How Much Is Car Insurance?

The question of how much is car insurance may sound like easy and the answer should be an indisputable figure. However, it is so difficult that insurers use complex formulas and computer programs to solve. One of the first things we need to know to answer it is the coverage required and therefore this question may need to be broken into at least two as liability and full coverage. While on the subject, this post also looks at full coverage vs liability cost and other differences.

The main problem is that there are so many factors that goes into premium calculations these days. Then you have your individual circumstances and preferences to add to equation. So, everyone will have a different answer to how much is auto insurance. Plus each one of at least hundred companies licensed in your state will quote a different figure. Nonetheless, this doesn’t mean that we cannot have a starting point or something to compare our rates to.

One figure that can help you see if you are paying too much for automobile insurance would be average cost of car insurance in your state. Average of estimated quotes or total premiums paid is a way of finding the middle ground. How much is vehicle insurance is such an open question and naturally premium costs are spread on a wide spectrum. But the median figure puts a perspective to state wide premium costs.

The median (average) quote somehow implies a fair figure. You may get quotes well below or a lot above it. If you are an average driver, who is probably middle-age and has fairly good driving record, you should be getting quotes around the average figures. If you are an exceptional driver you should get the cheapest rates. And if you are a terrible driver you should start praying because you may need a miracle to get affordable quotes.

Whatever your situation you should know one thing. An average quote by definition isn’t cheap or expensive. You can do better than the average by finding the cheapest car insurance companies in your state. The cheapest insurer can give you a quote that is 4 or 5 times cheaper than the most expensive insurer’s quote. This is one factor you have full control over.

How Much Is Liability Car Insurance?

We all know the answer to do you need insurance to drive? And the liability coverage is the minimum coverage you have to buy to comply with your state’s rules. In a way, when you find the answer to how much is a liability policy you know the answer to how much is the cheapest car insurance? Every state sets the minimum requirements and you can find your state’s requirements here.

If you are not sure what is liability only or full cover you can find out what does auto insurance cover? Basically, a liability only policy provides protection for third parties in case the insured causes them injuries or damages. No fault states require everyone buy their own Personal Injury Protection as minimum. A full coverage policy provide Collision and Comprehensive coverage for own vehicle as well as providing liability coverage.

You shouldn’t push for the minimum liability auto insurance coverage because the basic state required coverage is usually too low. You can get yourself more than double the state minimum coverage by paying only about 10% more. This would give you thousands of dollars additional protection for claims against you. Besides, most companies don’t offer policies for bare bone basic liability and few companies can place you into high-risk category for asking such coverage. 

That is why we tried to find average cost of liability coverage that represents a decent cover rather than the basics when preparing the table below. Average cost of liability auto insurance is $684 in the US and you can find what is the average premium in your state on the table. There is a high chance that you may need to pay more than the average figure for your state for several reasons. First of all, the premium figures below are for a mature driver with years of experience and no negative record. We know from experience that most drivers who are looking for a basic policy only are teenagers, new drivers or other high risk motorists and they usually pay a lot more than an average driver.

Auto insurance quotes can sometimes be the luck of the draw. It has been real hard to pin down average costs for each state. We had to rely on several studies and past average rates to come up with the figures on the table.

It cannot be stressed enough that the average premium figures on the table below are for an established driver with good driving record and your premium quotes can be much different either way.

Table: Average Cost of Full Coverage Car Insurance vs Liability Only

The purpose of this table is to look into how much is liability vehicle insurance in each state and how it compares to how much is full coverage vehicle insurance. Your financial circumstances or vehicle cost may have already dictated your choices. But, this table helps by displaying full coverage vs liability cost differences.

State How Much Is
Car Insurance?
How Much Is
Full Coverage
Car Insurance?
$ Difference % Difference
Alabama $673 $1,337 $664 98%
Alaska $434 $1,078 $644 148%
Arizona $476 $1,188 $712 150%
Arkansas $426 $1,345 $919 216%
California $834 $1,752 $918 110%
Colorado $786 $1,393 $607 77%
Connecticut $842 $1,367 $525 62%
D.C. $1,054 $1,773 $719 68%
Delaware $1,073 $1,607 $534 50%
Florida $1,058 $1,654 $596 56%
Georgia $743 $1,559 $816 110%
Hawaii $422 $1,049 $627 149%
Idaho $546 $935 $389 71%
Illinois $602 $1,035 $433 72%
Indiana $491 $1,113 $622 127%
Iowa $451 $989 $538 119%
Kansas $581 $1,135 $554 95%
Kentucky $663 $1,295 $632 95%
Louisiana $1143 $1,842 $699 61%
Maine $513 $808 $295 58%
Maryland $958 $1,610 $652 68%
Massachusetts $866 $1,325 $459 53%
Michigan $1,131 $2,738 $1,607 142%
Minnesota $745 $1,257 $512 69%
Mississippi $639 $1,277 $638 100%
Missouri $438 $1,056 $618 141%
Montana $679 $2,297 $1,618 238%
Nebraska $508 $1,188 $680 134%
Nevada $786 $1,221 $435 55%
New Hampshire $587 $941 $354 60%
New Jersey $1,086 $1,905 $819 75%
New Mexico $652 $1,277 $625 96%
New York $891 $1,050 $159 18%
North Carolina $426 $987 $561 132%
North Dakota $512 $1,200 $688 134%
Ohio $417 $900 $483 116%
Oklahoma $712 $1,778 $1066 150%
Oregon $718 $1,267 $549 76%
Pennsylvania $626 $1,305 $679 108%
Rhode Island $950 $1,608 $658 69%
South Carolina $717 $1,353 $636 89%
South Dakota $467 $1,168 $701 150%
Tennessee $656 $1,145 $489 75%
Texas $783 $1,510 $727 93%
Utah $629 $1,061 $432 69%
Vermont $487 $942 $455 93%
Virginia $536 $1,020 $484 90%
Washington $671 $1,168 $497 74%
West Virginia $773 $1,456 $683 88%
Wisconsin $577 $912 $335 58%
Wyoming $429 $1,421 $992 230%
National average $684 $1,325 $641 94%

Sources: 12,  NAIC and ValuePenguin.

Just to let you know, most people buy full coverage auto insurance providing they can afford it. About 72% of US auto insurance policies are full coverage.

How Much Is Full Coverage Car Insurance?

It is fair to say that when you know how much is full coverage auto insurance you know how much is automobile insurance that provides decent protection for your own loses and third party claims against you. Anyone with a valuable enough automobile to insure would want to get full coverage. As a general rule, vehicles over $4,000 should be insured and collision and comprehensive coverage, within full coverage policies, provides the necessary protection.

Most insurance companies have some sort of packaged policies for the purpose of providing cheap full coverage car insurance in order to make these policies attractive to large numbers of policyholders. That is why, you should always get quotes for full coverage too even though you are pretty sure you want a liability only policy. You may be tempted to buy a better policy if the price is right.

The average cost of full coverage auto insurance is $1,325 in the US and the average premium quotes for each state are displayed on the table above. Now, you have a good idea how much is car insurance on average for a typical driver. Why not find out how much you need to pay to insure your auto by getting your own quotes?

Generally speaking, if you can get cheap liability car insurance you may also get great full coverage quotes. The percentage difference between full coverage vs liability cost may be similar but the real dollar liability vs full coverage price difference would be the narrowest for good drivers. When you have excellent driving history, credit score and live in a low risk zip code you can save money on auto insurance in so many ways that full coverage vs liability car insurance cost would be at its closest.

On the other hand, high risk drivers may struggle to find affordable liability only vehicle insurance and face much wider price difference between liability and full coverage. Risky drivers would be charged much higher rates across the board that they may need to think carefully when they are buying an automobile to avoid increasing risks and costs even furthers.

How Much More Is Full Coverage Than Liability?

Full coverage policies provide a lot more protection in comparison to liability policies. But how much more you need to pay for full coverage than liability only policy depends on where you live. The table above not only discovers how much is a typical full coverage policy in your state but also looks into how much is liability and shows how much more you need to pay for full coverage in comparison to liability policy.

As you can see on the table, average cost of full coverage car insurance in the US is $1,325. So, a typical driver needs to pay $641 more, on top of $684 liability auto insurance cost, to add collision and comprehensive coverage to his/her compulsory liability cover and make it full coverage.  In other words, average cost of full coverage automobile insurance is about 94% more expensive (nearly twice) than liability premium.  By the way, full coverage policies usually have increased level of liability coverage than just the minimum.

The additional premium for full coverage can be as much as twice more than what you would pay for liability only coverage. In some states, a typical driver can get full coverage auto insurance for less than $70 a month and liability auto insurance for less than $35 a month. And the same good driver may need to pay more than twice those premiums in other states.

How Much Is Car Insurance per month?

We have looked at premium costs in detail and displayed our findings on the table above. The premium figures quoted above are annual premium quotes. So, it wouldn’t be difficult to find your state, choose the coverage you want and divide the figure by 12 to get average car insurance per month in your state. For example, the average premium cost per month in the US is 684/12 = $57 for liability coverage and 1325/12 = $110 for full coverage. Please find the average auto insurance per month for your state the same way.

You may have a 6 monthly vehicle insurance. This wouldn’t change anything in terms of finding the monthly policy price and comparing your rates to the average. You just need to divide your premium to 6 and find out your monthly car insurance cost. Usually, most companies would offer a monthly premium payment plan with a small or no additional instalment fee. So, it wouldn’t distort your comparison if your premium is already given monthly.

Knowing average premium cost per month can help you better when you are on a tight budget. If it makes it easier, quite a few companies can offer your quotes on a monthly bases. In any case, you can find a calculator online and work out monthly, 6 monthly or annual premiums. You shouldn’t worry too much about how the quotes are presented. You should look at the overall costs and coverage in order to pick the best value quote.

Liability vs Full Coverage Car Insurance 

These days there are full variety of policies in between but liability and full coverage are two main policy types. Liability policies cover damages and injuries you may cause to others and full coverage goes a step further and adds coverage for your vehicle. One of these policy types can serve you best depending on your current circumstances. Have a closer look at them below in order to figure out which one would meet your requirements.

  1. If you are asking how much is the cheapest policy you are looking for the minimum liability coverage and it can be as low as $35 per month depending on where you live. Generally, people who are looking for full coverage owns valuable enough vehicles and ask questions like how much auto insurance do I need?
  2. Liability only coverage may be great for teenagers buying their first policy, a high risk driver who cannot afford full coverage or someone in a tight spot money wise. These characteristics may be enough for some insurers to put you in high risk driver profile because people with money problems are more likely to claim. You need to have money to buy a nice car and pay for full coverage to protect it. So, asking for the cheapest policy you can get may be a sign insurers look out for so that they can charge you appropriately higher premium.
  3. Nonetheless, liability coverage may be all you need if you have an old car. Actually, some people knowingly prefer cheaper vehicles in order to get cheap insurance for first time drivers.  Then, they can buy the cheapest coverage there is and be done with it.
  4. Price differences between liability and full coverage policies may offer insight to demographic and economic conditions in a state. For example, in a state where liability claims take up large portion of the total claims you would expect that the gap between average liability and full coverage premium to be narrower.
  5. Liability quotes can be much lower than full coverage. However, this may be due to very low minimum requirements set by your state. Most full coverage policies include much larger than the minimum required liability coverage along with collision and comprehensive coverage for your automobile.

No doubt premium costs affect people’s policy purchase decisions. Not everyone is lucky to decide without money constraints. However, don’t make the mistake of concentrating on how much premium you need to pay now and forgetting about what happens in case of future accidents and insurable losses. Start with determining the level of coverage you can live with and see if you can get more for you money or you can afford to buy more.

The best way of checking all your options quickly is to do quotes comparison online and we can help you on that. Just enter your zip code on top of the page and let us show you the cheapest auto insurance companies for various driver profiles. There is a high chance one of them will make it worth your time by offering you a quote you cannot ignore.

Share on Pinterest
There are no images.