BUSINESS

The true cost of auto insurance in 2021 [SECTION 1]

How much do Americans pay for auto insurance?

Click on the map to view costs in your area

United States

Average annual premium

$1,674

Percent of income spent

2.44%

Life events that affect cost
Credit score decreased
Added cost
$1,351
Annual premium
$3,025
Life events that affect cost
Received a speeding ticket
Added cost
$355
Annual premium
$2,029
Life events that affect cost
Involved in a car accident
Added cost
$731
Annual premium
$2,405
Life events that affect cost
Lapse in coverage
Added cost
$187
Annual premium
$1,861
Life events that affect cost
Convicted of a DUI
Added cost
$1,662
Annual premium
$3,336
Life events that affect cost
Insured a teenage driver
Added cost
$1,883
Annual premium
$3,557

A majority of Americans allocate a portion of their monthly paycheck to car insurance premiums, but what is the true cost of car insurance over time? Understanding your monthly car insurance output could impact other areas of your life. When life happens, like getting a ticket or a credit score decrease, these costs can increase thousands of dollars more.

The national average for full coverage auto insurance is $1,674 per year, but Americans can pay significantly different rates depending on their location. Scroll over the interactive U.S. map above to see average rates in your state or metro area and how these common life events affect them. Each state is ranked between one and 50, and each city is ranked between one and 25. The lower the ranking, the less impact your auto insurance premiums have on your annual income, based on average percentages.

Knowing how much other drivers pay for auto insurance in your area can help you understand how your premiums stack up against the average. The factors that determine your premium are ever-changing and may increase or decrease your premium over time. States vary by degree of impact as well. Drivers in California may be surprised to learn that although they pay nearly $400 more than the national average for full coverage insurance, at $2,065 per year, events such as coverage lapses negatively impact their rates the least compared to other states. See how common life events may impact rates in your area above.


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