Heads Up: The Fed continues to raise rates — up 3% this year — making credit card debt even costlier.
Pay it off today with a low fixed-rate personal loan. View your rate —>

What Is the Average Monthly Cost of Car Insurance by Age in the US?

By Sarah Li Cain · November 18, 2022 · 5 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

What Is the Average Monthly Cost of Car Insurance by Age in the US?

Car insurance underwriters look at many factors — such as age, gender, and location — when determining the risk a driver poses. To help you understand what you can expect to pay, we break down the average cost of car insurance by age and state, and other factors that may push your premiums higher or lower.

What Is the Average Cost of Car Insurance?

According to the National Association of Insurance Commissioners, the average car insurance premium per vehicle is $1,204, or $100.33 per month. The rate you’ll end up paying will depend on various factors such as your driving history, age, gender, and the age and make of your vehicle. If you’re currently paying much more than average, don’t switch car insurance without first talking to your carrier.

If you need to brush up on the difference between premiums and deductibles, check out our roundup of common car insurance terms.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

Average Car Insurance Rates by Age and State

One thing is consistent: The older you are, the less you’ll pay for car insurance, all else being equal. As you’ll see in the table, location also plays a large role in setting premiums, though the pattern isn’t as clear. One variable that should not affect your premium: whether you get your insurance through a brick-and-mortar office or online insurance company.

Below is the annual average cost of car insurance by age in every state. For monthly cost, divide the annual amount by 12.

State

Age

16 years

25 years

45 years

65 years

Alabama $3,470 $855 $697 $737
Alaska $2,311 $855 $697 $737
Arizona $3,838 $801 $661 $696
Arkansas $2,990 $784 $631 $626
California $2,845 $1,042 $844 $851
Colorado $3,632 $868 $725 $763
Connecticut $5,636 $1,280 $1,027 $1,063
Delaware $5,473 $1,381 $1,133 $1,125
District of Columbia $3,581 $813 $693 $714
Florida $3,390 $939 $814 $788
Georgia $4,924 $1,366 $1,095 $1,146
Hawaii $596 $501 $501 $501
Idaho $2,138 $497 $394 $401
Illinois $3,626 $841 $662 $675
Indiana $2,254 $606 $481 $508
Iowa $1,497 $416 $326 $332
Kansas $2,587 $658 $558 $552
Kentucky $4,300 $1,129 $931 $953
Louisiana $6,860 $1,592 $1,263 $1,399
Maine $2,351 $574 $456 $447
Maryland $4,629 $1,254 $1,069 $1,165
Massachusetts $2,408 $632 $565 $481
Michigan $6,508 $2,058 $1,908 $1,922
Minnesota $3,139 $925 $758 $776
Mississippi $2,896 $722 $578 $573
Missouri $2,952 $772 $587 $589
Montana $2,159 $520 $446 $456
Nebraska $2,271 $550 $427 $429
Nevada $4,870 $1,326 $1,108 $1,167
New Hampshire $2,265 $607 $438 $446
New Jersey $5,580 $1,447 $1,287 $1,255
New Mexico $2,504 $667 $555 $586
New York $7,305 $2,181 $1,828 $1,909
North Carolina $1,608 $510 $477 $473
North Dakota $1,921 $442 $370 $364
Ohio $2,113 $521 $414 $433
Oklahoma $3,450 $760 $643 $670
Oregon $3,765 $923 $789 $801
Pennsylvania $2,093 $591 $501 $497
Rhode Island $6,719 $1,086 $887 $998
South Carolina $3,689 $989 $817 $880
South Dakota $1,682 $410 $326 $325
Tennessee $2,553 $635 $498 $510
Texas $3,892 $965 $780 $809
Utah $3,681 $881 $750 $791
Vermont $1,648 $447 $341 $335
Virginia $4,300 $1,129 $931 $953
Washington $3,613 $909 $714 $743
West Virginia $2,411 $697 $568 $559
Wisconsin $2,488 $515 $418 $422
Wyoming $1,342 $325 $274 $274

Data courtesy of Quadrant Information Services

Recommended: How to Get Car Insurance

Factors That Affect Car Insurance Rates

There are a few factors that are within your control when it comes to insurance rates, and many that aren’t. The major factors include:

•   Your driving history

•   Age

•   Location

•   Age and model or your vehicle

•   Number of drivers on your insurance policy

•   Discounts you can take advantage of with your insurer

•   Your deductible

•   Type of coverage

For a deep dive into the process of selecting a carrier, see our story on how to get car insurance.

Recommended: How to Lower Car Insurance

How Age Affects Your Car Insurance Rates

Car insurance companies use your age to estimate driving risk. Statistically, younger and new drivers tend to get into accidents more frequently than older and experienced drivers. Once you hit 65, however, you’re again considered a risky driver because you become more likely to get into a car accident and be injured.

That said, age isn’t the only factor that affects your car insurance rates.

Age vs Location

Your location typically has as much of an effect as your age on car insurance premiums.

Age vs Vehicle Type

In most cases, vehicle type will affect younger drivers more than older or more experienced drivers. If your car is of higher value or has a higher likelihood of being stolen, your premiums may be higher.

Age vs Gender

While gender does have an effect on rates, not all states allow insurance companies to use this as a determining factor. For states that do, men generally pay more compared to women, with greater disparities among younger drivers.

Age vs Driving Record

Your driving record will affect your premium more than your age. If you have negative marks on your driving record, you’ll see your rates go up, especially for serious violations like a DUI.

Age vs Credit Score

In many states, companies aren’t allowed to use your credit score when determining your premiums. If you live in a state that factors in credit score, that usually won’t have as much of an effect as your age.

In states where credit score is used, some insurance companies will rerun your credit check and discount your rate if your score has improved. However, they won’t normally increase your premium if your score has gone down.

Recommended: How Much Does Insurance Go Up After an Accident?

How Gender Affects Your Car Insurance Rates

Many insurance companies consider your gender when setting your premium. According to data analysis from the U.S. Department of Transportation, men are found more likely to be involved in fatal car crashes, especially younger men. Because of this risk, premiums are usually higher for men than women.

Recommended: How To Save on Car Maintenance Costs

List of No-fault States

No-fault insurance laws mandate that every driver involved in an accident must file a claim with their insurance company, no matter who was at fault. Plus, all drivers need to purchase personal injury protection (PIP) as part of their minimum insurance coverage. PIP typically covers medical bills and lost wages due to an accident.

The 13 states and territories that have no-fault laws are:

•   Puerto Rico

•   Florida

•   Michigan

•   New Jersey

•   New York

•   Pennsylvania

•   Hawaii

•   Kansas

•   Kentucky

•   Massachusetts

•   Minnesota

•   North Dakota

•   Utah

Minimum Coverage Requirement Laws

Each state has its own minimum car insurance requirements. When purchasing a policy, you’ll need to meet those requirements. Most insurance carriers know what these are and will help you choose coverage that meets them.

While you’ll most likely need bodily injury liability and property damage as part of your insurance requirements, the coverage amount may differ. Some states also require PIP coverage and uninsured/underinsured motorist coverage.

For more on different coverage requirements, see our guide to how much car insurance you really need.

Ways to Save with Auto Insurance Discounts

Many insurance companies, in an effort to attract customers, offer discounts to qualifying drivers. A common discount is the “multiline,” where you are able to lower your car insurance premiums by bundling multiple policies. Other discounts include paying for your premium in full upfront, signing up for electronic delivery, and safe driver discounts. Contact your insurance company to see what they offer.

Bundling discounts are a good reason to schedule regular personal insurance planning sessions to review all of your coverage and find the best deals.

The Takeaway

Understanding the factors that affect insurance premiums can help drivers anticipate costs and budget for this necessary expense. The biggest factors affecting car insurance premiums are age and location. Some factors, like vehicle make and gender, are more of an issue for younger drivers. Knowing which factors are within your control may help you lower your premiums. Maintaining a clean driving record and asking about discounts are two ways to keep premiums down.

A great way to find the going rates for car insurance in your area is to shop around online. SoFi auto insurance helps you compare companies within minutes, saving you time and hassle.

Compare quotes from top car insurance carriers.

FAQ

How much does the average American pay for car insurance per month?

The average American pays $100.33 per month for a car insurance premium.

At what age is car insurance most expensive?

Around age 16. Typically, car insurance for first-time drivers is the most expensive.

Is insurance cheaper once you are 25?

The older you are, the more your insurance premiums tend to drop because you’re perceived as a more experienced driver. Of course, premiums also depend on other factors such as your driving history and vehicle type.


Photo credit: iStock/Tatyana Kochkina

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOPT1022001

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store
SoFi Android App, Get it on Google Play

TLS 1.2 Encrypted
Equal Housing Lender