shopping for car insurance and comparing quotes, without knowing things like the average monthly cost of car insurance, can be a bit daunting.
but if you know what the average monthly car insurance payment is before you buy it, you’ll be much less likely to stumble or choose a policy that causes buyer’s remorse.
To assist you in your auto insurance shopping experience, insure.com has researched average auto insurance costs based on various driver profiles and rates collected from up to six major auto insurance companies in each state.
how much does car insurance cost per month?
According to research from insure.com, the average cost of car insurance is $140 per month for a 40-year-old driver years with good credit and driving history by purchasing a comprehensive coverage policy.
The amount you pay for auto insurance each month depends on several factors. Here are some of the main factors specific to you that insurance companies will use to determine your rate:
- how much car insurance do you buy
- handling log
- credit score
- vehicle type
- number of years you have been driving
- check. Get comparable quotes from at least three different insurance providers before each renewal period and go for the best value. We’ve included the top cheapest auto insurance companies below to give you an edge.
- If you don’t have experience buying insurance, take advantage of the experience of others. dr brau suggests: “talk to people older than you, whom you respect. ask your parents, aunts, uncles, teachers, etc.”
- do not drop your coverage. even if you go through a spell without a car, consider a non-owners policy to avoid gaps in coverage. Insurers frown on gaps in coverage and it could affect how much you pay in the future.
- raise your deductible. selecting a higher deductible may result in a lower premium. however, this is only a good option if you can afford the deductible.
- look for discounts. Most insurance companies offer a variety of auto insurance discounts that you may qualify for.
- have a credit score of 650 or higher. In most states (Hawaii, California, and Massachusetts are the exceptions), auto insurers can use your credit score to price your policy. drivers with bad credit pay 70% more, on average, than those with good credit, according to insure.com in a rate analysis. Here’s a look at the companies offering the cheapest policies, according to Insure’s 2022 study.
average cost of auto insurance by state: annual and monthly rates
The average monthly auto insurance rates by state are outlined in the chart below. rates are from a 2022 insure.com study and are based on a person with good credit and a clean driving record who purchased a full coverage policy.
average cost of car insurance by type of vehicle
The type of vehicle you drive has a significant impact on the cost of your auto insurance. You’ll find the average cost of full-coverage auto insurance for each type of vehicle in the table below, assuming good credit and a clean driving record. People are often surprised to find out that trucks and vans are, on average, cheaper to insure than cars. trucks have the lowest average cost to insure at $1,606 per year or $134 per month, according to insure’s 2022 study, and trucks are not far behind with $1,787 per year.
average cost of car insurance by gender
Although insurance companies using gender as a factor in determining auto insurance rates is an ongoing controversial issue, only seven states have prohibited it.
In all other states, gender is a determining factor for auto insurance rates. Data used by insurers shows that men are at higher insurance risk and are involved in more accidents, speeding, and drunken driving convictions than women.
however, our analysis shows that the average annual rate is nearly identical when comparing a 40-year-old man to a 40-year-old woman. in fact, it only shows a difference of $1 between the two groups.
average cost of car insurance by age
As you’ll see in the table below, the younger you are, the more you’ll pay for car insurance, but rates go up after age 60. This is because teen and young drivers are considered by insurers to be higher risk drivers due to inexperience.
For example, the average cost of auto insurance for a 20-year-old has been found to be double what it is for a 60-year-old. rates decrease with each year of age. but after age 60, rates start to rise as insurance companies also consider older drivers to be at higher risk. Below are the average rates for people of various ages, based on insure’s 2022 analysis.
how much does car insurance cost for an 18 year old?
According to insure.com data from 2022, car insurance for an 18-year-old will average $179 per month or $2,149 per year for a standard liability policy with limits of 50/100/50. that means bodily injury of $50,000 per person and $100,000 per accident plus property damage of $50,000. a minimum state policy is cheaper at $1,786 but is not recommended as novice drivers are more likely to crash and therefore have higher limits. a full coverage policy costs $5,565; It’s expensive, but it’s worth it if you need collision and all risks on your vehicle.
Compounding the higher cost is the fact that younger people generally have no experience buying financial products like insurance.
“In my studies of financial education among college students, we have found that many of them lack. this general finding can probably be extended to understanding car insurance among college students as well. Anecdotal evidence from when I teach this topic in class suggests that more than half of my students don’t fully understand auto insurance,” says James Brau, the Joel C. Peterson Professor of Finance and Editor-in-Chief of the Journal of Business Finance at Brigham Young University’s Marriott School of Business.
even so, dr. brau points out that greater familiarity with computers and the internet may be one way young people can compensate for being new to buying financial products. “Computer literacy seems to make up for a lack of financial education to some extent,” she says. “Motivated students can search the internet to compare insurance products. they can also google to learn terms and concepts that they have never been taught.
Of course, it’s not just a problem for college students. overall dr. Brau says consumers tend to make a lot of mistakes when shopping for car insurance. he says the most common mistake is “probably that they don’t fully understand the state’s minimum requirements and the collision and comprehensive insurance options,” he says. “I encourage everyone to use online insurance calculators and tools to determine the optimal rates and limits of their insurance packages.”
how to get cheap car insurance
Here are some tips to help you get affordable car insurance:
cheapest major car insurance companies
the end result
The typical driver spends about $140 per month on auto insurance per month in 2022. However, those costs can vary widely based on where you live, your age, the type of car you drive, and your gender. If you’re not sure where you’re getting the best rate, be sure to shop around before you buy a policy. Also, ask for discounts to ensure the best possible monthly cost of auto insurance.
Insure.com commissioned Quadrant Information Services to calculate average auto insurance rates for 2022. Averages are calculated based on 40-year-old male drivers who purchase full coverage auto insurance. The sample driver has a good insurance rating and no violations on their driving record. averages are rounded to the nearest sum.
-michelle megna contributed to this article.