What is average car insurance cost per month? Quick Answer
- The national average cost for auto insurance in the U.S. was $105 per month in 2022.
It’s not your imagination. Car insurance rates are increasing each year. According to the National Association of Insurance Commissioners (NAIC), combined average premiums increased by 5.75% in 2022.
Top 10 States With the Highest Car Insurance Rates
Monthly Combined Average Premiums by State in 2022
| State | Amount |
|---|---|
| Louisiana | $145.24 |
| Florida | $141.92 |
| New York | $139.69 |
| District of Columbia | $135.73 |
| Rhode Island | $131.15 |
| New Jersey | $126.91 |
| Georgia | $126.11 |
| Texas | $122.51 |
| Colorado | $120.54 |
| Michigan | $119.05 |
*Yearly data was divided by 12 to get the average insurance cost per month.
You will find significant variation in average car insurance rates by state. Louisiana tops the list with an average monthly premium of about $145.24.
What Affects the Average Auto Insurance Cost Per Month?
Car insurance companies consider these factors when assessing auto insurance costs:
- Credit history
- Age
- Location
- Driving record
- Gender
- Marital status
- Vehicle make and model
Certain states, such as California, Hawaii, Massachusetts, and Michigan, restrict the use of credit history when setting rates.
Trends in Average Monthly Car Insurance Payment
In 2017, the average monthly cost for auto insurance was $94.80. Premium rates increased steadily, with a large 22% increase in the first quarter of 2024.
How to Get Affordable Car Insurance
You cannot control many of the factors used to determine insurance rates. However, you can get affordable car insurance by shopping around.
Insurers offer different average car insurance rates by state based on their perception of the risks in your location. Some companies also offer loyalty discounts and bundling discounts to long-term customers with multiple policies.
Car Insurance Savings Tips and How to Lower Your Premium
You may wonder, “Why did my car insurance go up without an accident?” Some ways you can save on car insurance include:
- Avoiding traffic citations
- Not causing auto accidents
- Maintaining good credit
- Comparing premium rates when you buy a vehicle
Adjustments to your policy will also affect your rates. Select lower coverage levels and increase your deductibles. However, be aware that these adjustments could expose you to a car accident lawsuit.
Learn More About Auto Insurance From ConsumerShield
Consumers should stay informed about what could affect their insurance costs. Additionally, they should remember that auto insurance is a binding contract for both the insurer and the policyholder. Changing the coverage levels can affect your financial risk after a car accident.
ConsumerShield provides educational resources so consumers can understand the law and their legal exposure. If you have a dispute with your insurer or need legal assistance after a crash, ConsumerShield can also refer you to an attorney. Contact us for a free case review.
