What is the average car insurance cost per month?
Quick Answer:
The national average cost for auto insurance in the U.S. was $134 per month in 2024.
It’s not your imagination. Car insurance rates are increasing each year. According to the National Association of Insurance Commissioners (NAIC), combined average premiums increased by 12% in 2024.
What Affects the Average Auto Insurance Cost Per Month?
Car insurance companies consider these factors when assessing auto insurance costs:
- Credit history
- Age
- Location
- Driving record
- Gender
- Marital status
- Vehicle make and model
Certain states, such as California, Hawaii, Massachusetts, and Michigan, restrict the use of credit history when setting rates.
Trends in Average Monthly Car Insurance Payment
The average monthly auto insurance cost has generally trended upward since 2017. Premiums rose steadily from about $94.8 in 2017 to $101 by 2019. A slight dip occurred in 2020 and 2021, reflecting a temporary easing in costs, but rates climbed again in 2022. By 2023, the average monthly cost surged to nearly $120, marking the sharpest increase in the period, and it climbed further to about $134 in 2024, highlighting how insurance expenses have grown more rapidly in recent years.
Top 10 States With the Highest Average Monthly Car Insurance Cost in 2024
State | Amount |
|---|---|
Florida | $181.21 |
Louisiana | $179.26 |
New York | $179.16 |
District of Columbia | $165.54 |
Georgia | $164.38 |
Texas | $159.75 |
New Jersey | $156.53 |
Nevada | $155.49 |
Rhode Island | $154.15 |
Colorado | $152.93 |
*Yearly data was divided by 12 to get the average insurance cost per month.
You will find significant variation in average car insurance rates by state. Florida tops the list with an average monthly premium of about $181.21.
How to Get Affordable Car Insurance
You cannot control many of the factors used to determine insurance rates. However, you can get affordable car insurance by shopping around.
Insurers offer different average car insurance rates by state based on their perception of the risks in your location. Some companies also offer loyalty discounts and bundling discounts to long-term customers with multiple policies.
Car Insurance Savings Tips and How to Lower Your Premium
You may wonder, “Why did my car insurance go up without an accident?” Some ways you can save on car insurance include:
- Avoiding traffic citations
- Not causing auto accidents
- Maintaining good credit
- Comparing premium rates when you buy a vehicle
- Switching to a different car insurance provider
Adjustments to your policy will also affect your rates. Select lower coverage levels and increase your deductibles. However, be aware that these adjustments could expose you to a car accident lawsuit.
Learn More About Auto Insurance From ConsumerShield
Consumers should stay informed about what could affect their insurance costs. Additionally, they should remember that auto insurance is a binding contract for both the insurer and the policyholder. Changing the coverage levels can affect your financial risk after a car accident.
ConsumerShield provides educational resources so consumers can understand the law and their legal exposure. If you have a dispute with your insurer or need legal assistance after a crash, ConsumerShield can also refer you to an attorney. Contact us for a free case review.
