Average Cost of Car Insurance

May 21, 2010 1 Comment »

cost

If you’re actively shopping for car insurance, you may be curious what others are paying for their coverage.

While it’s hard to get an apples to apples comparison given all the options and variables, such as driver history, type of car, applied discounts, and so on, it can still serve as a barometer to what you might pay.

[How are car insurance rates determined?]


[Compare rates from the leading car insurance companies in your area.]

The table below displays the “average cost of car insurance by state,” broken down by liability coverage, collision coverage, and comprehensive coverage.

Generally, liability-only car insurance is required in each state, so this breakdown will give you a better overall picture of what the associated costs might be with some or all options included.

The data is based on 2007 auto insurance premiums, the latest available, as provided by the National Association of Insurance Commissioners and reported by the Insurance Information Institute (III).

Per the III, car insurance is more expensive in states where the economy is healthy, as it leads to the purchase of newer cars and higher associated coverage to protect those vehicles.

States with large urban areas and high traffic density also increase car insurance rates, as do higher theft rates and minimum liability limits.

Using the numbers below, you can see how your car insurance rate stacks up to the average in your state, and the average in the nation, which is $795.

If you’re paying a higher insurance premium than the average driver, be sure to ask your auto insurance company or independent agent to explain why.

National Average Car Insurance Rates by State

average cost of car insurance

In 2010, InsWeb.com noted that the median car insurance rate for a six-month policy was $702 in the United States. So premiums went down over the past few years.

However, women paid a median car insurance rate that is roughly five percent lower than men, or $683 vs $720.

This has to do with how men and women drive – men typically have more negative information on their driving records and drive more expensive cars (why car insurance is cheaper for women?).

But forget about men, it’s teenagers that pay the highest car insurance rates, with the median rate for drivers 19 and under a staggering $1,300 (why is car insurance so high for teenagers?).

That’s more than double that of the group with the lowest reported median rate, those aged between 60 to74, who pay just $596 for a six-month policy.

National Average Car Insurance Rates by Demographic Group

All Groups: $702.00

Men Only: $720.00

Women Only: $682.50

Age Group: 19 and younger $1299.50 (how much is car insurance for a 16 year old?)

Age Group: 20 to 24 $967.00 (why is car insurance higher for a person under 25?)

Age Group: 25 to 29 $743.88

Age Group: 30 to 39 $704.00

Age Group: 40 to 49 $684.13

Age Group: 50 to 59 $614.63

Age Group: 60 to 74 $595.75

Age Group: 75 and older $633.50

Keep in mind that you do have some control over what you pay in terms of insurance premium, thanks to the wide array of available discounts (good student discount, good driver discount, hybrid insurance discount, etc) and optional features.

Be sure to gather insurance quotes online and speak with an independent insurance agent to shop your insurance with multiple providers.

Read more: How can I lower my car insurance rate?

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One Comment

  1. Kimberly T. May 10, 2014 at 10:43 pm -

    The average price doesn’t mean very much to me. Especially when it’s driven up by teens and bad drivers. I just compare different carriers until I find the lowest price for ME!

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