Compare Auto Insurance Rates for October 2022

If you want to save money on your car insurance bill every month, there’s only one fast, easy, and free way to do it — getting quotes from multiple companies and comparing the rates they offer head-to-head. But with hundreds of car insurance companies out there, where do you even start? In our comprehensive guide below, we’ve broken down average rates from some of the country’s top insurance carriers and put together a list of everything you’ll need to know to start saving today.

In This Article

Compare Average Rates from the Top Companies

Just about every auto insurance company out there has advertisements on TV or online about saving you money on car insurance, but how are you supposed to know which one really offers the cheapest rates? While rates can vary quite a bit from driver to driver, the same can be said for insurance companies.

In the table below, you’ll see the national average rates for 10 of the top insurance companies in the U.S.

As you can see, rates can vary wildly from one company to the next. Companies like American Family, Erie Insurance, and State Farm have some of the cheapest average rates, while other companies’ prices can be over twice as expensive. That’s why it’s so important to compare auto insurance rates.

But just looking at the national averages doesn’t necessarily paint the whole picture. Car insurance pricing can vary drastically from person to person, and since no two drivers are the same, just because one company has the cheapest average rates, it doesn’t mean they’ll necessarily be the cheapest for you.

Insurance companies take a wide array of factors into consideration when calculating how much to charge for insurance, including things like your age, gender, driving record, insurance history, where you live, and in some places, even your credit score. And without comparing quotes from multiple companies, there’s no real way to know which company will be the cheapest option for your unique profile.

Keep reading to see breakdowns of how rates change by all sorts of different factors.

Compare Rates for Liability vs. Full Coverage

Car insurance can seem pretty complicated at times, but that doesn’t mean you need to get overwhelmed when you go to get quotes and compare rates for auto insurance. At the end of the day, while it may seem like there are a million different types of car insurance coverage out there, the two most common are “liability only” and “full coverage” policies.

Liability coverage is what’s required for all drivers in nearly every state. With this type of coverage, you have insurance to cover any injuries or property damage you cause to other drivers or passengers in an at-fault accident.

You’ll usually see these policies described with a series of three numbers, like 25/50/25. These describe the coverage limits under your policy. For example, a 25/50/25 policy has $25,000 worth of bodily injury liability per person, $50,000 of combined bodily injury liability for everyone involved in the accident, and $25,000 of property damage liability. This means that if you cause an accident, your insurance carrier will cover any damages up to these amounts, with anything above those limits falling on you to pay out of pocket.

The biggest downside to “liability only” car insurance policies is that they don’t cover any damage to your vehicle if you are at fault in a collision. In order to cover your vehicle, you’ll need what’s often called “full coverage,” which includes collision coverage and comprehensive coverage in addition to the bodily injury and property damage coverage you get with liability. With these types of policies, any damage to your car, whether from a collision, theft, break-in, or even an “act of God,” will be covered by your insurance company after you pay your deductible (which is usually between $500-$1,000 per claim).

So, you’re probably wondering how much more expensive it is to get full coverage. Looking back at the top 10 companies mentioned earlier, the difference is significant, with most companies charging more than double to step up from a liability-only policy to one that has full coverage.

But as you can see, rates are still pretty drastically different across each company – another reason why comparing car insurance rates is so important.

Compare Insurance Premiums by State

Did you know that the state you live in is perhaps the most important factor when it comes to how much you can expect to pay for car insurance – sometimes even more than your driving record? Since auto insurance is regulated at the state level, rates can vary drastically from one state to the next. Keep reading to see how your state stacks up compared to the rest of the country.

In the above table, you’ll see average prices for liability insurance for each state, ordered from cheapest to most expensive. As you can see, the differences can be massive. For example, if you live in New York or New Jersey, you can expect to pay nearly double what drivers in Idaho or Iowa might pay. Even two neighboring states can have big differences – North Carolina’s average rates are nearly 25% cheaper than South Carolina’s, for instance.

So, if you’re planning on moving across state lines, you’ll definitely want to take the time to compare car insurance. It could make a huge difference in your monthly budget at your new home.

Compare Rates by Driver Profile

Two of the biggest factors affecting your car insurance rates are unfortunately two you don’t have any control over – how old you are and your gender assigned at birth. See how each affects your insurance rates in the tables and writeups below.

How Does Age Affect Your Rates?

It’s probably no surprise that young drivers pay the most for auto insurance out of any age group. That’s because teenagers who have less experience driving are statistically much more likely to get into collisions that cause car insurance claims.

As you can see above, that difference can sometimes be staggering. Looking at the top companies, 18-year-old drivers pay an average of over $400 a month for their car insurance. Luckily, by the time you turn 25, your monthly rates will likely plummet – average rates for 25-year-olds is nearly two-and-a-half times less at $154 a month.

Drivers around retirement age tend to get the lowest rates due to their decades of experience on the roads. When looking at these companies, in particular, drivers 65 or older tend to pay around $135 each month for their car insurance.

What About Your Gender?

Gender is another factor that can play a role in how much you pay for auto insurance. Generally, men will pay a little bit more each month compared to women – this is because they’re statistically more likely to cause a collision or get a ticket.

Usually, that difference is around 5% for most companies. It may not be huge, but even a few dollars a month can add up to something significant over the length of your policy.

How Much Will Your Rates Go Up After an Accident or Ticket?

It’s no secret that if you get into an accident or get a ticket, your auto insurance rates will most likely go up. But exactly how much of an increase will it be?

Judging by the average rates of the carriers mentioned above, a ticket will be the least costly negative mark on your record, with DUIs causing the largest increase in rates. On average, a ticket will cause your rates to increase by about 25%, while an at-fault accident will lead to a little more than a 40% rate hike. A single DUI charge will likely cause your rates to nearly double or your auto insurance company could choose not to renew your policy.

So, which carrier offers the best rates for drivers with spotty records? Generally, American Family has the cheapest rates for many drivers with points on their record, but Erie Insurance, State Farm, Travelers and Nationwide all offer competitive rates.

At the end of the day, the only way to know for sure which company is the cheapest is to compare car insurance rates. And don’t just settle for increased rates after an accident, ticket, DUI, or other driving infraction.

Following an incident like this is the perfect time to shop around for insurance. In fact, many companies (often referred to as “non-standard” carriers) specialize in auto insurance policies for drivers with less-than-ideal driving records. Going with one of these companies instead of the big names could save you hundreds.

Does Your Credit Score Impact Your Car Insurance Rates?

You’re probably already aware that things like your driving record play a big role in how much you pay for car insurance, but did you know that many auto insurance companies look at your credit score to determine your rates?

You might be asking “What does my credit score have to do with car insurance?” Carriers argue that your credit score has a direct impact on your overall risk, and the more risk a company takes on to insure you, the more they’ll charge for your policy. They say that drivers with bad credit are less likely to pay their car insurance bill on time and more likely to file a claim, which means they’ll charge you extra for a policy.

Like it or not, this is the case in many situations. However, some states – like California, Massachusetts, Michigan, and a few others – have outlawed the use of credit scores as a rating factor. There are also a few companies that don’t look at credit scores, regardless of where you live, including Root Insurance, Metromile, and others.

So, exactly how much does your credit score affect your monthly bill? Let’s check out some average rates:

As you can see, your credit score can have a lot bigger impact than you might have thought. Looking at overall average rates, a driver with “poor” credit can expect to pay more than double that of one who has an “excellent” credit score.

With that in mind, you’re probably wondering which company is the cheapest option for drivers with varying credit scores. Generally, State Farm has better rates for drivers with higher credit scores, while American Family offers the cheapest average rates for drivers with low credit scores.

But that doesn’t mean you should go straight to those companies for the cheapest rates. Since some companies don’t use credit scores at all, drivers with bad credit might be better off elsewhere. Once again, the only way to know you’re getting the best rates is to shop around and get quotes from multiple companies.

How Much You Drive Also Plays a Big Role in How Much You Pay

One of the often-overlooked factors that affect your car insurance rates is how much you drive. Any time you get an auto insurance quote, companies will ask about your commute and/or how many miles you drive each year. The reason they ask about your annual mileage is that the more you’re on the roads, the more likely you are to get into an accident and file an insurance claim.

Check out the table below to see exactly how much annual mileage affects rates.

On the other hand, if you drive less than the national average (usually around 12,000 miles a year), you can save some money on your car insurance policy. But this isn’t always the case.

As you can see above, not all companies put a big emphasis on annual mileage. Some – like Progressive and Farmers – offer the same rates, whether you drive 6,000 miles a year or 12,000. Others – like Nationwide or Allstate – have a difference of less than $5 a month.

If you’re looking to save some money because you don’t drive much (such as if you work from home), a better option might be “pay-per-mile” or usage-based car insurance. With these policies, you pay a low base rate each month and are then charged based on how many miles you drove that month. If you drive far below the national average, it might be worth looking into a policy like this (often offered by companies like Metromile or Progressive Snapshot).

Where You Live Matters, Too

We already talked about how the state you live in can have a big impact on your car insurance rates, but the actual area you call home also can make a difference.

Because urban areas are much more densely populated – both with people and with cars – people who live in these areas tend to pay more for car insurance than drivers in less populated areas.

As you can see in the above table, people who live in urban ZIP codes tend to pay over 40% more for their car insurance than those who live in rural areas. You’ll also see that certain companies offer better rates for drivers in urban vs. rural areas – yet another reason to compare auto insurance rates. You never know which companies might specialize in insuring drivers like you.