Average Car Insurance Cost in 2020

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Average Car Insurance Costs

The average car insurance cost depends upon the factors you consider or because of these factors, the average car insurance cost differs. Though, the average car insurance cost in the US is about $ 1,099 per year. 

Moreover, car insurance rates also vary depending upon the factors, i.e. your geographical area, age, the insurance company you opt for, liability claim, etc. Apart from knowing car insurance costs, we should also consider the factor which can help in saving money on car insurance.

Factors of The Average Car Insurance Cost :

  • Average Car Insurance Costs by Company
  • Average Car Insurance Costs by State
  • Average Car Insurance Costs by Age and gender
  • Average Car Insurance Costs by Vehicle type
  • Average Car Insurance Costs by Accident history
  • Average Car Insurance Costs by Credit score

1. Average Car Insurance Costs by Company

The car insurance average cost provided by the companies are listed below in the table, which depicts the full as well as minimum coverage by the company. As companies do shake the cost of car insurance.

The company offering Full coverage insurance costs:

Rank Insurer Annual premium
1 Erie $ 1,521
2 State Farm $ 1,737
3 Farm Bureau Mutual (IA Group) $ 1,781
4 American Family $ 2,041
5 Auto-Owners Insurance Co $ 2,112
6 GEICO $ 2,158
7 Nationwide $ 2,293
8 Progressive $ 2,393
9 Metropolitan $ 2,447
10 Travelers $ 3,017
11 Allstate $ 3,545
12 Farmers $ 4,280
NA USAA $ 1,307

Here, we have not ranked USAA car insurance as it is available only for military persons and their family members.

The Company offering Minimum car insurance coverage costs

Rank Insurer Annual premium
1 Farm Bureau Mutual (IA Group) $ 436
2 Erie $ 451
3 Auto-Owners Insurance Co $ 649
4 State Farm $ 712
5 American Family $ 811
6 GEICO $ 819
7 Progressive $ 924
8 Metropolitan $ 971
9 Nationwide $ 1,004
10 Allstate $ 1,390
11 Travelers $ 1,412
12 Farmers $ 1,469
NA The USAA $ 430

Here, we have not ranked USAA car insurance as it is available only for military persons and their family members.

Average Insurance Cost of Companies on the basis of 6-month Premium

You can also compare the average insurance cost of companies on the basis of a 6-month premium. Here you can check out the best car insurance rates offered by the 5 best car insurance companies.

Insurance company 6-Month premium
Allstate $ 1,011
Farmers $ 822
GEICO $ 602
Liberty Mutual $ 863
Nationwide $ 714

2. Average Car Insurance Costs by State

Each state offers different car insurance average cost to its customers. The average car insurance cost by states on the basis of full coverage option and minimum coverage is given as:

Rank State Full coverage Minimum coverage Difference of coverage
1 Michigan $ 8,723 $ 5,282 $ 3,441
2 Rhode Island $ 3,847 $ 1,589 $ 2,258
3 Louisiana $ 3,525 $ 1,329 $ 2,196
4 Kentucky $ 3,418 $ 1,338 $ 2,079
5 Florida $ 3,370 $ 2,565 $ 805
6 Nevada $ 3,190 $ 1,295 $ 1,895
7 Colorado $ 3,164 $ 1,075 $ 2,089
8 New Jersey $ 3,013 $ 1,182 $ 1,831
9 Washington D.C. $ 2,793 $ 1,260 $ 1,533
10 New York $ 2,752 $ 1,323 $ 1,429

In the above table state, Michigan is providing maximum full car insurance coverage which is $ 8,723, sate New York is providing the least full car insurance coverage which is $ 2,752. 

Full Coverage most expensive car insurance cost and cheapest car insurance cost:

Here, we have covered the cheapest car insurance cost as well as the expensive car insurance cost in case of full coverage.

  • States having the most expensive car insurance cost:

So, the most expensive car insurance cost is offered by the following states:

State Cost per year Cost per month
Michigan $ 8,723 $ 727
Rhode Island $ 3,847 $ 321
Louisiana $ 3,525 $ 294

The average cheapest car insurance cost per year for Michigan, Rhode Island, and Louisiana is $ 8,723, $ 3,847 and $ 3,525 respectively. And the average cheapest car insurance cost per month for Michigan, Rhode Island, and Louisiana are$ 727, $ 321 and $ 294 respectively.

  • States having the cheapest car insurance cost:

So, the cheapest car insurance cost is offered by the following states:

State Cost per year Cost per month
Maine $ 1,268 $ 106
Hawaii $ 1,340 $ 112
North Carolina $ 1,434 $ 120

The average cheapest car insurance cost per month for Maine, Hawaii, and North Carolina are $ 106, $ 112 and $ 120 respectively. And the average cheapest auto insurance cost per year for Maine, Hawaii, and North Carolina is $ 1,268, $ 1,340, and $ 1,434 respectively.

Minimum coverage the most expensive car insurance cost and cheapest car insurance cost:

Here, we have covered the cheapest car insurance cost as well as the expensive car insurance cost car insurance in case of minimum coverage.

  • States having the most expensive car insurance cost:

So, the most expensive car insurance cost is offered by the following states:

State Cost per year Cost per month
Michigan $ 5,282 $ 440
Florida $ 2,565 $ 214
Rhode Island $ 1,589 $ 132

The average monthly cost for car insurance for Michigan, Florida, and Rhode Island is $ 440, $ 214, and $ 132 respectively. And the average car insurance cost per year for Michigan, Florida, and Rhode Island is $ 5,282, $ 2,565, and $ 1,589 respectively.

  • States having the cheapest car insurance cost:

So, the cheapest car insurance cost is offered by the following states:

State Cost per year Cost per month
Iowa $ 357 $ 30
South Dakota $ 420 $ 35
Hawaii $ 475 $ 40
  • Average Car Insurance Costs by Age and gender

The difference in Auto insurance quoted also varies based on gender. The car insurance cost for young and immature drivers is more than the cost of experienced and learner drivers.

Example: The cost of insurance for the 20-year-old driver will be more than the car insurance cost of the 30-year-old driver.

  • Average car insurance rates on the basis of gender:

The female driver needs to pay less car insurance costs, where as the male driver needs to pay more car insurance costs.

Driver profile Annual auto insurance premium
18 year old female $ 6,797
18 year old male $ 7,561

Here, the Annual average auto insurance cost of the premium for 18 year old female driver is $ 6,797, whereas the Annual average auto insurance cost of the premium for 18 year old male is $ 7,561.

  • Average car insurance rates on the basis of age:

Average car insurance rates on the basis of age can be seen as follows with the help of the following table:

Driver age Annual average auto insurance premium
18 $ 7179
19 $ 6021
20 $ 5333
21 $ 4453
22 $ 4128
23 $ 3840
24 $ 3597
25 $ 3207

As the age of the driver rises so does the car insurance cost. So, the teenage car insurance Average cost is higher as compared to the old age drivers or higher age drivers.

  • Average Car Insurance Costs by Vehicle type

The cost of insurance also differs based on the type of vehicle you have. The higher model car insurances are expensive as compared to the car insurance of lower or basic car models. The vehicle identification number (VIN) is used by the car insurance companies in order to check your vehicle details such as mileage, accidents, etc by which the car insurance premium cost can be depicted.

Vehicle type 6 Month premium
Truck Vehicle $ 865
Van Vehicle $ 844
SUV Vehicle $ 967
Car Vehicle $ 1,137
Luxury Vehicle $ 1,045
Green Vehicle $ 1,055
  • Average Car Insurance Costs by Accident history

Car insurance policies are also based on the accident levels and numbers. Higher the accident means lower the coverage offered. And in case of any violation, the insurance companies increase the premium amount. So, the rates of companies’ car insurance cost for drivers in case of accidents are as follows:

Company Rates, clean record Rates, one accident Percentage increase
Erie $ 1,521 $ 1,924 26 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
State Farm $ 1,737 $ 2,075 19 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Farm Bureau Mutual (IA Group) $ 1,781 $ 2,675 50 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
American Family $ 2,041 $ 2,962 45 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Auto-Owners Insurance Co $ 2,112 $ 2,742 30 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
GEICO $ 2,158 $ 3,140 46 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Nationwide $ 2,293 $ 3,132 37 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Progressive $ 2,393 $ 3,813 59 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Metropolitan $ 2,447 $ 3,959 62 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Travelers $ 3,017 $ 3,858 28 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Allstate $ 3,545 $ 5,360 51 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Farmers $ 4,280 $ 6,022 41 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
The USAA $ 1,307 $ 1,766 35 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}

Here, the rates of progressive car insurance have increased the maximum from $ 2,393 in case of a clean record to $ 3,813 in case of one accident, giving a hike of about 59 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}. Though, State Farm saw the least or minimum increase in price from $ 1,737 to $ 2,075, giving a hike of about 19 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}, which is the least increase of car insurance price compared to all the other companies.

  • Average Car Insurance Costs by Credit score

A Credit score also affects the insurance premium. As a good credit score drivers will receive good insurance or low cost car insurance rates. As it is familiar that a good credit score drive means he will be at lower risk and less prone to accidents. 

Company Poor or no credit Excellent credit Discount
The USAA $ 432 $ 324 25 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Farm Bureau Mutual (IA Group) $ 436 $ 320 27 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Erie $ 451 $ 325 28 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Auto-Owners Insurance Co $ 649 $ 347 46 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
State Farm $ 716 $ 375 48 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
American Family $ 811 $ 496 9 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
GEICO $ 842 $ 520 38 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Progressive $ 938 $ 582 38 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Nationwide $ 1,004 $ 755 25 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Metropolitan $ 1,108 $ 980 12 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Allstate $ 1,422 $ 843 41 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Travelers $ 1,486 $ 967 35 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}
Farmers $ 1,509 $ 692 54 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39}

Here, we see that the Farmers are giving a maximum discount to its drivers which is about 54 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39} while they drive safely, and Metropolitan is giving the least discount which is about 12 {367c01af22dc6c3a8611ff25983b0f0a247ed9fc1c45fd9103ad49b47a0c5f39} to its drivers while they drive safely.

Other things affecting car insurance rates:

Some of the other constraints that can affect car insurance rates are as follows:

  • Driving experience
  • Location within a state
  • Insurance and claims history
  • Mileage
  • Discounts
  1. The Driving experience of the driver: Your driving experienced also affects the cost of car insurance. The much experienced you are as a driver the cheaper car insurance you will be provided. Apart from age, the experience of driving a car is counted.
  2. The customer Location within a state: Your geographical location as well as your location within the state also affects the car insurance cost. The farther you are from the available service the more cost you will need to bear.
  3. Insurance and claims history: Your previous car insurance data or the car insurance history depicts the car insurance cost. As in the case of no gap period involved while taking insurance you will be provided lower average auto insurance rates or cheaper auto insurance rates compared to others.
  4. Mileage of your car: The mileage of your cars affects the average cost of car insurance. Lower mileage cars will be offered lower car rates
  5. Discounts offered or collected: Different car insurance discounts are offered by the companies, which can be a useful option to cut down your car insurance cost.

FAQ

The average cost for car insurance will be around $ 1,099 per year. Though, different car insurance rates are offered by the different car insurance companies.

A 20 year old individual pays around $ 3,800 Per Year for his car insurance. 

The cheapest car insurance is available between the age of 25 to 65, where minimum liability car coverage is offered to the drivers.

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