Compare Car Insurance Rates So You Don't Overpay – NerdWallet

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. Our data analysts take stringent measures to eradicate outliers and inaccuracies in pricing data, including rates from every location in the country where coverage and data are available, so you can rely on the prices we present. When comparing auto insurance rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology.

It’s hard to determine which factors have the most impact on your car insurance rate because each company weighs those factors differently. We can tell you what most of those ingredients are, but there’s no way to know which is the most important with a particular insurer.

So, to help you find the best price for the insurance you want, we can show you average annual rates for minimum and full coverage car insurance. To narrow it down even further, we’ve collected average rates for drivers with various driving experiences and credit histories in every state and for every major auto insurance company.

Your age can have a big impact on your car insurance rate. For example, you might already know teen drivers have some of the highest car insurance rates on average, but they aren’t the only ones. Although your rates will likely decrease once you hit your thirties, most drivers tend to see higher rates once they reach their 70s.

Below are the average costs of full and minimum coverage, by age, for drivers with good credit and a clean driving history, according to our June 2024 analysis.

Drivers around the age of 20 typically get higher car insurance rates because they are more likely to get into accidents than older drivers, on average. NerdWallet recommends comparing car insurance quotes to find the cheapest option available, even if it may not be as affordable as other age groups.

To get more insight into how your age affects your car insurance, we compiled average annual rates from nine of the 10 largest private passenger auto insurers in the country based on market share data from the National Association of Insurance Commissioners. Data for Liberty Mutual wasn’t available.

Rates vary from company to company. For example, full coverage from Geico for a 20-year-old costs $2,447 a year, on average, while the average price from Farmers is $6,067.

Dive deeper below by comparing annual rates for 20-year-olds by state. Rates are averaged across the country separately for full and minimum coverage.

Average car insurance rates for a 20-year-old driver vary significantly from state to state. Some states, like Hawaii and North Carolina, have average annual rates of $1,876 or less for full coverage. In other states, such as Louisiana and Rhode Island, car insurance costs $6,301 or more per year, on average, for the same driver.

See how your state stacks up below.

Because drivers around the age of 35 get in fewer accidents than younger drivers, they typically can get lower car insurance rates than 20-somethings.

Aside from USAA (which is only available to military, veterans and their families), American Family provides the lowest price for full coverage for 35-year-olds, at $1,270, on average.

Farmers comes in the highest at $2,608, on average.

The table below compares national average annual car insurance rates for 35-year-olds by company. Keep in mind that not all car insurance companies are available in every state.

While average car insurance rates fluctuate by state, 35-year-olds in several states — including Wyoming, Vermont and Idaho — can pay $1,162 or less per year, on average, for full coverage policies. Similar drivers in Florida and Texas could pay $2,511 or more a year for full coverage, on average.

Louisiana is the only state with median rates as high as $3,114 a year for 35-year-old drivers with full coverage car insurance.

See how your state stacks up below.

Car insurance companies pay close attention to a variety of factors when determining rates. We’ve analyzed rates for a few of the most common driver “profiles” to give you an idea of how much insurance might cost for each one.

Use these links when comparing auto insurance rates for specific driver histories:

After a DUI, your auto insurance rate will go up — in some cases, it could even double. But one thing you can control is your choice of insurance company. A DUI can affect car insurance rates for three to 10 years, so it’s a good idea to shop around for the best rates after getting a DUI.

Below you can compare average car insurance rates from different companies for 35-year-olds before and after a DUI. Keep in mind that not all of these options are available in every state.

In Florida, the average insurance cost for drivers with a recent DUI is 39% higher, on average, than for similar drivers with no incidents — $1,190 more a year. However, in our analysis, a DUI in North Carolina added $4,905 to the annual cost of full coverage car insurance for 35-year-old drivers.

See below for how your state measures up.

While your car insurance rate will almost always increase after a DUI, it’s clear that the amount it increases will depend partially on where you live.

Your credit history is one of the largest factors affecting your car insurance rate. (California, Hawaii and Massachusetts don’t allow insurers to use credit when determining car insurance rates.) Carriers use credit history to determine how likely you are to file a claim.

While rates may double for some drivers with poor credit, know that every company considers credit differently. An insurance company may evaluate your credit differently depending on which state you live in.

Drivers with poor credit insured by Nationwide could pay about 37%more a year, on average, compared with similar drivers with good credit. Meanwhile, the average price for full coverage from State Farm or Farmers rises 95% or more for drivers with poor credit compared with those with good credit.

Below you can compare average full coverage rates for 35-year-old drivers with poor credit by company.

Certain states prohibit the use of credit in setting car insurance rates, and how insurers treat credit differs from state to state. For example, state regulators in one state may allow more wiggle room for credit-based pricing than others, which leads to variations by state as well as by company.

Our analysis revealed that:

• In Washington, a driver with poor credit pays about 18% more than one with good credit, on average.

• Having poor credit in either Iowa or Indiana raises the average insurance rate 61% or more compared with drivers with good credit.

• Average rates for those with poor credit in Wyoming or New York were at least 92% higher than average rates for drivers with good credit.

Below you can compare average full coverage rates for 35-year-old drivers with poor credit by state.

California, Hawaii and Massachusetts don’t allow insurers to use credit when determining car insurance rates. In Washington, the legal code around this issue is being debated.

Your driving history can affect auto insurance rates in different ways from one company to another. It’s a good idea to compare how each insurer’s car insurance rates stack up against the rest if you have a recent accident.

Comparing auto insurance rates after a crash shows how differently insurers treat accidents. For example, rates for car insurance from State Farm are 26% higher on average for drivers with an at-fault accident compared with a driver with a clean record. Meanwhile, our data shows rates for Geico and American Family are higher by 69% or more, on average, for drivers with a recent crash compared with our base profile.

Below you can compare average full coverage rates for 35-year-old drivers with a recent at-fault accident by company.

State regulators set limits on how much a company can increase your car insurance rates after a crash. Let’s say you caused an accident that resulted in $10,000 worth of damage. In some states, that could cause average annual rates to spike by 68% or more, while in other states the increase is far less.

For example, drivers in Rhode Island with full coverage policies and one recent at-fault accident paid $81 more per year, on average, than drivers with no accidents, which is just a 3% increase. Meanwhile, drivers in California paid $1,322 more per year, on average, after causing an accident than incident-free drivers, which is a 81% increase.

Here are the average full coverage rates for 35-year-old drivers with a recent at-fault accident by state:

Your rates will probably increase after an at-fault accident, so be sure to include the accident when you compare car insurance rates.

First, every car insurance quote you receive should be free — whether it’s from Geico, Farmers or a small insurer you’ve never heard of. Some auto insurers require a down payment to start your policy, but whether you’re comparing car insurance rates online or with an agent, a simple estimate should always be free of charge.

You’ll likely see the terms “quote,” “rate” and “premium” used to describe how much you’ll pay for car insurance.

To quickly and easily compare insurance online, you should have the following on hand:

Personal information, which includes the address, date of birth, occupation, driver’s license and marital status of everyone you want included on the policy.

Vehicle information, including the mileage, date of purchase and vehicle identification number (VIN) for each car. If you haven’t purchased the car yet, have mileage, make, model and year handy.

Driving history, including all claims, violations and tickets you’ve had over the past five years, plus any completed driving courses.

Current or previous insurer’s name for anyone on the policy or in your household. Some insurers won’t cover you without some coverage history, and if you want to exclude anyone living with you from the policy, you’ll need to prove they’re covered elsewhere.

Auto insurance is financial protection, not just for the investment you made when you bought or leased your car. After a really serious accident, bills for property damage and injuries can easily reach into hundreds of thousands of dollars.^[0]

Liability auto insurance protects you from that worst-case scenario by providing a cushion between your assets and the amount you’re on the hook for. That’s why choosing the right liability limits is the most important part of a car insurance quote comparison. NerdWallet typically recommends having at least as much liability coverage as your net worth.

But liability coverage levels come in threes — you’ll probably see something like 50/100/50 or 250/500/250 included in most policies. You can think of these limits as individual injuries/total injuries/property damage. (Insurers are a little more technical with the names, calling them bodily injury liability/total bodily injury liability/physical damage liability.)

Liability insurance comes in thousand-dollar increments, so when you choose an auto insurance policy with 100/300/100 limits, you’ll be choosing:

• $100,000 for bodily injuries per person in a crash that you caused.

• $300,000 total for all bodily injuries in a crash that you caused.

• $100,000 for damage to any property in a crash that you caused, including cars, buildings and objects like mailboxes and lampposts.

States requiring PIP or MedPay are generally referred to as “no-fault” states. This means that when injuries occur, each driver in a crash makes a claim with their own insurance company to pay for them. Then, the at-fault driver’s liability insurance will kick in to cover any expenses beyond the PIP or MedPay limit.

Liability coverage doesn’t pay for your car or injuries — or for any injuries your passengers sustain — if you cause a wreck. This is why you may want “full coverage” car insurance, especially if your car isn’t paid off.

In other words, you can’t just click a “full coverage” button when comparing car insurance quotes online or buy something called a full coverage auto insurance policy. You’ll need to add collision and comprehensive coverage in the amounts you want, which will also increase the amount you’ll pay.

If you add collision or comprehensive coverage to your policy, you’ll choose deductible amounts for each. These deductibles are amounts you will pay out of pocket for each claim you make, similar to a deductible when you go to a doctor’s office or pick up a pharmacy prescription. (The difference is they tend to be significantly higher than either of those examples.)

Collision insurance pays for:

1. Damage to your car in an accident you cause.

2. Damage to your car if you hit an object such as a fence or pole.

3. Damage to your car if someone else hits you. Another option in this case is to make a claim against the other driver’s liability insurance.

Comprehensive insurance pays for the value of your car if it’s stolen and not recovered, and damage from:

1. Weather such as tornadoes or hail.

6. Crashes with an animal, such as striking a deer.

7. Riots and civil disturbances.

Learn more about the different types of car insurance:

You’ll want to get car insurance quotes from at least two or three companies. And if you want to be sure you’re getting a good deal, you may want to compare car insurance quotes from regional companies as well as the big companies such as Allstate, Progressive and State Farm.

To make sure you’re able to accurately compare auto insurance quotes, each one should include:

1. The same levels of liability and uninsured/underinsured motorist protection.

2. The same deductibles for collision and comprehensive coverage, if you’re buying them.

3. The same drivers and cars.

4. All discounts you’re eligible for (most insurers list discounts on their websites).

Let’s assume you’ve compared rates and found the cheapest car insurance companies for you. But before you buy a policy, you’ll want to consider a few other factors besides price.

The best car insurance companies offer more than just affordable rates. They also provide reliable and helpful customer service as well as a simple way to update your policy or file a claim.

Here are a few things to check before you buy a vehicle insurance policy:

• Confirm your insurer has any extras you’re looking for, like a mobile app or accident forgiveness.

• Check a company’s financial strength to ensure it can pay out your claim if you need to file one. You can find a carrier’s financial strength using a rating firm like AM Best.

You can use NerdWallet’s reviews to compare car insurance companies and find the best fit for you. NerdWallet has researched policy options, consumer complaint data, customer satisfaction ratings, financial stability and other key factors for all of the country’s top auto insurance companies. We also researched many smaller, regional insurers.