2025 Cost Guide

How much is car insurance?

Updated for 2025 · U.S. averages

Based on recent national averages, full-coverage car insurance costs around $2,697 per year, while minimum coverage averages about $820 per year. Your rate can be higher or lower depending on your state, age, driving record, vehicle and other factors.

Average sample profile: 40-year-old driver with good credit Data shown for education only — not a quote

Showing average rates for a sample driver

Age 26–35, sedan, good credit, currently insured, clean driving record, minimum coverage, 1 driver.
Sorted by estimated monthly premium

Progressive

★★★★★ Newmoneyfast Score 4.4
Popular for digital tools
Avg. estimated premium
$62/month
$742/year
Customer satisfaction score
672/1,000
Based on recent national survey data.
View details

State Farm

★★★★☆ Newmoneyfast Score 4.3
Strong local agent network
Avg. estimated premium
$77/month
$918/year
Customer satisfaction score
710/1,000
Scores vary by region and policy.
View details

Allstate

★★★★☆ Newmoneyfast Score 3.9
Usage-based program options
Avg. estimated premium
$83/month
$996/year
Customer satisfaction score
691/1,000
Estimates based on national averages.
View details

GEICO

★★★★☆ Newmoneyfast Score 4.3
Often low for good drivers
Avg. estimated premium
$50/month
$596/year
Customer satisfaction score
692/1,000
May vary based on location.
View details

Key insights from our 2025 car insurance cost analysis

  • Full-coverage car insurance averages about $2,697 per year nationwide. Minimum coverage averages around $820 per year.
  • Companies like USAA, Auto-Owners and GEICO often offer some of the lowest full-coverage rates but may have eligibility requirements.
  • Men tend to pay more than women on average, largely due to higher accident and claim rates in many age groups.
  • Vehicles with poor safety ratings or higher repair costs typically come with higher premiums.

The factors that impact the cost of car insurance

Insurers use dozens of data points to estimate how likely you are to file a claim and how expensive those claims might be. Here are some of the biggest factors they consider.

📍
Your location
State laws, claim frequency, repair costs and weather patterns all affect rates. Dense, high-traffic areas typically cost more than rural locations.
👤
Your age & gender
Young drivers usually pay the most due to limited driving experience, while mature drivers with a clean record tend to pay less.
🛣️
Your driving record
Tickets, at-fault accidents and DUIs can dramatically increase your premium and may affect your eligibility for certain insurers.
🚗
Your vehicle type
Luxury cars, sports cars and foreign models often cost more to repair or replace, which usually means higher premiums.
💳
Your credit score
In many states, credit-based insurance scores are used to predict claim risk. Better scores typically qualify for lower rates.
➕
Other factors
Annual mileage, previous insurance history, selected coverage limits, deductibles and discounts all play a role in what you pay.

Average car insurance cost by state in 2025

Car insurance costs vary widely between states due to differences in claim frequency, medical and repair costs, state insurance laws and minimum coverage requirements. The sample numbers below highlight how full-coverage and minimum-coverage averages can change from one state to another.

Interactive map placeholder. You can replace this with your own map image or embed later. For now it simply shows that costs vary by state.
State Avg. annual full-coverage premium Avg. annual min.-coverage premium
Alabama $2,155 $562
Alaska $2,378 $501
Arizona $2,644 $849
Arkansas $2,432 $502
California $3,119 $916
Colorado $3,203 $579
Connecticut $2,753 $1,089
Delaware $2,970 $1,097
Florida $3,884 $1,056
Georgia $2,909 $1,046
Sample premiums are based on a hypothetical 40-year-old driver with a clean record and good credit. Your own rate will differ.

How to lower your car insurance cost

While you can’t control every factor that affects your premium, there are several strategies that may help you pay less for coverage.

  • Compare rates from multiple insurers at least once a year, especially before your policy renews.
  • Consider raising your comprehensive and collision deductibles if you can afford a higher out-of-pocket cost after an accident.
  • Ask about discounts for safe driving, bundling home and auto policies, paying in full, going paperless or installing telematics devices.
  • Keep your driving record clean and avoid lapses in coverage whenever possible.

Frequently asked questions

Is this page showing real quotes? +
No. The numbers on this page are national averages meant for education only. To get an actual quote, you’ll need to provide personal and vehicle information directly to an insurance company or licensed agent.
How often do car insurance rates change? +
Many insurers adjust rates at least once or twice a year based on claim trends, repair costs and other economic factors. Your personal rate can also change at renewal if you file a claim, add a driver, move or buy a different vehicle.
What’s the difference between full and minimum coverage? +
Minimum coverage usually only includes the liability insurance your state requires. Full coverage typically adds comprehensive and collision protection to help repair or replace your own vehicle after covered events like theft, vandalism or an at-fault accident.