Average Cost of Car Insurance in 2022

Vera_Petrunina / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

You hope you’ll never need to use it, but car insurance is required in almost every state. New Hampshire is the only exception to this rule, but drivers who opt out of coverage are required to prove they have the funds to meet the state’s financial requirements if they cause an accident.

So, how much is car insurance a month? This number will be different for everyone, as several variables may impact your auto insurance premiums, including your car, driving habits, demographic factors and your coverages, according to Allstate.

Average Cost of Car Insurance

The average cost of car insurance in the U.S. is $124 per month or $1,483 per year, according to The Zebra. Of course, as noted above, the amount you’ll pay will vary according to many factors, including the amount of coverage you choose.

Each state has a minimum amount of car insurance coverage drivers are required to carry. Most states have a mandatory minimum for liability coverage, and some states also require additional coverage, including personal injury protection or uninsured/underinsured coverage.

Here’s a look at the states with both the cheapest and most expensive six-month minimum and full coverage insurance premiums, according to The Zebra.

States With the Cheapest Minimum Coverage Insurance Premiums

States With the Cheapest Full Coverage Insurance Premiums

States With the Most Expensive Minimum Coverage Insurance Premiums

States With the Most Expensive Full Coverage Insurance Premiums

So, if you’re wondering “Is $200 a month a lot for car insurance?” the answer is yes. When broken down into a monthly payment, the average cost of a full coverage car insurance premium only exceeds this amount in three states.

Car Insurance Rates by Age

How much is a monthly payment of car insurance? As noted above, this number is different for everyone.

However, age is one factor that affects car insurance rates. Younger and older drivers tend to pay the most, while those in between often pay lower rates.

Here’s a look at average car insurance costs by age group, according to data from The Zebra.

As you can see, age doesn’t appear to have a huge impact on car insurance rates — with the exception of teenage drivers.

Of course, the rates above are just the national averages. Some states have higher average rates for these age groups, while some are lower.

For example, if you’re trying to figure out “How much is car insurance in Connecticut for a 17 year old?” you might be in for a pleasant surprise.

Geico offers the cheapest car insurance for teenage drivers in the state, according to U.S. News. Teenage girls pay an average annual rate of $2,697 — $224.75 per month — while average rates are notably higher for boys at $3,138 annually — $261.50 per month.

On the other hand, if you’re trying to figure out “How much is car insurance in Pennsylvania for a 22 year old” you might find yourself paying right around the national average. Specifically, Pennsylvania drivers in their 20s have an average annual car insurance premium of $1,789.79 — $149.90 per month — according to The Zebra.

Cheap Car Insurance Companies

When asking “How much is car insurance a month?” you’ll find this largely varies by company. Therefore, it’s important to shop around to find the best rates for you.

You might find that a friend with similar demographics in your local area gets a lower car insurance rate from a certain company than you do. For example, on average, the cheapest car insurance for good drivers is Geico, but if you get a speeding ticket, State Farm offers the lowest rates, according to U.S. News.

However, some car insurance companies do tend to have lower rates than others. Here’s a look at national average rates for an annual car insurance policy, according to U.S. News.

Best Car Insurance Companies

When you shop around for car insurance, price is likely an important factor. However, it shouldn’t be the only variable that matters.

If you need to use your insurance, you’ll want a company that makes the process as seamless as possible. In 2022, U.S. News surveyed more than 10,000 drivers to learn about their car insurance experience, including issues like customer service, claims handling and customer loyalty.

Here’s a look at the 10 top-rated car insurance companies of 2022, according to the survey.

Importance of Car Insurance

It’s easy to view car insurance as just another expense, but it’s so much more than that.

It’s important to be informed when customizing your policy because you need to be prepared for the unexpected. If you’re in a car accident and found to be at-fault, you could be responsible for paying legal fees, medical expenses for the injured party and their lost income.

Having liability coverage — or sufficient liability limits — can be the difference between having your insurance company pay these costs or having to pay them out of pocket. It can also provide protection for passengers in your car, as they might be able to receive medical payments coverage and personal injury protection to help pay their expenses in the event of an accident.

Ultimately, a car insurance policy is very personal and customized. When shopping around, it makes sense to ask “How much is car insurance a month?” so you have a baseline comparison.

However, you can’t stick to average numbers too closely, because factors such as your driving history, age, vehicle type and other demographics will work together to determine your cost of car insurance. Some companies will offer cheaper coverage than others, but it’s important to read the fine print and really understand your policy.

You don’t want to find out the hard way that you don’t have the coverage you thought you had, when you really need it. Therefore, it’s best to seek out a policy that offers comprehensive coverage at the most competitive rate.

Information is accurate as of Nov. 23, 2022. 

Share This Article: