How Much Does the Average American Spend Per Month on Car Insurance?
Last Updated on December 7, 2025
Auto insurance is one of the biggest recurring expenses for many Americans. After housing, utilities, and car payments, car insurance is often the next-largest monthly bill. But how much does the average American actually pay per month? And how does your rate compare?
Key Takeaways
- The average American now pays $125–$150 per month for full-coverage car insurance—nearly double what drivers paid a decade ago.
- Rates vary dramatically by state: drivers in expensive states may pay 2–3× more than those in cheaper states.
- Demographics, location, and driving history have the biggest impact on premiums.
- Shopping around is the easiest way to save—many drivers overpay simply because they haven’t compared quotes.
How Much Does the Average American Pay for Car Insurance?
According to the most recent nationwide data from the National Association of Insurance Commissioners (NAIC), ValuePenguin, and Bankrate, the average American now pays between $125 and $150 per month for full-coverage car insurance.
Here are current national averages (2024–2025):
- Full coverage: $1,500–$1,800 per year (≈ $125–$150 per month)
- Minimum liability: $500–$700 per year (≈ $45–$60 per month)
Rates have increased significantly over the last decade due to rising repair costs, medical expenses, claim frequency, and inflation. In contrast, older NAIC data from 2015 showed drivers paying around $75 per month. Today’s rates are nearly double that.
Insurance still varies widely depending on where you live. Some states have extremely high average premiums, while others are consistently inexpensive.
Examples of State Differences
- Cheapest states (e.g., Idaho, North Carolina, Iowa) – Full coverage often costs $80–$110 per month.
- Most expensive states (e.g., Michigan, New York, Florida, New Jersey) – Full coverage often costs $180–$280 per month.
Some states pay three times as much for car insurance as others—mainly due to state insurance laws, accident rates, litigation levels, and local claim costs.
| State | Avg. Annual Premium | Avg. Monthly Cost |
|---|---|---|
| Alabama | $1,754 | $146 |
| Alaska | $1,570 | $131 |
| Arizona | $2,051 | $171 |
| Arkansas | $1,904 | $159 |
| California | $2,958 | $247 |
| Colorado | $2,787 | $232 |
| Connecticut | $2,650 | $221 |
| Delaware | $2,490 | $207 |
| Florida | $3,183 | $265 |
| Georgia | $2,239 | $187 |
| Hawaii | $1,403 | $117 |
| Idaho | $1,176 | $98 |
| Illinois | $2,103 | $175 |
| Indiana | $1,414 | $118 |
| Iowa | $1,315 | $110 |
| Kansas | $1,914 | $160 |
| Kentucky | $2,432 | $203 |
| Louisiana | $2,909 | $242 |
| Maine | $1,107 | $92 |
| Maryland | $2,212 | $184 |
| Massachusetts | $1,829 | $152 |
| Michigan | $2,691 | $224 |
| Minnesota | $1,887 | $157 |
| Mississippi | $1,921 | $160 |
| Missouri | $2,126 | $177 |
| Montana | $2,074 | $173 |
| Nebraska | $1,780 | $148 |
| Nevada | $2,636 | $220 |
| New Hampshire | $1,262 | $105 |
| New Jersey | $2,960 | $247 |
| New Mexico | $1,785 | $149 |
| New York | $3,139 | $262 |
| North Carolina | $1,368 | $114 |
| North Dakota | $1,577 | $131 |
| Ohio | $1,266 | $105 |
| Oklahoma | $2,077 | $173 |
| Oregon | $1,547 | $129 |
| Pennsylvania | $2,078 | $173 |
| Rhode Island | $2,411 | $201 |
| South Carolina | $2,139 | $178 |
| South Dakota | $1,879 | $157 |
| Tennessee | $1,558 | $130 |
| Texas | $2,938 | $245 |
| Utah | $1,683 | $140 |
| Vermont | $1,088 | $91 |
| Virginia | $1,493 | $124 |
| Washington | $1,699 | $141 |
| West Virginia | $1,793 | $149 |
| Wisconsin | $1,553 | $129 |
| Wyoming | $1,784 | $148 |
Comparison Shop to Lower Your Car Insurance Prices
The fastest way to reduce your premium is by comparing quotes from multiple insurers. The difference between paying $180 per month and $110 per month is often just a matter of shopping around.
Most drivers save by:
- Requesting quotes from multiple companies
- Bundling home and auto policies
- Adjusting coverage levels or deductibles
- Qualifying for discounts
Shopping and comparing quotes takes only a few minutes and can reveal significant savings.
Why Am I Paying More Than the National Average?
If you’re paying more than $125–$150 per month for full coverage, you’re not alone. Rates depend heavily on personal factors—and some of them are outside your control.
Basic Demographics
Age, gender, and marital status strongly affect how much you pay:
- Younger drivers (especially males under 25) pay the highest premiums.
- Married drivers usually pay less than single drivers.
- By your 50s, premiums typically decrease significantly.
Some demographic changes are simply part of how insurers calculate risk—and can’t be easily changed.
Your Location
Your state and ZIP code play a major role in pricing. Factors include:
- Population density
- Traffic levels
- Local accident rates
- Crime and vehicle theft rates
- Litigation and claim severity
- Whether your state uses a no-fault insurance system
A driver in a rural Iowa ZIP code may pay half as much as a driver in Miami or Detroit.
Your Driving Record
Your driving history has one of the biggest impacts on your rates. Drivers with:
- Multiple speeding tickets
- DUIs or DWIs
- At-fault accidents
- Frequent claims
…will pay significantly more than someone with a clean record.
Even then, shopping around often reveals more affordable options.
FAQ’s About the Average Auto Insurance Rates in America
Final Word
Today, the average American pays roughly $125–$150 per month for full-coverage car insurance, or $45–$60 per month for minimum liability insurance. Your state, driving record, demographics, and coverage needs all influence how much you pay.
If you’re paying less than average, congratulations—you’re doing better than most drivers. If you’re paying more, you’re not alone, and you may be at or below the average for your state.
The best way to ensure you’re paying the lowest possible rate is to compare car insurance quotes regularly and look for discounts available to you.
Leave a Reply