How Much Is Car Insurance per Month?

How much does car insurance cost? It seems like a straightforward question, but car insurance premiums vary from person to person and state to state. Why?

Tom Reece, sales manager at Mountain West Insurance, has been writing auto policies for more than two decades. He says that before quoting a rate, underwriting actuaries examine a driver’s information based on factors such as your past claims, gender, age, the type of vehicle and even where you drive to figure out how to charge you.

A 40-year-old male or female driver with a clean driving record and good credit in the U.S. can expect to pay an average of $1,771 per year, or about $148 monthly, for full coverage car insurance. The minimum insurance cost–the bare bones you'd need to purchase to drive legally in your state–is $545 per year on average.[1]

Every state has its own insurance requirements and providers work with them to set rates.

Two states, New Hampshire and Virginia, don’t require drivers to have car insurance. They do, however, have minimum coverage requirements for drivers who choose to purchase insurance.

This chart shows the average annual and monthly car insurance rates by state for 2022:

Source: Quadrant Information Services

Insurance premiums start out with a base rate determined by broad categories of drivers, such as males under age 25 living in Chicago, Ill. Then, insurance companies examine individual risk/rating factors that affect the probability of you placing a claim.

The main rating factors include:[2]

• Age, gender and marital status

• Vehicle make, model and age

• Driving history

• How much you drive

• Credit history

• Zip code

• State requirements

• Coverage levels and deductible

In 42 states and Washington, D.C., insurance companies are permitted to consider your credit score when determining rates and whether to deny, cancel, or refuse to renew a policy. Four states have banned credit scores as a rating factor: California, Hawaii, Massachusetts, and Michigan.

How credit ratings affect car insurance prices state-by-state:[3]

A single DUI can increase your annual car insurance costs by thousands of dollars. Worse yet, your carrier may drop your policy after a DUI, and you may have trouble finding a new carrier.

The average premium increase after a DUI is $1,163 or 80%.

“Carriers have driving guidelines by which they evaluate you,” Reece says. “If you have a major violation, such as a DUI, you may be excluded as a driver, and most carriers will not insure you."

Post-DUI, insurance carriers can hit you with a high surcharge (rate increase) and keep your rates high for three to five years although it may be longer in some states. In California, you’re not eligible to obtain a 20% good driver discount until 10 years after a DUI.[4]

Reece also notes that carriers will do a motor vehicle record check for every driver on a policy. “It’s an immediate red flag if the car insurance company spots a DUI, DWI, or OUI,” he says.

DUI insurance rates by state:

Accidents happen. It is scary and stressful, but your car insurance is there to help cover the damage to all vehicles involved, as well as property damage and medical costs. Unfortunately, it’s possible a claim will increase your rates, even after a minor fender bender, because insurers will assess you as a higher risk.

Data for 2022 shows the average increase after an at-fault accident is $750.[5]

Here's the average annual premium for full coverage before and after such incidents:

Source: Quadrant Information Services

Some companies offer an accident forgiveness program if you’re enrolled prior to your accident. Guidelines vary by provider and state but are designed to waive the first at-fault loss that occurs on your policy.

Reece says there’s a general misconception that your driving record doesn’t follow you.

“It does,” he says. “Carriers will look at your motor vehicle record—usually the most current five years—for moving violations and accidents that will influence the rate you’re charged and whether a carrier will even underwrite you based on your record.”

As you shop around for car insurance, you’ll soon notice that younger drivers almost always pay more for their premiums. Why? Statistically, they have more accidents. The good news is the rates get more affordable each year you remain accident free. Data shows that from ages 17 to 21, rates drop an average of 17% each year.

This table shows the average monthly and annual costs of car insurance for drivers by age:[6]

Age is typically one of the biggest factors insurers use to determine your car insurance rate, but gender also plays a role. Reece says this factor has begun to equalize in recent years, and the disparity also disappears as we age.

Most states allow insurers to rate on gender since crash statistics are different for males and females. Data shows males are more likely to crash–especially in the early years of driving when they are known to be more aggressive as a novice driver.[1]

These states do not allow gender to affect rates:

• Hawaii

• Massachusetts

• Michigan

• Montana

• North Carolina

• Pennsylvania

  State	Female	Male
  Alabama	$2,574	$2,873
  Alaska	$1,886	$2,060
  Arizona	$2,359	$2,571
  Arkansas	$2,543	$2,735
  California	$2,523	$2,523
  Colorado	$2,507	$2,738
  Connecticut	$2,894	$3,156
  Delaware	$3,183	$3,505
  District of Columbia	$2,661	$3,024
  Florida	$4,057	$4,275
  Georgia	$2,498	$2,782
  Hawaii	$1,236	$1,236
  Idaho	$1,696	$1,854
  Illinois	$2,064	$2,267
  Indiana	$1,669	$1,809
  Iowa	$1,551	$1,669
  Kansas	$2,176	$2,333
  Kentucky	$3,101	$3,371
  Louisiana	$4,389	$4,793
  Maine	$1,639	$1,814
  Maryland	$2,632	$2,901
  Massachussetts	$2,549	$2,549
  Michigan	$3,429	$3,429
  Minnesota	$1,874	$2,015
  Mississippi	$2,378	$2,600
  Missouri	$2,200	$2,427
  Montana	$2,861	$2,861
  Nebraska	$2,280	$2,500
  Nevada	$3,143	$3,428
  New Hampshire	$1,852	$2,037
  New Jersey	$3,535	$3,812
  New Mexico	$2,120	$2,250
  New York	$2,837	$3,093
  North Carolina	$1,328	$1,331
  North Dakota	$2,014	$2,217
  Ohio	$1,534	$1,650
  Oklahoma	$2,733	$3,027
  Oregon	$2,153	$2,235
  Pennsylvania	$2,488	$2,488
  Rhode Island	$3,077	$3,412
  South Carolina	$2,635	$2,844
  South Dakota	$2,120	$2,323
  Tennessee	$2,009	$2,204
  Texas	$2,631	$2,873
  Utah	$2,368	$2,579
  Vermont	$1,578	$1,759
  Virginia	$1,922	$2,146
  Washington	$2,453	$2,606
  West Virginia	$2,415	$2,678
  Wisconsin	$1,618	$1,759
  Wyoming	$1,921	$2,246

Source: Insure.com

Even though many factors play a role in determining your car insurance premium, and some are out of your control, Reece says you can find ways to lower your rate:

• Be a better driver. “First and foremost, minimizing tickets and violations will help reduce your cost,” Reece says. “The longer you’ve been a licensed driver, the lower your rate may be thanks to discounts.”

• Shop around. Approach at least three companies and compare rates. Include local agents and national insurers in your search. Consider going through this process at least once a year.

• Increase your deductible–with caution. You can lower your monthly premium by increasing your deductible, but if you go this route, Reece says to make sure you know exactly what is covered. “The least expensive option may not always be the best,” he says.

Above all, know what your policy covers and don’t be afraid to ask questions.

“Do you have roadside assistance? What happens if your windshield glass is chipped? These are things people assume are automatically included, but you typically have to ask for it,” Reece says. “Be inquisitive. Knowing what is covered—and what isn’t—can make a big difference.”