Average Cost of Car Insurance in 2022

man with sad look on scratched car.
Vera_Petrunina / Getty Images/iStockphoto

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.

Read: If Your Credit Score is Under 740, Make These 4 Moves Now

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.

Make Your Money Work for You

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

State Minimum Coverage for Six Months
Iowa $150
South Dakota $158
Vermont $166
Wyoming $167
Ohio $174
Wisconsin $181
New Hampshire $185
North Dakota $190
Virginia $197
Idaho $199
Tennessee $199
North Carolina $201

States With the Cheapest Full Coverage Insurance Premiums

State Full Coverage for Six Months
Ohio $463
New Hampshire $480
North Carolina $505
Virginia $513
Vermont $528
Hawaii $540
Wisconsin $540
Maine $550
Iowa $575
Indiana $594
Washington $604
Idaho $628

States With the Most Expensive Minimum Coverage Insurance Premiums

State Minimum Coverage for Six Months
Michigan $613
Florida $539
Louisiana $483
Rhode Island $451
Nevada $437
Delaware $436
New York $417
Kentucky $388
New Jersey $371
Connecticut $360
Arizona $334
Maryland $333

States With the Most Expensive Full Coverage Insurance Premiums

State Full Coverage for Six Months
Michigan $1,267
Florida $1,162
Louisiana $1,152
Rhode Island $937
Kentucky $925
California $911
Nevada $872
Arkansas $851
Colorado $849
New York $846
Missouri $844
Delaware $808

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.

Make Your Money Work for You

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.

Age Group Premium for Six Months Cost Per Month
16-19 $2,286 $381
20-29 $943 $157
30-39 $724 $121
40-49 $697 $116
50-59 $649 $108
60-69 $658 $110
70-79 $762 $127
80-85 $882 $147

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.

Make Your Money Work for You

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.

Company Cost Per Year
Allstate $2,047
Farmers $1,917
Progressive $1,533
American Family $1,372
Travelers $1,371
Nationwide $1,327
State Farm $1,267
Geico $1,148
USAA $1,000

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.

Company U.S. News Rating Average Annual Rate
USAA 4.3 $1,000
State Farm 4.2 $1,267
Farmers 4.1 $1,917
Nationwide 4.1 $1,327
Geico 4.1 $1,148
Allstate 4.0 $2,047
Travelers 4.0 $1,371
Progressive 3.9 $1,533
AAA 3.9 $2,409
American Family 3.7 $1,371

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. 

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

Share This Article:

Make Your Money Work for You

About the Author

Jennifer Taylor is a West Coast-based freelance writer with more than a decade of experience writing about anything and everything. Since earning her MBA, personal finance has been her favorite topic, as she’s passionate about writing stories that educate, inform and empower. Specifically, she specializes in budgeting, debt repayment, savings and retirement.
Learn More