Find out how much car insurance is in your state and how you can save?
Car insurance is one of the larger expenses for many Americans: In February 2025, the average price tag for a full coverage policy was $2,670 a year, according to an analysis by Bankrate, while a minimum coverage policy averaged $773 per year. Those are national statistics, of course. The difference from state to state can be in the thousands. Individual premiums will vary based on your age, gender, driving record, credit history and other factors. Here’s how much car insurance costs in every state, plus why rates are so high right now and how you can lower yours.
How much is car insurance?
A full coverage policy averages $2,670 a year nationwide in February 2025, while a minimum coverage policy is about $773 a year.
Individual premiums are impacted by a variety of factors, including:
- Age
- Gender
- Marital status
- Location
- Driving record
- Credit history
- Claims history
- Car make and model
Rates also vary by company: Geico and Auto-Owners are among our picks for the cheapest car insurance companies.
Average cost of car insurance by state
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $2,076 | $500 |
| Alaska | $2,401 | $497 |
| Arizona | $2,754 | $817 |
| Arkansas | $2,490 | $502 |
| California | $3,066 | $760 |
| Colorado | $3,210 | $587 |
| Connecticut | $2,717 | $1,058 |
| Delaware | $2,786 | $958 |
| Florida | $4,143 | $1,121 |
| Georgia | $2,948 | $1,041 |
| Hawaii | $1,710 | $403 |
| Idaho | $1,470 | $369 |
| Illinois | $2,368 | $641 |
| Indiana | $1,757 | $408 |
| Iowa | $1,869 | $334 |
| Kansas | $2,547 | $575 |
| Kentucky | $2,813 | $755 |
| Louisiana | $4,009 | $1,032 |
| Maine | $1,641 | $425 |
| Maryland | $2,821 | $1,000 |
| Massachusetts | $2,089 | $535 |
| Michigan | $3,161 | $879 |
| Minnesota | $2,559 | $720 |
| Mississippi | $2,170 | $494 |
| Missouri | $2,576 | $655 |
| Montana | $2,404 | $402 |
| Nebraska | $2,373 | $510 |
| Nevada | $3,616 | $1,156 |
| New Hampshire | $1,836 | $492 |
| New Jersey | $2,864 | $1,156 |
| New Mexico | $2,207 | $436 |
| New York | $3,967 | $1,691 |
| North Carolina | $2,007 | $607 |
| North Dakota | $1,810 | $397 |
| Ohio | $1,600 | $431 |
| Oklahoma | $2,753 | $546 |
| Oregon | $2,035 | $852 |
| Pennsylvania | $2,436 | $517 |
| Rhode Island | $2,960 | $920 |
| South Carolina | $2,031 | $640 |
| South Dakota | $2,354 | $373 |
| Tennessee | $2,090 | $512 |
| Texas | $2,572 | $724 |
| Utah | $2,144 | $778 |
| Vermont | $1,497 | $313 |
| Virginia | $2,142 | $694 |
| Washington | $1,865 | $562 |
| West Virginia | $2,201 | $565 |
| Wisconsin | $1,935 | $446 |
| Wyoming | $1,759 | $263 |
| Washington, D.C. | $2,891 | $835 |
Source: Bankrate data as of February 2025
Why is car insurance so expensive?
According to the Insurance Information Institute, car insurance premiums increased 25 percent from 2023 to 2024, a spike driven by multiple factors:
- Inflation: The price of fixing and replacing vehicles — and covering medical and legal expenses — has outpaced inflation even more.
- Soaring car prices: Pandemic shortages drove car prices to an all-time high of just over $47,000 in 2021 and only now are they beginning to recede.
- Cars are more expensive to get fixed: As car technology has advanced, it’s made getting a car repaired or replaced more expensive.
- Crashes are increasing: Both the number and severity of collisions are up, the Insurance Institute for Highway Safety says, driven by more distracted driving and higher speed limits. That results in bigger payouts from insurers, who in turn charge customers ever-higher premiums.
How to lower car insurance rates
There are multiple paths to reduce your car insurance premiums.
Look for discounts
Many auto and homeowners insurance companies provide student, military and even homeowners discounts. Finding an insurer with the best discount for your circumstances can save you money.
Pay your premium in full
If you can pay in full, write a check for your six-month or annual premium. Not only does that help you avoid paying fees for installment plans, it can also earn you a discount from some insurers.
Bundle your coverage
Getting your renters or homeowners insurance from the same place you get car insurance can help save more than 20%, depending on the provider.
Buy only as much insurance as you require
While add-ons such as roadside assistance and rental car reimbursement sound appealing, check to see if you already have these through your credit card, AAA membership or something else.
Think about dropping coverage
Full coverage is generally the wiser option, however, if your vehicle is worth less than 10 times your premium, liability only could make more financial sense.
Improve your credit score
Insurers correlate your credit history with your likelihood of making a claim, and in most states, your credit score is one of the factors that determines your premiums. If you have a high credit score, you pay less for car insurance. Pay bills on time and check your credit report for mistakes to raise your score; that might lower what you will pay.
Raise your deductible
Your deductible is the dollar amount you have to pay out of pocket before your insurance company comes in to pay its portion. Raising a $200 deductible to $500 can cut collision and comprehensive coverage costs by as much as 30 percent, the Insurance Information Institute says. Raise it to $1,000 and you might save over 40%. Just make sure you can pay the additional out-of-pocket cost.
Shop around
If you’re considering new car insurance, do not accept the first quote you get — you may be able to do better. Obtaining three to five quotes with the same coverage and deductible will help you make sure you’re getting the best deal possible.
Car insurance FAQs
Is $200 a month for car insurance expensive?
It depends on where you live. The average for full coverage car insurance across the U.S. is $222 per month, so $200 a month is not particularly expensive from a nationwide perspective. But full coverage car insurance averages $122 a month in Idaho, so $200 would be on the pricier side there. In Florida, where monthly premiums average about $345, though, it would be a bargain.
What kind of driver is the most expensive to insure?
New drivers and teenagers are the most expensive to insure: The average rate for car insurance with a teen and two adults is $5,479 (for a female teen) and $5,871 (for a male teen), according to Bankrate.
What is the cheapest type of car insurance?
The cheapest car insurance is a liability-only policy, also called minimum coverage. It only covers damage or injuries to another car, driver or passenger and is typically required.
Which company has the cheapest car insurance?
The company with the lowest rates depends on your driving record, age, gender, location and other factors. According to our analysis, Auto-Owners, USAA, Erie, Nationwide and Geico have some of the cheapest average rates for full and minimum coverage policies.
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