How much is car insurance in 2024?

Ever compare car insurance rates with a friend or neighbor and wonder why you’re paying so much more? Like many other goods and services, the price you pay for auto insurance can vary widely based on where you live, the company you choose to do business with, your driving history and other factors.

For example, the average U.S. driver pays $1,897 annually for full coverage. Drivers in Louisiana, the most expensive state on average, pay $2,883 per year. Drivers in Maine, the cheapest state, pay just $1,175.

Broken down by insurer, Travelers has the cheapest sample rate among the companies we analyzed: $1,606 per year. The most expensive is Allstate, at $2,509 annually.

But just because an insurer’s average rate is high doesn’t mean that it will be expensive for you. That’s why it pays to shop around for the best car insurance rate.

Key highlights

• Travelers offers the cheapest car insurance coverage, with an average annual rate of $1,606.
• Allstate charges the most on average at $2,509 per year.
• Drivers in Maine pay the least for car insurance, with rates averaging $1,175 annually.
• Louisiana policyholders face the most expensive insurance rates on average at $2,883 annually.

Average car insurance cost in 2024

The cost of car insurance depends in part on how much coverage you require. If you only want the state-mandated minimum liability coverage, you’ll pay far less than you would for full coverage, which includes not just liability but also collision and comprehensive insurance, plus any additional coverage required by law in your state, like personal injury protection (PIP). 

In fact, the average full coverage policy costs more than three times what a minimum-coverage policy does, based on our analysis. It’s also important to note that costs can vary from state to state and driver to driver.

The rates below were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

How we determined these rates

The sample rates above were calculated using data from Quadrant Information Services using single, 40-year-old male and female drivers of a 2023 Honda Accord with the following coverage limits:

• State minimum, liability only: Coverage limits vary by state, some states require additional coverage
• 50/100/50, liability only: $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident
• Full coverage: $100,000 bodily injury per person, $300,000 bodily injury per accident and $100,000 property damage per accident, plus comprehensive and collision coverage with $500 deductibles

How much is car insurance on average in 2024 by company?

Another factor affecting your car insurance rate is the company you choose. Travelers is the least expensive company for car insurance, according to our survey of rates. It costs an average of $1,606 annually.

On the other hand, Allstate has the most expensive insurance coverage at $2,509 a year.

How much is car insurance on average in 2024 by state?

The state in which you live also has a big impact on how much you will pay for auto insurance. Maine is the least expensive state for auto insurance at $1,175 annually. Average rates for drivers in neighboring New Hampshire and Vermont also are among the cheapest in the U.S.

Louisiana is the most expensive state for auto coverage, at $2,883 annually. Other states with very high average insurance premiums include California and Florida.

How much is car insurance on average in 2024 by age?

Your age plays a large role in how much you pay for car insurance. The youngest drivers are both the least experienced and the most prone to accidents because of that lack of behind-the-wheel time.

For those reasons, teens pay significantly more for car insurance than older drivers on average – nearly $1,600 more per year than drivers in their early 20s, the next most expensive demographic to insure.

Car insurance rates based on driving record and credit history

Generally speaking, younger drivers pay the most for car insurance because of their age, relative inexperience and the risk that inexperience poses to themselves and other drivers. But no matter what your age, if you’re found at fault for a traffic accident, or if you’re cited for speeding or DUI, or even if your credit history takes a hit, your car insurance rates will reflect this.

Having a poor credit history is statistically correlated with a higher likelihood of filing claims. As a result, drivers with poor credit histories pay the most for car insurance on average, followed by those who have a DUI on their record.

The chart below breaks down how much a driver can expect to pay on average for auto insurance both before and after a major change to their driving record or credit.
 

Why is car insurance so expensive?

Several key factors have come together to send car insurance rates higher in recent years.

Although Americans are paying slightly less for vehicles these days – down about 1% year over year, according to Kelly Blue Book – the average transaction price is still higher than it was before the pandemic.

Repair costs also have increased as supply chain woes, rising wages and higher prices for parts have made it more costly to fix damaged cars.

“There are also more costly auto repairs due to increased technological sophistication in vehicles,” says Loretta Worters, vice president of media relations for the Insurance Information Institute (Triple-I), an insurance industry trade and education association.

As the COVID-19 pandemic subsided and drivers returned to the roads, accidents increased. Poor driving behavior — including distracted driving and driving while texting — made many of those accidents worse.

“More accidents with severe injuries and fatalities have driven up claims and losses in terms of both vehicle damage and liability, while attracting greater attorney involvement and legal system abuse,” Worters says.

Finally, an increase in the theft of auto parts such as catalytic converters is making times even tougher for insurers, Worters says.

As these new realities increase expenses and risks for insurance companies, they respond by charging higher rates.

However, the future might look better for drivers. Worters says several factors that influence auto insurance premium rates are starting to improve, such as the average cost of a new car.

"But it will take time for these improvements to be reflected in flattening premium rates," she says. 

How to lower your car insurance costs

No matter how expensive your car insurance becomes, there are almost always ways to cut costs.

If you are trying to lower your costs, one move trumps all the rest: “The best thing to do is shop around," says Bob Passmore, department vice president, auto and claims with the American Property Casualty Insurance Association (APCIA), an industry trade organization representing home, auto and business insurers.

Each insurance company has its own criteria for setting rates. By shopping around for coverage and obtaining quotes from multiple insurers, you increase the odds of getting the best possible price.

Other great ways to save include:

• Stay accident- and violation-free. Drivers who have a clean driving record almost always get better rates than those who get into accidents and rack up speeding tickets.
• Raise your deductible. Raising your deductible from $200 to $500 could cut your collision and comprehensive coverage costs by 15% to 30%, according to the Triple-I. Raising the deductible to $1,000 could slash your premium by 40% or more. “There is often considerable savings for increasing your deductible,” Passmore says.
• Ask about discounts. Insurers typically offer various types of discounts. For example, you might get a price break if you bundle your coverage and purchase multiple types of insurance, such as auto and homeowners insurance. “For teens and seniors, you can take a driver’s training course or get a good-student discount,” Passmore says. Ask your insurer about the discounts it offers and whether you are eligible for them.
• Make your vehicle theft-resistant. Making your car less attractive to crooks might earn you a price rollback. “Make sure you tell your insurer if you have alarms and other anti-theft devices in your car because it could get you additional discounts,” Passmore says.
• Reduce your coverage. Skimping on auto insurance coverage is usually a mistake, but there are times when it makes sense and can save you money. For example, if your car is very old, it might make sense to drop your collision and comprehensive coverage and pocket the savings.

Frequently asked questions

Factors affecting car insurance costs

Many different factors impact car insurance costs. Some of these things are within your control, while others are not.

Your driving history plays a major role in how much you pay for insurance. Those who drive carefully and avoid accidents and moving violations are more likely to qualify for the lowest insurance rates.

A solid credit history also is likely to get you lower premiums in many states. In addition, driving less frequently might make you eligible for lower car insurance rates.

On the other hand, many factors outside your control also impact how much you pay for auto insurance. They include your age, gender and the number of claims made by other drivers in the area where you live (which can drive up rates overall).

How often will my car insurance rate change?

Most drivers will see an increase in their rates when it’s time for renewal. If you’re a careful driver and haven’t made any claims, your rates may increase only slightly. But if you’ve been in an accident, or you’ve been cited for speeding or a DUI, you could be in for sticker shock at renewal time and see much higher rates.

That’s why it pays to get quotes from several insurers at least once a year to see if you’re missing out on a deal for the same (or better) coverage.

Resources & methodology

Sources

• CNBC. “Why car insurance costs are skyrocketing and leading to higher inflation.” Accessed August 2024
• Insurance Information Institute. "Nine ways to lower your auto insurance costs." Accessed August 2024
• Progressive. "Why did my car insurance rate go up?" Accessed August 2024
• Plymouth Rock Insurance. "Why do car insurance premiums increase every year?" Accessed August 2024

Methodology

Rates were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these same hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide. 

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.