The average cost of car insurance in 2022

The average cost of car insurance in 2022
Insurance agent explaining damages of car to customer
The cost of your car insurance will depend on a host of factors.

Nitat Termmee/Getty Images

  • The average cost of car insurance in the US is $1,070 per year.
  • Your gender, location, age, credit history, and driving history will all factor into your premium.
  • Shop around and see which insurance company will have the best price for you. 

If you’re in the market for your next car insurance policy, expect to pay $1,070 per year, according to recent data from the Insurance Information Institute. It’s essential to understand all the factors that can affect your coverage price since not everyone’s cost is the same.

Car insurance policies have lots of moving parts, and your premium, or the cost you’ll pay for coverage, is just one of them. Insurance is regulated at the state level, and laws on required coverage and auto insurance pricing differ in every state. Insurance companies take into account many different factors, including the state and area where you live and your gender, age, driving history, and the level of coverage you’d like to have.

Insider compiled data from industry regulators, personal finance publications, and comparison sites to determine which factors affected car insurance costs and what the typical driver can expect to pay. Here are the most significant factors influencing the price you’ll pay for coverage and what to consider when looking at your car insurance options. 

Keep in mind that there have been several major changes to car insurance costs during the coronavirus pandemic. Some car insurers offer discounts as Americans drive less and are helping people affected by the virus postpone payments.

Average car insurance cost by state

Every state handles car insurance differently. States regulate their laws and policies about car insurance coverage, including how much coverage is required, how much insurance is responsible for covering, and what factors insurance companies can use to determine rates.

In some states, like New Hampshire, car insurance isn’t required. In Michigan, car insurance is expensive because of a no-fault law requiring unlimited coverage for personal injury protection. Regulations like these will be significant factors in the amount you’ll pay for coverage. 

State Average annual premium
Alabama $1,336
Alaska $1,408
Arizona $1,320
Arkansas $1,318
California $1,397
Colorado $1,380
Connecticut $1,561
Delaware $1,417
District of Columbia $1,431
Florida $1,369
Georgia $1,406
Hawaii $1,408
Idaho $1,309
Illinois $1,265
Indiana $1,230
Iowa $1,235
Kansas $1,233
Kentucky $1,335
Louisiana $1,316
Maine $1,452
Maryland $1,512
Massachusetts $1,570
Michigan $1,237
Minnesota $1,293
Mississippi $1,308
Missouri $1,215
Montana $1,285
Nebraska $1,243
Nevada $1,316
New Hampshire $1,561
New Jersey $1,579
New Mexico $1,262
New York $1,499
North Carolina $1,374
North Dakota $1,245
Ohio $1,217
Oklahoma $1,341
Oregon $1,341
Pennsylvania $1,479
Rhode Island $1,476
South Carolina $1,366
South Dakota $1,218
Tennessee $1,361
Texas $1,409
Utah $1,421
Vermont $1,473
Virginia $1,462
Washington $1,395
West Virginia $1,296
Wisconsin $1,244
Wyoming $1,305

Source: 2019 data from S&P Global Market Intelligence

Average car insurance cost by coverage type

As a general rule, the more a policy covers, the more car insurance costs. 

You’ll often see quotes listed with numbers and slashes — a 50/100/50 policy would cover up to $50,000 of injury protection for each person involved in an accident, up to $100,000 worth of injuries per incident, and up to $50,000 of property damages per incident. 

As these coverage limits go up, your premium will increase. Every state has a different minimum requirement, making auto insurance coverage more expensive in some states than others. 

Some policies go beyond the minimum coverage in a state, offering additional protection. Collision coverage can help repair your car if it’s damaged in an accident, and comprehensive policies can protect it in events like storms and disasters. However, these additional coverage types will increase your costs. 

Average car insurance premiums by age and gender

Gender does influence car insurance, at least in states that allow insurers to consider it.

However, six states — California, Hawaii, Massachusetts, Pennsylvania, North Carolina, and Montana — don’t allow gender as a factor in premium pricing. 

For transgender and nonbinary individuals, auto insurance pricing is generally calculated by the gender marker indicated on a driver’s license. In states where X is a gender option on driver’s licenses — including Oregon, California, Maine, and soon New York — insurers are still determining how to calculate costs.

The number of years you’ve been driving will also affect the price you’ll pay for coverage. Car insurance costs tend to fall with age. But, that makes insuring a teen driver incredibly expensive. But, it’s also important to remember that it will vary from person to person, regardless of your age based on other factors like your driving history.

Here’s the breakdown of the average car insurance cost across age groups and gender from Insurify

Age Group Average Monthly Rate: Female Average Monthly Rate: Male
Teenagers $345 $386
20–29 $223 $240
30–39 $164 $167
40–49 $154 $154
50–59 $138 $140
60–69 $136 $142
70–79 $160 $173
80+ $161 $195

Source: Insurify 

Average car insurance cost by company

The average car insurance cost can vary by insurance company and accidents on your record. Generally, drivers with a DUI, accidents, or traffic violation on record see higher premiums. 

Here are rates from the cheapest car insurance companies in the US, according to Insurify:

Insurance Company Average Quote for Driver with Clean Record Average Quote for Driver with Accidents
21st Century $87 $103
Acuity $78 $152
Dairyland $130 $186
Elephant $93 $123
Farmers $53 $84
First Chicago $75 $112
Bristol West $125 $174
GAINSCO $114 $160
The General $155 $227
National General $93 $125
Hallmark $178 $249
Infinity $180 $248
Kemper $121 $169
Liberty Mutual $143 $168
Mercury $123 $195
Foremost Signature $83 $104
Nationwide $106 $149
Plymouth Rock $100 $104
Progressive $97 $97
SafeAuto $108 $147
Safeco $98 $137
State Auto $98 $181
Travelers $88 $104
Freedom National $115 $164
Anchor $79 $94
Arrowhead $236 $313
Aggressive $140 $179
Everest National $221 $366
Stillwater $154 $208
Workmen’s $110 $134
Metromile $48 $66
Aspire General $95 $131
Direct Auto $100 $157
Pronto $211 $295
Alinsco $144 $226
Clearcover $90 $126
Jupiter $122 $189
USH&C $57 $103
Sun Coast $88 $141
AssuranceAmerica $129 $187
Mile Auto $82 $121
TSC Direct $80 $91
USA Underwriters $135 $157
Kemper Preferred $78 $101
Kemper Specialty $107 $167
Commonwealth Casualty $123 $211
Apparent $90 $125
Verti $98 $107
Aspen $137 $292
Quantum $165 $233
Texas Ranger $140 $214
Midvale Home & Auto $123 $192
Novo $79 $96
Bluefire $101 $104
Amigo America $161 $180
InsureMax $134 $202
Amigo USA $66 $86

Source: Insurify

How auto insurance prices vary by driver profile and history

By this point, you’re probably starting to see how much information goes into a car insurance quote. There are many more factors that are also considered: 

  • Younger (or newer) drivers pay more. New drivers are more expensive than a driver with 16 or more years of driving experience.
  • Married drivers pay more. When you’re married, auto insurance costs more.
  • Drivers with a previous accident on their records pay more. After an accident, premiums jump 30%, according to and reporting, based on data from Quadrant Information Services.
  • Drivers with a DUI on their record pay more. With a DUI on your record, insurance will cost 63% more, according to and reporting.
  • Drivers who live in more urban areas pay more. Car insurance is cheaper in zip codes that are more rural, and the same is true at the state level. data shows that Iowa, Idaho, Wisconsin, and Maine have the cheapest car insurance of all states, and that’s because they’re more rural states. 

Other factors that can impact the cost of car insurance 

There are a few other factors that will contribute to your premium, including: 

  • The amount of miles you drive per year. If you don’t drive many miles per year, you’re less likely to be involved in an accident. 
  • What type of car you drive. The more expensive the car would be to replace, the more it will cost to insure.
  • Previous insurance coverage. If you’ve had a gap in coverage, it could increase your premium. 

Car insurance has lots of factors that go into its pricing. And, it’s changed over time. Data from the National Association of Insurance Commissioners shows just how much car insurance premiums have increased over time. The chart below shows how auto insurance prices have increased between 2007 and 2016: 

But, the biggest effect on auto insurance costs is whether you’re shopping around. Each insurance company looks at all of these factors and prices your coverage differently as a result. It’s critical to compare what you’re offered. Get quotes from several different auto insurance companies and compare them to make sure you’re getting the best deal for you. 

Read the original article on Business Insider

This content was originally published here.

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