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Average Auto Insurance Cost

Average Cost of Auto Insurance

The average cost of auto insurance in the United States is $1,451 per year or $121 per month. Auto insurance is an important type of insurance coverage that is required by law for drivers in almost every state. According to the Insurance Research Council, approximately 87% of drivers carry auto insurance.

Auto insurance provides financial protection for drivers and car owners in the event that they are involved in a car crash, or if their vehicle is damaged. There are three main coverages in auto insurance: liability, collision, and comprehensive. Liability coverage provides financial protection for drivers if they are at fault for a crash. It can help pay for medical bills and loss of income for injuries caused by an insured driver. It can also provide financial compensation for damages to other vehicles or other property. Collision coverage provides financial protection for a vehicle if it is damaged in a crash, and comprehensive coverage provides financial protection for a vehicle if it is stolen or damaged by something other than a crash, such as theft or flood.

Average Cost of Auto Insurance by State

There is a wide variance in auto insurance costs by state. Our review of state auto insurance costs found that the average annual cost in the cheapest state was only $939 in Maine, while the average cost was as high as $2,154 in Louisiana.

StateAverage Monthly CostAverage Annual CostDifference from National Average
Alabama$108$1,302 -10%
Alaska$115$1,378 -5%
Arizona$120$1,441 -1%
Arkansas$111$1,328 -9%
California$119$1,434 -1%
Colorado$130$1,561 8%
Connecticut$134$1,605 11%
Delaware$143$1,714 18%
District of Columbia$159$1,905 31%
Florida$152$1,825 26%
Georgia$138$1,659 14%
Hawaii$95$1,143 -21%
Idaho$84$1,002 -31%
Illinois$102$1,225 -16%
Indiana$89$1,064 -27%
Iowa$84$1,012 -30%
Kansas$99$1,182 -19%
Kentucky$112$1,339 -8%
Louisiana$180$2,154 48%
Maryland$136$1,633 12%
Massachusetts$128$1,533 6%
Michigan$164$1,972 36%
Minnesota$100$1,205 -17%
Mississippi$117$1,403 -3%
Missouri$107$1,284 -11%
Montana$106$1,272 -12%
Nebraska$97$1,165 -20%
Nevada$142$1,705 17%
New Hampshire$91$1,094 -25%
New Jersey$155$1,861 28%
New Mexico$114$1,367 -6%
New York$158$1,902 31%
North Carolina$89$1,062 -27%
North Dakota$87$1,038 -28%
Ohio$91$1,094 -25%
Oklahoma$113$1,360 -6%
Oregon$110$1,325 -9%
Pennsylvania$114$1,365 -6%
Rhode Island$153$1,830 26%
South Carolina$126$1,510 4%
South Dakota$91$1,086 -25%
Tennessee$101$1,215 -16%
Texas$140$1,674 15%
Utah$107$1,288 -11%
Vermont$86$1,034 -29%
Virginia$97$1,168 -20%
Washington$114$1,366 -6%
West Virginia$111$1,327 -9%
Wyoming$100$1,194 -18%

A number of factors can influence the cost of auto insurance in each state. Some of the most important factors are the types of vehicles in each state, the average cost of medical care, the frequency and severity of crashes, exposure to natural disaster damage, and the rate of automobile theft and vandalism. The court system in each state also has an influence on insurance rates, with states awarding higher value damages leading to higher premiums. The number of uninsured motorists in a state can also affect auto insurance premiums.

Most Expensive States for Auto Insurance

  1. Louisiana, with an average annual cost of $2,154
  2. Michigan, with an average annual cost of $1,972
  3. Washington, D.C., with an average annual cost of $1,904
  4. New York, with an average annual cost of $1,901
  5. New Jersey, with an average annual cost of $1,860

Louisiana topped the list for highest annual cost for car insurance. One factor in Louisiana’s high costs may be the susceptibility of cars in the state to hurricane and flood damage. With a history of hurricanes, drivers in the state may pay more to insure their vehicles. Michigan was the second-highest cost state, possibly due to the state’s no-fault insurance system. The next three spots were taken by New York, New Jersey, and the nation’s capital, all places with high incomes, expensive vehicles, and densely populated metropolitan areas.

Least Expensive States for Auto Insurance

  1. Maine, with an average annual cost of $939 
  2. Wisconsin, with an average annual cost of $996
  3. Idaho, with an average annual cost of $1,002
  4. Iowa, with an average annual cost of $1,012
  5. Vermont, with an average annual cost of 1,033

All five states where auto insurance is least expensive are states with low population densities and small populations in general. One of the most important factors in the cost of car insurance is the likelihood that a driver will get into a car crash. The fewer people around when driving, the less likely a driver will crash into someone else. These states benefit from reduced density and population, which helps to reduce the costs of auto insurance premiums.

Average Cost of Auto Insurance by City

In the following table, we list the average cost of auto insurance in 25 of the largest cities nationwide. Among these cities, residents of Detroit, Michigan, paid the highest auto insurance premiums, with average rates of $2,791 annually. Rates were cheapest in Charlotte, North Carolina, with the average premium being $1,036 in the city.

CityAverage Monthly CostAverage Annual Cost
Austin, Texas$133 $1,592
Boston, Massachusetts$143 $1,720
Charlotte, North Carolina$86 $1,036
Chicago, Illinois$110 $1,320
Columbus, Ohio$96 $1,152
Dallas, Texas$149 $1,788
Denver, Colorado$162 $1,948
Detroit, Michigan$233 $2,791
El Paso, Texas$126 $1,514
Fort Worth, Texas$141 $1,692
Houston, Texas$150 $1,794
Indianapolis, Indiana$88 $1,058
Jacksonville, Florida$152 $1,822
Los Angeles, California$175 $2,101
Nashville, Tennessee$102 $1,224
New York, New York$177 $2,129
Oklahoma City, Oklahoma$122 $1,464
Philadelphia, Pennsylvania$175 $2,104
Phoenix, Arizona$135 $1,621
San Antonio, Texas$136 $1,634
San Diego, California$149 $1,789
San Francisco, California$180 $2,159
San Jose, California$150 $1,798
Seattle, Washington$119 $1,431
Washington, D.C.$159 $1,905

What’s covered by auto insurance, and what’s not?

Auto insurance provides financial protection for drivers and car owners for several types of incidents. Available coverage includes liability protection in the event that a driver injures another person or damages someone else’s vehicle or property. Other coverages include collision coverage, which protects the value of a vehicle in the event of a crash. Comprehensive coverage provides financial protection in the event that a vehicle is damaged by a non-crash cause.

Some causes of loss are specifically excluded from auto insurance policies. Common exclusions from liability policies include injury or property damage that is intentionally caused by the insured person, damage to property owned by the insured person, and damage while a vehicle is being used for certain commercial purposes, such as delivery or livery businesses, and racing. Comprehensive and collision coverages often exclude damage from wear and tear, mechanical failures, freezing, tire damage, and intentional damage.

The following are some of the key coverages of auto insurance policies:

What determines the cost of auto insurance?

A variety of factors can affect the cost of auto insurance. Drivers should take stock of what coverages are available and determine what coverage they need. It’s also important to shop around between different auto insurance carriers to see which one offers the best coverage for the best value. Some of the most impactful determinants of auto insurance premiums include:


AdvisorSmith examined data published by the National Association of Insurance Commissioners (NAIC), which reports on the average premiums paid for auto insurance by drivers around the country. This data, published in February 2021, reported premiums for auto insurance for calendar years 2014-2018. Included in this data set are average premiums paid by drivers in all 50 states and the District of Columbia.

Additionally, AdvisorSmith examined rate quote estimates for auto insurance for drivers from insurers located around the country. We examined average rate quotes for a male driver, 38 years of age, with good credit, driving a 6-year old sedan with a clean driving record. We used the database of rate quote samples, along with data from the NAIC to produce a composite estimate of average auto insurance rates across the country. These quotes included coverage for liability, collision, and comprehensive, with limits of $100,000 per person, $300,000 per crash in bodily injury liability, and $100,000 per crash in property damage liability.

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