Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 19, 2020

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Key takeaways...

  • Insurance companies will give you varying car insurance quotes
  • The varying costs are due to risk factors that an insurance company takes into account
  • Compare several insurance quotes, be discerning, and never underestimate the cost of auto insurance

Car insurance rates are based on your unique profile, and the car insurance premiums will vary from one car insurance company to another.

But for most drivers, it’s common to find similar policy quotes within 20 percent of each other.

If you’d like to find the most affordable and best auto insurance quote, enter your ZIP code above and compare three to four policies today!

Table of Contents

Why do car insurance rates vary by providers?

In a nutshell, all car insurance companies are private enterprises who run a business model on profit.

The amount of profit they expect to make and the amount of risk they are willing to take on is unique to each company so you will find different formulas for calculating your auto insurance premiums depending on who you speak with.

Although the calculation of premiums will vary, most car insurance companies all use the same components in the risk formula which include:

The best way to understand how much your car insurance per month will be is to compare car insurance quotes from multiple providers and find an industry range.

Once you know the range of premiums expected to pay, then it’s all about finding the right car insurance company based on intangible factors such as customer service and claims handling which fits your unique needs.

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What are some average car insurance rates?

Many reports are published annually showing how much car insurance is per month.  These reports use popular variables that showcase average premiums.

Although, these variables should only ever be used for reference when drivers are trying to find lower rates or when they are being forced to pay much higher premiums than national averages.

How much are average car insurance premiums?

Most drivers should expect to budget around $1,200 to $2,400 annually for a typical passenger vehicle (not a Porsche 911 or Ferrari Spyder) which is why car insurance comparison is crucial since the range is quite vast.

A lot of information is published online about average car insurance rates per state and by model.

While we will include some of this data below, many of the variables used may not apply to you in these averages or others posted online; so you need to contact licensed car insurance companies for quotes specific to you.

Before purchasing a car, you should always know the EXACT cost of car insurance. Try never to buy a vehicle and then look for car insurance.

Auto insurance will be part of your monthly financial obligation, so it’s critical to know how much a new car will cost to insure before you take ownership of it.

What are some average car insurance rates?

By Type of Vehicle Average Annual Premium*
Ford F-Series pickup $1,492.70
Toyota Camry $1,274.61
Chevrolet Silverado pickup $1,383.10
Toyota Corolla $1,302.68
Honda Accord $1,301.20
Honda Civic $1,362.97
By State of Registration Average Annual Premium*
Michigan $2,098.29
California $1,774.41
Georgia $1,751.42
New Jersey $1,473.73
New York $1,463.21
Texas $1,462.65
Florida $1,453.20
Average Annual Premium is based on a 40-year-old Male driver with particular variables – These are just rough averages for research. Only a licensed car insurance company or agent can provide a quote unique to your profile so you can budget your financial obligations.

Even budgeting $1500 to $2,500 annually may be higher than the cost of most car insurance policies.

A word of caution though — try never to underestimate the cost of insurance.

It’s always better to prepare for more. And how much should car insurance be on a new car? Always plan for a higher estimate for new car insurance.

If you’re looking to save on auto insurance, enter your ZIP code below and start comparison shopping today!