How much should I pay for car insurance? | finder.com

How much does car insurance cost?

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Learn what affects the cost of insurance and how to save.

Wondering about the cost of car insurance? The average cost is around $800 per year, but it can vary widely depending on your location and your personal situation. Male drivers can expect to pay more, while middle-age married drivers with a clean record will pay less. Compare the average costs of car insurance and how rates are calculated, plus the best ways to save.

Compare car insurance rates from top companies

Name Product Roadside assistance New car protection Available states
Included free
Yes, cars under 2 years old
All 50 states
Enjoy having your own dedicated agent to help you get the best discounts and coverage.
Optional
Yes, cars under 1 year old & 15,000 miles
All 50 states
Car insurance through Liberty Mutual will give coverage options for almost any situation.
Included free
No
AZ, AR, DE, IL, IN, IA, KY, LA, MD, MI, MS, MT, NM, ND, OH, OK, OR, PA, TX, UT
Root offers simple, affordable insurance that’s ideal for good drivers. Try the Root app for 2 weeks and see how much you could save. Available in 20 states.
Included free
Yes, cars under 1 year old & 15,000 miles
All states except AK, DE, HI, MT, NH, VT, WY
Esurance offers a modern online and mobile experience that helps you take your insurance on the go. Available in 42 states.
Optional
Yes, cars under 1 year old & 15,000 miles
AZ, CA, IL, NJ, OR, PA, VA, WA
Drive less than 30 miles a day? Save on the coverage you need with pay-per-mile insurance from Metromile. Get a low monthly rate then pay just a few cents per mile. Available in AZ, CA, IL, NJ, OR, PA, VA and WA.

Compare up to 4 providers

Compare average car insurance rates

Car insurance rates are also highly regional, so you’ll get a different rate if you move to a different ZIP code. Compare sample rates for a New York driver.

Rates last updated December 11th, 2018
Company Median annual rate Learn more
Allstate $1,489 Read review
Liberty Mutual $2,365 Read review
Esurance $3,555 Read review
USAA $4,530 Read review
Erie $4,326 Read review
Travelers $1,429 Read review
Progressive $1,574 Read review
Geico $1,066 Read review
State Farm $2,212 Read review
Chubb $2,271 Read review
Kemper $1,056 Read review
NY Central Mutual $1,814 Read review
Preferred Mutual $2,732 Read review
Average $2,340 Compare more reviews

What impacts the cost of car insurance?

Your individual circumstances, your car and the policy you choose will affect the price you pay for car insurance. You can’t draw up your own policy and set your own prices, but you can take control of many of the factors affecting the cost of your car insurance, and reduce costs that way.

  • Age. Young drivers under 25, as well as seniors, will pay more for car insurance. The insurance industry considers drivers under 25 — and especially male drivers under 25 — to be high risk for car accidents. This means the older you get, the lower your car insurance rates will tend to be, until you reach a certain age.
  • Sex. Males can often expect higher premiums. This is sometimes further affected by age and marital status.
  • Occupation. Professional drivers, whether behind the wheel of a racecar or a delivery truck, can expect significantly higher premiums thanks to more time spent on the road.
  • Marital status. Single people are seen as less stable than their married counterparts. If you get married, you’ll see your premiums decrease.
  • Location. Some places are at higher risk of theft, vandalism, flooding, storms, theft, accidents and other potential hazards, which incurs higher costs.
  • Claims history. The more car insurance claims you have made in the past, the higher your premiums will generally be.
  • Driving record. The more violations you have on your driving record, the more you can expect to pay for your car insurance.
  • Credit score. Credit score is one of the largest factors a provider uses to decide on a customer’s rate, except in California, Hawaii and Massachusetts. This is because multiple independent studies indicate that if your credit score is low, you’re more likely to be involved in an accident.
  • Nominated drivers. Only certain people will be approved to drive the car, and all of them impact the cost of insurance. Even the world’s safest driver will get a substantial price hike by listing another less-safe driver on their policy.
  • Typical driving habits. Your typical distance driven, how often you get behind the wheel and where you drive all play a part in your car insurance prices.

How can adjusting my driving factors help me save on my policy?

You have little control over most of these factors, but there are still some steps you can take to reduce your premiums.

  • Don’t make cheap claims. It might be cheaper in the long run to pay out of pocket for smaller expenses rather than claiming them on insurance. Maintaining a no claims history, or reputation as a safe driver, can make a substantial difference.
  • Be careful listing other drivers. Spend less by only naming other drivers on the policy if they’re at least as safe behind the wheel as you are.
  • Avoid traffic violations. It’s easier said than done, but a trail of traffic violations will follow you around and keep bumping up your car insurance costs.
  • Match policy to use. Try finding a policy that suits your typical car use. For example, if you only drive six months a year, as may be the case with collectors of vintage cars, you can get a considerable discount by looking for usage-based insurance.

Find the cheapest rates

Compare the best car insurance companies near you.

Your information is secure.

Does my car affect car insurance rates?

The total value of your car is one of the main price considerations. If there’s one outstanding tip for saving on car insurance, it’s to buy a cheap, safe and common vehicle.

  • Manufacturer. Get lower prices with manufacturers that are popular and have expansive service networks.
  • Year, make and model. The availability of spare parts and approved mechanics are key factors for determining car repair costs, and subsequently car insurance premiums.
  • Car security. Car anti-theft measures make a difference to overall risk, and will get you lower prices with some insurers.
  • Car safety. The safer a car is for its drivers and passengers, the cheaper it is to insure. You can find the safest cars on the market by comparing official NHTSA safety ratings.
  • Target of theft. Some cars are much more likely to be stolen than others, simply because they’re in style, or are easier to resell. A highly desirable car will often attract higher premiums.
  • Where it’s kept. Whether a car is parked in a locked garage or on the street in a high-crime area will also affect the costs to insure it.

How can my car help me save on my policy?

While you may fall inside the average range of $800-900 annually, any of the factors outlined above could contribute to a slightly higher or lower cost. The best way to find out what you can expect to pay is to shop around and compare the rates offered to you for basic and comprehensive coverage. You can save the most by considering these tips before buying a car, but you can also take some retroactive steps as well.

  • Try aftermarket security. Even if your car was missing important security features when you bought it, you can still install aftermarket systems. VIN etching, for example, is relatively cheap but can make a big difference. Remember that not all insurers will recognize all security systems, so check in advance.
  • Consider a big car. Larger vehicles are often safer for their drivers, mostly because they just tend to come out on top in accidents with smaller cars. This can translate into reduced premiums, but might not always be worth the cost.
  • Buy a popular model. The more popular your car is, the lower the prices you can expect. Cheap and popular cars make for cheaper car insurance.

Find the cheapest rates

Compare the best car insurance companies near you.

Your information is secure.

What type of insurance policy is cheapest?

Every driver needs basic liability coverage, but depending on which other coverage you’re adding onto your policy and the policy features, you can naturally expect very different prices.

  • Type of coverage. Comprehensive car insurance naturally costs more than basic coverage types.
  • Deductible. The deductible is an amount you will need to pay before making a claim on car insurance, and a higher deductible means lower premiums, while a lower deductible means higher premiums. You will often be able to choose your own deductible.
  • Additional options. Two similar-seeming policies might be very different side by side when you look at extras like roadside assistance, rental car replacement, emergency accommodation and vehicle storage, all of which can add to the cost of policies.

How can I save money on car insurance?

You can save money by taking control of the factors affecting your car insurance prices wherever possible, and save even more by following some useful tips. With the cost of car insurance varying so widely, there are opportunities to save on your car insurance.

  • Choose a higher deductible. You should always be able to afford your deductible so you can make claims if needed, but you might also consider keeping it high if possible in order to reduce your premiums.
  • Drop extras. Try dropping unwanted extras, or consider avoiding policies that are loaded with features you don’t need.
  • Drive safely. The better your driving record, the lower your rates are going to be. You can even enroll in a defensive driving class to save as much as 10% on your annual costs.
  • Garage your vehicle. If you live in an area that’s less safe for street parking, it could be worth the money to rent a garage spot. Other options to consider: You can install an anti-theft system on your vehicle, making it less of a target for would-be thieves.
  • Ask for price matching. Get in touch with your current insurer before taking your business elsewhere, and give them a chance to match competitors’ prices. Bringing in a written quote is especially helpful.
  • Consider a less-expensive car. The more expensive the car, the more expensive it is to insure. However, if you can afford a Ferrari, maybe insurance costs aren’t your chief concern.
  • Buy online. Many insurers offer considerable discounts for signing up online.
  • Review your coverage. Try not to go past a renewal period without reviewing your coverage and seeing if you could save money by switching. It’s not unusual for prices to creep upward over time, and an insurer that initially delivered value for money might not be the right choice anymore.
  • Adjust your options. You don’t have to cancel your policy or change insurers to save money. Renewal time also lets you adjust your policy options, including your chosen extras, deductible and other factors.
  • Hunt for discounts. Don’t underestimate the power of discounts. Look for discounts for having a car security system, multi-policy discounts with insurers you’re already a customer of, and generous no claims bonuses for safe drivers.
  • Compare and switch car insurance. You won’t know whether you could be getting more for your money elsewhere if you never look, and you won’t actually get that value if you don’t switch. Compare your options and find the best deal.

Find the cheapest rates

Compare the best car insurance companies near you.

Your information is secure.

Frequently asked questions

Andrew Munro

Andrew writes for finder.com, comparing products, writing guides and looking for new ways to help people make smart decisions. He's a fan of insurance, business news and cryptocurrency.

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site