Average Cost of Auto Insurance in 2025

The average cost of auto insurance starts as low as $32 per month for minimum coverage. However, average rates for car insurance do vary by choice of provider and factors like age, location, and driving record.

Our auto insurance guide on average costs covers all the factors affecting rates, including credit score and vehicle type, to help you determine how much you’ll pay. If the average cost of car insurance seems high to you, there are things you can do to save money, such as applying for auto insurance discounts.

You can also use our free quote tool to find affordable auto insurance for your vehicle from providers near you. Simply enter your ZIP to get started.

Common Factors Affecting the Average Cost of Auto Insurance

It is important to pick the right auto insurance coverage for your vehicle, as gaps in auto insurance could leave you financially vulnerable.

Because auto insurance is an important purchase that protects you and your vehicle, we want to give you a thorough look at the average rates you can expect to pay.

To help you find reasonable rates for auto insurance coverage, we’ve broken down the main factors that affect auto insurance rates.

Whether you are shopping for full coverage with a poor credit score or are looking for rates after an at-fault accident, keep reading to find a complete list of car insurance averages.

Comparing Average Costs by Coverage Level

One of the first factors that will affect the average cost of car insurance is the type of coverage you choose for your vehicle. Naturally, buying more coverage will result in a higher rate.

General auto insurance policies can be described as either full coverage or minimum coverage policies, with minimum coverage being the cheapest to buy.

Insurance Company	Minimum Coverage	Full Coverage
	$87	$228
	$62	$166
	$76	$198
	$43	$114
	$96	$248
	$63	$164
	$56	$150
	$47	$123
	$53	$141
	$32	$84
U.S. Average	$61	$165

Minimum coverage policies only include the minimum insurance required by your state to drive legally. This coverage is best for older vehicles that are greatly depreciated in value.

Full coverage auto insurance policies, on the other hand, also include collision and comprehensive auto insurance coverage. Full coverage is best suited for newer cars that require more financial protection.

Collision and comprehensive coverages protect your vehicle in several situations, from collisions with fences to collisions with animals. Without these coverages, you are stuck paying for your own vehicle repairs if you are at fault in an accident.

Most drivers will be fine with just a full coverage policy, but there are some other auto insurance coverage options available for a higher price.

If you are interested in adding on extras like rental reimbursement, gap insurance, or roadside assistance, you can expect the average cost of auto insurance per month to increase by at least $10.

However, if you end up needing to use these coverages, they can pay for themselves. For example, if you have an older vehicle that frequently breaks down, roadside assistance can help cover the cost of expensive tows and quick roadside fixes like jump-starts.

How Age and Driving Record Impact Rates

Age and gender are two of the main demographic factors that affect auto insurance rates at companies. Age has a greater impact than gender, as it correlates with driving experience.

When you look at a car insurance rates by age chart, you’ll quickly see that finding cheap auto insurance for teens can be challenging because teens are considered higher-risk drivers.

Male drivers also tend to pay slightly more on average than female drivers, though the cost discrepancy is greatest among young teen drivers.

This is because statistically, insurance companies have found that young male drivers file more claims on average than young female drivers.

As drivers age, the average cost of auto insurance per year will drop as long as drivers have a clean driving record. Rates will start to rise again slightly when drivers hit age 65 and older, due to age-related driving risks like decreasing vision and reaction time.

If drivers do not have a clean driving record, however, their average auto rates will still stay high as they age until their driving record has been clean for at least a few years.

Insurance Company	Clean Record	One Accident	One DUI	One Ticket
	$87	$124	$152	$103
	$62	$94	$104	$73
	$76	$109	$105	$95
	$43	$71	$117	$56
	$96	$129	$178	$116
	$63	$88	$129	$75
	$56	$98	$75	$74
	$47	$57	$65	$53
	$53	$76	$112	$72
	$32	$42	$58	$36
U.S. Average	$61	$91	$112	$76

DUIs are often the cause of the biggest cost increases at auto insurance companies. A DUI charge on a driving record will result in much higher rates than a simple traffic ticket.

If you have a poor driving record, make sure to get quotes from companies that have more affordable rates for your driving violations (Learn More: What to Do If You Can’t Afford Your Auto Insurance).

Credit Score and Auto Insurance Costs

The majority of auto insurance companies will check drivers’ credit scores when they apply for an auto insurance policy. Drivers with higher credit scores will often receive better rates than drivers with lower credit scores.

For example, the average rate at Allstate for a driver with a poor credit score is $170 per month, whereas a driver with an excellent credit score pays an average of $87 per month (Read More: Allstate Insurance Review).

Company	Excellent (800+)	Good (670-799)	Fair (580-669)	Poor (<580)
	$87	$100	$115	$170
	$62	$72	$85	$120
	$76	$88	$105	$150
	$43	$50	$60	$85
	$96	$112	$135	$195
	$63	$74	$90	$130
	$56	$66	$80	$115
	$47	$55	$65	$95
	$53	$62	$75	$110
	$32	$38	$48	$70
U.S. Average	$61	$76	$86	$124

The reason for higher rates for poor credit scores is that insurance companies view these customers as riskier to insure. Poor credit scores could indicate failure to make monthly payments.

This could then lead to other issues, such as insurance companies having to cancel auto insurance coverage for nonpayment, leaving customers driving around illegally without insurance. Drivers who are caught driving uninsured will have much higher rates in the future.

Why Where You Live Impacts Insurance Costs

Where you live also affects the average auto insurance rates you’ll pay. Some states will be significantly more expensive than others, due to living expenses and local risk factors like traffic, weather, and theft.

Basically, if auto insurance claims are high in your state, or even in your town, you can expect to pay a higher auto insurance rate. When you look at the average car insurance cost per month by state, the average cost of auto insurance in Texas will not be the same as the average cost of auto insurance in Arizona.

Local auto insurance laws will also affect what you pay. Michigan will be one of the most expensive states for auto insurance, with full coverage costing an average of $339 per month.

This is partly because of Michigan’s no-fault auto insurance system, which requires drivers to purchase more minimum coverage than in the majority of other states.  Michigan also has multiple fraud cases every year, which is one of the reasons it is one of the worst states for filing auto insurance claims.

Average Auto Insurance Rates by Vehicle

Lastly, the type of vehicle you own will affect auto insurance rates. Dependable vehicles with lower purchasing prices will be among the cheaper vehicles to insure.

When comparing auto insurance rates by vehicle type, insurance companies give the lowest rates to sedans and hatchbacks, with rates starting at an average of $46 per month.

Insurance Company	Pickups / Trucks	Sedans / Hatchback	SUVs / Crossovers
	$68	$54	$63
	$67	$52	$62
	$69	$55	$64
	$62	$48	$56
	$71	$56	$65
	$66	$51	$61
	$67	$52	$62
	$64	$50	$57
	$66	$51	$60
	$60	$46	$54
U.S. Average	$66	$52	$60

In addition to the build of your vehicle, insurance companies will also consider factors like the cost of replacement parts and safety ratings when determining prices.

A Toyota RAV4, for example, will be a cheaper vehicle to insure due to its safety ratings and the fact that there are fewer claims on Toyota RAV4s. However, a Tesla Model Y costs an average of $183 per month to insure, as it is a pricier car to replace and repair.

Whenever you have a more expensive vehicle like an electric car or sports car, you can expect higher auto insurance rates because the replacement cost will be higher.

If you’re looking for a vehicle with affordable rates, use a car insurance calculator to find the average rates for different models and makes, and choose the most affordable vehicle for your needs.

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How to Lower the Average Cost of Auto Insurance

Auto insurance is a necessity, but it can be expensive. If you are trying to get the cheapest car insurance possible, one of the first things you can do is check with your auto insurance company to see if there are any discounts that can be applied to your policy.

For example, if you recently installed an anti-theft device like a GPS tracking system, see if you can qualify for an anti-theft discount (Read More: Best Anti-Theft Auto Insurance Discounts).

Company	Anti- Theft	Claims- Free	Good Driver	Multi- Policy	Multi- Vehicle
	10%	10%	25%	25%	10%
	25%	15%	25%	25%	23%
	10%	9%	30%	20%	12%
	25%	12%	26%	25%	25%
	35%	8%	20%	25%	25%
	5%	14%	40%	20%	15%
	25%	10%	30%	10%	12%
	15%	11%	25%	17%	20%
	15%	13%	10%	13%	8%
	15%	20%	30%	10%	10%

Other large auto insurance discounts that are offered at the majority of companies include multi-car discounts, bundling discounts, and more.

Combining auto insurance with other coverage, such as home insurance, at the same company can earn you a bundling discount. It is an easy way to save and make multi-policy management easier.

Have you exhausted the discounts at your auto insurance company? Discounts are just one way to reduce car insurance rates.

There are still a few other things you can try to reduce the rates on your auto insurance policy. Some of the top savings tips are:

• Evaluating Coverages: Check your policy to see if there are any coverages, such as roadside assistance, you could drop without putting yourself at financial risk.
• Raising Deductibles: Raise your deductibles to an amount you feel comfortable paying out of pocket to reduce your monthly costs.
• Comparison Shopping: Use online comparison tools to get quotes every year to see if you can score a better deal at another company.

If you have a poor driving record or a poor credit score, improving your driving record with safe driving or raising your credit score will help reduce your auto insurance rates.

Looking to find the cheapest auto insurance rates today? Use our free quote tool to quickly compare rates from companies in your area.