According to the findings of an investigation conducted by Forbes Advisor, the average cost of car insurance in the United States is $1,601. This price is for full coverage auto insurance, including optional coverage for theft and damage to your vehicle. There is no universally accepted definition of full coverage auto insurance, although it often includes:

Liability insurance compensates for the costs of other people's injuries and property damage when you cause an accident, as well as judgments, legal defense, and settlements if you are sued.

Collision insurance covers damage to your car regardless of who is at fault.

Insurance that covers damage not caused by a collision, such as damage caused by fire or floods, is known as comprehensive insurance.

Uninsured motorist coverage covers medical expenditures incurred by you and your passengers in the event that you are harmed in an accident caused by another driver who did not have insurance.

Average Cost of Car Insurance by Company

Since each vehicle insurance provider evaluates risk differently, premium costs might vary dramatically. You can obtain the most affordable vehicle insurance policy by comparing quotes from different providers. So, how much is car insurance a month?

Full coverage

The United Services Automobile Association (USAA) has the lowest average rates for complete coverage at $1,141 per year, whereas Farmers' average prices are $2,277 every year, a difference of $1,136 per year. While USAA may be the most affordable option, membership is restricted to current service members, veterans, and immediate family members of military personnel. Nationwide is the second place with a yearly cost of $1,154, or $1,100 less than Farmers.

USAA: $1,141

Nationwide: $1,154

Geico: $1,237

State Farm: $1,486

Erie: $1,499

Since it offers collision and comprehensive coverage, a full-coverage auto insurance policy is more expensive than a liability-only policy. Whether you loan or lease a car, the lender will often need you to have full coverage auto insurance. This is also the case when you finance a vehicle.

State minimum liability insurance

There is a gap of more than $500 between the minimum coverage prices offered by USAA and Farmers, which start at an average of $322 per year and go up to an average of $830 per year. After USAA ($322), Auto-Owners ($356) is the next most affordable option. But, only active duty or veteran military personnel and their families are eligible.

USAA: $322

Auto-Owners: $356

Geico: $358

Erie: $427

State Farm: $463

The bare-bones protection the state's minimum car insurance policy offers is rather inexpensive. If your budget changes, you may increase your liability limits to gain more protection if you cause an accident. If you want to enhance protection for your car, you should also consider getting comprehensive collision insurance.

To obtain an accurate image of which car insurance company is most reasonable, compare shops for the same coverages and limitations regardless of the policy you're purchasing.

What Is the Average Cost of Car Insurance in Your State?

Your vehicle insurance prices are affected by where you reside. For instance, car insurance companies consider factors such as the number of claims filed in your location, the average cost of those claims, and whether or not your area is prone to extreme weather, such as hurricanes and floods, among other factors.

The probability of being involved in an accident is normally greater in metropolitan regions with more automobiles on the road; thus, the average car insurance premiums in states with dense populations are typically higher than those with fewer drivers in rural states.

States with the lowest and highest premiums for full coverage auto insurance

According to our investigation of the state-by-state variations in the cost of full coverage auto insurance, Vermont has the lowest average premiums. The following five states have the lowest average premiums for comprehensive auto insurance:

Vermont: $1,066

Idaho: $1,143

New Hampshire: $1,149

Maine: $1,168

Ohio: $1,168

Average Cost of Car Insurance for Teens

Adolescent drivers are very costly to insure since they lack expertise and are involved in more accidents than drivers of older ages. Due to this, parents of adolescent drivers need to look around for the best deals on affordable auto insurance.

With their coverage, 16-year-old drivers pay an average annual premium of $8,765. The average annual cost of insurance for someone aged 17 is $6,829. It is about 22% less than what is paid to 16-year-olds.

Adding a teenage driver to existing insurance is often the option that will result in the lowest premium costs. However, the parent's vehicle insurance rates may increase by a factor of two. According to our research findings, the insurance premium for a parent who added a 16-year-old driver to their policy jumped by an average of 82%. The yearly premium for the parents' coverage increased from $2,948 to $5,367. It is an increase of $2,419 over before.