How Much Is Car Insurance? Average Car Insurance Cost in 2022
The average cost of car insurance varies depending on an array of factors, including the company you buy coverage from. However, several studies give an idea of average car premiums for the average driver, including a 2020 report from the National Association of Insurance Commissioners (NAIC).
According to the most recent data, the average expenditure for an annual auto insurance policy is $1,005. This figure represents the total written premium for liability, collision and comprehensive coverage across all 50 states.
What Factors Affect Car Insurance Rates?
Shopping around for car insurance can help shoppers secure the lowest possible rates, yet it’s also important to understand factors that influence premiums. In addition to the car you drive and its age and condition, popular auto insurance provider Allstate says your driving record also plays a significant role.
Additional factors that come into play include:
- How much you drive
- Where you live
- Where you park or store your car
- Age and gender
- Types of auto insurance you purchase
- Policy limits
- Your chosen deductible
- Auto insurance discounts you can qualify for
Average Car Insurance Premium and Coverage Requirements by State
The state you live in plays a significant role in average auto insurance rates. This is partly due to the fact minimum coverage requirements vary from state to state, but it’s also based on the health of your local economy.
Generally, states with better financial prospects tend to have more people who purchase new cars and buy higher auto insurance coverage limits as a result. Of course, the opposite is also true.
If you’re curious how your state’s average auto insurance premiums look, the following chart provides the latest information courtesy of the NAIC.
| State | Average Auto Insurance Premiums (Annual) |
|---|---|
| Alabama | $856.67 |
| Alaska | $930.20 |
| Arizona | $994.42 |
| Arkansas | $848.24 |
| California | $957.08 |
| Colorado | $1,050.19 |
| Connecticut | $1,168.33 |
| Delaware | $1,221.29 |
| Washington, D.C. | $1,334.11 |
| Florida | $1,356.90 |
| Georgia | $1,127.22 |
| Hawaii | $803.45 |
| Idaho | $678.57 |
| Illinois | $897.07 |
| Indiana | $744.39 |
| Iowa | $674.33 |
| Kansas | $766.50 |
| Kentucky | $896.33 |
| Louisiana | $1,443.72 |
| Maine | $667.38 |
| Maryland | $1,149.42 |
| Massachusetts | $1,136.60 |
| Michigan | $1,358.62 |
| Minnesota | $840.12 |
| Mississippi | $930.45 |
| Missouri | $869.14 |
| Montana | $784.72 |
| Nebraska | $766.89 |
| Nevada | $1,141.02 |
| New Hampshire | $824.03 |
| New Jersey | $1,350.28 |
| New Mexico | $870.23 |
| New York | $1,349.72 |
| North Carolina | $705.56 |
| North Dakota | $659.94 |
| Ohio | $777.80 |
| Oklahoma | 895.36 |
| Oregon | 961.21 |
| Pennsylvania | 961.40 |
| Rhode Island | 1,300.60 |
| South Carolina | 1,020.35 |
| South Dakota | 693.42 |
| Tennessee | 820.63 |
| Texas | 1,096.82 |
| Utah | 889.67 |
| Vermont | 762.59 |
| Virginia | 819.77 |
| Washington | 994.03 |
| West Virginia | 913.39 |
| Wisconsin | 731.20 |
| Wyoming | 742.20 |
Source: AAA Figures show the average expenditure for auto insurance with liability, collision and comprehensive coverage included.
Average Car Insurance Costs by Vehicle Type
The car you drive also plays a significant role in auto insurance rates, but this isn’t surprising. After all, a newer car that requires comprehensive coverage and a higher replacement cost will cost more to insure, whereas an older car and liability-only coverage cost less. Likewise, a larger car or a vehicle with more components will always require higher auto insurance premiums.
The following figures from AAA can give an idea of the average insurance costs to expect for a variety of top-selling 2020 models:
| Vehicle Type | Average Annual Premium for Full Coverage Insurance |
|---|---|
| Small Sedan | $1,342 |
| Medium Sedan | $1,245 |
| Large Sedan | $1,264 |
| Small SUV (FWD) | $1,087 |
| Medium SUV (4WD) | $1,118 |
| Minivan | $1,096 |
| Half-Ton/Crew-Cab Pickup Truck (4WD) | $1,242 |
| Hybrid Vehicle | $1,212 |
| Electric Vehicle | $1,227 |
Source: AAA
What Are the Best Car Insurance Companies of 2022?
The best auto insurance companies of 2022 offer a variety of coverage options, discounts that are easy to qualify for and an easy way to get a quote online. For illustrative purposes, the premiums shared below are for a 2018 Chevy Traverse for a 41-year-old couple in central Indiana.
| Company | Coverage Option | Annual Premium |
|---|---|---|
| Progressive | Liability (Bodily Injury/Property Damage): $250K/$500K/$100K Comprehensive Collision | $554 |
| Allstate | Liability (BI/PD): $250K/$500K/$100K Comprehensive Collision | $575.21 |
| GEICO | Liability (BI/PD): $250K/$500K/$100K Comprehensive Collision | $572.36 |
| Liberty Mutual | Liability (BI/PD): $250K/$500K/$100K Comprehensive Collision | $676.92 |
Best Car Insurance Company Comparison
The best car insurance providers of 2022 let consumers choose from robust coverage options and policy benefits. If you’re searching for affordable auto insurance but want the best protection money can buy, consider the following companies.
Progressive
Progressive Insurance was founded in 1937 and currently offers a variety of products ranging from auto insurance to homeowners insurance, renters insurance, and coverage for recreational vehicles like motorcycles and campers. It makes getting a free quote online easy, and its mobile app lets you track your policy, make payments and submit claims with a mobile device.
With Progressive auto insurance coverage, you can purchase liability, collision coverage, comprehensive coverage, medical payments protection, and coverage for uninsured and underinsured motorists. You can use the online quote tool to tailor your coverage limits and deductible to your needs and budgetary constraints. Meanwhile, plenty of discounts are available.
Coverage Benefits and Add-On Options: Progressive lets you customize your policy with add-on coverage options. These options include loan or lease payoff insurance, rental reimbursement coverage, special coverage for custom parts and equipment, ride-hailing coverage, roadside assistance and more.
Discounts: Discounts are available for multiple policies, multiple cars, continuous insurance coverage, having a safe driving record, being a teen driver and being a good student. You can also get discounts by being a homeowner, getting a quote online, enrolling in paperless statements, paying your premiums upfront and more.
Drawbacks: You’ll need to supply your Social Security number to get a free quote for auto insurance online. Also, Progressive scored below average in J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study.
- J.D. Power Rating: 856 out of 1,000 points
- Customer Satisfaction Rating: 1.5 out of 5 stars on Trustpilot
- Financial Strength Rating: A+ from AM Best
Allstate
Allstate Insurance was founded in 1931, and has since grown to become one of the most prominent insurance providers in the U.S. It has a helpful mobile app, a useful website that lets you get a free quote online and an online claims process that’s easy to use.
Allstate makes it simple to purchase the main types of auto insurance coverage you would expect, such as liability, comprehensive coverage, coverage for collision, underinsured and uninsured motorist coverage, and personal injury protection.
The insurer also offers a discount program known as Allstate Drivewise and specialized coverage for custom cars. Like other providers, Allstate lets you pick your own deductible and coverage limits. It also offers an array of discounts that make your premiums more affordable.
Coverage Benefits and Add-On Options: Coverage options include personal umbrella coverage, rental reimbursement coverage, sound system insurance, coverage for ride-hailing drivers and more.
Discounts: Discounts are available for antilock brakes, having an antitheft device, being a good student, setting up automatic payments, paying in full, having a new car, multiple policies and more.
Drawbacks: You’ll need to provide extensive information including a Social Security number and vehicle identification number to get a free auto insurance quote online. Also, be aware of its less than stellar performance in some regions in J.D. Power’s 2020 U.S. Auto Insurance Satisfaction Study.
- J.D. Power Rating: 876
- Customer Satisfaction Rating: 1.5 stars
- Financial Strength Rating: A+
GEICO
GEICO was founded in 1936 and has since expanded to offer a variety of insurance products like auto insurance, homeowners insurance and motorcycle insurance. GEICO makes it incredibly easy to get a free quote online, and is well known for its online customer service and useful mobile app.
The insurer lets you customize your auto insurance policy limits and deductible. You can buy basic liability coverage and comprehensive coverage, collision coverage for uninsured and underinsured motorists, and more. GEICO also offers an array of discounts that can help you save big and promises initial savings of at least 15% right off the bat.
Coverage Benefits and Add-On Options: Customize your GEICO auto insurance policy with emergency road service, rental reimbursement coverage and mechanical breakdown insurance.
Discounts: Discounts are available for having specific safety equipment, a good driving history, being a federal employee, being in the military, having multiple policies, driver affiliations and more.
Drawbacks: GEICO only works with a limited network of local agents, so you’ll likely deal with all aspects of your coverage online or over the phone.
- J.D. Power Rating: 871
- Customer Satisfaction Rating: 1.6 stars
- Financial Strength Rating: A++
Liberty Mutual
Founded in 1912, Liberty Mutual Insurance has the longest history of any auto insurance provider on our list. This company offers a variety of insurance products to businesses and consumers, including homeowners insurance, auto insurance, renters insurance, umbrella insurance and life insurance. Its mobile app lets you track your policy, make payments and file claims using your smartphone.
In terms of auto insurance, Liberty Mutual standard coverage options include liability, collision, comprehensive coverage and medical payments. Various discounts can help you save on premiums, and you can also secure lower rates by tailoring your policy limits and your insurance deductible to your needs.
Coverage Benefits and Add-On Options: While some coverage comes standard with a Liberty Mutual policy, you can add on coverage for repair bills, new-car replacement value, rental reimbursement, roadside assistance, gap coverage, original parts replacement and more.
Discounts: Discounts are available for multiple policies, being in the military, buying your policy early, being a good student, advanced safety features, having an antitheft device, being accident-free, having multiple policies, paying in full and going paperless.
Drawbacks: Be aware of Liberty Mutual’s unimpressive performance in some regions in J.D. Power’s 2020 U.S. Auto Insurance Satisfaction Study.
- J.D. Power Rating: 867
- Customer Satisfaction Rating: 1.5 stars
- Financial Strength Rating: A
How We Chose the Best Car Insurance Companies
Our search for the best car insurance companies started with financial ratings. We only included auto insurance providers with an A rating or better from AM Best. As a third-party agency, AM Best assesses insurance providers based on their financial strength and other factors.
We also looked for companies that make it easy to get an online quote and those that have their own mobile app. Auto insurance companies with add-on protections in addition to regular coverage also scored well in our ranking. Finally, we compared auto insurance providers based on how they scored in 2020 J.D. Power study of auto insurance providers.
How Does Car Insurance Work?
Once you select an auto insurance policy, you’ll have coverage for liability and various perils based on the coverage types you decide to pay for. You’ll be asked to pay auto insurance premiums on an annual, biannual or monthly basis, and you might be subject to an auto insurance deductible you agree to ahead of time.
If you’re in an accident, you can call your auto insurance provider or start the claims process online. If your claim is successful, your auto insurance provider will pay for repairs, medical bills and other expenses per the terms outlined in your auto insurance policy.
What Do I Need to Submit a Car Insurance Claim?
If you need to submit a car insurance claim, you should expect to provide information like:
- Date of the incident
- Details of the accident or damage
- Police reports
- Medical bills and statements
- Your insurance account information
Your car insurance company may request more information throughout the claims process.
What Happens if You Drive Without Car Insurance?
If you are caught driving without car insurance, you can be assessed penalties and punishments that vary by state. Most states charge a minimum fine of $100 to $1,000 for the first time you’re caught driving uninsured, and penalties only go up for subsequent offenses. You might lose your license or go to prison.
Car Insurance FAQs
These frequently asked questions can help you learn more about auto insurance and how to select a policy.
What Is the Cheapest Car Insurance Company?
Because auto insurance rates are based on a variety of factors, no auto insurance company is always cheaper than others. However, you might pay less if you go with a provider that only offers state minimum coverage.
How Do You Get Multiple Quotes on Car Insurance?
Car insurance companies make it easy to get a free quote online. You should be able to compare multiple companies and premiums in a matter of minutes.
How Can I Save Money on Car Insurance?
To secure the lowest possible premiums, we suggest comparing at least three to four insurance providers, raising your deductible and buying only the coverage you need.
Final Thoughts
Shopping for car insurance isn’t fun, but at least you can do it online and from the comfort of your own home. Just make sure that as you shop around for a new provider, you’re making an apples-to-apples comparison among policies you’re considering.
Take the time to get quotes from multiple companies that all offer the same coverage types, policy limits and deductibles you’re looking for. You’ll be in the best position to get quality coverage for a price you can afford by comparing offers.
