Updated: October 25, 2024
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Many factors influence car insurance rates, some of which you can control, like your driving record and credit score, and others you can't, such as state laws and your ZIP code. These rates are often reviewed when it's time to renew your policy.
If you notice an increase, you can talk to your insurer or even switch companies. You can also save by bundling policies, requesting discounts, or choosing a higher deductible.
Car insurance rates are influenced by various factors, both within and outside your control. These include your driving record, age and even your ZIP code.
Insurance companies reassess your risk level during policy renewal, checking for any changes in your driving behavior, credit score, and other factors. This is when you'll often see a change in your rates.
There are multiple strategies to save on car insurance, such as bundling insurance policies, increasing your deductible and maintaining a good driving record.
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It's common to see a change in your car insurance rates when it's time for policy renewal.
Your insurer takes this opportunity to reassess your risk level by checking various records. They consult with the Department of Motor Vehicles (DMV) to see if you've had any lapses in insurance, received any tickets, or committed any moving violations. Additionally, your insurer will check your credit score; a decline since your last assessment could result in higher premiums.
While some factors are out of your control, like state laws, you can still work on maintaining a good driving record or improving your credit score to lower your future premiums.
Your driving record is like a report card of your behavior on the road. It keeps track of any tickets you've received, accidents you've been involved in, and other traffic violations. The more points you accumulate on this record, the higher your insurance rates will likely be.
The average cost of car insurance spikes depending on the severity of your violation:
For instance, in the table below, a person aged 30 to 59 with a clean driving record would have an annual premium of $1,054, while a person with a speeding ticket would have a premium of $1,314 ($260 higher).
| Clean | $1,054 | $88 |
| Speeding Ticket | $1,314 | $110 |
| Accident | $1,541 | $128 |
| DUI | $1,862 | $155 |
Browse the table below to find out how a violation affects rates in your state.
Please note that the data below is based on a 40-year-old male driver.
| At-Fault Accident | $1,305 | $109 |
| Clean | $852 | $71 |
| DUI | $1,451 | $121 |
| Ticket | $1,074 | $89 |
The cost of car insurance can differ significantly from state to state due to factors like population density, minimum insurance requirements, and the typical cost of car repairs, as well as weather-related risks such as hurricanes or hail.
The average cost of car insurance in New York can vary by borough, depending on where you park your car overnight.
View the table below to see the annual and monthly premiums for each state.
| Alabama | $859 | $72 |
| Alaska | $892 | $74 |
| Arizona | $1,096 | $91 |
| Arkansas | $931 | $78 |
| California | $1,378 | $115 |
| Colorado | $998 | $83 |
| Connecticut | $1,345 | $112 |
| Delaware | $1,708 | $142 |
| District of Columbia | $1,208 | $101 |
| Florida | $1,627 | $136 |
| Georgia | $933 | $78 |
| Hawaii | $816 | $68 |
| Idaho | $661 | $55 |
| Illinois | $924 | $77 |
| Indiana | $733 | $61 |
| Iowa | $794 | $66 |
| Kansas | $1,048 | $87 |
| Kentucky | $1,009 | $84 |
| Louisiana | $1,477 | $123 |
| Maine | $723 | $60 |
| Maryland | $1,159 | $97 |
| Massachusetts | $1,049 | $87 |
| Michigan | $1,786 | $149 |
| Minnesota | $1,059 | $88 |
| Mississippi | $939 | $78 |
| Missouri | $1,334 | $111 |
| Montana | $961 | $80 |
| Nebraska | $980 | $82 |
| Nevada | $1,557 | $130 |
| New Hampshire | $942 | $79 |
| New Jersey | $1,491 | $124 |
| New Mexico | $974 | $81 |
| New York | $2,078 | $173 |
| North Carolina | $871 | $73 |
| North Dakota | $785 | $65 |
| Ohio | $737 | $61 |
| Oklahoma | $944 | $79 |
| Oregon | $1,121 | $93 |
| Pennsylvania | $1,023 | $85 |
| Rhode Island | $1,128 | $94 |
| South Carolina | $1,286 | $107 |
| South Dakota | $957 | $80 |
| Tennessee | $852 | $71 |
| Texas | $1,198 | $100 |
| Utah | $965 | $80 |
| Vermont | $677 | $56 |
| Virginia | $955 | $80 |
| Washington | $1,070 | $89 |
| West Virginia | $1,051 | $88 |
| Wisconsin | $906 | $75 |
| Wyoming | $876 | $73 |
Insurance rates can differ significantly from one state to another, and much of this variation depends on the insurer. A provider offering the cheapest rates in one state could be the most expensive option in another. Each state also has its own set of insurance requirements. For instance, carrying car insurance isn't even a legal necessity in New Hampshire and Virginia, .
Insurance companies evaluate the risk of covering you and anyone else you add to your policy. This generally includes all household members who could potentially drive your car.
If your household includes a teen driver or someone considered high-risk, adding them to your policy will likely cause your rates to increase. However, if there's someone you don't want driving your car, you can talk to your insurance company about listing them as an "excluded driver." This means your policy won't cover them, and it won't affect your rates.
Despite the initial sticker shock of adding a teen driver to your family policy, it's usually the cheapest way to get them insured, as indicated in the table below. As your teen gains more experience and maintains a clean driving record, you can generally expect their insurance rates to decrease over time.
To ensure you're getting the best deal, shopping around for insurance every year is a good idea. Look for companies that offer the cheapest car insurance for teen drivers; doing so can result in significant savings.
Auto insurance companies also consider the type of vehicle you drive. The make and build of your car can change your premiums. Adding or switching to a new car can also increase your insurance rate because certain models, such as those with rare parts, are more expensive to insure.
| Subaru Outback | $1,203 | Cheap to insure |
| Honda CR-V | $1,249 | Cheap to insure |
| Honda Fit | $1,251 | Cheap to insure |
| Honda Odyssey | $1,252 | Cheap to insure |
| MINI Cooper | $1,254 | Cheap to insure |
| Subaru Forester | $1,261 | Cheap to insure |
| Jeep Wrangler | $1,267 | Cheap to insure |
| Ford F-150 | $1,280 | Cheap to insure |
| Ford Escape | $1,287 | Cheap to insure |
| Jeep Patriot | $1,288 | Cheap to insure |
| Toyota Tacoma | $1,293 | Cheap to insure |
| Dodge Grand Caravan | $1,295 | Cheap to insure |
| Mazda CX-5 | $1,322 | Cheap to insure |
| VW Tiguan | $1,323 | Cheap to insure |
| Toyota Highlander | $1,324 | Cheap to insure |
| Toyota Sienna | $1,326 | Cheap to insure |
| Chevy Equinox | $1,334 | Cheap to insure |
| Toyota RAV4 | $1,334 | Cheap to insure |
| Kia Soul | $1,338 | Cheap to insure |
| Chevy Silverado | $1,340 | Cheap to insure |
| Honda Pilot | $1,343 | Cheap to insure |
| Honda HR-V | $1,354 | Cheap to insure |
| Ford Explorer | $1,355 | Cheap to insure |
| Dodge Journey | $1,358 | Cheap to insure |
| VW Beetle | $1,376 | Cheap to insure |
| Nissan Rogue | $1,380 | Cheap to insure |
| Ford Focus | $1,384 | Cheap to insure |
| Nissan 350Z | $1,386 | Cheap to insure |
| Subaru Legacy | $1,387 | Cheap to insure |
| Subaru Impreza | $1,388 | Cheap to insure |
| Ford Taurus | $1,389 | Cheap to insure |
| Nissan Frontier | $1,401 | Moderate |
| Toyota Prius | $1,401 | Moderate |
| Honda Ridgeline | $1,402 | Moderate |
| Chevy Tahoe | $1,406 | Moderate |
| Acura MDX | $1,408 | Moderate |
| Honda Accord | $1,417 | Moderate |
| MINI Electric | $1,417 | Moderate |
| Jeep Grand Cherokee | $1,418 | Moderate |
| Nissan Juke | $1,423 | Moderate |
| Nissan Versa | $1,423 | Moderate |
| Mazda3 | $1,424 | Moderate |
| Honda Insight | $1,431 | Moderate |
| VW Passat | $1,431 | Moderate |
| Jeep Cherokee | $1,433 | Moderate |
| Toyota Camry | $1,434 | Moderate |
| Nissan Pathfinder | $1,435 | Moderate |
| Toyota Tundra | $1,438 | Moderate |
| Nissan LEAF | $1,444 | Moderate |
| Honda Passport | $1,452 | Moderate |
| Toyota Corolla | $1,453 | Moderate |
| Chevrolet Cruze | $1,455 | Moderate |
| VW Golf | $1,455 | Moderate |
| Hyundai Elantra | $1,457 | Moderate |
| Ford Expedition | $1,464 | Moderate |
| Kia Soul EV | $1,471 | Moderate |
| VW Jetta | $1,481 | Moderate |
| Honda Civic | $1,482 | Moderate |
| Chevy Malibu | $1,490 | Moderate |
| Nissan Sentra | $1,491 | Moderate |
| Hyundai Kona | $1,492 | Moderate |
| Kia Niro | $1,518 | Moderate |
| Ram 2500 | $1,524 | Moderate |
| BMW X3 | $1,535 | Moderate |
| Chevrolet Camaro | $1,538 | Moderate |
| Audi A3 | $1,542 | Moderate |
| Jeep Gladiator | $1,544 | Moderate |
| Subaru WRX | $1,549 | Moderate |
| Nissan Altima | $1,551 | Moderate |
| Audi Q5 | $1,566 | Moderate |
| Chevy Bolt | $1,584 | Moderate |
| Mercedes GLA 250 | $1,586 | Moderate |
| Chevrolet Camaro SS | $1,587 | Moderate |
| Ford Mustang | $1,587 | Moderate |
| Nissan 370Z | $1,597 | Moderate |
| Ford Mustang Mach E | $1,603 | Moderate |
| Volvo XC40 | $1,627 | Moderate |
| Ram Rebel | $1,636 | Moderate |
| Ford Mustang Ecoboost | $1,669 | Moderate |
| Nissan Maxima | $1,676 | Moderate |
| Dodge Charger | $1,677 | Moderate |
| VW ID.4 | $1,682 | Moderate |
| Audi Q7 | $1,690 | Moderate |
| Subaru BRZ | $1,701 | Moderate |
| Dodge Challenger R/T | $1,707 | Moderate |
| BMW 3 Series | $1,708 | Moderate |
| BMW 1 Series | $1,725 | Moderate |
| BMW I3 | $1,729 | Moderate |
| Audi A4 | $1,729 | Moderate |
| Hyundai Ioniq | $1,729 | Moderate |
| Mercedes C-Class | $1,749 | Moderate |
| Mercedes CLA 250 | $1,782 | Moderate |
| Chevrolet Corvette | $1,783 | Moderate |
| BMW X5 | $1,845 | Expensive to insure |
| Toyota 86 | $1,853 | Expensive to insure |
| BMW 5 Series | $1,874 | Expensive to insure |
| Dodge Challenger | $1,887 | Expensive to insure |
| Kia Stinger | $1,937 | Expensive to insure |
| BMW 4 Series | $1,970 | Expensive to insure |
| Audi E Tron | $1,982 | Expensive to insure |
| Chevrolet Camaro ZL1 | $2,020 | Expensive to insure |
| Mercedes AMG C 63 | $2,104 | Expensive to insure |
| Tesla Model 3 | $2,117 | Expensive to insure |
| Tesla Model Y | $2,207 | Expensive to insure |
| Dodge Challenger SRT Hellcat | $2,270 | Expensive to insure |
| BMW X7 | $2,426 | Expensive to insure |
| BMW 7 Series | $2,482 | Expensive to insure |
| Nissan GT-R | $2,499 | Expensive to insure |
| Tesla Model S | $2,919 | Expensive to insure |
| Tesla Model X | $3,041 | Expensive to insure |
| Audi R8 | $3,112 | Expensive to insure |
| Porsche Taycan | $3,200 | Expensive to insure |
| BMW i8 | $3,212 | Expensive to insure |
A change in your credit score can mean a difference in car insurance rates. If your credit score drops, your insurer may drive up the cost of your policy. That said, there are states — such as California, Hawaii and Massachusetts — where credit score does not matter.
| Good | $1,163 |
| Good | $1,301 |
| Poor | $3,982 |
| Poor | $3,488 |
Location plays a crucial role in determining your car insurance premiums.
Even within the same state, rates can vary by ZIP code. Insurance companies consider collective risk, meaning if your area has high rates of accidents and violations or if more people in your ZIP code have filed claims, you're more likely to face higher insurance costs. Changes to accident and violation rates in your area can also lead to adjustments in your premiums.
Qualifying for car insurance discounts can help you save significantly. However, it is possible to no longer be eligible for the discount at the time of your policy renewal.
For example, a college student who has graduated and returned home may no longer be eligible for a distant student discount. A driver recently been in an accident may also lose their safe driver discount.
Always check with your insurer to see if you still qualify for these discounts and inquire about other car insurance discounts that may be available to you.
Regarding car insurance, average rates by age and gender can tell you a lot about how much you're likely to pay.
Young drivers, particularly males under 25, usually pay more due to a higher perceived risk of accidents. However, after 25, gender has less influence on your rates. There is no specific age when car insurance starts to go down. Instead, as you grow older, your rates are more affected by your driving history and experience.
Rates generally decrease with age, reaching their lowest around 50. However, both teenagers and seniors often face higher rates because they're considered riskier drivers.
| 16 | $5,733 | $478 |
| 17 | $4,811 | $401 |
| 18 | $4,144 | $345 |
| 19 | $2,891 | $241 |
| 20 | $2,591 | $216 |
| 21 | $2,035 | $170 |
| 22 | $1,867 | $156 |
| 23 | $1,719 | $143 |
| 24 | $1,616 | $135 |
| 25 | $1,443 | $120 |
| 26 | $1,379 | $115 |
| 27 | $1,355 | $113 |
| 28 | $1,334 | $111 |
| 29 | $1,314 | $110 |
| 30 | $1,260 | $105 |
| 35 | $1,228 | $102 |
| 40 | $1,207 | $101 |
| 45 | $1,193 | $99 |
| 50 | $1,160 | $97 |
| 55 | $1,128 | $94 |
| 60 | $1,124 | $94 |
| 65 | $1,182 | $98 |
| 70 | $1,266 | $106 |
| 75 | $1,413 | $118 |
| 80 | $1,582 | $132 |
| 85 | $1,702 | $142 |
| 90 | $1,790 | $149 |
Car insurance rates are on the rise due to various factors, including an increase in accidents and their severity, higher costs for parts and labor and slim profit margins for insurers. Additionally, inflation and risky driving behaviors are contributing to higher legal costs, all of which are putting upward pressure on insurance premiums.
When COVID-19 hit, car insurance companies gave back $14 billion, thinking fewer accidents would occur. But as things opened up, not only did accidents happen more often, they also got worse. Even the number of deadly accidents increased. This has made insurance companies adjust their rates higher.
Fixing a car is more expensive now because the parts and the labor to install them cost more. Insurance companies must raise their rates when these costs rise to keep offering the same coverage.
The car insurance business isn't making huge profits. They measure their success with a "combined ratio," which needs to be under 100% for them to make money. With the current trends in accidents and costs, rates will likely keep increasing.
The rising cost of living affects everything, including insurance. If insurance rates don't go up to match these rising costs, companies could run out of the money they need to pay out claims.
Bad driving habits like speeding or driving under the influence are on the rise. When accidents happen because of this, legal costs can increase, especially in severe cases. This also pushes insurance rates higher.
If your car insurance rates increase, you can talk to your insurer, adjust your coverage, or even switch providers to lower your costs.
The first step is to understand why your rates have gone up. Check your policy details and consult your insurer for clarification.
Sometimes, a simple phone call can explain why your rates increased. You can also inquire about any new discounts you may now qualify for.
If your lifestyle has changed — maybe you're working from home now and driving less — you might not need as much coverage as you did before. It’s also a good time to consider usage-based insurance programs.
You can often lower your premium by agreeing to pay a higher deductible in the event of a claim.
If you have multiple types of insurance policies, bundling them with a single insurer can often result in a discount.
You might be eligible for new discounts, like a good driver discount if you've been accident-free for a certain period or discounts related to a new job or retirement.
Some insurers offer a discount for paying your premium lump sum rather than monthly installments.
Features like rental car coverage or roadside assistance are often optional. Removing them can lower your premium.
If you're having trouble finding a better rate on your own, a broker can help you navigate the market.
If you believe the rate increase is unjustified and discussions with your insurer have not resolved the issue, you can file a complaint with your state's insurance department.
You can always switch to a different insurer offering better rates. Just make sure to understand any fees associated with canceling your current policy.
To save on car insurance, consider shopping around for quotes, bundling insurance policies, and asking for discounts you may qualify for. Other strategies include increasing your deductible, maintaining a good driving record and opting for annual payments.
Compare quotes from different providers to find the best deal. Make it a habit to review your policy and shop for new quotes at least once a year.
Combine auto with home or renters insurance for a discount.
Inquire about discounts you may qualify for, such as good driver, multi-car, or student discounts.
A higher deductible usually means a lower premium.
Safe driving can qualify you for discounts and lower rates.
Some insurers offer discounts for paying your premium in one lump sum.
Some insurers offer discounts for using an app or device that tracks your driving habits.
Completing a course can often result in a discount.
A higher credit score can lead to lower premiums in many states.
The make and model of your car can affect your insurance rates.
Knowing the different factors affecting car insurance rates can help you understand why your car insurance rates are so expensive. MoneyGeek answered some frequently asked questions about insurance rate revisions to help you understand auto insurance rates.
Typically, car insurance rates do not go up for no reason. Insurance providers consider various factors affecting insurance risk when calculating auto insurance premiums. That said, there are instances when insurance companies simply revise their rates.
There are various reasons why car insurance goes up. Factors you can control include driving behavior, place of residence, credit score, marital status, vehicle and drivers on your policy. Factors you cannot control include the number of accidents, violations and claims in your area, your age and gender and the loss of discounts.
No. Different factors determine car insurance rates. In some cases, you may end up with lower premiums. For instance, adults tend to pay lower rates for car insurance than teenagers. Being eligible for discounts can also decrease insurance costs.
Generally, it is normal for car insurance rates to increase. That is because of changes in insurance risk. For example, higher rates of accidents and violations can lead to a rate increase in an area.
Higher insurance rates at renewal may be due to different factors. In most cases, it is because of auto accidents and violations. However, there are also reasons out of the policyholder’s control, like age. Clarify with your insurance provider to determine the specific reason for your rate change.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
