What Is the Average Cost of Auto Insurance?

Many factors influence the cost of car insurance premiums, including the model and make of the car. Its risk of theft, its age, your location and credit scores, and many others. However, according to NerdWallet November 2021 reports, the average insurance costs are $133 and $1592 per month and year, respectively. 

Of course, the charges also vary by state, but the stated averages apply to good drivers with high credit scores. That said, let’s break the bone and get to the root of the matter. 

Nation average insurance costs

The premiums different drivers and car owners pay their insurers for their cars depends on many factors, from the car’s condition to the driver’s record and credit status. The rates additionally vary by state. Nonetheless, the following average rates apply nationwide:

  • Drivers with a good reputation and high credit ratings pay $1,592.
  • After an accident where the driver is at fault, the premium rises to $2,439.
  • Good drivers with poor credit ratings pay $2,812.
  • After a DUI, say an upgrade, the tips typically get as high as $3,114.

The quoted rates apply to good drivers who fit the good tier records of the best cheap car insurance companies. Besides, they feature full coverages and take responsibility for collision, comprehensive, underinsured/uninsured motorist protection coverage. If there is additional state-mandated coverage, the stated rates apply. 

What does the possible minimum car insurance cost?

While the above represent nationwide averages, there are possible minimum car insurance charges. We sampled these rates with the 40-year drivers in mind and those with a clean record in the picture. The minimum required coverage insurance costs are:

  • $565; for good drivers with a clean driving record and high credit ratings.
  • $884; applies to the excellent driver with good credit ratings but gets involved in at-fault wreckage. 
  • $984; is paid by drivers who have poor credit ratings despite being cautious on the road and having a clean driving record.
  • $1112; is the minimum required coverage cost that applies to the excellent driver who does a DUI upgrade to his car.

The breakdown above shows that the cost can double if you run a DUI upgrade on your car. The same was true for the average nationwide total coverage insurance costs. Besides, the rates typically rise after one gets involved in an accident in which he is at fault. And although many people deem it unfair, credit scores count in determining the average insurance costs for a car. 

Whether you need full coverage or the possible minimum required coverage, insurers generally believe that people with well-established credit trends and good credit scores practice safe driving and are considered less risky, hence the subsidized pay. 

However, low credit ratings bring the impression that one isn’t quite careful on the road. And the risk of getting involved in at-fault wreckage is high, hence the relatively higher costs. Therefore, you can work your way up and boost your credit scores to fit the good-excellent bar. Then, you can expect to enjoy subsidized car premiums. 

It’s noteworthy that the average has the least to do with your personal auto insurance charges. This means that you could pay way lower or higher than the quoted values, which are virtually the mean figures. 

As mentioned earlier, many factors come in handy in determining how much you will pay for your premiums. While most of these should be within your control, others are literally out of your niche, and there is nothing you can do about them. 

State-by-state average insurance charges 

When registering for car insurance, your location or where you live plays a significant role in determining how much you will pay as your premium. Technically, the most expensive states will charge twice as much as the deemed cheap states pay. This is not without mentioning that the type of your insurance and the coverage you have subscribed to also play well along in determining the ultimate insurance cost. 

Therefore, full coverages will typically cost more than twice what minimum coverages take. However, each of these decisions has its consequences. At the same time, the full range may seem expensive per month or year-end; it covers multiple financial expenses in the event of theft, natural disasters, or accident.

Conversely, the minimum coverage is cheap when you pay it monthly or yearly. Still, it gets technically expensive in the face of liability, property damage, and loss, as well as medical bills that could be incurred. 

Still, it’s up to you to take account of all factors, including your vehicle’s age and actual market value, and determine which optional coverages will be the most ideal. That said, here is our analysis about state-by-state average auto insurance costs as of November 2021:

  • Maine is the cheapest of US states when it comes to full coverages. It charges $963 per year, and Idaho and Ohio closely follow after. 
  • When discussing total coverage auto insurance costs, Louisiana is the most expensive state, and it typically charges $2,762 per year. Michigan and Kentucky follow closely.
  • Iowa takes the cake for the cheapest state regarding minimum coverage insurance costs. It charges an annual rate of $255, and Idaho and South Dakota follow closely. 
  • Still on the minimum coverage auto insurances, Michigan is the most expensive state, at an annual $1,162 rate. New York and Louisiana follow Michigan closely. 

The bottom line

Many factors influence the cost of auto coverage. Some are within your control, while others are entirely out of your niche. The make and model, age, and risk of theft of your car translate to its value and insurance costs. Besides, your credit scores, driving reputation, vehicle upgrade, and location also determine your insurance cost. 

That said, the average nationwide total and minimum coverage insurance costs are $1,592 and $565, respectively, for a good driver with a clean record and high credit scores. However, the prices vary across states, with Maine being the cheapest for full coverage. 

At the same time, Iowa charges the lowest for minimum coverage. Michigan demands the highest minimum coverage, while Louisiana is the most expensive state for full coverage insurance. 

Rose Rosie is a writer for the personal finance website, Joy Wallet, which provides readers with useful information, resources, and tools to help maximize their financial fitness. 

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