How Much Is Car Insurance?

Everyone in the U.S.A. wants to get the cheapest car insurance quote. However, getting an affordable car insurance rate is nearly impossible if you don’t compare rates for both full coverage and minimum coverage policies. Before you compare rates, you need to know how much car insurance costs and the factors that influence the rates.

The cost of auto insurance varies for each person. This variation depends on factors like driving history, location, age, type of vehicle, credit score, annual mileage, marital status, and so forth. For example, the average cost in Michigan is $133 per month for minimum liability insurance and $263 per month for full coverage. 

In contrast, someone in Wyoming pays an average of $31 per month for minimum liability coverage and $124 per month for full coverage. This cost of auto insurance varies considerably due to factors like the state you’re living in, the insurance company you choose, the minimum auto insurance requirement in your state, vehicle make and model, age, gender, marital status, and so on.  All these components help insurers to set auto insurance rates for you.  

In this article, we will share the recent data on car insurance rates from our research. Keep reading to find out how much car insurance in 2025 and how to lower premiums.

How Much Does Auto Insurance Cost?

So, how much do you have to pay for your car insurance in 2025? You might feel confused after seeing a lot of data about car insurance costs online, as they vary significantly. We are here to make things clearer for you. 

Unfortunately, according to Newsweek, car insurance is going to go up for millions of drivers, just as it surged by 26% throughout 2024. In 2025, the national average car insurance cost for minimum coverage is approximately $828 annually or $69 per month. However, the minimum coverage cost can be as high as $1596 annually or $133 per month, depending on the state you’re living in.  

On the other hand, for full coverage car insurance, the average annual premium is $2,100, approximately $175 monthly. This can be as high as $3900 for a regular driver. Keep in mind that your coverage may cost less if you pay it in full instead of every month. 

Another important thing is if you drive a financed or leased vehicle, it’s mostly mandatory to maintain full coverage car insurance which is typically comprised of liability insurance (property damage, bodily injury, personal injury protection), comprehensive coverage, and collision coverage. Plus, you may have to pay for higher liability limits for financed/leased cars. In such cases, your auto insurance costs can go higher than regular car owners. 

On the flip side, if you have an older car that isn’t worth much to insure for full coverage, you can simply decide to maintain minimum state-mandated insurance coverage to comply with the legal framework. This way, you’ll possibly pay less lot than the national average. 

Here are car insurance costs for the U.S. national average according to various sources: 

According to the U.S. Bureau of Labor Statistics, car insurance costs continue to go up on a monthly and yearly basis. Their data shows the car insurance rate increased by 93% over the last 10 years for minimum coverage. 

It would cost you only $449 per year in 2014 to insure your car for minimum coverage. As of November 2024, you pay on average $866 annually if you want to secure a minimum coverage policy. See the following table that shows how car insurance rates changed each month in the previous year to understand the trend and what to expect in 2025: 

Source: Consumer Price Index Data from the U.S. Bureau of Labor Statistics 

Here’s a TL; DR:

• The average cost of car insurance in 2025 depends on your car insurance coverage type, location, and personal factors.
• Minimum coverage car insurance costs $828 or $69 per month on average.
• Full coverage car insurance costs around $2,100 annually or about $175 per month.

How Much Does Car Insurance Cost in 2025: Comparison By State

Car insurance costs differ significantly across states due to unique risk factors and regional pricing strategies. In 2025, the average car insurance rates show substantial variation. States with higher accident rates, ratio of claims, repair costs, theft rates, and higher minimum coverage levels tend to have more expensive premiums. 

For example, Florida and Michigan consistently top the list for costly auto insurance premiums. In contrast, Wyoming, Vermont, and Maine offer some of the cheapest car insurance options. 

Car insurance rates can vary a lot depending on your state. This is due to several factors, including severe weather conditions, traffic conditions, state requirements for minimum coverage, and whether you live in a rural or urban area. For instance, according to Forbes, the average cost for full auto insurance is $1,730 in Connecticut because it has many urban areas. On the flip side, in Iowa, residents pay about $1,230 for the same coverage since it is mostly rural. 

Besides, Florida encounters harsh weather conditions (e.g., hurricane, tornado) compared to Ohio. This means auto policyholders in Florida are more likely to claim insurance than those who live in Ohio. For this extra risk factor, Floridians pay around $4326 for full coverage which is much higher than Ohio ($1,112), according to Forbes. 

Car repair costs also impact auto insurance costs by state. Colorado ($417), Connecticut ($418), and California ($415) are the top states with the highest auto repair costs according to the World Population Review. That’s why these states have higher insurance rates compared to the national average.  

Here are the factors that make car insurance costs vary by state:

• State Regulations (e.g., minimum coverage requirements)
• Repair Costs (e.g., California's Full Coverage Cost is $2462, higher than the national average, partly due to the state's 3rd highest auto repair costs: Forbes.)
• Claim Frequency
• Weather Patterns
• Urban Vs. Rural
• Population Density
• Local Economy 

The table below shows car insurance costs by state and state minimum liability, along with the percentage increase or decrease compared to the national average. The average monthly cost for minimum coverage is $69 ($828 annually), while full coverage averages $175 per month ($2,100 annually). 

Source: ValuePenguin

Cheapest States for Car Insurance in 2025 

When it comes to saving on car insurance, which state you’re living in makes a big difference. In 2025, some states offer significantly lower car insurance costs compared to the national average. These states provide affordable full-coverage car insurance while maintaining reasonable minimum coverage costs. 

Here are the 5 cheapest states for car insurance in 2025:

• Maine: Full coverage cost is $1236 annually which is 41.1% cheaper than the national average ($2,100).
• Vermont: Full coverage cost is $1284 per year which is 38.9% cheaper than the national average.
• New Hampshire: Full coverage cost is $1284 per year which is 38.9% cheaper than the national average.
• Idaho: Full coverage cost is $1332 annually which is 36.6% cheaper than the national average.
• Ohio: Full coverage cost is $1380 per year which is 34.3% lower than the national average.

These states not only have lower insurance premiums but also benefit drivers with reduced auto insurance rates for both minimum coverage and full coverage. Keep in mind that the list has been created based on the auto insurance costs for full coverage.  

Here is a list of the top 5 cheapest states for minimum coverage:

1. Wyoming ($31 per month)
2. Vermont ($36 per month)
3. South Dakota ($37 per month)
4. Idaho ($38 per month)
5. Iowa ($42 per month)

Most Expensive States for Auto Insurance in 2025

On the other hand, some states top the list for being the most expensive. Their insurance costs are significantly higher than the national average.  

Here are the 5 most expensive states for car insurance in 2025:

• Nevada: Full coverage cost is $3432 per year which is 63.4% higher than the national average ($2,100).
• Florida: Full coverage cost is $3264 which is 55.4% higher than the national average.
• Michigan: Full coverage cost is $3156 which is 50.3% higher than the national average.
• Louisiana: Full coverage cost is $2988 which is 42.3% higher than the national average.
• Rhode Island: Full coverage cost is $2844 which is 35.4% higher than the national average.

In these states, factors like liability coverage, higher collision coverage premiums, and underwriting risks contribute to the cost. However, the list has been made based on the full coverage costs. 

Here is a list of the top 5 expensive states for minimum coverage car insurance:

1. Michigan ($133 per month)
2. Nevada ($130 per month)
3. Delaware ($117 per month)
4. New Jersey ($105 per month)
5. Florida ($101 per month)  

What Factors Affect Car Insurance Costs?

Car insurance rates are influenced by many factors that insurers use to assess risk. Your driving history plays a significant role. A clean record lowers premiums. However, a speeding ticket, DUI, or at-fault accident can dramatically increase costs. 

Age and gender also matter in many states. Younger drivers typically face higher auto insurance rates due to inexperience, and men generally pay more than women. Credit score impacts rates in most states. 

According to Bankrate, drivers with poor credit may see premiums up to 83% higher. The location also affects your auto insurance rates. Urban areas with more accidents and theft have higher rates than rural regions. 

If you’re driving an expensive or high-end vehicle like a luxury or sports car, it would cost more to insure due to expensive repairs. Annual mileage is another factor that matters. Driving less reduces the risk of accidents, so you pay less compared to those who drive too often. Lastly, your marital status can influence rates. Married drivers are often considered lower-risk and receive car insurance discounts. 

Here's a list of key factors that affect your car insurance costs in 2025:

• Age  
• Gender
• Driving record (e.g., speeding tickets, accident, DUI)
• Vehicle type, make, and model
• Credit score/Credit History  
• Location (Urban Vs. Rural)
• Marital Status
• Annual Mileage

Other Factors That May Affect Car Insurance Cost?

In addition to age, location, and driving history, a number of additional factors influence your vehicle insurance rates. The following factors can substantially affect the above-mentioned auto insurance costs we covered so far:

• Insurance Claim History
• Policy Coverage Limits and Deductible 

Insurance Claim History 

Insurers assess how frequently you’ve filed claims to determine your risk profile. Drivers with multiple claims are seen as higher risk. This leads to higher car insurance rates. A single at-fault accident can raise premiums by as much as 50%. Many insurers offer accident forgiveness, which prevents a rate hike for a first-time incident. However, at L.A. Insurance we recommend maintaining a clean driving record to help lower long-term costs. 

Read More: Can I Cancel Auto Insurance Claim? 

Policy Coverage Limits and Deductibles 

Higher coverage limits offer more financial protection but increase your car insurance premium. For instance, Michigan state legally requires higher minimum liability coverage which naturally increases the cost of minimum coverage for the policyholders. However, if you choose higher deductibles (what you pay out-of-pocket upfront), it can lower your monthly rate. Please make sure your deductible is affordable in case of a claim. The key to getting the most out of your car insurance policy is to find a balance between full coverage and affordable costs. 

How to Lower the Costs of Car Insurance?

Making smart choices and taking advantage of savings are two ways to lower your car insurance rates. Here are some tried-and-true ways to cut auto insurance costs:

1. Compare Multiple Quotes: Every auto insurance company uses different pricing models. Shopping around helps find the most competitive rates for your needs.
2. Increase Your Deductible: Opting for a higher deductible lowers your monthly premium. Be sure you can afford the out-of-pocket expense.
3. Bundle Policies: Combining auto insurance with home or life insurance from the same provider often earns significant discounts.
4. Maintain a Clean Driving Record: Avoiding accidents and violations keeps premiums low. Many insurers reward safe drivers with car insurance discounts.
5. Drive Fewer Miles: Low annual mileage qualifies for discounts of up to 30%, reducing your auto insurance rate.
6. Improve Your Credit Score: A better credit score can cut premiums by as much as 95% in states where credit affects rates.
7. Use Available Discounts: Look for savings like good student, paperless billing, and defensive driving course discounts.

Get the Cheapest Car Insurance Coverage Today with L.A. Insurance

If you’re looking for the cheapest auto insurance quote, L.A. Insurance is here to help. We provide the cheapest full-coverage car insurance. Whether you need to carry the minimum liability car insurance or want to secure an extensive for your dream car, call us at (888) 500-6065. Wants to know how much does car insurance cost with L.A. Insurance? Find an agent here or get a car insurance quote online and secure coverage the same day. 

Wherever you live, we have your back with low rates and excellent protection. Don’t need to pay more because you can save today! Get your free car insurance quote online and start enjoying better coverage at a price you’ll love. Choose L.A. Insurance – the most affordable insurance agency across the U.S.A. 

How Much Does Auto Insurance Cost: The Bottom Line

The cost of car insurance depends on age, location, vehicle type, driving history, and so on. Full coverage car insurance costs around $2,100 annually, while minimum coverage averages $828 per year. Factors like credit score and annual mileage also impact rates. However, if you’re facing expensive auto insurance, compare quotes, bundle policies, and maintain a clean driving record. This way you can reduce costs. Last of all, choose your insurer, policy coverage limit, and deductible wisely to find affordable protection within your budget. 

Frequently Asked Questions (FAQs)

1. What Is the Average Cost of Car Insurance? 

The average cost of car insurance in 2025 is around $2,100 per year or $175 per month for full coverage and $828 per year or $69 per month for minimum coverage. However, rates can vary based on location, age, driving history, vehicle type, marital status, and so on. 

2. How Much Is Car Insurance Per Month? 

The car insurance cost per month averages about $175 for full coverage and $69 for minimum coverage. Prices depend on factors like the state you live in, driving history, vehicle type, age, coverage limit, deductible, and insurance company. 

3. Does Inflation Affect Car Insurance Rate? 

Yes, inflation affects car insurance rates by increasing repair costs, medical expenses, and claims. Higher prices of for parts and labor lead to rising auto insurance premiums. Always compare quotes from multiple insurance providers and look for discounts to save money. 

4. How Much Is Car Insurance for a New Driver? 

Car insurance costs for a new driver who has no previous experience driving can vary a lot depending on the auto insurance company they choose. The annual cost for full coverage car insurance for new drivers aged 16 to 18 ranges from $4,500 to $8,500. If you are an adult aged 25 and have bought a new car, the average cost for full coverage is $2,100 per year. 

5. How Much Is Car Insurance on a 2018 Toyota? 

The auto insurance costs on a 2018 Toyota range from $1,500 to $2,500 annually for full coverage. However, the exact amount depends on factors such as location, driver profile, coverage limit, age, and the insurance company.

6. How Much Is Car Insurance For A 16-year-old? 

Car insurance for a 16-year-old costs between $5,229 and $8,508 annually for full coverage. Rates are higher due to limited experience and increased accident risk. Discounts and adding them to a family policy can help reduce car insurance premiums. 

7. How Much Is Car Insurance in Texas? 

Car insurance in Texas costs about $182 per month ($2,184 per year) for full coverage and $67 for minimum coverage. The full coverage rate is 4% higher than the national average. But this rate can vary based on your driving record, age, insurance company, coverage limit, location, and vehicle type. 

8. How much Is Car Insurance in Colorado? 

Car insurance in Colorado costs approximately $241 per month ($2,892 per year) for full coverage and $81 per month ($972 per year) for minimum coverage. Full coverage is 37.7% higher and minimum coverage is 17.4% higher than the national average. However, the exact rate depends on various factors. 

9. How Much Is Insurance for Car Washing? 

Insurance for a car washing business varies by type and coverage. General liability ranges from $500 to $3,000 yearly. Commercial property insurance costs $1,000 to $5,000 yearly. Workers' compensation ranges from $1,000 to $10,000 yearly. Garagekeepers liability costs $500 to $2,000 yearly. Business Owner's Policy ranges from $1,500 to $6,000 yearly. However, getting quotes from multiple providers can help you find the best rates.

10. How Much Is Car Insurance for 2 Cars Per Month? 

Insuring two cars on the same policy can lead to considerable savings. Many reputable insurers provide discounts of up to 25% for multi-car policies. If inxsw3suring a single car costs around $2,100 per year (or $175 per month) for full coverage, a multi-car policy could reduce that expense to $1,575 per year ($131 per month). This means, on average, insuring two cars would cost about $3,150 per year after discounts. 

References:

• Timmons, M. (2024, December 30). Average cost of car insurance (2025). ValuePenguin. https://www.valuepenguin.com/average-cost-of-insurance
• Carbonaro, G. (2025, January 3). Car insurance “Going to go up” for millions of drivers. Newsweek. https://www.newsweek.com/car-insurance-going-go-millions-drivers-2008538
• Martin, S. (2025, January 2). Average cost of car insurance in January 2025. Bankrate. https://www.bankrate.com/insurance/car/average-cost-of-car-insurance/
• Norman, K. (2025, January 6). Average car insurance cost in 2025. NerdWallet. https://www.nerdwallet.com/article/insurance/how-much-is-car-insurance
• Bureau of Labor Statistics Data. (n.d.). Bureau of Labor Statistics. https://data.bls.gov/timeseries/CUUR0000SETE?output_view=data
• Gusner, P. (2025, January 3). Car insurance rates by state for 2025. Forbes Advisor. https://www.forbes.com/advisor/car-insurance/rates-by-state/
• Auto repair rates by state 2024. (n.d.). https://worldpopulationreview.com/state-rankings/auto-repair-rates-by-state