We often don’t think about car insurance until it’s time to shop for or renew a policy—or file a claim. But with auto insurance costs spiking, car insurance statistics can reveal a lot about this $155 billion industry[1] in the U.S.
Car Insurance Statistics at a Glance
Cost statistics
- The national average cost for car insurance is $2,150 annually for full coverage.[2]
- Car insurance costs are on the rise. The cost of auto insurance increased by 63.8% between 2014 and 2023.
[1] - In our rate analysis, the average cost of car insurance for full coverage ranges from a low of $1,412 per year with USAA to a high of $3,233 per year with Mercury, a difference of $1,821 a year.[2]
- Average rates for minimum coverage range from $241 per year with Erie and Mercury to $892 per year with Safe Auto, a difference of $651 annually.[2]
Age-related statistics
- The average car insurance cost for 16-year-old drivers with their own policy is $8,765. The average rate for 17-year-olds is $6,829.[2]
- Car insurance is cheapest for 60-year-old drivers, averaging $1,915 annually.[2]
- Motor vehicle crashes are the leading cause of death for U.S. teens. The risk of motor vehicle crashes is higher among teens ages 16–19 than among any other age group.[3]
Coverage-related statistics
- The vast majority of drivers have comprehensive and collision coverage. In addition to buying liability car insurance, 79% of insured drivers buy comprehensive coverage and 75% purchase collision coverage.[1]
- About one in seven drivers has no car insurance.[4]
Vehicle-related statistics
- The Honda CR-V and Subaru Outback are the cheapest models to insure among the 20 top-selling vehicles, each with an average annual rate of $1,723. That’s $1,405 cheaper than a Tesla Model Y Long Range, the costliest to insure at $3,128 a year.[2]
- Minivans are the least expensive vehicle type to insure, with an average annual rate of $2,041, versus coupes (two-door sports cars), for which the average rate is $3,894 a year.[2]
- Vehicles with the lowest collision losses include the Toyota Tundra double cab LWB, Jeep Wrangler 2dr 4WD and Subaru Crosstrek 4WD. Vehicles with the highest collision losses include luxury cars, such as the McLaren 720S convertible, BMW M4 2dr 4WD and BMW M8 4dr 4WD.[5]
Why Is Car Insurance Higher in 2024?
Inflation, supply chain woes and expensive car accidents led the way to higher car insurance costs in 2024.
Since driving was greatly reduced during the height of the pandemic, accidents and claims were also down. Now drivers are back on the road, and the resulting accidents are costing a whole lot more in car insurance claims thanks to pricier parts, labor and medical bills.
The Consumer Price Index (CPI), which tracks prices on certain consumer goods over time, saw an increase of 3.1% across all tracked goods for the 12-month period that ended in January 2024. Year-over-year car insurance prices were up a whopping 20.6%, according to CPI data.
A report by the American Property Casualty Insurance Association (APCIA), a trade group for property/casualty insurers, examined car insurance companies’ struggle with inflation. According to the APCIA, insurance claim costs are rising faster than the CPI and outpacing rate increases by car insurance companies. To make up the difference, expect car insurance companies to pursue more rate increases in 2024 as they play catch up.
What Are the Biggest Cost Factors for Car Insurance?
How much car insurance costs depend on several factors, including:
- Your driving record. Your history of at-fault accidents and moving violations play a vital part in determining car insurance rates. Insurers typically examine your driving history over the past three to five years when you buy a policy, and at renewal.
- Your credit history. In states that allow it, auto insurance companies closely examine your credit history to determine your risk. Most states allow insurers to use credit-based insurance scores when setting rates.
- Mileage. The more you drive, the more you typically pay, while low mileage car insurance often provides savings for those who drive less.
- Your coverage choices. Nearly all states require liability car insurance, but you can also add collision and comprehensive coverage. Those choices can lead to a bigger insurance bill, but offer you more protections.
- Amount of your deductible. A car insurance deductible is the amount that’s subtracted from your insurance payout when you file a claim. The higher the car insurance deductible, the less you pay in insurance premiums.
- Vehicle’s make and model. The type of motor vehicle can make a big difference in what you pay. Models with fewer claims tend to be less expensive to insure than sporty and luxury vehicles.
- Driving experience and age. If you’re new to driving, you typically pay more for insurance. Teens generally pay more than other drivers.
- Where you live. Car insurance companies take into account car thefts and vandalism, weather-related claims and the frequency and cost of accidents in your area.
- Other factors. Car insurance companies may also use information like whether you’re married and own a home, your occupation, education level and gender.
How To Get the Best Auto Insurance Rates
Follow these recommended practices to save on car insurance.
- Shop around and request multiple quotes. Compare car insurance quotes from multiple auto insurance companies. The price for the same amount of coverage can vary significantly from one company to the next, so comparison shopping is the best way to identify the most affordable car insurance rates.
- Bundle your insurance. Take advantage of multi-policy discounts by purchasing more than one type of insurance policy from an insurance company. This is called bundling auto and home insurance.
- Maintain good credit. Review your credit reports and dispute any errors or inaccuracies you see there. Aim to improve your credit score by paying your bills on time and in full and not opening any new credit accounts if you’re looking to lower your insurance costs and live in a state that allows insurers to use that information.
- Explore discounts. You may be eligible for a car insurance discount on your premium by being a good student, having a car with anti-theft devices, having a clean driving record, driving fewer miles per year, taking a defensive driver course and more. Ask your insurance agent about possible discounts.
- Choose the right coverages and coverage levels for your needs and budget. Review all the different coverage options carefully with your agent or insurance company. For instance, you may want to prevent overinsuring an older car by buying full coverage car insurance.
- Raise your deductible. You can save hundreds of dollars each year by increasing your car insurance deductible. Drivers who hike their deductible can save between 7% to 28%, on average, according to Forbes Advisor’s analysis of how much you save by increasing car insurance deductibles. However, if you get into a crash, you’re responsible for paying a higher deductible, so make sure you can afford this adjustment.
- Consider pay-per-mile insurance. This type of car insurance is designed to help you control how much you pay for insurance based on how much you drive.
Car Insurance Statistics by State
Where you live plays a key role in the average cost of car insurance. For instance, drivers in rural areas generally pay less than drivers in urban areas because there tend to be fewer cars on the road and fewer accidents. Motorists in neighborhoods prone to theft and vandalism or severe weather usually pay more than those in areas where crime and severe weather is less frequent.
Least expensive states for full coverage auto insurance (cost per year)
- Vermont: $1,158
- Idaho: $1,246
- Maine: $1,361
- Hawaii: $1,369
- New Hampshire: $1,390
Most expensive states for full coverage auto insurance (cost per year)
- Florida: $3,865
- Louisiana: $3,545
- California: $2,768
- Oklahoma: $2,741
- New York: $2,612
