The cost of your car insurance policy's premium is determined by multiple factors. When providing the average car insurance cost, it's helpful to point out some of the specific aspects that may affect your premiums. Your location, driving history, credit score, age, gender, and many other factors all go into calculating car insurance rates. When asking, "How much does car insurance cost?" you'll need to consider all these different qualifiers. You could own and drive the exact same vehicle in two different states and pay two completely different car insurance premiums.
Understanding how these factors affect car insurance costs can help you better understand your coverage and its rates. So, how much is car insurance per month? Trusted Choice compared quotes from multiple car insurance carriers across the nation, and we found that the overall average cost of car insurance for 2026 is $2,496 for full coverage and $912 annually for minimum, liability-only coverage. This breaks down to a range of about $76 to $208 per month.
An independent insurance agent can also help you find the most affordable car insurance near you. They'll get you set up with a policy that does everything you need it to do. But first, here's a breakdown of the average cost you can expect to pay for car insurance in 2026.
Key Takeaways - Average Cost of Car Insurance in 2026
The average cost of full coverage car insurance is about $2,496 per year, or $208 per month, in 2026.
The average cost of minimum coverage car insurance is about $912 per year, or $76 per month.
Car insurance costs can vary by age, location, gender, credit, driver profile, vehicle type, and other factors.
Louisiana is currently the most expensive state for car insurance, while Vermont is the cheapest.
Working with a local independent insurance agent is strongly recommended, as they can shop and compare rates and policy options to find the cheapest car insurance near you.
How Much Does Car Insurance Cost in 2026?
The average cost of car insurance is $2,496 for full coverage and $912 for minimum. So, how much does car insurance cost per month in 2026? About $208 for full coverage and $76 for minimum coverage.
However, your average car insurance cost will vary depending on your driving history, age, location, and other factors. A local independent insurance agent can help you find affordable car insurance rates in your area.
Factors That Impact Car Insurance Costs
The average car insurance payment you might expect to pay will be based on your age, where you live, your driving history, the kind of car you drive, the number of cars and drivers in your household, and more. Overall, many different things factor into your car insurance premiums.
If you'd like a personalized estimate for car insurance prices, use our car insurance calculator. Otherwise, we'll break down a handful of key factors so you can better understand the cost of your policy.
Age
A driver's age has a huge impact on their car insurance rates. When drivers first get their licenses, traditionally, they're in their teens. Young drivers have some of the highest car insurance rates by far due to their increased risk factors, such as lack of driving experience, a higher tendency toward speeding, and an overall higher tendency toward potentially dangerous driving maneuvers and distracted driving, such as while texting. Teen drivers pay an average of $369 per month for full coverage car insurance.
Car insurance rates tend to decrease as driver age increases, at least for quite a while. Drivers in their 40s pay an average of $184 per month for full coverage.
However, once a driver reaches a certain level of seniority, often around age 70, rates can start to increase again. For comparison, drivers in their 60s pay an average of $155 per month for full coverage, while drivers in their 70s pay $166. This can be due to risk factors such as declining eyesight and decreased reaction time, which can create a greater likelihood of accidents.
Location
The state in which the vehicle is registered and driven affects the costs of car insurance premiums. Heavily populated and trafficked areas, such as major cities like New York City, Los Angeles, Boston, and others, often have higher-than-average car insurance rates due to increased risk factors like vandalism, car theft, and accidents due to the volume of traffic.
Car insurance rates can vary by several hundred dollars from the most expensive state to the least expensive state. This year, the most expensive state for full coverage insurance is Louisiana, which averages $248 per month. Vermont is the cheapest state for full coverage insurance, averaging $74 per month. That's a difference of close to $200.
Car values can be higher in certain areas, too, such as where the overall cost of living is higher, meaning car insurance rates are more expensive as well. You might also have higher car insurance rates in areas where your vehicle is at a greater risk of damage by natural disasters, such as in locations along the coast, particularly if you have comprehensive coverage.
Vehicle age
The age of your vehicle also impacts your car insurance rates. Newer vehicles are often more expensive to insure than older ones, partly because they have a higher actual cash value, meaning they cost more to replace after an accident, theft, or other total loss.
New cars are also at greater risk of theft than older vehicles. However, newer vehicles often qualify for safety-feature and anti-theft discounts that can partially offset their higher repair costs and may also help lower their insurance rates.
Credit score
Does credit score affect car insurance rates? In many states, drivers with poor credit pay considerably more per month than drivers with good credit. However, California, Hawaii, Massachusetts, and Michigan don't allow credit as a rating factor for car insurance costs.
The table below compares the average cost of full coverage insurance by credit score for 2026.
| Poor Credit | Average Credit | Good Credit | Excellent Credit |
|---|---|---|---|
| $4,745 | $2,947 | $2,697 | $2,318 |
Gender and marital status
The gap in car insurance costs between genders is the widest among teen drivers, with males paying an average of about 12% more than females. At age 16, male drivers pay about $42 per month more than female drivers due to their higher accident rates.
At age 19, the gap is already much smaller. By age 25, the difference is only $2 per month. However, six states (i.e., California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania) don't allow gender-based car insurance pricing.
Not-at-fault accidents
The ways in which a not-at-fault accident on your record can impact your car insurance rates vary by state. Many states don't hike your car insurance premiums if you're involved in an accident for which you weren't at fault, including California, Oklahoma, New York, and New Jersey.
However, many other states still raise your car insurance premiums, or at least certain carriers do. Single-car accidents, in which no other vehicles or drivers were involved, may also be considered your fault by many insurance companies, so your rates may likely increase after an incident that falls in this category.
At-fault accidents
Most often, you can expect your car insurance rates to increase after even one at-fault accident on your record. One at-fault accident can raise your premiums by an average of 54%, but this percentage varies by state. North Carolina has the steepest average potential premium hike, at 137%.
However, the good news is that these insurance rate increases usually aren't permanent, and your insurance carrier is likely to stop charging you extra for the incident after a few years have passed. It's also necessary to keep in mind that some car insurance companies offer accident forgiveness up to certain claim amounts. So, for drivers with this type of coverage, their car insurance rates won't increase after an accident claim that falls within the coverage limit.
Coverage level
The type and amount of coverage you buy influence your premium. Buying a liability-only policy costs quite a bit less than a "full coverage" policy or one that has protection for not just liability but also damage from collisions, medical treatment for your personal injuries, etc.
In 2026, the average cost of full coverage is $208 per month, while the average cost of minimum liability-only coverage is $76 per month. Full coverage costs about three times more than liability coverage.
But while a liability-only car insurance policy that meets your state's minimum coverage requirements is always the least expensive option, you'll still want to review all the different types of car insurance available so you can build a policy that works best for you. Though adding more coverage to your policy may initially seem more expensive, having the additional coverage can really pay off in case you have to file a claim later.
Vehicle type
The type of vehicle you drive, including its make and model, also affects your car insurance rates. The more valuable a vehicle is, the more expensive it may be to insure. This year, a Toyota RAV4 and a Honda CR-V both cost an average of $214 per month to insure. A Tesla Model Y, however, costs about $354 per month to insure.
Safer vehicles are often less expensive to insure since the risk of major damage and injuries from accidents is also lower. Your specific vehicle's theft rate also impacts your car insurance premiums, as vehicles that are proven to be frequent targets for thieves are considered more of a risk to insure.
Annual mileage
Many car insurance companies offer lower rates for drivers who use their vehicles less than a specified number of miles per year, often 5,000 to 7,500. How often you use your vehicle impacts your car insurance rates because, generally speaking, the more often you're on the road, the more you're at risk of accidents and other incidents.
If you only use your vehicle to go to work or run errands, you might pay less for car insurance than if you frequently take long road trips or use your vehicle for other purposes. Many car insurance companies offer pay-per-mile coverage or programs that can help you save between 20%-50% on your premiums if you drive less than 5,000 miles per year. Ask your independent insurance agent about low-mileage car insurance discounts.
Driving record and experience
When estimating your car insurance premiums, an insurance provider will look into your history as a motorist. If you have a history of traffic accidents and citations, your rate will likely be higher. Insurance companies view drivers with more traffic violations as statistically more likely to be in an accident. Drivers with a single speeding ticket can see premium increases between 19%-64%, while drivers with a DUI can see increases of up to 80%.
Maintaining a violation-free driving record can dramatically enhance your driver profile and result in lower auto insurance premiums. The time frame to remain free of violations varies by insurance company but is typically three to five years.
Average Car Insurance Cost by State in 2026
Auto insurance rates vary considerably by location. The table below compares the average car insurance cost by state in 2026, including the average cost of full coverage car insurance and the average cost of liability-only insurance in each. These full coverage rates are based on a policy with coverage levels of 100/300/100.
| State | Average Monthly Full Coverage Premium | Average Annual Full Coverage Premium | Average Monthly Liability Premium | Average Annual Liability Premium |
|---|---|---|---|---|
| Alabama | $105 | $1,262 | $56 | $675 |
| Alaska | $113 | $1,350 | $48 | $580 |
| Arizona | $139 | $1,667 | $69 | $826 |
| Arkansas | $123 | $1,480 | $51 | $614 |
| California | $139 | $1,666 | $64 | $774 |
| Colorado | $156 | $1,870 | $61 | $730 |
| Connecticut | $149 | $1,789 | $87 | $1,045 |
| Delaware | $183 | $2,192 | $110 | $1,323 |
| District of Columbia | $188 | $2,261 | $102 | $1,225 |
| Florida | $232 | $2,786 | $101 | $1,207 |
| Georgia | $138 | $1,657 | $80 | $962 |
| Hawaii | $86 | $1,034 | $36 | $430 |
| Idaho | $81 | $969 | $37 | $441 |
| Illinois | $103 | $1,238 | $51 | $612 |
| Indiana | $84 | $1,013 | $42 | $504 |
| Iowa | $98 | $1,173 | $34 | $413 |
| Kansas | $120 | $1,435 | $48 | $574 |
| Kentucky | $136 | $1,629 | $78 | $935 |
| Louisiana | $248 | $2,979 | $106 | $1,270 |
| Maine | $77 | $923 | $38 | $457 |
| Maryland | $149 | $1,790 | $88 | $1,052 |
| Massachusetts | $98 | $1,182 | $45 | $541 |
| Michigan | $134 | $1,604 | $64 | $767 |
| Minnesota | $104 | $1,247 | $46 | $547 |
| Mississippi | $123 | $1,475 | $57 | $687 |
| Missouri | $126 | $1,507 | $64 | $771 |
| Montana | $121 | $1,454 | $51 | $613 |
| Nebraska | $108 | $1,293 | $40 | $476 |
| Nevada | $162 | $1,948 | $86 | $1,035 |
| New Hampshire | $82 | $986 | $45 | $537 |
| New Jersey | $170 | $2,039 | $101 | $1,214 |
| New Mexico | $121 | $1,456 | $52 | $628 |
| New York | $124 | $1,482 | $65 | $785 |
| North Carolina | $104 | $1,253 | $50 | $604 |
| North Dakota | $88 | $1,057 | $42 | $499 |
| Ohio | $91 | $1,095 | $44 | $533 |
| Oklahoma | $136 | $1,632 | $56 | $671 |
| Oregon | $113 | $1,360 | $57 | $689 |
| Pennsylvania | $123 | $1,470 | $51 | $607 |
| Rhode Island | $129 | $1,552 | $73 | $879 |
| South Carolina | $134 | $1,602 | $70 | $836 |
| South Dakota | $103 | $1,233 | $33 | $396 |
| Tennessee | $104 | $1,246 | $49 | $583 |
| Texas | $157 | $1,886 | $69 | $823 |
| Utah | $134 | $1,611 | $74 | $885 |
| Vermont | $74 | $886 | $30 | $365 |
| Virginia | $96 | $1,154 | $54 | $647 |
| Washington | $113 | $1,358 | $54 | $646 |
| West Virginia | $117 | $1,406 | $58 | $696 |
| Wisconsin | $88 | $1,057 | $38 | $456 |
| Wyoming | $84 | $1,003 | $26 | $316 |
Minimum Auto Liability Insurance by State
If you've just started investigating car insurance rates, you may be wondering if the minimum liability coverage required in your state is enough protection for you. The answer is typically no because the state minimum liability is often not enough to fully cover losses and even potential liability claims.
Your next question may be, “What happens if my insurance is not enough to cover a loss?” In such a case, you'd be responsible for covering the remainder of the cost out of your own pocket.
The minimum coverage car insurance requirements by state are provided below. The first number indicates bodily injury liability per person, the second is the bodily injury liability limit per accident, and the third number is the total coverage amount for property damage in thousands.
| State | Minimum Auto Insurance Requirements |
|---|---|
| Alabama | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Alaska | $50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident *Car insurance is optional for certain remote residents |
| Arizona | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident |
| Arkansas | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| California | $30,000 bodily injury liability per person $60,000 bodily injury liability per accident $15,000 property damage liability per accident |
| Colorado | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident |
| Connecticut | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident |
| Delaware | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $15,000 personal injury protection per person $30,000 personal injury protection per accident |
| Florida | $10,000 property damage liability per accident $10,000 personal injury protection |
| Georgia | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Hawaii | $20,000 bodily injury liability per person $40,000 bodily injury liability per accident $10,000 property damage liability per accident $10,000 personal injury protection |
| Idaho | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident |
| Illinois | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident |
| Indiana | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Iowa | $20,000 bodily injury liability per person $40,000 bodily injury liability per accident $15,000 property damage liability per accident |
| Kansas | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident |
| Kentucky | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident Or a policy with a single limit of $60,000 |
| Louisiana | $15,000 bodily injury liability per person $30,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Maine | $50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident Or a combined single liability limit of $125,000 $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $2,000 medical payments coverage |
| Maryland | $30,000 bodily injury liability per person $60,000 bodily injury liability per accident $15,000 property damage liability per accident $30,000 uninsured/underinsured motorist coverage per person $60,000 uninsured/underinsured motorist coverage per accident $15,000 uninsured/underinsured property damage coverage per accident |
| Massachusetts | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $30,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $8,000 personal injury protection |
| Michigan | $50,000 bodily injury liability per person $100,000 bodily injury liability per accident $10,000 property damage liability per accident outside Michigan $1 million property protection within Michigan $250,000 personal injury protection |
| Minnesota | $30,000 bodily injury liability per person $60,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $40,000 personal injury protection |
| Mississippi | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Missouri | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident |
| Montana | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident |
| Nebraska | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident |
| Nevada | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident |
| New Hampshire | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $1,000 medical payments coverage |
| New Jersey | $5,000 property damage liability per accident $15,000 personal injury protection |
| New Mexico | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident |
| New York | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $50,000 liability for death per person $100,000 liability for death per accident $10,000 property damage liability per accident $25,000 uninsured motorist bodily injury coverage per person $50,000 uninsured motorist bodily injury coverage per accident $50,000 personal injury protection |
| North Carolina | $50,000 bodily injury liability per person $100,000 bodily injury liability per accident $50,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $50,000 uninsured motorist property damage coverage per accident |
| North Dakota | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $30,000 personal injury protection |
| Ohio | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Oklahoma | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Oregon | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $15,000 personal injury protection |
| Pennsylvania | $15,000 bodily injury liability per person $30,000 bodily injury liability per accident $5,000 property damage liability per accident $5,000 medical payments coverage |
| Rhode Island | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| South Carolina | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $25,000 uninsured motorist property damage coverage |
| South Dakota | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident |
| Tennessee | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Texas | $30,000 bodily injury liability per person $60,000 bodily injury liability per accident $25,000 property damage liability per accident |
| Utah | $30,000 bodily injury liability per person $65,000 bodily injury liability per accident $25,000 property damage liability per accident $3,000 personal injury protection |
| Vermont | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $10,000 uninsured/underinsured motorist property damage coverage per accident |
| Virginia | $50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $25,000 uninsured/underinsured motorist property damage coverage per accident |
| Washington | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident |
| Washington, D.C. | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $5,000 uninsured motorist property damage coverage per accident |
| West Virginia | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident $25,000 uninsured motorist property damage coverage |
| Wisconsin | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident |
| Wyoming | $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident |
Let’s look at Indiana as an example. If you're at fault for an accident in Indiana that totals a car and sends three people to the hospital, your available insurance will cover the first two people who file a claim, up to a total of $50,000 in medical payments and liability costs, and up to $25,000 in property damage costs.
Those totals will very likely fall short of the medical payments, legal defense fees, and property damage costs associated with the accident.
Most Expensive States for Car Insurance in 2026
In some states, car insurance is more expensive due to higher car theft rates, car values, and a greater risk of natural disasters, among other factors. We compared quotes from multiple insurance carriers in each state to determine the average auto insurance cost per month nationwide.
So, how much does car insurance cost per month in the most expensive states in the U.S.? Here are the five most expensive states for car insurance, and their average rates for 2026.
- Louisiana: $248 per month, $2,979 per year
- Florida: $232 per month, $2,786 per year
- Washington, D.C.: $188 per month, $2,261 per year
- Delaware: $183 per month, $2,192 per year
- New Jersey: $170 per month, $2,039 per year
Cheapest States for Car Insurance in 2026
On the flip side, car insurance is typically much less expensive in various states for several reasons, including lower overall car values and a decreased risk of auto theft and vandalism. Here are the five least expensive states for car insurance, and their average premium rates per year as of 2026.
- Vermont: $886 per year
- Maine: $923 per year
- Idaho: $969 per year
- New Hampshire: $986 per year
- Wyoming: $1,003 per year
Average Car Insurance Cost by Age in 2026
How much is car insurance? In part, it depends on your age. On average, teens pay $369 for car insurance per month, which is the highest age group by far. So, how much does car insurance cost for a 25-year-old? Drivers in their 20s pay an average of $264 per month for full coverage.
The table below compares the average car insurance cost by age for 2026.
| Age Group | Average Monthly Full Coverage Rate |
|---|---|
| Teens | $369 |
| 20s | $264 |
| 30s | $203 |
| 40s | $184 |
| 50s | $165 |
| 60s | $155 |
| 70s | $166 |
Full Coverage vs. Minimum Coverage Cost
How much is full coverage insurance? The average cost of full coverage car insurance is $208 per month, while the average cost of minimum liability coverage is $76 per month.
A full coverage car insurance policy typically includes liability, collision, and comprehensive coverage, which breaks down as follows:
- Liability insurance: This covers the cost of lawsuits and other expenses stemming from third-party claims of bodily injury or personal property damage caused by your vehicle.
- Collision insurance: This pays for damage to your car from a collision with another object, regardless of fault.
- Comprehensive insurance: This pays for damage to your car due to a non-collision event, such as a flood or theft.
Full coverage may also include the following:
- Medical payments coverage: This coverage pays for the cost of your injuries and those of your passengers after an accident, regardless of fault.
- Uninsured/underinsured motorist insurance: This coverage pays for expenses resulting from an accident involving a driver who is uninsured or underinsured, or after a hit-and-run.
- Personal injury protection: This coverage pays for the cost of your injuries and those of your passengers, as well as lost wages resulting from an accident, regardless of fault.
You may be required to have full coverage car insurance if you have an auto loan or lease. Additionally, your state may require you to have multiple types of coverage by law.
Drivers who own newer, more valuable vehicles often choose to get full coverage as well. An independent insurance agent can help you find the cheapest car insurance in your area.
Average Car Insurance Cost by Company
Why is car insurance so expensive in 2026? It doesn't have to be, when you know where to look for affordable coverage. Currently, Travelers offers the cheapest rates, averaging $764 for a six-month full coverage policy.
The table below compares some of the cheapest car insurance companies for 2026. An independent insurance agent can help you compare car insurance quotes from each of these carriers and others near you.
| Car Insurance Company | Average Six-Month Full Coverage Premium |
|---|---|
| Travelers | $764 |
| USAA | $885 |
| Progressive | $1,083 |
| Nationwide | $1,094 |
| Allstate | $1,501 |
How to Lower Your Car Insurance Cost in 2026
Fortunately, there are several easy ways to lower the cost of your car insurance, including shopping and comparing quotes annually, bundling your coverage, raising your deductible, and asking about car insurance discounts. Working with an independent insurance agent is another great way to get set up with the lowest premium rates.
Shop and compare quotes annually
Comparison shopping can help you save an average of $200-$500 each year on your car insurance. It's recommended to shop before your policy renews to ensure you're getting the cheapest rate. A local independent insurance agent can help compare quotes from multiple carriers in your area to find the most affordable coverage.
Bundle auto and home insurance
Bundling your homeowners insurance and auto insurance from the same carrier can help you save an average of 15%-25% on your coverage, or about $330 to $900 per year. Ask your carrier about bundling discounts if you need more than one policy.
Raise your deductible
Increasing your deductible from $500 to $1,000 can help you save an average of 15%-30% on your comprehensive and collision coverage. Just keep in mind that you have to pay your deductible out of pocket each time you file a claim, so it's important to evaluate your budget first.
Apply eligible discounts
Many car insurance discounts are available from most carriers. These savings can greatly help you reduce your auto insurance costs.
- Usage-based (telematics) discounts: Many car insurance companies offer telematics programs that track your annual mileage or driving behavior and reward you with savings for low vehicle usage and good habits on the road.
- Pay-in-full discounts: If you pay your premium in full rather than monthly, you might earn a nice discount from your carrier.
- Autopay discounts: Choosing to have your premiums automatically deducted each month might also help you save on your coverage.
- Defensive driving course discounts: Completing an approved defensive or safe driving course can often help you earn significant savings on car insurance.
- Good student discounts: Many car insurance companies offer savings for insured drivers with students on their policies who maintain at least a B-average.
- Safety feature discounts: If your vehicle is equipped with safety features, such as driver-assist features including lane-departure warnings, you may qualify for an additional discount.
Ask your independent insurance agent to help you apply any car insurance discounts you're eligible for.
How Uninsured and Underinsured Drivers Impact Car Insurance Prices
Motorists with little or no auto insurance are a leading cause of increased premiums. Although minimum liability insurance is required in each state, some drivers buy the insurance only to meet the requirement, then cancel or default on the policy. Areas with higher rates of uninsured and underinsured drivers typically have higher car insurance rates.
About 15.4% of drivers were uninsured in 2023, according to a study by the Insurance Research Council. Some of the worst states for uninsured drivers include Mississippi, Michigan, and Tennessee. These states had the highest average rates of uninsured or underinsured drivers.
In a car accident, the driver responsible must pay for the damage. For example, if a driver rear-ends you at an intersection, that driver must cover the costs of damage and any injuries. If the driver has liability insurance, the driver’s insurance company pays for the damage.
If the driver responsible for causing the accident does not have car insurance, or the accident was a hit and run, your insurance company would pay for your medical treatment and the repairs to your vehicle based on how much uninsured/underinsured motorist insurance you carry and your policy's limits. Since your insurance company is more likely to pay costs in areas where motorists tend to go uninsured, the monthly auto insurance premium in these areas is typically higher.
Why Are Car Insurance Rates Higher for Younger Drivers?
Age equals experience in the eyes of insurers. Younger motorists are considered a high-risk demographic. On average, 16-year-old drivers pay between $345 to $386 per month for full coverage car insurance. According to the Insurance Institute for Highway Safety (IIHS), drivers between the ages of 16 and 19 are almost three times more likely to crash as drivers aged 20 and older. Sadly, fatal accidents account for nearly one-half of all teenage deaths.
While these statistics can dramatically affect how insurance companies set rates based on a driver's age, there are several measures teen drivers can take to reduce their car insurance costs.
Car insurance cost reduction tips for teens
There are a few ways teen drivers can reduce the cost of their car insurance premiums, including:
- Getting their license as early as possible, even if they won’t be driving yet
- Maintaining an excellent driving record
- Maintaining good grades in school*
*If your teen driver maintains at least a B-average or 3.0 GPA, you can often qualify for good student discounts, which can help you save an average of 10%-15%.
For teens, the more time that passes from the day your license was issued, the better for your monthly auto insurance costs. Even if you don't plan to drive alone until you're out of the high-risk category, it's a good idea to get your license as soon as you can to get distance from that “just licensed” period.
FAQs About Car Insurance Costs
What's the difference between minimum and full coverage?
In terms of auto insurance, "minimum coverage" refers to your state's minimum required coverage, which tends to include bodily injury liability and property damage liability insurance. However, depending on your state, you may also be required to carry other forms of coverage to satisfy minimum requirements, such as personal injury protection or uninsured motorist coverage.
"Full coverage" refers to an auto insurance policy that includes all of your state's minimum mandated coverages and extras, typically including collision coverage, comprehensive coverage, uninsured motorist coverage, personal injury protection, and more.
How can I reduce my car insurance cost?
There are several ways you can reduce your car insurance costs. First, you can work with an independent insurance agent who can shop and compare policies and rates for you from several different carriers to ensure you're saving the most money possible.
You can also ask your carrier about various discounts on car insurance, such as by bundling your home and auto coverage to save between 15% and 25%. Additionally, you can raise your deductible to earn a lower premium, but you'll have to pay more each time you file a claim.
What's the most expensive state for car insurance in 2026?
Louisiana is the most expensive state for car insurance in 2026, with an average monthly premium of $248 for full coverage.
What's the cheapest state for car insurance in 2026?
Vermont is the cheapest state for car insurance in 2026, with an average premium rate of $74 per month for full coverage.
Which age group pays the most for car insurance?
On average, drivers aged 16 to 19 pay the most for car insurance, with male teens paying about $386 per month for full coverage.
Which age group pays the least for car insurance?
On average, drivers in their early 60s pay the least for car insurance, averaging $155 per month for full coverage. However, rates may start to increase around age 65 or 70.
Will car insurance rates go up in 2026?
For 2026, the national average increase forecast predicts that car insurance rates will increase about 0.67%, with New Jersey, Nevada, California, New York, and D.C. seeing average hikes of 5%-10%. In contrast, Iowa, Minnesota, and Arkansas are actually projected to see rate cuts.
How does credit score affect car insurance?
Drivers with bad credit can pay nearly $200 more per month for full coverage. However, credit score is banned as a rating factor in CA, HI, MA, and MI.
How much can you save by bundling car and home insurance?
If you buy both your car and home insurance from the same carrier, you can expect to save an average of 15%-25% on your coverage, or about $330-$900 per year, depending on your carrier and state.
How much does car insurance cost per month in 2026?
Car insurance costs about $208 per month for full coverage and about $76 per month for liability-only insurance nationwide.
Methodology
To compare average car insurance rates, we evaluated quotes for each of the 50 states and Washington, D.C., using fresh data for 2026. To gather specific data for sample drivers, we used an auto insurance policy that includes the following:
- Bodily injury liability coverage of $100,000 per person and $300,000 per accident
- Property damage liability coverage of $50,000 per accident
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
- Uninsured motorist bodily injury coverage of $100,000 per person and $300,000 per accident
Depending on your location, quotes for coverage may vary. Ask a local independent insurance agent to help you find specific car insurance quotes in your area.
Learn More About Car Insurance Costs From an Independent Insurance Agent
To find out more about how these factors affect your car insurance premium, talk to an independent insurance agent in your area. These agents live and work in your neighborhood, so they know what risks you face on the road.
Your local independent insurance agent will help you find the best car insurance for your needs and budget. Just be prepared with your current policy declarations page, your annual mileage estimate, and details about your vehicle to help streamline the process.
Sources
https://www.nerdwallet.com/insurance/auto/learn/minimum-car-insurance-requirements
https://www.valuepenguin.com/state-of-auto-insurance-2026
https://insurify.com/car-insurance/driver/age/
https://www.moneygeek.com/insurance/auto/car-insurance-rates-by-state/
https://www.thezebra.com/auto-insurance/how-to-shop/average-auto-insurance/