Finding the right car insurance policy can help protect you financially in case of accidents or damages. Many providers offer competitive car insurance quotes, making it essential to compare options before choosing a plan. Popular insurers like NFU Mutual car insurance, Aviva car insurance, and RAC car insurance are known for their reliable coverage and customer service. Additionally, global insurers such as Allianz car insurance provide comprehensive policies for various needs. If you’re looking for reviews, checking AA car insurance reviews can offer insights into customer experiences. Meanwhile, John Lewis car insurance is another trusted option for drivers seeking tailored coverage.
Key Takeaways
- The average annual cost of car insurance is $2,068.
- Traffic violations, such as speeding tickets and DUIs, can significantly increase rates.
- Teen drivers tend to have the highest insurance costs, while senior drivers enjoy lower premiums.
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How Much Does Car Insurance Cost?
The average annual cost of car insurance among the most affordable insurers is $2,068. However, car insurance premiums vary based on personal factors, including location, age, vehicle type, credit history, and driving record.
According to our study, USAA offers the lowest average annual rate at $1,335, but it is only available to military members and their families. The next most affordable options are Erie ($1,532) and Auto-Owners ($1,619). On the higher end, Allstate’s average annual rate is $3,374.
Average Annual Car Insurance Rates by Company
| Company | Average Annual Rate |
|---|---|
| USAA | $1,335 |
| Erie | $1,532 |
| Auto-Owners | $1,619 |
| Nationwide | $1,621 |
| Geico | $1,778 |
| Progressive | $1,848 |
| American Family | $2,170 |
| Farmers | $3,253 |
| Allstate | $3,374 |
| National Average | $2,068 |
What Factors Affect Car Insurance Rates?
Insurance companies consider several factors when determining your car insurance premium:
- Age: Young drivers typically pay the highest rates due to their lack of experience, while senior drivers often receive discounts.
- Gender: In some states, insurers use gender as a factor. Male drivers generally pay more due to higher accident rates.
- Driving Record: Traffic violations, accidents, and DUIs can significantly increase your rates.
- Location: Car insurance costs vary by state and even by ZIP code. Areas with higher crime or accident rates tend to have more expensive premiums.
- Vehicle Type: The make and model of your car impact costs. Luxury and sports cars generally have higher premiums.
- Usage: Drivers who log fewer miles typically pay less.
- Credit Score: Some states allow insurers to use credit-based insurance scores to determine rates.
- Coverage Type: Full coverage policies, which include liability, collision, and comprehensive coverage, cost more than minimum liability policies.
- Deductible and Limits: Choosing a higher deductible lowers your premium but increases your out-of-pocket costs in case of an accident.
Car Insurance Costs by State
Insurance costs vary significantly by state due to local regulations, accident rates, and weather conditions. Below is a breakdown of the average annual car insurance rates by state:
| State | Average Annual Rate |
| Alabama | $1,354 |
| Alaska | $1,294 |
| Arizona | $1,626 |
| Arkansas | $1,814 |
| California | $1,782 |
| Colorado | $1,663 |
| Connecticut | $1,567 |
| Delaware | $2,231 |
| Florida | $2,553 |
| Georgia | $1,432 |
| Hawaii | $1,241 |
| Idaho | $992 |
| Illinois | $1,266 |
| Indiana | $1,190 |
| Iowa | $1,215 |
| Kansas | $1,486 |
| Kentucky | $2,104 |
| Louisiana | $2,734 |
| Maine | $949 |
| Maryland | $1,468 |
| Massachusetts | $1,399 |
| Michigan | $1,920 |
| Minnesota | $1,460 |
| Mississippi | $1,505 |
| Missouri | $2,055 |
| Montana | $1,525 |
| Nebraska | $1,569 |
| Nevada | $1,913 |
| New Hampshire | $1,530 |
| New Jersey | $1,706 |
| New Mexico | $1,530 |
| New York | $1,808 |
| North Carolina | $1,165 |
| North Dakota | $1,300 |
| Ohio | $1,083 |
| Oklahoma | $1,638 |
| Oregon | $1,281 |
| Pennsylvania | $1,395 |
| Rhode Island | $1,831 |
| South Carolina | $1,813 |
| South Dakota | $1,813 |
| Tennessee | $1,264 |
| Texas | $1,716 |
| Utah | $1,407 |
| Vermont | $1,053 |
| Virginia | $1,280 |
| Washington | $1,285 |
| Washington, D.C. | $1,727 |
| West Virginia | $1,532 |
| Wisconsin | $1,145 |
How to Get the Best Car Insurance Rates
- Compare Quotes: Get quotes from multiple insurers to find the best rate.
- Maintain a Clean Driving Record: Avoid tickets and accidents to qualify for lower premiums.
- Choose the Right Coverage: Opt for coverage that meets your needs without unnecessary add-ons.
- Increase Your Deductible: A higher deductible reduces your premium but increases out-of-pocket costs.
- Take Advantage of Discounts: Many insurers offer discounts for bundling policies, being a safe driver, or maintaining good grades (for students).
- Improve Your Credit Score: A better credit score can help lower your rates in states that use credit-based insurance scores.
Final Thoughts
Car insurance rates depend on a variety of factors, including personal details and state regulations. By comparing multiple providers, choosing the right coverage, and maintaining a clean driving record, you can secure the best policy at an affordable price.
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