Average cost of car insurance by state in 2023

What factors affect your car insurance rate?

As you can see from the above charts, the cost of car insurance varies by the following factors: 

• Age: Typically, young drivers under the age of 25 and senior drivers over the age of 65 are charged more for car insurance. 
• State of residence: Since the minimum coverage required varies by state, your location is one of the factors that will influence the price. 
• ZIP code: In addition to your state of residence, your ZIP code will also play a role in the cost of insurance since your vehicle is more likely to be damaged in certain areas, such as ZIP codes with high crime rates. Typically, the cost of car insurance will be greater in cities than in rural areas. 
• Marital status: Statistically, married drivers are less risky than single drivers resulting in a lower insurance cost. 
• Gender: Based on risk, male teenage drivers tend to have the highest cost of car insurance of any demographic. 
• Credit history: Those with a low credit score tend to pay higher premiums than individuals with good credit. 
• Driving record: Since car insurance premiums are based on risk, individuals with a good driving record can expect to pay lower premiums, while those with a poor driving record may experience increased rates. 
• Car make and model: You may pay less if you drive a vehicle that insurance companies deem safe. On the other hand, you’re likely to pay more if you drive a small sports car since they pose a higher risk. 
• Mileage: Higher annual mileage increases the risk you’ll get into an accident and will likely raise your premiums. 
• High-risk violations: Driving under the influence and at-fault accidents are examples of violations that may result in you being considered a high-risk driver. 

What’s the difference between full and minimum coverage? 

Minimum coverage car insurance — liability coverage — is required in most states and is used if you’re at fault in an accident. This coverage will pay for damages and injuries of the other party when you’re responsible for the incident. 

On the other hand, full coverage insurance, or collision coverage, includes liability coverage plus damage caused to your own vehicle. Keep in mind that lenders often require you to obtain full coverage insurance before you get an auto loan. 

FAQ

Below, we’ve answered some common questions regarding the cost of auto insurance. 

Can my driving record affect my car insurance rate? 

Your driving record is one of the factors that affects your car insurance rate. As a result, those with traffic violations or accidents on their record can expect to pay higher premiums. 

Does your car insurance cost go down after you pay off your car?

Your care insurance cost doesn’t typically go down after your pay off your car. However, you do have the option to decrease the amount of coverage on your vehicle once it’s paid off. 

Which car insurance company is the cheapest?

As mentioned above, insurance companies that offer the cheapest plans include Geico, Auto-Owners, USAA and Erie.

Does car insurance decrease annually? 

For young drivers in particular, car insurance rates decrease each year you renew your policy without filing a claim. You can expect to see the biggest drop in price at age 25. 

The average cost of car insurance varies by factors including state, age, insurance company and credit score. Some factors, such as your age, are beyond your control, but other factors, such as your credit score, can be improved. 

Check your credit score for free today to see if it’s a reason your car insurance is high.