The Typical Cost of Auto Insurance in 2022
Analysis of rates for 2022 shows that annual auto insurance premiums average $1,630 across the country. That equates to a monthly premium of around $136 for the typical policy for car insurance. This price covers all mandatory insurance coverages mandated by your state, like liability, comprehensive, collision, and more.
However, the cost of auto insurance can vary widely from one individual to the next, depending on variables like their driving record, where they live, the types of coverage they opt for, and the make and model of their vehicles.
How Much Does Car Insurance Typically Cost Every Year?
The national average for automobile insurance premiums in the United States is $1,553. But your actual auto insurance premiums may be different from that estimate. Auto insurance premiums are based on several criteria, which are all evaluated by each insurance provider individually.
You'll need to consider factors like your age, where you live, car type, driving record, and credit score. Each insurance company places a unique emphasis on the elements above.
Our research shows that USAA offers the most competitive prices overall, but its insurance services are restricted to current and past military personnel and their families. Most customers find that GEICO's rates are the second-lowest on average, with Allstate's being the lowest.
How Much Does Car Insurance Typically Cost in Your State?
One of the many variables affecting auto insurance costs is where you live. The most costly state is Florida at $2,393 per year, while the cheapest is New Hampshire at $940.
Be aware that these estimates are meant to give you an idea of what to expect and may differ from what you pay for your personal auto insurance policy. You can find the most affordable policy by doing some comparison shopping in addition to evaluating the cost.
Who Has The Cheapest Vehicle Insurance?
Top insurance companies in the country typically charge between $1,200 and $2,500 per year for complete coverage, with USAA and Geico offering the most affordable policies. However, rates for auto insurance will vary from company to company because each insurer uses its unique underwriting procedure.
If you're a motorist shopping around for the finest auto insurance provider, remember that the policy options you select also matter. Full coverage auto insurance often costs around 225% more than liability-only insurance.
Age And Gender Affect Vehicle Insurance Rates
Young drivers' premiums will be higher on average in 2022 because insurers factor in age heavily when determining rates.
Car insurance premiums are often higher for high-risk drivers, such as teenagers and young adults, as well as the elderly, because of statistical evidence showing that they are statistically more likely to be involved in an accident.
Auto insurance companies in Hawaii and Massachusetts are not allowed by law to use a policyholder's age when determining a rate. Furthermore, in most states, your premium is affected by your gender. In general, men are more expensive to insure than women.
This is because men often participate in riskier driving habits than women and have a greater accident severity rate, according to the Insurance Information Institute (Triple-I) (Triple-I). While some governments do consider gender when setting rates, others do not.
How Does Driving Record Affect Auto Insurance?
Having an accident where you were at fault will almost certainly result in a 42% increase in your auto insurance premiums compared to what a driver with a spotless driving record pays. For drivers with a DUI conviction, the average rise is considerably higher, at 93%, illustrating how the severity of an event and being labelled a high-risk driver may affect your premium.
Overspeeding:
A conviction for speeding is one of the most prevalent traffic violations that might result in a higher premium.
After receiving a speeding ticket, your auto insurance premiums will be calculated using a formula specific to each company.
Both Erie and USAA have average yearly premiums for vehicle insurance that are below the national average, roughly $1,400, even after a conviction for speeding.
Accident at-Fault
The average full-coverage auto insurance rate in the United States is $2,100 per year or $148 per month, but if you have an at-fault accident on your record, that number may jump to $2,110. It's possible to avoid paying the fee if this is your first accident and you purchased optional coverage like accident forgiveness.
DUI Conviction:
A conviction for driving under the influence can increase your full coverage rate by over $300 per month and remain on your driving record for at least ten years. The tacked-on sum also varies by state.
After receiving a DUI, the average cost of a full coverage auto insurance policy can increase from $3,539 per year in Kentucky to roughly $5,530 per year in Louisiana.