It’s more important than ever to be savvy when it comes to auto insurance: Prices rose in the U.S. by nearly 50% from 2021 to 2024, according to the Bureau of Labor Statistics (BLS). Compare this to the previous four years when rates barely budged at all nationwide.
Full coverage car insurance costs an average of $3,076 per year in 2025, according to quotes for Jerry customers, which works out to $256 per month. Minimum coverage is $1,824 per year, on average, or about $152 per month.
That said, many factors go into car insurance rates and just as many ways to slice them to find averages.
More: Jerry analysis: Car insurance affordability nears a breaking point
The average cost of car insurance in 2025
Prices for state-mandated minimum coverage, the least you can buy, can be significantly lower than full coverage policies that also pay for damage to your car. About 80% of American drivers buy full coverage, according to the Insurance Information Institute. This is a wise choice for anyone with a car that would be burdensome to replace out-of-pocket if it were totaled. But since purchasing the minimum is the only way for many to stay covered, those rates are important to compare, too.
The following rates are averages for single drivers aged 35 and older with clean credit and driving histories who received a quote through Jerry in the last 18 months.
More: How to get cheap car insurance
The average cost of full coverage car insurance in 2025
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|
| $255 | $3,061 |
The average cost of minimum coverage car insurance in 2025
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|
| $135 | $1,618 |
Why the averages don’t say a lot about your car insurance rate
Compared to many widely used financial products, car insurance applications are intensely personal, asking about your car, driving history and entire household. This is because car insurance companies start with a base rate and every piece of that data they collect can nudge your rate up or down from there until the car insurance quote is completely tailored to you.
- Age and driving experience. Whether you’re young or just new to driving, experience matters. Drivers aged 18 to 20 pay an average $459 per month for full coverage, well above the national average. As they gain experience behind the wheel and avoid violations, prices tend to decrease.
- Driving history: Accidents, tickets and DUI convictions generally impact car insurance prices for at least three years, potentially longer for serious violations. Not all companies penalize these infractions the same, so it’s wise to compare rates from both large and small insurers once a violation is on record.
- Location: Densely populated cities tend to have more accidents, thefts and vandalism than rural or suburban areas, which often means higher car insurance rates. In states like Michigan and Florida, local insurance laws can also play a disproportionate role in high prices, as can weather and fire hazards.
- Vehicle type: The make, model, age and safety features of your car don’t just help determine its sticker price, but also your insurance rate. Sports cars and luxury vehicles usually cost more to insure than sedans or SUVs due to higher repair or replacement costs.
- Credit score: Insurers can use a version of credit scoring called an insurance score to set auto insurance rates in any state except California, Hawaii, Massachusetts and Michigan. This version of the score places less emphasis on credit history and emphasizes on-time payments and debt.
Average car insurance costs for different driver groups
While all those personal characteristics can raise or lower car insurance premiums, they don’t affect costs evenly. Insurance companies also value each of these traits and factors differently, depending on their customer base and number of risky drivers they can afford to take on. All quotes below are averages among Jerry customers over the past 18 months seeking full coverage.
Average car insurance rates by age
Age is generally a larger factor for younger drivers than those in the middle stages of life, but rates tick up again for older drivers as they age. Both young and older drivers have higher crash rates, and more fatalities per crash than other ages, which translates to higher premiums, on average, across these age groups.
|
Age Group
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| 18-20 | $461 | $5,526 |
| 21-24 | $376 | $4,512 |
| 25-34 | $303 | $3,634 |
| 35-44 | $261 | $3,127 |
| 45-54 | $245 | $2,937 |
| 55-64 | $221 | $2,647 |
| 65+ | $197 | $2,366 |
Average auto insurance costs by car type
High-tech cars and sports or luxury vehicles tend to have costly parts that are expensive to replace and may require specialized labor. This can drive up claim costs after a crash and translate to higher car insurance premiums for these cars, on average. Below are the most expensive models listed by average car insurance quote.
|
Car Make
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| Tesla | $462 | $5,543 |
| Mercedes-Benz | $451 | $5,406 |
| Jaguar | $445 | $5,336 |
| Porsche | $389 | $4,671 |
| Bmw | $387 | $4,643 |
Average car insurance rates by driving history
It’s common knowledge that DUIs can be costly, including when it comes to car insurance prices, and especially so when there are multiple instances. The impact from other violations can run the gamut — speeding tickets can raise your rate, but how much depends on your speed over the limit.
|
Violation Summary
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| Eluding Police | $298 | $3,580 |
| Failure to Obey Traffic Sign | $294 | $3,524 |
| Improper Passing | $281 | $3,376 |
| Reckless Driving | $278 | $3,334 |
| Driving on Sus. License | $265 | $3,183 |
| Speeding under 15 | $248 | $2,979 |
Insurers treat accidents differently from other violations, with prices depending on whether you were at fault or caused any injuries. But it isn’t a life sentence to higher rates, and accidents tend to increase rates less and for a shorter time if there was no injury involved.
|
At-fault Accident on Record
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| Not At Fault | $299 | $3,584 |
| At Fault With No Injury | $313 | $3,755 |
| At Fault With Injury | $327 | $3,920 |
Average car insurance rates by state
Drivers in states with fewer cities and people in general tend to pay less for car insurance, but it’s not guaranteed. Ohio is the seventh most populous state, but auto insurance rates are lower there than in many other states, for example. Perhaps this is because it isn’t as populated as others, but slightly lower-than-average fatal crash rates might help, too.
|
State
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| AL | $137 | $1,650 |
| AR | $150 | $1,804 |
| AZ | $186 | $2,233 |
| CA | $279 | $3,342 |
| CO | $238 | $2,850 |
| CT | $299 | $3,585 |
| DC | $189 | $2,264 |
| DE | $205 | $2,458 |
| FL | $269 | $3,222 |
| GA | $296 | $3,547 |
Average auto insurance prices by credit score
Insurers use credit to set car insurance rates in most states because some research has correlated lower credit scores with more claims. Credit can also tell carriers about on-time payment history, which is more critical for insurance than other financial products because it can lapse and become void immediately after non-payment. With loans, credit cards and other bills, consumers are generally given more time to pay before the product becomes unusable, and don’t face penalties for violating the law like with insurance.
|
Credit Score
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| 750+ | $229 | $2,742 |
| 660-750 | $259 | $3,105 |
| 550-659 | $261 | $3,130 |
| <550 | $263 | $3,158 |
How get car insurance premiums below the average
Of course, driving safely to avoid tickets and accidents is a no-brainer way to avoid high car insurance rates. But there are also some less obvious ways to make sure you’re getting the best price you can.
- Shop around: Comparing quotes from multiple insurance carriers gives you the best idea of the companies most likely to provide you a low price.
- Bundle policies: Most carriers offer discounts for buying two or more policies from the same company. Other insurers and some agents can provide a bundled rate if you shop for both at once — even if the policies ultimately come from two different brands.
- Improve your credit: Pay bills on time and reduce debt as much as you reasonably can to build a strong credit history. Unlike the other tips in this list, this one can lower your other bills in the future, too.
- Be discount savvy: Step one is making sure your current auto insurance policy has all applicable discounts for you and your family included, which you can do by checking with an agent or customer service rep. To level up your prowess, check if there’s a temporary price reduction — such as a new customer discount — that will soon fall off and cause your rate to increase at renewal.
The outlook: Car insurance beyond 2025
With average car insurance prices riding a yearslong surge, it can feel like no relief is in sight, but bear in mind that they were flat before that. In the first few months’ worth of BLS data for 2025, auto insurance rates appear to be flattening again.
As for the future of auto insurance pricing, a lot of it will involve insurers using data and technical innovations behind the scenes to improve risk assessments, but many of these changes will affect consumers directly.
- Usage-based insurance: Many insurers use a technology called telematics to collect driving behavior and are offering discounts for safer drivers. Others offer pay-as-you-drive policies that only charge drivers per mile, plus a preset base rate.
- Inflation: Repair and part replacement costs during and after the pandemic were one reason prices rose so strikingly right afterward, due to inflation on parts caused by supply issues. Inflation is still high, which may keep premiums elevated unless claims requiring auto repair decrease significantly.
- Electric vehicles: As EV market share grows, insurers must adjust their risk models accordingly because certain parts, such as car batteries for electric vehicles, are much more expensive than their gas-fueled counterparts.
- Artificial intelligence: The insurance industry, over 300 years old now, is known for being slow to adapt to new advancements and technology — and AI is no exception. Yet in a complex industry where prices are algorithmically determined, it’s only a matter of time until carriers that avoid AI will be left in the dust.
- Climate threats: From fires in the west to hurricanes in the southeast, extreme weather in the U.S. is at an all-time high in recent years. These catastrophic losses lead to price increases not just for consumers in the affected region, but for customers across the affected state and companies as well.
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Lacie Glover is a Lead Writer and Editor with sixteen years’ experience in the insurance category. Prior to Jerry, she spent more than a decade on NerdWallet’s content team writing, editing and then overseeing the auto insurance category, as well as dabbling in other insurance and automotive topics. Prior to her career in the online personal finance content space, Lacie spent time in the hard sciences, in clinical research and chemistry labs. She has a bachelor’s degree from Colorado State University.
Annie is a writer and editor at Jerry and has more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet, where she covered loans. Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California, and Texas. She holds a bachelor’s degree in journalism from the University of Minnesota.
