Car Insurance 2022

Nearly all jurisdictions require drivers to carry car insurance, so it's useful to understand how much you might anticipate paying for coverage. According to Forbes Advisor, the average cost of auto insurance is $513 for state-required minimum coverage and $1,601 for full coverage.

To determine the typical cost of motor insurance, we examined quotes from the top automobile insurance providers.

Age

 Employer

 Amount of Coverage

Driving record State

Gender

Vehicle

Car insurance companies weigh each of these elements when determining how much to charge for their plans, which has an impact on your final cost.

What Does Auto Insurance Cost?

According to a Forbes Advisor analysis, the national average cost of auto insurance is $1,601 per year. This price is for full coverage auto insurance, which also comes with extra protection against theft and damage to your own vehicles.

Although full coverage auto insurance has no standard definition, it typically consists of the following:

Car insurance companies include all of these elements into the cost of their policies, which has an impact on your premium.

Car Insurance Costs How Much?

According to a Forbes Advisor analysis, the average annual cost of auto insurance in the country is $1,601. This price is for full coverage auto insurance, which also includes supplemental insurance for auto theft and damage.

Full coverage auto insurance doesn't have a defined definition, but typically includes the following:

Because it doesn't cover your car, state-mandated liability insurance is substantially less expensive than full coverage auto insurance. It simply offers liability insurance at the minimum level required to drive legally.

Cost of Car Insurance on Average by Company

Because each auto insurance provider evaluates risk differently, premiums might change dramatically between providers. This is why comparing auto insurance quotes from several providers can help you locate the best deal for your particular circumstance.

The average cost of full coverage auto insurance by company

Average annual premiums for complete coverage vary between $1,141 with USAA and $2,277 with Farmers among the providers we looked at, a difference of $1,136.

Although USAA may be the least expensive option, it is only open to active-duty military personnel, veterans, and their dependents. Nationwide ($1,154 annually), which costs around $1,100 less than Farmers, comes in second place.

Because collision and comprehensive coverage are included, full coverage auto insurance is more expensive than liability-only coverage. Your lender will typically demand that you maintain full coverage auto insurance if you are leasing or financing your vehicle.

State-required minimum liability insurance average vehicle insurance premiums by company

Average annual premiums for the minimum coverage offered by the companies we studied range from $322 for USAA to $830 for Farmers, a difference of over $500.

After USAA ($322), which limits eligibility to active-duty or retired military personnel and their families, Auto-Owners ($356) is the least expensive option.

Although it is quite inexpensive, the legal minimum in automobile insurance offers little protection. You can increase your liability limits to gain better protection in case you cause an accident if your budget changes. If you want to expand your auto insurance options, think about purchasing comprehensive and collision coverage as well.

To accurately determine which auto insurance provider is the most reasonable, comparison shop for the same coverages and limitations regardless of the sort of policy you're purchasing.

How Much Does Car Insurance Cost on Average in Your State?

Your auto insurance prices are affected by where you live. For instance, auto insurance providers consider your region's propensity for severe weather, the number of claims there are and how much they cost.

Densely populated states normally have higher average vehicle insurance rates than rural states with fewer drivers since the chance of accidents is typically higher in metropolitan regions where there are more cars on the road.

States with the cheapest and most costly full coverage auto insurance

Vermont is the state with the cheapest full coverage rates, according to our analysis of average auto insurance premiums by state. The best five states with the most affordable full coverage auto insurance are:

$1,066 in Vermont

Idaho: $1,143

Massachusetts: $1,149

Maine: $1,168

Ohio: $1,168