How Much Does the Average American Spend Per Month on Car Insurance?
Last Updated on October 5, 2026
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?
- The 2026 rate studies put full coverage at roughly $175 to $215 per month ($2,098 to $2,578 a year). There is no official national figure, so the answer depends on which study you read.
- Rates vary a lot by state. In one September 2026 study the most expensive state (Louisiana, $3,999 a year) averages about two and a half times the cheapest (Vermont, $1,660).
- Demographics, location, and driving history have the biggest impact on premiums.
- Shopping around is the easiest way to save. NerdWallet’s October 2026 analysis puts the national full-coverage average at $197 a month and the cheapest large insurer at $138.
How Much Does the Average American Pay for Car Insurance?
Nobody publishes an official price for full coverage. The closest thing is the National Association of Insurance Commissioners (NAIC), the regulators’ group, which collects premium data from insurers. Its 2022/2023 Auto Insurance Database Report, released February 13, 2026, puts the national combined average premium at $1,438 per insured vehicle in 2023, or about $120 a month. That is an average across every insured vehicle in the country for liability, collision and comprehensive together, so it sits below what a driver with a newer car and higher limits actually pays.
For a full-coverage figure you have to use a rate study, and every study prices a different driver. Here are four current ones, with the driver each uses:
- AAA, Your Driving Costs 2026: $2,098 a year, about $175 a month, for a full-coverage policy on a driver under 65 with more than six years of experience, no accidents, living in a city or suburb.
- NerdWallet, October 2026 analysis: $2,361 a year for full coverage, about $197 a month, and $648 a year for minimum coverage, about $54 a month. Its driver is 35, has a clean record and good credit, and carries $250 deductibles.
- CarInsurance.com, updated September 2, 2026: $2,578 a year for full coverage, about $215 a month. Its driver is 40, in a Honda Accord LX, with 100/300/100 limits and $500 comprehensive and collision deductibles. Insure.com publishes the same figures.
- Bankrate, 2025 analysis: $2,638 a year for full coverage.
Those four numbers describe four different drivers, so take each on its own. Averaging them together, or mixing one study’s national figure with another study’s state figure, produces a number that applies to nobody.
Rates have climbed hard on repair costs, medical costs and claim severity. The NAIC series shows the size of it: the national combined average premium was $1,201 per insured vehicle in 2019, $1,257 in 2022 and $1,438 in 2023. The 2023 jump alone was 14.42%. The NAIC report only goes back to 2019, so there is no official figure to compare against 2015.
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: Vermont averages $1,660 a year, New Hampshire $1,689, Hawaii $1,757 and Ohio $1,783. That is $138 to $149 per month.
- Most expensive states: Louisiana averages $3,999 a year, Michigan $3,964, Nevada $3,963 and Florida $3,916. That is $326 to $333 per month.
North Carolina used to belong on the cheap list. In this study it now averages $2,638 a year, a little above the national figure. The gap between the cheapest and the most expensive state works out to about two and a half times, which the NAIC puts down to weather, accident rates, traffic density, repair costs, medical and legal costs, state coverage requirements and rate-filing laws.
The table below gives average annual full-coverage premiums by state from the CarInsurance.com rate study, updated September 2, 2026. It prices a 40-year-old male and female driver carrying 100/300/100 limits with $500 comprehensive and collision deductibles. The monthly column is that annual figure divided by 12.
| State | Avg. Annual Full-Coverage Premium | Avg. Monthly Cost |
|---|---|---|
| Alabama | $2,116 | $176 |
| Alaska | $2,167 | $181 |
| Arizona | $2,420 | $202 |
| Arkansas | $2,942 | $245 |
| California | $3,444 | $287 |
| Colorado | $3,181 | $265 |
| Connecticut | $2,742 | $229 |
| Delaware | $3,157 | $263 |
| Florida | $3,916 | $326 |
| Georgia | $2,503 | $209 |
| Hawaii | $1,757 | $146 |
| Idaho | $1,901 | $158 |
| Illinois | $1,938 | $162 |
| Indiana | $1,894 | $158 |
| Iowa | $2,460 | $205 |
| Kansas | $2,496 | $208 |
| Kentucky | $2,624 | $219 |
| Louisiana | $3,999 | $333 |
| Maine | $1,808 | $151 |
| Maryland | $1,999 | $167 |
| Massachusetts | $2,429 | $202 |
| Michigan | $3,964 | $330 |
| Minnesota | $2,591 | $216 |
| Mississippi | $2,397 | $200 |
| Missouri | $2,151 | $179 |
| Montana | $2,476 | $206 |
| Nebraska | $2,095 | $175 |
| Nevada | $3,963 | $330 |
| New Hampshire | $1,689 | $141 |
| New Jersey | $3,122 | $260 |
| New Mexico | $2,577 | $215 |
| New York | $2,596 | $216 |
| North Carolina | $2,638 | $220 |
| North Dakota | $2,439 | $203 |
| Ohio | $1,783 | $149 |
| Oklahoma | $2,993 | $249 |
| Oregon | $2,048 | $171 |
| Pennsylvania | $2,327 | $194 |
| Rhode Island | $2,878 | $240 |
| South Carolina | $2,417 | $201 |
| South Dakota | $2,575 | $215 |
| Tennessee | $2,235 | $186 |
| Texas | $3,106 | $259 |
| Utah | $2,356 | $196 |
| Vermont | $1,660 | $138 |
| Virginia | $1,835 | $153 |
| Washington | $2,389 | $199 |
| West Virginia | $2,415 | $201 |
| Wisconsin | $2,343 | $195 |
| Wyoming | $2,061 | $172 |
Comparison Shop to Lower Your Car Insurance Prices
The fastest way to reduce your premium is by comparing quotes from several insurers. The spread between companies is wide: in NerdWallet’s October 2026 rate analysis, Travelers averaged $138 a month for full coverage against a national average of $197, and GEICO averaged $41 a month for minimum coverage. Those are averages for its sample driver, not quotes, but the gap between the cheapest and the priciest large insurer is usually bigger than any single discount.
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 about $200 a 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
Your state can matter more than anything you do. In the CarInsurance.com study, Michigan’s average full-coverage premium ($3,964 a year) is more than double Ohio’s ($1,783), and the two states share a border.
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.
NerdWallet’s October 2026 analysis puts numbers on that. Against the same driver with a clean record, full coverage averaged 28% more after a speeding ticket, 49% more after an at-fault accident and 88% more after a recent DUI.
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 $175 to $215 per month for full-coverage car insurance, depending on which 2026 study you use, and about $54 per month for minimum liability. Your state, driving record, demographics and coverage choices all move that number.
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 make sure you’re paying the lowest rate you can get is to compare quotes regularly and ask about every discount you might qualify for.
My advice is to ignore the national average and compare your own renewal against your state’s average instead. A $230 bill is high in Ohio and a bargain in Louisiana.
Sources
Checked October 4, 2026. No agency publishes a national full-coverage premium, so the full-coverage and state figures on this page come from rate studies, each pricing its own sample driver. NAIC: 2022/2023 Auto Insurance Database Report release (February 13, 2026), the report itself, consumer guide to auto insurance. AAA: Your Driving Costs 2026 fact sheet. Rate studies: CarInsurance.com, car insurance rates by state (updated September 2, 2026), Insure.com, car insurance rates by state (updated September 25, 2026), NerdWallet, how much car insurance costs (October 2026 analysis), NerdWallet, cheapest car insurance companies, Bankrate, 2025 national average announcement.
