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Average Car Insurance Cost

The Average Cost of an Auto Insurance Policy

Where drivers pay the most and least for car insurance

If you're wondering what the average car insurance cost is, you should know that this is a question that is practically impossible to answer. Rates depend on so many different factors - your age, the type of car you drive, and even what state you live in. Suffice it to say that auto insurance is one of the major costs of vehicle ownership, and that rates tend to rise year by year.

We'll try, though, to give you an idea of what you can expect to pay for car insurance. For detailed information about auto insurance, though, you should contact an insurance agent.

Which States are the Worst?

If you live in Louisiana, chances are you'll end up paying more for vehicle insurance. The average car insurance cost is approximately $2,700 annually, according to a study that was conducted by Insure.com. This is because more claims for bodily injury are filed in Louisiana than in any other state in any given year, and because when a lawsuit is brought as a result of a motor vehicle accident in which the damages are less than $50,000, the case goes before elected judges, who are more disposed to favor consumers over insurance companies.

The next costliest state for car insurance is Michigan, with premiums in the neighborhood of $2,250. The reason for this is that state regulations guarantee unlimited personal injury protection for treatment of injuries caused by automobile accidents.

Of course, there are always special circumstances, so you should know that if you live in the State of Oregon, and you own a high-performance vehicle like a Mercedes Benz CL 65, you can expect to pay almost $5,900 in insurance premiums - and that's if you have a clean driving record.

Here's Your State-By-State Breakdown

Rounded to the nearest dollar, here are the insurance premiums for states that require the most of their drivers:

  • Louisiana - $2,700
  • Michigan - $2,520
  • Georgia - $2.155
  • Oklahoma - $2,074
  • Washington, DC - $2,006
  • Montana - $1,914
  • California - $1,819
  • West Virginia - $1,816
  • California - $1,819
  • Rhode Island - $1,735
  • Kentucky - $1,725

Where is it low? Maine. There's not much traffic in this sleepy little state, so average car insurance cost is around $934 annually. Several other states, including North Carolina, Iowa, Ohio, Idaho, Indiana, Arizona, New Hampshire and Vermont come in well under $1,200.

What's the Average?

All right, here's the figure you were waiting for. Nationwide, car insurance premiums average just a little over $1,500.

How Can You Lower Your Rates?

Well, you could move. But most people don't want to go to such extremes, so your best course of action is to shop around and find a carrier that will offer you lower rates on auto insurance. You can also ask your existing carrier if they might give you a discount because you've been a customer with them for a long time. You can also make sure that you're getting all the discounts that you're entitled to. And if you're shopping around for a new car, check out the car insurance rates that apply to that particular make and model. Often, very similar vehicles can have huge differences when it comes to what it costs to insure them.

A known practice to lower insurance rates is to get a multi-policy discount rate. Visit How to get a multi-policy insurance discount or contact one of our licensed agents to lower your car insurance rate and start your savings today!