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.

Find the lowest rates you could be paying for car insurance.

Wondering how much your car insurance should be? The average cost for car insurance is around $800 per year. For male drivers under 25, the cost is likely to be over $1,000 a year, and for middle-aged married drivers with clean records it could be as low as $600 or $700. 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
Allstate
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.
Liberty Mutual
Included free
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.
Root
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.
Esurance
Optional
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.
Metromile
Optional
Yes, cars under 1 year old & 15,000 miles
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 CA, IL, NJ, OR, PA, VA and WA.
USAA
Included free
No
All 50 states
USAA offers affordable car insurance with highly rated customer service to millions of military members and their families. Only available to military members, veterans and affiliated military members.

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 October 9th, 2018
Company Median annual rate Learn more
Allstate $1,488 Read review
Liberty Mutual $2,365 Read review
Esurance $3,555 Read review
USAA $4,552 Read review
Erie $4,045 Read review
Travelers $1,429 Read review
Progressive $1,574 Read review
Geico $1,068 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 $2,320 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. Drivers under 25 — and especially male drivers under 25 — are believed by the insurance industry to be at 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 modified by age and marital status.
  • Driving experience. L platers and P platers typically pay more, which often compounds the effect of age on premiums.
  • 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 right away.
  • 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. Even the world’s safest driver will get a substantial price hike by listing another less-safe driver on the 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 infringements. 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 collector or vintage cars, you can get a considerable discount by looking for lay-up periods and similar options.

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 that 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 microdotting, immobilisers, alarms and other 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 recognise 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 cover types.
  • Deductible. The deductible is an amount you will need to pay before claiming 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 replacements, 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 can 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 is, the lower your rates are going to be. You can enroll in a defensive driving class to save as much as 10% on your annual costs. These classes typically require half a day in a classroom, or following along with an online course, and cost $25-30 — that’s only the cost of half a tank of gas, or maybe lunch for two. Once your course is completed, you may even qualify to have violation points removed from your license, which can further decrease your insurance costs if your violation points were the cause for an elevated rate.
  • Garage your vehicle. Parking in a suburban driveway or along a safe street won’t probably affect your insurance rates, but if you live in an area with high crime rates, your rate is likely to be higher. If you do 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 antitheft system on your vehicle, making it less of an easy 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. Bring in a written quote from elsewhere and you may be surprised at how flexible and accommodating insurers can be.
  • Consider trading in. You may be shopping for a new vehicle soon, and accounting for the potential insurance costs is a good idea for keeping overall costs down. Remember — a luxury car, a European import or anything high-performance is likely to drive up your car insurance rates. If you can afford a Ferrari, maybe insurance costs aren’t your chief concern, but you’re likely to see a lower rate by going with Ford or Honda over BMW or Jaguar.
  • Buy online. A lot of insurers will offer considerable discounts for signing up online, as this goes a long way to reducing the insurer’s overhead costs.
  • 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 upwards 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 in the long run. Look for discounts for having car security systems, 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 value for money elsewhere if you never look, and you won’t actually get that value if you don’t switch. You can build bonuses over time by sticking with the same provider, but you shouldn’t hesitate if you know you have a preferable option waiting.

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 only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.
Go to site