What’s the Average Cost of Auto Insurance in 2026?

Car insurance costs an average of $196 per month for full coverage and $60 per month for minimum coverage in the U.S. However, your monthly rate can vary significantly depending on where you live, your driving record, your age, and the insurance company you choose. Drivers in expensive states like Florida ($306/mo) pay far more than drivers in affordable states like Vermont ($123/mo).

A good benchmark is paying at least 15% below your state’s average rate. For full coverage, the national average is $2,356 per year, so paying around $2,000 or less would be considered a competitive rate for most drivers. Since state averages vary widely — from $1,478 in Vermont to $3,672 in Florida — it’s more useful to compare your rate against your specific state average than the national figure. The best way to know if you’re getting a good price is to compare quotes from at least three insurers, as the same driver profile can yield significantly different rates across companies.

If you’re paying $200 a month for full coverage auto insurance, you’re right around the national average. But keep in mind that where you live plays a big role in what you pay. For example, drivers in Wisconsin pay on average $171, while drivers in Florida pay $306. So while $200 may be the average across the U.S., depending on your state, it could be less or more.

These are some reasons that the cost of your auto insurance could change:

• You get married, divorced, separated, or widowed.
• Your credit score changes.
• You move cities or states.
• You get into an accident.
• You get a ticket.
• You get a DUI.
• Your license is suspended or revoked.
• You turn 25.
• You add or drop coverages.
• Your commute changes.

The type of vehicle you drive has a meaningful impact on your premium. Luxury brands and high-performance sports cars tend to cost more to insure because their parts are expensive to repair or replace and they’re statistically more likely to be involved in accidents. Vehicles with a high theft rate — such as certain Kia and Hyundai models — can also carry higher premiums. On the other end, practical vehicles like sedans and minivans with strong safety ratings typically cost less to insure. For the most accurate estimate, get a quote with your specific make and model, as rates vary considerably even within the same vehicle category.

Households with teen drivers pay an average of $6,054 per year for car insurance — more than double the national adult average of $2,356. This is because insurers consider teens high-risk due to their lack of driving experience and statistically higher accident rates. The best way to reduce costs for a teen driver is to add them to a parent’s existing policy rather than purchasing a separate one, and to ask about good student discounts.

A 25-year-old pays an average of $2,781 per year for car insurance. This is higher than the adult average of $2,356, but significantly less than teen drivers pay. Rates typically decrease as drivers gain more experience and maintain a clean driving record. Turning 25 is often cited as a milestone where premiums begin to level off more meaningfully.

USAA offers the lowest average full coverage rate at $1,533 per year, but it’s only available to military members and their families. For drivers who don’t qualify, GEICO ($1,867/yr) and Erie ($1,833/yr) are among the most affordable widely available options. Keep in mind that the cheapest company for one driver may not be the cheapest for another — rates are personalized based on your profile, so comparing quotes from multiple insurers is the best way to find the lowest price.

Yes. A single speeding ticket raises the average driver’s annual premium by about 20%, from $2,356 to approximately $2,730 per year. The increase can vary depending on your insurer and how many prior violations you have. In many cases, tickets fall off your record after a few years, at which point your rates may return to normal.

A DUI is the most impactful driving violation when it comes to insurance costs. On average, a DUI raises annual premiums by 94%, bringing the average full coverage cost from $2,356 to approximately $4,461 per year. Some insurers may drop you entirely after a DUI, making it important to compare quotes from multiple companies, including those that specialize in high-risk drivers.

In most states, yes. Drivers with low credit scores pay an average of 72% more for car insurance than those with good credit — roughly $4,126 vs. $2,356 per year. Insurers use a credit-based insurance score (which differs slightly from your standard credit score) as a proxy for risk. However, California, Hawaii, Massachusetts, and Michigan prohibit insurers from using credit as a rating factor, and Maryland and Oregon place restrictions on its use.