Key facts
| Fact | Figure |
|---|---|
| Average spent per insured vehicle (2023) | $1,281 a year, about $107 a month |
| Average for liability + collision + comprehensive (2023) | $1,438 a year, about $120 a month |
| Change in that combined average, 2022-2023 | up 14.42% |
| Change in average expenditure, 2019-2023 | up 19.24% |
| Average collision claim (2022) | $7,191, up from $6,113 a year earlier |
| States the NAIC lists as banning credit-based insurance scores in rating | 8 (California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah) |
| Vehicles stolen in the US (2025) | 659,880 |
In this guide
- Age and experienceCrash rates by age, why teens and young drivers pay more, and when car insurance usually gets cheaper.
- ZIP codeHow insurers use your garaging address and territory to price car insurance, and the limits some states set.
- Credit scoreWhat a credit-based insurance score is, where insurers may use it, which states ban it and how to check and dispute it.
- VehicleWhy the car you drive changes your premium, using IIHS-HLDI loss data, theft figures and safety ratings.
- MileageWhy the miles you drive and how you use your car affect your premium, plus options for low-mileage drivers.
- Driving recordHow violations, at-fault crashes and DUIs raise car insurance, how state point systems work and how long they matter.
- Claims historyHow insurers see your past claims through databases like C.L.U.E., and how to check and correct your report.
- TelematicsHow usage-based insurance tracks mileage and driving habits, what it can mean for your price and what to ask about privacy.
How much is car insurance per month?
Two national averages from the National Association of Insurance Commissioners (NAIC) help answer the question.
- Average expenditure: $1,281 a year in 2023, or about $107 a month. This divides everything drivers paid for liability, collision and comprehensive by the number of insured vehicles. Because many drivers carry only liability, it sits below the price of a typical "full coverage" policy.
- Combined average premium: $1,438 a year in 2023, or about $120 a month. This is closer to what a driver pays for a policy that includes liability, collision and comprehensive together, which is what most people mean by full coverage car insurance.
Neither number is a quote. They are averages across millions of very different drivers. A teenager with a new sports car in a dense city and a retiree with a spotless record and an older sedan in a small town can both be "average" only on paper. The rest of this guide explains the factors that push your own price above or below these figures.
Prices have also been rising. The combined average premium rose 14.42% from 2022 to 2023, and average expenditure rose 19.24% from 2019 to 2023. One reason is the cost of claims: the average collision claim went from $6,113 to $7,191 in a single year.
Why car insurance costs more in some states
The NAIC warns that comparing states directly is difficult, because each state's market is shaped by its own conditions. Its auto insurance report names the main reasons prices differ from one state to the next:
- Underwriting costs: what it costs insurers to evaluate, sell and service policies in that state.
- Driving locations: whether most driving happens in cities, suburbs or rural areas.
- Accident rates: more crashes per driver mean more claims to pay.
- Traffic density: crowded roads lead to more fender-benders and more injury claims.
- Auto theft: states and cities with more stolen vehicles have higher comprehensive losses.
- Repair costs: labor rates and parts prices vary by region.
- State laws: each state sets its own minimum coverage, and some require personal injury protection or uninsured motorist coverage. No-fault states, for example, require extra medical coverage.
State rules also decide which rating factors insurers may use at all. California, for example, requires insurers to give the most weight to your driving safety record, annual miles driven and years of driving experience. The NAIC lists 8 states that ban insurers from using credit-based insurance scores to set rates or to offer or renew a policy. So the same driver can be priced quite differently after moving across a state line. If you are relocating, our guide for new residents covers what changes.
How insurers set your price
Insurers price a policy from the expected cost of future claims, plus their expenses. The NAIC notes that the factors insurers may use differ by state, and that state laws require rates that are not excessive, not inadequate and not unfairly discriminatory. Within those rules, each company builds its own rating plan from its own claims data. That is why two insurers can quote very different prices for the same driver and car.
A rating plan usually starts with a base rate for your area and the coverage you chose, then multiplies it up or down for each factor that applies to you. A clean record might lower the price; a recent at-fault crash might raise it. The final premium is the result of all those adjustments together.
Not every factor counts the same, and not every factor is allowed in every state. The list below follows the NAIC's own list of common auto rating factors.
The main car insurance rating factors
| Factor | Why insurers use it | Can you change it? |
|---|---|---|
| Driving record | Tickets, at-fault crashes and DUIs predict future claims | Over time: violations age off your record |
| Claims history | Past claims are shared in industry databases and predict future claims | Over time; you can also check your report for errors |
| ZIP code and garaging address | Local crash rates, theft, traffic and repair costs | Only by moving or changing where the car is kept |
| Age and experience | Crash rates per mile are highest for teens and rise again for the oldest drivers | Experience builds with time; age is fixed |
| Gender and marital status | Used in many states; some, such as California, ban gender | No, and banned in some states |
| Vehicle | Repair cost, damage to others, injury claims and theft vary by model | Yes, at your next purchase |
| Annual mileage | More miles mean more exposure to crashes | Sometimes: driving less or reporting lower mileage accurately |
| Credit-based insurance score | Insurers say it predicts claims; banned in some states | Slowly, by improving your credit history |
| Coverage limits and deductibles | Higher limits pay more; higher deductibles shift costs to you | Yes, at any renewal |
| Telematics data | Tracks real driving behavior, if you join a program | Yes: you choose to join, and how you drive |
Factors you can change now
Some choices take effect at your next renewal or sooner:
- Coverage and deductibles. Raising your collision and comprehensive deductible lowers the premium, but you pay more after a claim. See our deductible guide and the deductible chooser.
- Discounts. Bundling, paying in full, safety features and course completions can all lower the price. See car insurance discounts.
- Shopping around. Because each insurer weighs factors differently, comparing car insurance quotes at renewal is often the fastest way to find cheap car insurance. See shopping at renewal.
- Mileage. If you drive less than you used to, tell your insurer or look at low-mileage and pay-per-mile options.
- Telematics. A usage-based program can reward careful driving, depending on the program's rules.
Factors that change with time
Your driving record, claims history, age, experience and credit history all improve slowly. Tickets and crashes stop counting after a set number of years, which depends on your state and your insurer. Experience builds with every year you are licensed. A better credit history can lead to a better insurance score in states that allow it.
Factors you mostly cannot change
Your age, and in many states your gender, are part of the price. Where you live counts too, unless you move. These factors can feel unfair, and some states limit them. If you believe an insurer has used a factor your state does not allow, your state insurance department can explain the rules and take a complaint.
Example: how two drivers with the same car can pay different prices
For example, imagine two drivers with the same car and the same coverage, living on the same street. One is licensed for twenty years and has no tickets. The other was licensed last year and had an at-fault crash six months ago. The insurer starts both from the same base rate for their ZIP code and coverage. It then applies a large surcharge to the second driver for inexperience and another for the crash. The first driver may also get a good-driver discount. Same car, same street, very different premiums.
Now move the first driver to a dense city across the state line. The base rate changes because local claim costs are different, and the state's rules may allow or ban different factors. The driver did not change, but the price did.
Coverage choices are a cost factor too
Much of what you pay comes down to what you buy. A policy with only your state's minimum liability limits costs less than one with high limits plus collision and comprehensive. Before cutting coverage to save money, it helps to know what each part does:
- Liability coverage pays others when you cause a crash. State minimums are often low compared with real crash costs.
- Collision and comprehensive pay for damage to your own car. A lender usually requires them.
- Uninsured motorist coverage protects you when the other driver has no insurance or too little.
Whether full coverage is worth it depends on your car's value, your savings and your loan. Our coverage checklist walks through the questions.
How to see which factors affect you most
- Read your declarations page. It lists your coverages, limits, deductibles, drivers, vehicles and any discounts.
- Ask your insurer or agent which factors cost you the most. Insurers do not always volunteer this, but you can ask what tier you are in and why.
- Check your reports. Order your credit reports and your claims history report, and dispute any errors.
- Look at your driving record. Your state DMV can tell you what is on it and when items expire.
- Try our premium factors tool. It explains how each factor tends to push prices up or down, without showing made-up quotes.
Frequently asked questions
How much is car insurance per month on average?
The NAIC's national average expenditure was $1,281 a year per insured vehicle in 2023, about $107 a month. For a policy with liability, collision and comprehensive, the combined average premium was $1,438 a year, about $120 a month. Your price can be far above or below these averages.
What is the biggest factor in car insurance rates?
There is no single answer, because each insurer weighs factors differently and states set different rules. Your driving record, claims history, location, age or experience and vehicle are major factors almost everywhere. In California, the law requires driving safety record, annual miles driven and years of experience to carry the most weight, in that order.
Why did my car insurance go up when I didn't have a claim?
Rates can rise because the cost of claims rises for everyone. The NAIC points to higher repair labor and parts costs, severe weather, inflation, litigation and reinsurance costs. Your own factors may also have changed, such as a new ticket, a new car, a new address, or an older ticket still counting. Ask your insurer which of these applied.
Do car insurance rates go down at 25?
Rates often fall as drivers gain experience and leave the highest-risk years, but there is no single birthday when this happens. Crash rates per mile drop sharply from the teen years into the twenties and again into middle age, and insurers price for that. See how age affects car insurance.
Does my credit score affect car insurance?
In most states, yes: insurers may use a credit-based insurance score, which is built from your credit report but is different from a lending credit score. The NAIC lists California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah as states that ban it. Rules change, so check with your state insurance department. See credit and car insurance.
Is cheap car insurance the same as minimum coverage?
Not necessarily. The cheapest policy is usually the state minimum, but that only covers damage you cause to others, up to low limits. Cheap car insurance can also come from discounts, a higher deductible, a car that is cheaper to insure or a lower-cost insurer for your profile.
Can an insurer use any factor it wants?
No. Each state regulates which factors insurers may use and reviews rate filings. Some states ban factors such as gender or credit. Your state insurance department can tell you what is allowed and how to file a complaint.
Sources
- NAIC, Why Are My Insurance Premiums Increasing? common auto rating factors, why premiums rise, rate standards
- NAIC, 2022/2023 Auto Insurance Database Report (release) national averages and reasons prices differ by state
- California Insurance Code ยง 1861.02 California's mandatory rating factors
- NICB, Partnerships in Theft Prevention Drive Continued Declines in U.S. Stolen Vehicles as of July 15, 2026
- NAIC, Center for Insurance Policy and Research: Credit-Based Insurance Scores as of January 31, 2024
Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.