The overall average cost of car insurance per month stuck at $150 in September, buoyed by a slight decrease in the average cost of full-coverage car insurance, according to Insurify data.
The national average cost of liability-only car insurance also remained steady in September at $104 per month. But the full-coverage monthly average fell from $196 in August to $195 by the end of September. Across the states, averages were a mixed bag, with some states seeing noteworthy decreases in rates and others experiencing substantial increases.
For example, Connecticut drivers saw the biggest decrease in the state’s average full-coverage rate — down $96 in September. Meanwhile, New York had the greatest increase in the full-coverage average, up $136 per month.
Average cost of car insurance by state as of Oct. 1, 2024
Insurance rates can vary greatly based on location, which influences factors like exposure to extreme weather, traffic congestion, and vehicle crime rates.
Liability car insurance rates climbed in most states, with the greatest spikes occurring in New York, where the average increased by $160, and Maryland, where the average rose by $29. Full-coverage rates, however, dropped in most states. Connecticut and Washington experienced the greatest declines in full-coverage costs — $96 and $69, respectively.
5 states with the highest car insurance rates as of October 2024
Maryland had the highest overall average at $266, and the highest full-coverage average at $331 per month. Here are the states with the highest overall averages in September.
5 states with the lowest car insurance rates as of October 2024
North Carolina’s overall average rate was the lowest of all the states in September, at just $83 per month. But the Tarheel State was one of a handful of states that saw full-coverage averages edge up in September. And as Hurricane Helene’s impact on the state becomes more evident in the coming months, it’s possible the state will continue to see its average car insurance rates increase.
Here are the five states with the lowest overall average car insurance rates in September.
Factors that affect car insurance rates
Car insurance rates can vary significantly among drivers based on many factors that insurers use to estimate risk. Some common rating factors include:
Driving history: Insurers consider whether a driver has a clean record or infractions such as speeding, driving under the influence, or causing an accident.Age: Driving experience and accident risks closely correlate with age, actuarial data shows.Gender: Statistically, women are less likely to cause accidents and engage in risky behaviors like aggressive driving.Location: Where a policyholder lives and drives affects their exposure to risk factors such as extreme weather, vehicle crime rates, and accident rates.Credit history: Actuarial data indicates drivers with better credit are less likely to file car insurance claims than those with poor credit.Vehicle make and model: Vehicles that are less expensive or that have multiple safety features cost less to insure.Vehicle usage: Driving fewer miles per year reduces a vehicle’s exposure to the day-to-day risks of driving.Vehicle equipment: Safety features like lane-keeping assist and blind-spot warning can help decrease the risk of accidents.Coverage type: Generally, liability-only coverage costs less than full-coverage car insurance.Coverage limits: The amount of coverage you buy affects annual premiums; minimum coverage is typically the cheapest but doesn’t offer enough financial protection for most drivers.Deductible: A higher collision and comprehensive coverage deductible (liability coverage has no deductible) reduces rates since the insurer assumes less risk for the cost of repairs.
How to save on car insurance
Every state except New Hampshire requires drivers to carry at least a minimum amount of liability coverage. Insurance professionals recommend buying more coverage for greater financial protection in at-fault accidents. And if a driver leases or finances a vehicle, the leasing company or lender will require them to buy full-coverage car insurance.
Drivers can take steps to reduce the cost of car insurance, including:
Drive safely. Avoid speeding, hard braking, distracted driving, and other risky driving behaviors that could cause a claim.Look for discounts. Most insurers offer discounts, such as good student or multi-car discounts, that can help reduce premiums.Increase the deductible. A higher collision/comprehensive deductible typically leads to lower rates.Adjust coverages. Liability-only coverage is the cheapest insurance available, and minimum coverage is the cheapest liability option. But drivers should be careful and buy enough coverage to adequately protect them financially.Comparison shop. Drivers should compare rates from multiple companies every time their policy comes up for renewal.
Methodology
Insurify data scientists analyzed more than 97 million rates from car insurance applications in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. All premium averages reflect the cost of car insurance for drivers between the ages of 20 and 70 with a clean driving record and average or better credit.
For most states, full-coverage premium prices represent two-year rolling medians in order to manage extreme market volatility seen over the past few years as insurance companies have sought substantial rate increase approvals and deprioritized writing new policies in the face of rapidly rising costs.
Liability-only premium prices — as well as full-coverage prices in Maine, Massachusetts, Michigan, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, and Vermont — represent one-year rolling medians.
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accidentProperty damage limits between $10,000 and $50,000No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductibleCollision coverage with a $1,000 deductible
For full-coverage historical data, please visit Insurify’s Auto Insurance Data Center. Data housed in the Data Center dates back to 2021 and represents the median yearly cost of full coverage for drivers between the ages of 20 and 70 with a clean driving record and average or better credit.
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