How much does car insurance cost in 2024?

How much does car insurance cost in 2024?

As boring and annoying as it can be, car insurance is a part of almost everyone’s lives. With few exceptions, every driver must have auto insurance before hitting the road, and states have different minimum requirements on coverage for things like bodily injury and liability. If you’re wondering how much car insurance costs, we’ve got you covered and can help you find ways to save money on your next car insurance policy.

How much does car insurance cost in 2024?

Car insurance prices vary wildly from place to place and from driver to driver, but the national average for full-coverage insurance on a vehicle is a little less than $2,000 per year, or around $165 per month. That rate is for a driver with a clean record and good credit, and it can climb quickly with accidents and dings on the driver’s credit report.


Nerdwallet found that a good driver with bad credit can pay as much as 61% more than those with good credit scores. Interestingly, having an accident didn’t cause the average rate to rise as much, but a DUI conviction almost doubles the national average cost.

Minimum coverage is much cheaper, totaling $549 for good drivers with good credit. Similar increases apply to people with bad credit, accidents, and DUIs. It’s important to note that minimum coverage should not be viewed as a simple way to save money, however, because the costs to repair your vehicle after an accident can easily surpass any potential savings from a lower level of insurance coverage.

Insurers also charge men more for car insurance, though the gap between average insurance costs for men and women narrows as their age increases. Insurance costs for young men are more than $500 more expensive than for young women, but by age 35, the difference is just $25. At age 50, men and women pay roughly the same, with women paying slightly more than men in some cases.

What is the cheapest car insurance?

It pays to shop around — the following statements are on average, in general, so you need to compare rates for your own car and your own situation. That said, USAA tends to be the cheapest insurer for many drivers, but it’s only available for active, retired, and separated veterans with an honorable discharge. For everyone else, State Farm offers the second-most-affordable rates, on average. Travelers and American Family are next, though AmFam is only available to drivers in 19 states.

You might find a regional insurer that offers better rates, and you may be eligible for discounts that lower your monthly payment further. There may also be job-specific or profession-specific insurance companies, such as California Casualty, which is only available to educators, healthcare professionals, and others.

Which states have the most and least expensive car insurance?

Drivers in Florida paid more than anyone else in the country, with an average insurance cost of $3,797 per year. Wyoming is on the opposite end of the spectrum, where drivers pay $1,069 for full coverage. Insurers tend to charge more in states and areas where more drivers are involved in car accidents.

Several states tilt toward the more expensive end of the spectrum, including Louisiana at $3,608 per year, Rhode Island at $3,341 per year, and Kentucky at $2,965 per year.

How much is car insurance for teens and young adult drivers?

Young drivers pay more for car insurance than more experienced vehicle owners. With a clean driving record, the average 20-year-old driver pays $4,110 for full-coverage insurance. Rates for young drivers are also more sensitive to changes in credit scores and traffic citations. Poor credit can impact the average annual insurance costs by up to 50 percent, as 20-year-olds with clean driving records and bad credit paid $6,597.

Vehicles with higher insurance costs

This article contains affiliate links; if you click such a link and make a purchase, we may earn a commission.