverage: New Jersey ($989), Florida ($908), and New York ($875).
- Most Expensive States for Full Coverage: Florida ($2,560), Louisiana ($2,546), and Delaware ($2,137).
| State | Minimum Coverage | Full Coverage |
|---|---|---|
| AK | $336 | $1,359 |
| AL | $420 | $1,542 |
| AR | $422 | $1,597 |
| CA | $582 | $2,115 |
| FL | $908 | $2,560 |
| OH | $308 | $1,023 |
| TX | $520 | $1,875 |
| NY | $875 | $2,020 |
And many more states listed...
Average Cost of Insurance by Company
The company you choose also plays a role in determining your insurance costs. Some companies consistently offer lower rates than others.
- Cheapest Minimum Coverage: USAA ($948), Geico ($1,064), and State Farm ($1,191).
- Cheapest Full Coverage: USAA ($1,056), Geico ($1,238), and Nationwide ($1,338).
- Most Expensive Minimum Coverage: Farmers ($1,782), Progressive ($1,440), and Nationwide ($1,347).
- Most Expensive Full Coverage: Allstate ($2,138), Farmers ($2,059), and Progressive ($1,650).
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| USAA | $948 | $1,056 |
| Geico | $1,064 | $1,238 |
| State Farm | $1,191 | $1,348 |
| Allstate | $1,961 | $2,138 |
Average Cost of Insurance by Age
Car insurance rates generally decrease as you age, but there's an uptick around age 70.
| Age | Minimum Coverage | Full Coverage |
|---|---|---|
| 20 | $1,109 | $3,532 |
| 30 | $539 | $1,785 |
| 40 | $520 | $1,682 |
| 50 | $496 | $1,581 |
| 60 | $482 | $1,511 |
| 70 | $554 | $1,661 |
Young Drivers and Insurance Costs
Young drivers face the highest insurance rates. Although rates decrease with age, younger drivers still pay significantly more compared to older drivers.
| Age | Minimum Coverage | Full Coverage |
|---|---|---|
| 16 | $2,402 | $7,203 |
| 18 | $1,706 | $5,242 |
| 21 | $884 | $2,864 |
| 24 | $690 | $2,267 |
Insurance Costs by Credit Score
Insurance companies use credit scores to assess risk, meaning those with higher credit scores generally pay less for car insurance. Individuals with poor credit can pay up to 114% more than those with excellent credit.
| Credit Score | Average Annual Rate |
|---|---|
| Very Poor (300-579) | $2,887 |
| Average (580-669) | $2,296 |
| Excellent (740-799) | $1,606 |
| Exceptional (800-850) | $1,350 |
Factors Affecting Your Car Insurance Rate
- Age: Young drivers under 25 and seniors over 65 tend to pay more.
- State and ZIP Code: Your location affects the cost due to varying state laws and local risk factors.
- Marital Status: Married drivers typically pay less.
- Gender: Young male drivers often face higher premiums.
- Credit History: Better credit scores generally result in lower rates.
- Driving Record: A clean record means lower premiums.
- Vehicle Type: Safer, less expensive cars cost less to insure.
- Annual Mileage: More miles driven can mean higher premiums.
- High-Risk Violations: Offenses like DUIs can increase rates significantly.
Full Coverage vs. Minimum Coverage
- Minimum Coverage: Required in most states, it covers damages and injuries caused to others when you're at fault.
- Full Coverage: Includes minimum coverage plus protection for your own vehicle, often required by lenders for auto loans.
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