The true cost of car insurance in 2022

The average cost of auto insurance in the United States is $1,771 per year, which is 2.57% of the average American’s annual income. Your individual car insurance rate depends on personal characteristics, so it will likely differ from the national average. Several factors that affect your auto insurance include things like credit score (in most states), vehicle make and model, driving record, and characteristics of the drivers insured on your policy.

Credit score

Policyholders with high credit scores tend to file fewer claims than policyholders with lower credit scores. For this reason, auto insurance companies in most states use your credit-based insurance score to determine your premium. One way to lower your car insurance premium is to improve your credit score. On average, drivers with great credit pay $1,146 less per year for car insurance than those with bad credit. Note that using credit as a grading factor is prohibited in California, Hawaii, and Massachusetts. In Michigan, although insurers are not allowed to use your credit score as a scoring factor, they may use some of the information that contributes to your credit score to assess your policy, such as a history of missed or late payments. .

Outstanding Stats:

  • Wisconsin drivers with full-coverage auto insurance experience an average rate increase of $4,128 — the highest of any state — when their credit score goes from “good” to “bad.”
  • Among states that use credit-based insurance scores as a scoring factor, North Carolina drivers experience the lowest average increase in full-coverage auto insurance — just $351 — when their credit score goes up. from “good” to “bad”.

Choice of vehicle

Your choice of vehicle greatly affects your car insurance rate. On average, the cheaper your vehicle, the lower your car insurance rate will be. Generally, sedans are cheaper to insure than coupes or SUVs. Luxury vehicles, sports cars, and vehicles with advanced technology will likely be much more expensive to insure than a basic sedan. For example, for comprehensive auto insurance, it costs $747 more per year to insure a luxury BMW330i than a Ford F-150 truck.

Generally, the safer your vehicle, the less it will cost you to insure. If a vehicle is equipped with top-notch safety features, drivers may see lower insurance rates, although this depends on the cost of replacing those safety features. Expensive sensors and cameras can increase the cost of your car insurance in some cases. In addition to safety features, the weight of your vehicle has an impact on safety. Heavy vehicles are more likely to protect passengers and the driver, which could help reduce insurance costs. However, heavy vehicles can also cause significant damage to another vehicle in an accident, which could increase premiums. As a result, you may see heavy-duty vehicles like the Ford F-150 with average fares close to the national average, rather than much higher or lower.

If you’re looking for a new vehicle, you might want to compare the following car insurance averages. Although your actual rates will differ, these rates provide a starting point for comparison.

Driving record

Your driving record has a significant impact on your car insurance rate, as insurance companies often see a poor driving record as an indication that you are likely to file a claim in the future. An at-fault accident can significantly increase your rates, but of any incident, a DUI on your record increases your rates the most. Drivers with a DUI pay an average of $1,650 more per year for their comprehensive insurance than the national average. After an incident, you may want to check with your car insurance provider if they offer discounts for participating in a telematics program or driver safety course.

Outstanding Stats:

  • After having an at-fault car accident, Rhode Island residents see the lowest insurance rate increases of any state, with an average additional cost of just $50 per year.
  • California drivers see an average annual rate increase of $1,436 after an at-fault crash, the highest of any state. And Los Angeles drivers experience an average increase of $1,636 per year after causing an accident, the highest of any metro area we analyzed.

Teens

Life events can also affect your car insurance rate. Adding a teenager to your car insurance policy can result in one of the biggest rate increases for the average driver. And, in many states, your marital status can affect your auto insurance rates. Married drivers pay an average of $103 less per year for comprehensive auto insurance than the national average. However, married couples with a teenager on their policy pay an average of $1,998 more than the national average.

Outstanding Stats:

  • After Hawaii, which does not use age to calculate insurance premiums, drivers in Iowa see the lowest average annual premium increase when they add a teenager to their auto insurance policy, with a total increase of only $1,034 per year from the state’s average annual rate of $1,254.
  • Of the subways analyzed, Portland has the lowest average annual fare increase after adding a teenage driver, at just $1,827. Meanwhile, Miami has the highest average rate increase of $3,891 per year after adding a teen driver.

Move to your subway

Auto insurance rates can vary between zip codes within the same metropolitan area, as factors such as accident statistics and the cost of living vary from neighborhood to neighborhood. For example, Hopkinton, Massachusetts is 30 miles west of Boston, and its distance from the city likely contributes to lower accident rates and lower cost of living compared to neighborhoods like South Boston or North End. However, before moving to a different postcode, you may want to consider your travel expenses. Will you save money on your car insurance, but pay more in gas and vehicle maintenance costs?

You can save even more by moving to another metro in your state. For example, Florida drivers who live in Miami spend an average of 1.84% more of their income on car insurance than Orlando drivers. Auto insurance alone may not be enough of a reason to move, but if you are already planning to move, you may want to consider the actual cost of auto insurance in each metro.