How much is car insurance?

Average cost of car insurance

The average cost of full-coverage auto insurance is around $2,000 in 2023. How did we get to that number? According to the National Association of Insurance Commissioners (NAIC), the average cost of full-coverage auto insurance nationwide was $1,176 in 2020.

We don’t have precise data for 2023 as of publication; we may not learn what the actual average cost for auto insurance is for 2023 until late 2025 or early 2026. In the meantime, however, there are plenty of estimates floating around that can give us some idea:

• Insurance aggregator site Insurify estimates that the average cost of full-coverage car insurance will hit $1,895 in 2023, which is 7% higher than the 2022 average.
• QuoteWizard says it’s $1,949.
• Kiplinger claims it’s passed the $2,000 mark, rising to $2,014.

With these estimates, we think it’s safe to say the average cost of full-coverage auto insurance is probably around $2,000 in 2023.

If these estimates prove true, $2,000 would represent a 70% rise in car insurance rates from 2020 to 2023. That’s high, but probably not a surprise, given sky-high rates.

» COMPARE: Car warranty vs. car insurance

Car insurance rates by state for 2023

While we don’t have accurate data for 2023 yet, we do have accurate data for 2020 and dozens of estimates to suggest that rates are roughly 70% higher three years later. By combining different sources, we can estimate which states have the least and most expensive car insurance rates.

Most expensive states for auto insurance in 2023

The national average for full coverage was $1,176 in 2020, and we anticipate it’ll be something like $2,000 for 2023.

Least expensive states for auto insurance in 2023

As you can see, the disparity between the most expensive ($2,865) and least expensive ($1,341) is wide. On average, drivers in Maine pay less than half of what drivers in Louisiana pay. This might have you asking: What other factors might be impacting my car insurance rates?

Cost of car insurance by age

You’ve probably heard — or noticed in your own bills — that car insurance rates tend to fall with age. They generally peak when you’re a teenager, drop off when you’re 25 and keep going down after that.

Data supports this. Progressive estimates that rates tend to peak at age 18, fall 40% by age 25 and keep trending downward until age 74. Then, after a half-century of declining rates, you might see a rise in rates from age 75. “While most drivers in their 80s are more experienced than anyone else on the road, the effects of age can impact our reflexes and reaction times.”

Keep in mind that drivers’ claims histories vary, so not everyone gets a major discount for their quarter-life crisis. “... if you're in an accident right before you turn 25, your rate may not drop,” according to Progressive.

Fair enough. But why do young adults pay so much more to begin with, even if they drive like their driver’s ed teacher never left the car? The reasons are many, says Rachel Bodine of AutoInsurance.org. Statistically, the following statements are true of young drivers:

• They’re more likely to get into serious accidents than drivers in other age groups.
• They have objectively less experience.
• They’re more likely to drive recklessly.
• They have lower credit scores (or none at all).

Perhaps most importantly, young drivers simply end up filing more claims than drivers in other age groups. And if a particular demographic files more claims and asks providers to pay more money, the provider will in turn charge that entire demographic higher premiums to stay in business.

Car insurance rates by gender

So, men pay more, right?

In 2018, following a Michigan woman’s transition from male to female, her auto insurance rates instantly increased by $970.08.

When they’re young, definitely. An analysis by QuoteWizard found that, on average, 18-year-old men pay $5,124 annually for full coverage, compared with $4,118 for women of the same age — a $1,006 difference. Among other reasons, the assumption is that young men are just more likely to drive recklessly, cause accidents and file claims.

QuoteWizard found that by age 35, however, men pay $720 on average annually, and women pay $739, despite women having cleaner overall driving records.

A 2022 study by the Consumer Federation of America (CFA) brought this discrepancy to light, finding that when all other factors were controlled, female drivers in Delaware still paid up to 21% more. In 2018, a transgender woman in Michigan discovered that following her transition from male to female, her auto insurance rates instantly increased by $970.08 per year.

“Many auto insurers are charging women with perfect driving records higher premiums simply because of their gender,” said Douglas Heller, director of insurance at CFA. In response, some state legislators are trying to ban the practice altogether. So far, the following states officially prohibit the consideration of gender in auto insurance rates:

• California
• Hawaii
• Massachusetts
• Michigan
• North Carolina
• Pennsylvania

In short, men pay more upfront due to their driving behavior, and women pay more later for no apparent reason.

How to save on car insurance

With premiums skyrocketing an estimated 70% since 2020 alone, you’re probably keen to get your rates down as much — and as quickly — as possible. Some ways to do this:

• Ask for discounts. Call your provider and simply ask, “What discounts am I qualified for?” The agent will typically spend a few minutes on the phone with you, helping you hunt for ways to save money. You may find that you save 4% just for being in a sorority or 7% for recently getting married and buying a home.
• Set up autopay. Some providers discount up to 5% just for setting up autopay or for paying your six-month premium in full. “Full pay, autopay and bank draft payments can mean large discounts,” said Phil Minnes, an American Family Insurance agent in Norcross, Georgia.
• Enroll in your provider’s driver monitoring program. Most major providers have a telematics program that monitors your driving behavior and rewards you with up to a 30% discount for safe driving. There’s often a discount just for signing up.
• Buy less insurance. While most auto leases and loans require full coverage for the duration of the agreement, you can still raise your deductibles or lower your limits to save a few bucks.
• Find a better deal. It’s never been faster or easier to get auto insurance quotes online. If you find a better deal but like your current provider, you can show your provider the competing offer and ask for a quote match. For a list of companies to start with, check out our guide to the best car insurance companies.
• Take an online defensive driving course. Most providers will reward you with discounts of up to 10% just for taking a 90-minute defensive driving course online. One of our writers netted hundreds in savings over three years, all for taking a course that cost $25.

» SAVE MORE: How to get cheap car insurance