Find out how much you can expect to pay for insurance based on demographics.

 

Whether you are just getting your license or are a well-established driver, it’s hard to estimate how much your average car insurance payment will be. There are a multitude of factors that go into determining an insurance premium, so rates can vary widely from person to person.

To pull back the curtain on these rates, we looked into average car insurance payments based on driver age, gender, level of coverage, driving record, and more.

Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.

You can either use our tool below or call (855) 518-0148 to start comparing personalized car insurance quotes.

 
 

In this article:

Who Determines Minimum Required Coverage?

Each state has its own department that governs laws regarding vehicle registration requirements, including insurance coverage. Therefore, minimum required car insurance coverage varies from state to state. These departments also decide how insurance companies assess risk and determine average car insurance rates for state residents.

With that being said, most states require that all drivers carry certain amounts of liability car insurance. Several states run a no-fault system, meaning drivers’ insurance companies are responsible for any injuries and property damage regardless of fault, so that affects required coverage too.

 


 

What Are Average Car Insurance Payments?

The average car insurance payment in the United States is around $1,548 per year or $130 per month. However, your personal auto insurance rate depends on several factors, including demographics, car specifics, driving habits, age, gender, and past infractions.

Before we really get into the factors that can affect a premium, let’s look at some average payments simply based on low or high levels of coverage. Using data from U.S. News and World Report, here’s a quick comparison between some of the major insurance companies:

Insurance Company Low Coverage
Car Insurance (Annual)
Low Coverage Car Insurance (Monthly) High Coverage Car Insurance (Annual) High Coverage Car Insurance (Monthly)
USAA Car Insurance $842.63 $70.22 $946.02 $78.84
Geico Auto Insurance $984.70 $82.06 $1,146.20 $95.52
State Farm Auto Insurance $1,166.65 $97.22 $1,352.67 $112.72
Progressive Car Insurance $1,222.50 $101.88 $1,411.31 $117.61
Farmers Auto Insurance $1,456.07 $121.34 $1,627.44 $135.62
Nationwide Car Insurance $1,494.22 $124.52 $1,573.98 $131.17
Allstate Auto Insurance $1,678.31 $139.86 $1,876.14 $156.35
 
 

 


 

What Factors Affect Auto Insurance Rates?

In addition to your state’s car insurance requirements and the level of coverage you’re looking for, most of the deciding factors fall into one of three categories: demographics, car specifics, and driving habits.

Demographics

Driver Age and Gender: Insurance companies review each driver’s age and gender to determine rates, since there are assumed accident risks associated with both. For example, young men usually receive higher quotes than young women because studies by the Insurance Institute for Highway Safety show more young men end up in accidents. In the same way, a study by the Consumer Federation of America found that older women crash more often than older men, meaning that average car insurance payments for older women can be slightly higher.

Marital Status: Believe it or not, married couples have fewer accidents than singles according to data featured on CNBC. Therefore, your marital status plays a role in your premium. With that being said, married rate reductions also depend on your driving history. Men with clean driving records can see rates dramatically reduce once they wed.

Location: Your geographic location impacts your car insurance payment, too. Insurance companies look at accident and crime rates close to your home to determine your potential risk. They also consider unemployment rates in your zip code to estimate your risk of an accident with an uninsured driver.

Credit Score: Most insurance companies take your credit score into consideration when determining how much you will pay for car insurance. In general, drivers with poor credit pay more.

Profession: Auto insurance companies sometimes adjust rates according to your job. For example, delivery drivers and journalists spend more time on the road, so these drivers are more likely to be in an accident. On the opposite end of the spectrum, some professionals are known to drive cautiously, so this lowers the average car insurance cost per month for those drivers.

Car Specifics

Car's Age: New cars cost more to replace in the event of a total loss, so collision coverage is more expensive.

Vehicle Safety Rating: Every vehicle on the market goes through the safety rating process. Vehicles with high safety ratings provide a lower chance of serious injuries, meaning your insurance company will have fewer medical bills to pay.

Size of Car: Since larger cars are generally safer in accidents, the cost of car insurance is less for larger vehicles. SUVs and minivans typically have lower premiums. Inversely, drivers whose cars have larger engines actually pay a higher insurance premium.

Driving Habits

Driving History: Drivers involved in accidents almost always pay more than your average car insurance payment. Those who receive tickets or make insurance claims also see rate increases, at least temporarily. Some insurance companies will even refuse coverage if your driving history is bad enough. Fortunately, your driving record disappears over time, so eventually your rates decrease. Check into your state’s driver's license point system to see how long violations impact your record.

Driving Activity: In addition to your driving record, some car insurance companies base your insurance payment on your activity behind the wheel. The more time you spend on the road, the more likely you are to encounter an auto accident. If your car spends most of its time in a garage, then your rates may end up lower.

 


 

Rate Comparisons Based On Age And Gender

As we mentioned, a driver’s age and gender can greatly affect average car insurance payments. Here’s a closer look:

Age and Gender USAA Geico State Farm Progressive
25-year-old male $1,106.57 $1,120.01 $1,501.23 $1,602.96
25-year-old female $1,039.43 $1,160.30 $1,373.10 $1,558.35
35-year-old male $830.63 $1,057.20 $1,237.06 $1,208.90
35-year-old female $836.67 $1,031.61 $1,237.06 $1,285.99
60-year-old male $778.97 $998.26 $1,124.88 $1,105.52
60-year-old female $779.02 $972.89 $1,124.88 $1,066.79
 

 


 

Rate Comparisons Based On Infractions

Let’s break down exactly how much an infraction can affect your annual premium, using data from the same U.S. News & World Report study:

Insurance Company Good Driver 1 Ticket 1 Accident 1 DUI
USAA $894.95 $1,027.98 $1,216.68 $1,710.92
Geico $1,063.10 $1,356.17 $1,691.06 $2,805.50
State Farm $1,260.12 $1,408.71 $1,501.96 $1,692.09
Progressive $1,308.37 $1,735.51 $2,296.26 $1,757.01
Farmers $1,538.21 $1,907.63 $2,214.72 $2,435.42
Nationwide $1,529.58 $1,838.34 $2,151.85 $3,151.30
Allstate $1,777.66 $2,079.37 $2,514.37 $2,990.62
 

 


 

The Insurance Providers We Recommend

As you can see, many factors impact the average cost of auto insurance. Because of this, rates vary drastically from person to person. This is why we recommend getting quotes from several insurance companies. The tool below can help with that. You can also call our team at (855) 518-0148 for free quotes.

 

With that being said, several of the above listed companies offer competitive rates. We recently researched the best car insurance companies in the nation. Based on factors such as average car insurance payment, customer service ratings, and available benefits, here are our top four picks for insurance providers.

USAA Insurance logo

USAA

As you can see from the data, USAA car insurance has some of the lowest average rates in the industry by far. This, along with its great customer service, make it one of our top choices for car insurance. Unfortunately, USAA is only available to current and former military and their family members.

With that being said, if you or your loved one is a current or former military member, USAA is a no-brainer. It’s low prices on both auto and home insurance, plus its wide variety of additional discount offerings, make it a great choice for young adults just starting out and seasoned drivers. Current military who live on base or are deployed overseas can receive discounts up to 60 percent.

USAA offers all of the basic types of car insurance, including:

  • Bodily injury liability
  • Property damage liability
  • Collision and comprehensive car insurance
  • Uninsured motorist coverage
  • Personal injury protection and medical payments

Additionally, USAA offers rideshare coverage and optional car replacement assistance coverage, which helps drivers in the event of a total loss. Customers also receive 24/7 roadside assistance and towing coverage with every insurance plan. To learn more about USAA, read our USAA insurance review.

 

Geico Insurance logo

Geico

Based on our research, Geico auto insurance offers its customers some of the lowest average car insurance payments, not to mention excellent customer service. In our Geico review, we found that the company also sets itself apart by providing a highly convenient website and mobile app for customers to handle their insurance policies.

The provider offers all of the basic car insurance types of coverage, along with Guaranteed Asset Protection (GAP) insurance, rideshare insurance, and mechanical breakdown insurance. Numerous discounts are available through Geico, including a multi-policy discount for customers who bundle home and auto insurance. In terms of claims, J.D. Power's U.S. Auto Claims Satisfaction Study ranked Geico the sixth best auto insurance company for claims satisfaction out of more than twenty major car insurance companies.

 

State Farm Insurance logo

State Farm

If you would like the option of online services or a local agent, we found State Farm auto insurance to be one of the best car insurance choices for in-person interactions with more than 18,000 local agents. In our State Farm insurance review, we found that the provider offers basic types of coverage, GAP insurance, and rideshare auto insurance coverage in most states.

In addition to its network of local insurance agents, State Farm has convenient online options, including the Pocket Agent smartphone app. Customers can use this app – which has received positive reviews – to pay insurance premiums, file claims, and request roadside assistance.

Like USAA and Geico, State Farm offers numerous discounts. Most notably, the Drive Safe and Save incentive program collects driving data through your smartphone app and reports back to State Farm about your driving habits. Drivers receive an automatic 5 percent discount on the average car insurance payment just for enrolling.

 

Progressive Insurance logo

Progressive

Progressive car insurance is one of the most notable names in the car insurance industry. Like its competitors, Progressive offers liability, comprehensive, collision, uninsured motorist, and medical payments coverage. Additionally, Progressive has numerous other types of vehicle insurance, including custom parts and equipment insurance, rideshare insurance, and coverage for motorcycles, scooters, and boats.

Although Progressive didn’t offer the lowest rates in the majority of our comparisons, the company’s extensive options for coverage and smooth quotes and claims processes make it one of our top choices. When obtaining a quote, customers can use the Name Your Price®  tool to compare plans side-by-side and find the best coverage for their budget.

Progressive’s accident forgiveness program and lower rates for drivers who receive infractions makes it a good option for customers who have less-than-stellar driving records. The provider also offers the Snapshot program, which helps customers lower rates through demonstrating safe driving habits. Learn more about Progressive in our thorough Progressive insurance review. 

 


 

Get The Cheapest Quotes

Getting quotes from insurance companies can be easy. Use this tool below or call (855) 518-0148 to compare prices from several providers at one time:

 
 

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