How Much Is Car Insurance?

If you’re wondering how much car insurance costs in 2026, here’s the quick answer. On average, drivers in the U.S. pay $76 per month ($912 per year) for minimum coverage, and about $208 per month ($2,496 per year) for full coverage, according to ValuePenguin.

Other reliable sources, including Bankrate, The Zebra, and Experian, report slightly different figures depending on their data and methodology. Broadly, you can expect $2,200 to $2,670 annually ($185 to $223/month) for full coverage, while minimum coverage typically ranges from $633 to $1,556 annually ($53 to $130/month).

Of course, your own rate may look very different. Car insurance premiums depend on several personal and vehicle-related factors. These include your driving record, age, location, vehicle type, credit score, and even annual mileage. Insurers analyze all these details to predict how likely you are to file a claim and that risk determines your price.

For instance, a driver in Michigan may still pay more than double the national average due to its higher state-required coverage limits and cost of repairs. Meanwhile, someone in Wyoming or Maine could pay far less. That’s why comparing auto insurance quotes across multiple insurers matters. It’s the only real way to find a fair rate for your situation.

In this article, we'll explain car insurance costs in the U.S. for 2026.

Car Insurance Rate Trends (2024–2026)

Car insurance costs have continued to rise sharply over the past few years. From 2024 to 2026, premiums have climbed faster than inflation, driven by higher repair costs, medical expenses, and a surge in vehicle claims.

As of February 2026, average premiums now sit at $76 per month for minimum coverage and $208 per month for full coverage. That’s roughly a 10% increase since 2025 and nearly 27% higher than in 2023. Many drivers feel this spike when renewing policies. The reasons are clear: supply chain delays, advanced vehicle technology, and more frequent severe weather events all push rates upward.

Still, the growth rate in 2026 shows signs of slowing compared to 2024’s steep 26% surge. Analysts expect a more stable year ahead, although premiums may still tick up by about 5% nationwide. In short, while costs remain high, the pace of increase is easing.

Car Insurance Rates by State in 2026 

Car insurance rates don’t look the same everywhere. In fact, what you pay depends a lot on where you live. States with higher accident rates, repair costs, or severe weather generally have higher premiums. Meanwhile, states with smaller populations or fewer traffic claims often enjoy much cheaper rates.

For example, Florida and Michigan still lead the list for the most expensive car insurance in 2026. On the other hand, drivers in Maine, Vermont, and Idaho continue to save big with some of the lowest premiums in the country.

That variation comes down to a mix of local conditions. Urban areas face heavier traffic and more crashes. Rural states tend to have lower claim frequencies. And when storms or flooding strike, auto insurance claims rise fast, pushing rates even higher.

Here are a few major factors that make car insurance rates differ across states:

• State regulations and minimum liability coverage laws
• Vehicle repair and medical costs
• Weather risks (storms, floods, hurricanes)
• Population density and urban traffic
• Vehicle theft rates, accident rates and claim frequency

The table below lists average car insurance costs by state for minimum and full coverage, along with the percentage difference from the national average. Percentages are based on national averages of $76 per month ($912 annually) for minimum coverage and $208 per month ($2,496 annually) for full coverage.

State	Full Coverage Cost Per Month	% vs US National Average for Full Coverage	Minimum Coverage Cost Per Month	% vs US National Average for Minimum Coverage
Alabama	$181	-13.0%	$66	-13.2%
Alaska	$170	-18.3%	$55	-27.6%
Arizona	$236	+13.5%	$90	+18.4%
Arkansas	$225	+8.2%	$63	-17.1%
California	$221	+6.2%	$75	-1.3%
Colorado	$272	+30.8%	$84	+10.5%
Connecticut	$305	+46.6%	$141	+85.5%
Delaware	$302	+45.2%	$134	+76.3%
Florida	$311	+49.5%	$102	+34.2%
Georgia	$184	-11.5%	$77	+1.3%
Hawaii	$151	-27.4%	$50	-34.2%
Idaho	$148	-28.8%	$48	-36.8%
Illinois	$185	-11.1%	$67	-11.8%
Indiana	$166	-20.2%	$58	-23.7%
Iowa	$170	-18.3%	$41	-46.1%
Kansas	$225	+8.2%	$72	-5.3%
Kentucky	$208	0.0%	$79	+3.9%
Louisiana	$327	+57.2%	$101	+32.9%
Maine	$129	-38.0%	$47	-38.2%
Maryland	$211	+1.4%	$96	+26.3%
Massachusetts	$181	-13.0%	$73	-3.9%
Michigan	$260	+25.0%	$90	+18.4%
Minnesota	$222	+6.7%	$71	-6.6%
Mississippi	$201	-3.4%	$64	-15.8%
Missouri	$221	+6.2%	$76	0.0%
Montana	$211	+1.4%	$52	-31.6%
Nebraska	$193	-7.2%	$51	-32.9%
Nevada	$335	+61.0%	$164	+115.8%
New Hampshire	$134	-35.6%	$55	-27.6%
New Jersey	$249	+19.7%	$137	+80.3%
New Mexico	$212	+1.9%	$71	-6.6%
New York	$226	+8.7%	$106	+39.5%
North Carolina	$147	-29.3%	$60	-21.1%
North Dakota	$180	-13.5%	$47	-38.2%
Ohio	$148	-28.8%	$55	-27.6%
Oklahoma	$214	+3.1%	$59	-22.4%
Oregon	$199	-4.3%	$95	+25.0%
Pennsylvania	$198	-4.8%	$62	-18.4%
Rhode Island	$276	+32.7%	$107	+40.8%
South Carolina	$190	-8.7%	$78	+2.6%
South Dakota	$196	-5.8%	$35	-53.9%
Tennessee	$176	-15.4%	$58	-23.7%
Texas	$247	+18.8%	$87	+14.5%
Utah	$224	+7.7%	$102	+34.2%
Vermont	$128	-38.5%	$40	-47.4%
Virginia	$169	-18.8%	$82	+7.9%
Washington	$219	+5.3%	$78	+2.6%
Washington, D.C.	$244	+17.3%	$101	+32.9%
West Virginia	$179	-13.9%	$65	-14.5%
Wisconsin	$168	-19.2%	$45	-40.8%
Wyoming	$131	-37.0%	$30	-60.5%

 Source: ValuePenguin | As of February 2026

Now, based on this table, we'll find out the cheapest and most expensive states for car insurance in 2026.

Cheapest and Most Expensive States for Car Insurance in 2026

When it comes to saving on car insurance, which state you’re living in makes a big difference. In 2026, 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 full coverage car insurance:

1. Vermont ($128 per month)
2. Maine ($129 per month)
3. Wyoming ($131 per month)
4. New Hampshire ($134 per month)
5. North Carolina ($147 per month)

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

1. Wyoming ($30 per month)
2. South Dakota ($35 per month)
3. Vermont ($40 per month)
4. Iowa ($41 per month)
5. Wisconsin ($45 per month)

Most Expensive States for Auto Insurance in 2026

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 full coverage car insurance in 2026:

1. Nevada ($335 per month)
2. Louisiana ($327 per month)
3. Florida ($311 per month)
4. Connecticut ($305 per month)
5. Delaware ($302 per month)

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

1. Nevada ($164 per month)
2. Connecticut ($141 per month)
3. New Jersey ($137 per month)
4. Delaware ($134 per month)
5. New York ($106 per month)

What Factors Affect Car Insurance Costs?

Car insurance rates come down to how insurers measure risk. In short, your driving record and recent claims matter most. For example, a speeding ticket, DUI, or at-fault accident can spike your premium. Conversely, a clean record usually lowers costs.

According to Bankrate, drivers with poor credit score may pay up to 105% more. Age and gender also influence pricing. Younger drivers pay far more, and men often face higher rates. Likewise, a luxury or sports car costs more to insure because repairs and replacements are pricier.

Finally, location, annual mileage, and marital status matter. Urban ZIP codes and high-mileage drivers usually pay more. Therefore, you should compare quotes and adjust coverages like full coverage or deductible to find the best price.

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

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

Age

Your age shapes your car insurance rate significantly. Younger drivers pay more because they’re statistically involved in more crashes.

• Teenagers (16-19) pay about $4,500 to $8,000 per year for full coverage.
• Drivers aged 25 to 60 usually see normal rates around $2,200 to $2,900 annually.
• After 70, premiums may rise again because slower reaction times lead to higher claim frequency.

Learn more: When does car insurance go down?

Gender

Gender also affects auto insurance rates. Though it plays a smaller role, it still matters in most states.

• Men often pay 2 to 6% more for the same coverage.
• Male drivers receive more speeding tickets and DUIs, which drives up premiums.
• Eight states, including California, Hawaii, and Massachusetts, ban gender as a rating factor.

Driving History

If you have a clean driving record or driving history, it will help keep your rate low. Accidents or violations raise it fast.

• One speeding ticket can raise your premium by 20 to 25%.
• An at-fault accident may add 40 to 50% to your annual cost.
• A DUI violation can double your rate and stay on your record for 3 to 10 year

Vehicle Type, Make & Model

Vehicle make and model affect your auto insurance rate as well. Insurers consider what you drive and how costly it is to repair.

• Luxury cars, sports cars, and EVs cost up to 40 to 80% more to insure than average sedans.
• A Honda CR-V averages about $1,950 per year; a Tesla Model Y can exceed $4,600.
• Vehicles with advanced tech and expensive parts drive up your collision coverage costs.

Credit Score / Credit History

Your credit profile reflects how reliably you pay bills. Most insurers use it.

• Drivers with poor credit may pay 105% higher premiums for full coverage than those with excellent scores (Bankrate 2026).
• Only eight states restrict the use of credit in pricing.
• Improving your credit score is one of the easiest long-term ways to lower your auto insurance costs.

Learn more about the cost of car insurance based on credit score.

Location

Where you live affects your premium more than you might think.

• Urban ZIP codes see higher theft and accident rates, raising premiums by up to 25% over rural areas.
• Weather matters too. Drivers in Florida or Louisiana pay more due to hurricane and flooding risks.
• Even within the same city, moving a few miles can change your auto insurance rate.

Marital Status

Being married can help you save on car insurance.

• Married drivers are seen as lower-risk and may get up to 10% discounts.
• Couples can also bundle policies for multi-vehicle savings.
• Insurers view stable households as less likely to file frequent claims.

Annual Mileage

The more you drive, the higher your chance of a crash. And that's why annual mileage affects your car insurance costs.

• Drivers logging under 7,500 miles yearly can save 10 to 30% with low-mileage or telematics programs.
• Those driving 20,000 miles a year may pay 20 to 25% more.
• Fewer miles means less exposure and less cost for your auto policy

Inflation

Inflation directly pushes auto insurance premiums upward.

• Between 2023 and 2025, overall insurance rates rose 31% nationwide (U.S. Bureau of Labor Statistics CPI).
• Higher repair costs, labor rates, and medical expenses all contribute.
• Although inflation is cooling in 2026, insurers expect modest increases of 3 to 5 % through the year.

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. 

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.

Learn More: 17 Ways to Lower Your Car Insurance Rate

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 $2,496 annually, while minimum coverage averages $912 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 coverage within your budget. 

Frequently Asked Questions (FAQs)

What Is the Average Cost of Car Insurance? 

The average cost of car insurance in 2026 is around $2,496 per year or $208 per month for full coverage and $912 per year or $76 per month for minimum coverage. However, rates can vary based on location, age, driving history, vehicle type, marital status, and so on. 

How Much Is Car Insurance Per Month? 

The car insurance cost per month averages about $208 for full coverage and $76 for minimum coverage. Prices depend on factors like the state you live in, driving history, vehicle type, age, coverage limit, deductible, and insurance company. 

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. 

How Much Is Vehicle 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 $2,496 per year. 

How Much Does It Cost to Insure 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.

How Much Does a 16-year-old Pay for Car Insurance?

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. 

How Much Do You Have to Pay for Car Insurance in Texas?

Car insurance in Texas costs about $223 per month ($2,672 per year) for full coverage and $77 for minimum coverage. The full coverage rate is 7% higher than the national average. But this rate can vary based on your driving record, age, insurance company, coverage limit, location, and vehicle type. 

How Much Does Auto Insurance Cost in Colorado?

The average car insurance rate in Colorado is about $267 per month ($3,203 per year) for full coverage and $49 per month ($579 per year) for minimum coverage. Full coverage is roughly 28% higher than the national average, while minimum coverage is about 36% lower.

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.

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 insuring a single car costs around $2,496 per year (or $208 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:

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• 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