How Much Is Car Insurance? Average Car Insurance Cost in 2025
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By Kiah Treece
Car insurance costs can be a significant part of a driver’s budget. With rates influenced by various factors such as location, age and car model, understanding the average insurance costs in 2025 can help you make informed decisions. We’ll show you what you can expect to pay for car insurance in today’s market and provide tips for keeping insurance costs low.
How Much Does Car Insurance Cost?
The average cost of car insurance varies depending on various factors, including the company you buy coverage from. However, a 2024 estimate based on data across ZIP codes and carriers in all 50 states indicated car insurance costs $2,543 per year on average. This estimate is based on a $100,000 deductible per person, $300,000 in bodily injury liability coverage per accident and $50,000 in property damage liability coverage for a car driven about 12,000 miles annually.
Full-coverage versus minimum coverage
The type of coverage you choose for your car insurance can significantly impact the cost of your premium. Full-coverage policies, including liability, collision and comprehensive coverage, are usually more expensive than minimum or liability-only policies.
Full-coverage policies provide greater protection in case of accidents or damage to your vehicle — but they also come with a higher price tag. On the other hand, minimum coverage policies may save you money in the short term but could cost you more in the long run if you’re involved in an accident.
Factors That Affect Car Insurance Rates
Several factors affect car insurance rates, and insurers consider various individual and external variables. Understanding these factors can empower you to navigate the insurance marketplace more effectively and secure more favorable rates. This is especially true if you’re a first-time buyer.
These are the factors that generally affect car insurance rates:
- Age and driving experience: Younger drivers, particularly those under 20, typically pay more for car insurance due to their perceived inexperience behind the wheel, which is statistically linked to a higher risk of accidents. Conversely, older, more experienced drivers tend to benefit from lower rates, assuming they maintain a clean driving record.
- Driving record: A history of accidents, traffic violations or DUI incidents can indicate to insurers that a driver poses a higher risk. Such drivers often pay higher premiums as they are more likely to file a claim. By contrast, a clean driving record can establish a driver as responsible and low-risk, potentially leading to discounts on premiums.
- Credit score: Many insurers consider credit history to indicate a person’s reliability and financial stability. Higher credit scores may correlate with responsible driving behavior and timely premium payments, prompting some insurers to offer lower rates to drivers with good credit.
- Location: Where a vehicle is registered and typically driven can impact insurance costs substantially. Urban areas with higher traffic density, theft rates and chances of collisions can result in higher rates. In contrast, rural or suburban areas generally provide a safer, lower-risk environment that translates into lower premiums.
- Type of vehicle: Your vehicle’s make, model and year can also influence insurance costs. Sports cars with high performance may carry higher premiums than a family sedan due to the potential for speed-related accidents. Additionally, newer models or vehicles with costly parts could be more expensive to insure because they cost more to repair or replace.
- Claims history: If you have previously filed auto insurance claims, especially at-fault accidents, insurers might consider you at a higher risk for future claims. This claim-based history can lead to increased insurance rates.
- Gender and marital status: Certain demographic factors, including gender and marital status, can influence car insurance rates. Historically, men have paid slightly higher rates than women, especially in younger age groups, and married couples often receive lower rates than single individuals. However, these factors may vary depending on the insurance provider and state regulations.
- Coverage type and deductibles: The amount of coverage — from basic liability to comprehensive policies — and the chosen deductibles affect the insurance rate. Higher deductibles typically result in lowered premiums because you agree to pay more out of pocket in case of a claim. Additional coverage, like gap insurance, can also drive up the cost of a policy.
- Discounts: Insurance companies often offer discounts to eligible drivers. These savings can vary depending on the insurer and your situation. Common examples include good student or senior discounts, bundling home and auto policies or having a car equipped with certain safety features.
Average Car Insurance Cost by State for 2025
The state you live in plays a significant role in average auto insurance rates, as prices can vary widely across the country due to differing state regulations, road conditions and risk profiles. Familiarize yourself with your state’s average car insurance costs for a more localized perspective on what you might expect to pay. This state-by-state breakdown will equip you with the knowledge to budget accordingly and understand how your location influences the insurance premiums you’re likely to encounter.
Here’s how much drivers pay for minimum car insurance each year on average:
| State | Average Auto Insurance Premiums in 2023 (Annual) |
| Alabama | $2,038 |
| Alaska | $2,387 |
| Arizona | $2,744 |
| Arkansas | $2,473 |
| California | $2,973 |
| Colorado | $3,144 |
| Connecticut | $2,720 |
| Delaware | $2,771 |
| Florida | $4,171 |
| Georgia | $2,939 |
| Hawaii | $1,689 |
| Idaho | $1,454 |
| Illinois | $2,315 |
| Indiana | $1,723 |
| Iowa | $1,857 |
| Kansas | $2,518 |
| Kentucky | $2,747 |
| Louisiana | $3,978 |
| Maine | $1,627 |
| Maryland | $2,793 |
| Massachusetts | $2,092 |
| Michigan | $3,131 |
| Minnesota | $2,528 |
| Mississippi | $2,149 |
| Missouri | $2,578 |
| Montana | $2,394 |
| Nebraska | $2,332 |
| Nevada | $3,562 |
| New Hampshire | $1,823 |
| New Jersey | $2,785 |
| New Mexico | $2,193 |
| New York | $3,916 |
| North Carolina | $2,047 |
| North Dakota | $1,798 |
| Ohio | $1,596 |
| Oklahoma | $2,741 |
| Oregon | $1,984 |
| Pennsylvania | $2,467 |
| Rhode Island | $2,946 |
| South Carolina | $2,022 |
| South Dakota | $2,329 |
| Tennessee | $2,086 |
| Texas | $2,545 |
| Utah | $2,131 |
| Vermont | $1,470 |
| Virginia | $2,136 |
| Washington | $1,845 |
| West Virginia | $2,175 |
| Wisconsin | $1,918 |
| Wyoming | $1,747 |
| District of Columbia | $2,890 |
Always compare rates from several car insurance companies — whether you live in California, Florida, Illinois, Michigan, New Jersey, Pennsylvania, Texas or any other state in the U.S.
Average Car Insurance Costs by Vehicle Type
The car you drive also plays a significant role in auto insurance rates — especially if you own one of the cheapest or most expensive cars to insure. Cars that are more expensive to repair or have a higher likelihood of being stolen generally carry higher premiums. Likewise, cars with advanced safety features and high safety ratings may be more affordable to insure.
The following figures from AAA can give you an idea of the average insurance costs to expect for a variety of top-selling 2024 models:
| Vehicle Type | Average Annual Premium for Full Coverage Insurance |
| Small sedan | $1,510 |
| Medium sedan | $1,583 |
| Subcompact SUV | $1,684 |
| Compact SUV (FWD) | $1,723 |
| Medium SUV (4WD) | $1,831 |
| Mid-size pickup | $1,527 |
| Half-ton/crew-cab pickup truck | $1,764 |
| Hybrid vehicle | $1,643 |
| Electrical vehicle | $2,059 |
Source: AAA
How Much Does Car Insurance Cost by Age?
Younger drivers, especially teenagers, often face the highest premiums due to their relative inexperience behind the wheel and higher accident rates. As drivers mature and gain experience, their insurance costs typically decrease, reaching a low point for drivers in their middle ages. However, costs may increase as drivers reach their senior years, where reaction times and cognitive abilities behind the wheel may decline.
| Age | Annual Full Coverage Premium |
| 16-year-old | $5,675 |
| 18-year-old | $7,311 |
| 20-year-old | $5,375 |
| 25-year-old | $3,251 |
| 35-year-old | $2,712 |
| 50-year-old | $2,463 |
| 60-year-old | $2,373 |
| 70-year-old | $2,575 |
*Average of premiums for male and female drivers
| Age | Annual Full Coverage Premium |
| Teens | $369 |
| 20s | $264 |
| 30s | $203 |
| 40s | $184 |
| 50s | $165 |
| 60s | $155 |
| 70s | $166 |
Car Insurance Cost by Provider
The best auto insurance companies of 2025 offer a variety of coverage options, discounts that are easy to qualify for and an easy way to get a quote online. For illustrative purposes, the sample premiums below are for a 2018 Chevrolet Traverse for a single, 41-year-old male driver in Indianapolis.
| Company | Coverage Option | Annual Premium |
| Progressive | Liability (bodily injury/property damage): $250K/$500K/$100K comprehensive collision | $1,246 |
| Allstate | Liability (BI/PD): $25K/$50K/$25K comprehensive collision | $2,746 |
| GEICO | Liability (BI/PD): $250K/$500K/$100K comprehensive collision | $1,310 |
| Liberty Mutual | Liability (BI/PD): $250K/$500K/$100K comprehensive collision | $2,234 |
| Amica | Liability (BI/PD): $250K/$500K/$100K comprehensive collision | $1,666 |
How to Lower Your Car Insurance Cost
Car insurance can be expensive — especially if you’re on a tight budget. Luckily, there are steps you can take to reduce your premiums. Follow these tips to lower your car insurance costs:
- Shop around for competitive rates. Don’t settle for the first quote you receive. Get quotes from multiple insurance providers to compare rates and coverage options. Each insurer uses a unique formula to calculate premiums, so shopping around gives you a better chance of finding a favorable rate.
- Bundle your insurance policies. Combining your car insurance with other policies, such as homeowners or renters insurance, typically qualifies you for a bundling discount. Insurance companies offer these discounts to encourage customers to purchase multiple products.
- Increase your deductible. Opting for a higher deductible reduces your insurance premium because you’re agreeing to pay more out of pocket in the event of a claim. However, make sure the deductible you choose is an amount you can comfortably afford if you need to file a claim.
- Maintain a clean driving record. A clean driving record is a testament to responsible driving habits and poses less risk to the insurer. Over time, avoiding citations and accidents can significantly lower your insurance costs.
- Take a defensive driving course. Some insurance companies offer discounts if you complete an approved defensive driving course. These courses reinforce safe driving techniques and make you less likely to be involved in accidents, which insurers reward with lower rates.
- Use the insurer’s telematics programs. These are devices or apps that monitor your driving habits and reward you for safe driving through personalized discounts. By consenting to telematics, you allow the insurer to track behaviors like speed, braking and the time of day you drive to assess your risk level.
- Review your coverage annually. As your life changes, so do your insurance needs. Determine how much car insurance you need and review your policy annually to ensure it still fits your situation. For instance, older cars might not require as much coverage as newer ones, leading to potential savings on premiums.
- Check for additional discounts. Always inquire about all potential savings such as safe driver, loyalty and good student discounts. Insurers might not heavily advertise these discounts, but they can lead to substantial savings.
Remember that the aim is not merely to minimize costs but to ensure that you retain adequate coverage. Balancing cost with coverage is essential for financial protection and peace of mind.
Common Car Insurance Discounts
One of the key areas to examine when choosing car insurance is the availability of discounts. Many insurance providers offer a variety of discounts that can significantly lower premiums. By understanding and taking advantage of these discounts, policyholders can enjoy more affordable rates without compromising coverage. Here are some common car insurance discounts:
- Safe driver discount: Rewarding those with a clean driving record, this discount is typically offered to drivers without any accidents or traffic violations in a certain period.
- Multicar discount: Insurers often provide a reduction in rates for customers who insure more than one vehicle on the same policy.
- Bundling/multipolicy discount: Combining auto insurance with other policies, like homeowners or renters insurance, can yield savings across all policies.
- Defensive driving course discount: Completing an approved defensive driving course may qualify you for this discount as it indicates a commitment to safe driving.
- Good student discount: Full-time students with good academic records are often rewarded with lower premiums as they are perceived to be more responsible.
- Anti-theft device discount: Cars equipped with anti-theft systems are less risky and, therefore, may qualify for discounted rates.
- Low-mileage discount: Drivers who use their car infrequently may be eligible for this discount based on the reduced risk of accidents.
- Military discount: Many insurers offer discounts to active-duty military personnel, veterans and their families as a token of appreciation for their service.
- Auto-pay and paperless discounts: Setting up automatic payments and opting for electronic policy documents can be convenient and may provide savings.
- Loyalty discount: For customers who have remained with the same insurance provider for several years, a loyalty discount may be a reward for their long-term business.
What Happens if You Drive Without Car Insurance?
If you are caught driving without car insurance, you can be assessed penalties and punishments that vary by state. Most states charge a minimum fine of $100 to $5,000 for the first time you’re caught driving uninsured, and penalties only increase for subsequent offenses. You might lose your license or go to prison.
It might be tempting to buy one of the best extended car warranty plans. However, this is not the same as car insurance and won’t meet your state’s insurance requirements.
Best Car Insurance Company Comparison
The best car insurance providers of 2025 let consumers choose from robust coverage options and policy benefits. If you’re searching for affordable auto insurance but want the best protection money can buy, consider the following companies or read more about the best car insurance companies before choosing coverage. If you’re looking for coverage for your motorcycle, choose from the best motorcycle insurance companies.
Progressive
Progressive Insurance was founded in 1937 and currently offers a variety of car insurance products, including for recreational vehicles like motorcycles and campers. It makes getting a free quote online easy, and its mobile app lets you track your policy, make payments and submit claims with a mobile device.
With Progressive auto insurance coverage, you can use the online quote tool to tailor your coverage limits and deductible to your needs and budgetary constraints. Discounts are available for multiple policies, multiple cars, having a safe driving record, being a teen driver and being a good student. You can also save money by getting a quote online, enrolling in paperless statements and more.
Allstate
Allstate Insurance was founded in 1931 and has since grown to become one of the most prominent insurance providers in the U.S. It has a helpful mobile app, a useful website that lets you get a free quote online and an online claims process that’s easy to use.
The insurer also offers a discount program known as Allstate Drivewise and specialized coverage for custom and classic cars. Like other providers, Allstate lets you pick your deductible and coverage limits. It also offers an array of discounts that make your premiums more affordable, including for antilock brakes, having an anti-theft device, being a good student, paying in full, having a new car, bundling policies and more.
GEICO
GEICO was founded in 1936 and has since expanded to offer a variety of insurance products like auto insurance, homeowners insurance and motorcycle insurance. GEICO makes it incredibly easy to get a free quote online and is well known for its online customer service and useful mobile app.
The insurer lets you customize your auto insurance policy limits and deductible. You can buy basic liability coverage and comprehensive coverage, collision coverage, emergency road service, rental reimbursement and more. GEICO also offers an array of discounts, including the ability to save 23% for having air bags, 22% for being a good driver and 15% for being a good student.
Liberty Mutual
Founded in 1912, Liberty Mutual has the longest history of any auto insurance provider on our list. Standard coverage options include liability, collision, comprehensive coverage and medical payments. Its mobile app lets you track your policy, make payments and manage claims using your smartphone.
Various discounts can help you save on premiums for having multiple policies, being in the military, owning your home, being a good student, having vehicle safety and anti-theft devices, being accident- and violation-free, paying in full and going paperless. You can also secure lower rates by tailoring your policy limits and your insurance deductible to your needs.
Amica
Amica stands out in the auto insurance marketplace by prioritizing customer satisfaction and claims service excellence. It not only offers an impressive range of customizable coverages but also shines in customer service, as evidenced by its recognition in the 2024 J.D. Power Claims Satisfaction Survey, where it ranked second-highest among its peers. Amica’s blend of comprehensive coverage options, competitive discounts and top-tier customer care are what positions it as one of the industry’s leading providers.
The Zebra
The Zebra is an insurance comparison site that lets you get quotes from multiple insurers at once. The Austin, Texas-based platform compares options from more than 100 companies and reportedly provides personalized quotes within five minutes. Founded in 2012, The Zebra has provided more than 18 million quotes, and some consumers report saving around 50% over their previous insurance.
How We Chose the Best Car Insurance Companies
Our search for the best car insurance companies started with financial ratings. We only included auto insurance providers with an A rating or better from AM Best. As a third-party agency, AM Best assesses insurance providers based on their financial strength and other factors.
We also looked for companies that make it easy to get an online quote and those that have their own mobile app. Auto insurance companies with add-on protections in addition to regular coverage also scored well in our ranking. Finally, we compared auto insurance providers based on how they scored in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study.
Average Car Insurance Cost FAQs
Is $100 a month too much for car insurance?
Whether $100 a month for car insurance is too much depends on various factors, including your driving history, car model, location and coverage level. Averages vary widely, so compare quotes and discounts to ensure you’re getting a fair rate for your specific situation.
Who pays the most for car insurance?
Typically, young drivers, especially males under 20, and those with a history of accidents or traffic violations, pay the highest rates for car insurance. Premiums often reflect the increased risk perceived by insurance companies.
Who typically has the cheapest insurance?
Because auto insurance rates depend on a variety of factors, no auto insurance company is always cheaper than others. However, you might pay less with a provider that offers state minimum coverage.
How do you get multiple quotes for car insurance?
To obtain multiple car insurance quotes, you can use comparison websites, contact insurance companies directly or work with an insurance broker. Compile your personal and vehicle information to get accurate quotes. Ensure consistent coverage levels across all quotes for a fair comparison.
Car insurance companies make it easy to get a free quote online. You should be able to compare multiple companies and premiums in minutes.
How can I save money on car insurance?
To secure the lowest possible premiums, we suggest comparing at least three to four insurance providers, raising your deductible and buying only the coverage you need. You can also ask about discounts, such as safe driver and good student programs, bundling policies, going paperless and paying in full.
