How Much Does Car Insurance Cost? (2026)

The average cost of car insurance is $2,245 per year, or $187 per month, for full coverage in 2026.

State-minimum coverage averages $784 per year, or $65 per month, but your actual premium may be considerably higher or lower based on your personal rating factors.

The average cost of car insurance in the United States is $2,245 per year, or $187 per month, for full coverage. State-minimum coverage averages $784 per year, or approximately $65 per month.

Full coverage generally includes liability insurance along with collision and comprehensive coverage. A state-minimum policy primarily provides the coverages required by state law, resulting in a lower premium but less financial protection after an accident or other loss.

A national average provides a useful reference point, but it can’t predict what an individual driver will pay. Each company uses its own underwriting formula, so two insurers may offer very different rates for the same driver, vehicle, and coverage.

Rates can also vary substantially among insurance companies. The following table compares average full-coverage and state-minimum premiums from multiple major insurers.

Insurance companies set premiums based on the likelihood that a policyholder will file a claim and the cost of that claim. Common rating factors include age, location, driving history, previous claims, vehicle type, annual mileage, insurance history, credit information where permitted, coverage limits, and deductibles.¹

The following sections show how some of the most important factors may affect average car insurance costs.

Car insurance cost by age

Young drivers generally pay the highest car insurance rates. This is because they have less experience behind the wheel and are involved in serious crashes at higher rates than older drivers. In fact, according to data from the National Highway Traffic Safety Administration data, drivers ages 16 to 19 have a higher fatal-crash involvement rate per mile driven than drivers ages 20 to 69.²

This pattern isn’t limited to accidents, it shows up in driving habits, too. Our data shows that moving violation rates among car insurance shoppers fall steadily as drivers age. 36% of the youngest drivers reported at least one violation on their record, compared to just 18% of older drivers.³

Here is how these age-related factors impact average car insurance premiums:

Car insurance cost by state

Where you live affects your premium as much as anything else. States and local areas have different insurance requirements, repair costs, medical expenses, weather risks, traffic patterns, theft rates, and claim frequencies. Two drivers with nearly identical profiles can pay very different premiums depending on their state, or even their ZIP code.

Here are the five most and least expensive states for average premiums:

Car insurance cost by driving record

Tickets, accidents, and serious driving violations can raise car insurance premiums because they indicate a greater likelihood of future claims. The size and duration of an increase depend on the violation, state regulations, the insurer’s rating system, and the driver’s previous record.

And violations are more common than you might think. More than one in four car insurance shoppers has at least one active violation on their record.³

But not all violations carry the same weight. Here's a look at how much each tend to move your premium:

Car insurance cost by credit

In states where credit-based insurance scoring is permitted, drivers with lower credit scores commonly pay more for coverage. Insurers may use information from a consumer’s credit history as part of an insurance score designed to estimate the likelihood of future claims.⁴

Our data shows that poor credit is most common among shoppers in their late 30s and early 40s, at roughly 26%, and becomes steadily less common among older drivers.³ In states where credit scoring is allowed, those credit differences can add up at renewal.

Here's how premiums break down by credit tier.

Other factors that affect cost

Insurers consider multiple factors in addition to your age, location, driving record, and credit. Depending on the company and state, these may include:

• Your vehicle’s value, safety record, theft risk, and repair costs

• Your annual mileage and how you use the vehicle

• Your previous claims and insurance history

• Any lapses in car insurance coverage

• The number of drivers and vehicles on your policy

• Your liability limits and optional coverages

• Your collision and comprehensive deductibles

• Discounts for bundling, safe driving, low mileage, or vehicle safety equipment

• Participation in a telematics or usage-based insurance program

Selecting a higher deductible may reduce the cost of collision and comprehensive coverage. However, it also increases the amount you must pay out of pocket after a covered claim.⁵

Car insurance has become more expensive largely because insurers are paying more to resolve claims. Newer vehicles often contain costly cameras, sensors, computers, and safety systems, while higher labor, replacement-parts, medical, and litigation expenses can increase both property damage and bodily injury claim costs.

The U.S. Bureau of Labor Statistics reported that motor vehicle insurance prices increased 20.3% in 2023 and another 11.3% in 2024. Growth slowed to 2.8% in 2025, but that increase followed several years of substantial price growth.⁶

Accident severity also remains an industry concern. Although traffic deaths have declined from their pandemic-era highs, with traffic fatalities decreasing by about 6.7% from 2024 to 2025, the cost and severity of individual crashes remain a factor in claim expenses.⁷

Natural disasters and severe weather can also increase comprehensive claims. Hailstorms, hurricanes, flooding, wildfires, and other events may damage large numbers of vehicles within a relatively short period.

Insurance industry profitability can affect the timing of rate changes as well. Companies may request higher rates after periods in which collected premiums were insufficient to cover claims, expenses, and required reserves.

Comparing quotes is one of the most effective ways to lower your car insurance cost because companies may charge very different rates for similar coverage. Shopping matters more than any national average because your premium is based on your personal information, vehicle, location, and coverage choices.

Luva shows real numbers across multiple carriers, so you can compare rather than estimate from a national average. When comparing quotes, use the same liability limits, deductibles, and optional coverages so you can accurately evaluate the differences.

Other ways to potentially reduce your premium include:

• Maintain a clean driving record.

• Increase your deductible if you can afford the added out-of-pocket cost.

• Review optional coverage on older or lower-value vehicles.

• Ask about bundling, multi-car, low-mileage, and safe-driver discounts.

• Improve your credit where credit can legally affect insurance rates.

• Avoid a lapse in coverage.

• Compare insurance costs before purchasing a vehicle.

• Review your coverage and shop again at renewal.

Discounts may reduce your premium, but a policy with more discounts is not necessarily the least expensive option. Compare each company’s final rate, coverage, limits, deductibles, and exclusions rather than focusing only on the advertised discount percentage.