Imani Francies is a finance and insurance writer who has strong media and communication skills with a bachelor's degree from Georgia State University. She began her writing career freelancing with various blogs and internships while working full-time as an early childhood educator. She has significant experience in both print and online media as a writer, editor, and author. She works efficient...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Feb 16, 2022

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The Lowdown

  • Speeding violations and other traffic infractions can increase your rates
  • Your auto insurance rates may be high because of your credit history
  • Auto insurance quotes are lower for senior drivers

Did you receive a car insurance quote that generated expensive rates? Several factors determine auto insurance quotes. Sometimes those characteristics produce cheaper rates, but there is a chance that those quotes may generate costly rates.

But some of our readers asked:  “Why is my first car insurance so expensive?” Don’t worry – our guide answers this question and many more.

This article explains why auto insurance is expensive, which factors affect insurance quotes, and where you can find affordable auto insurance rates.

Read on to learn why auto insurance is so high for drivers. Enter your ZIP code in the free online tool above if you’re ready to compare multiple insurance companies near you.

Why is my auto insurance so high?

You may be wondering what to do if your car insurance is too high. Multiple factors affect your auto insurance rates, such as where you live, your driving record, and your credit score.

Here’s a list of factors that affect car insurance rates.

  • Age
  • Credit score
  • Coverage level
  • Commute mileage
  • Deductible
  • Driving record
  • Gender
  • Location
  • Marital Status
  • Vehicle make and model year
  • Vehicle type

Each car insurance company calculates rates differently, so your quotes will not be the same as quotes online. The most accurate quote is found when you use your personal factors.

However, it is helpful to look at sample auto insurance rates. The estimates you’ll see in this article are forecasted insurance rates for general situations, so your rate will vary.

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How does age affect auto insurance rates?

Car insurance companies use your age to determine insurance rates. Age shows your overall driving experience and your risk of filing a claim.

Younger drivers take more risks and have a higher risk of filing an auto insurance claim. Therefore, auto insurance companies issue more expensive rates when teens and young adults are connected to an insurance policy.

Let’s look at some sample rates for young, middle-aged, and senior drivers.

Average Monthly Auto Insurance Rates by Age, Gender, and Marital Status
CompaniesSingle 17-Year-Old Female RatesSingle 17-Year-Old Male RatesSingle 25-Year-Old Female RatesSingle 25-Year-Old Male RatesMarried 35-Year-Old Female RatesMarried 35-Year-Old Male RatesMarried 60-Year-Old Female RatesMarried 60-Year-Old Male Rates
Allstate$774$887$285$298$263$260$243$249
American Family$500$678$191$225$184$185$166$168
Farmers$710$762$246$253$213$213$195$204
GEICO$471$523$198$189$192$193$187$190
Liberty Mutual$968$1,143$330$375$317$321$287$307
Nationwide$480$598$224$241$197$199$178$185
Progressive$724$802$225$230$191$181$166$171
State Farm$496$610$195$213$173$173$156$156
Travelers$776$1,071$194$208$182$183$171$173
USAA$401$449$166$177$129$128$121$121
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We included gender and marital status with age-based auto insurance to show how multiple factors determine car insurance rates at once. And the results show married senior drivers pay the least for auto insurance.

Meanwhile, single teen drivers have more expensive car insurance rates per month. When you turn 25, your insurance rates will start to decrease.

Why is my auto insurance so high at 25 years old?

Your car insurance rates depend on where you buy your policy. Some companies still charge expensive rates even if you are 25 or older.

You can also expect your auto insurance cost to be expensive if you do not have insurance history. A driver without an insurance history is almost like a new driver.

The car insurance company will not know your risk level, so they will give you higher rates until you prove you are a safe driver.

Does a clean driving record provide affordable auto insurance rates?

Yes, it does. You can save up to 35% on car insurance if you maintain a clean driving record. But some auto insurance companies will not provide the maximum savings right away.

Do not worry – we compared the best auto insurance companies in America and compiled their estimates by driving record. Here is what we found:

Average Monthly Auto Insurance Rates by Driving Record and Company
CompaniesMonthly Rates with a Clean Driving RecordMonthly Rates w/ One Speeding ViolationMonthly Rates w/ One AccidentMonthly Rates w/ One DUI Conviction
GEICO$179$220$266$406
American Family$224$252$310$361
Nationwide$229$259$283$379
State Farm$235$266$283$303
Progressive$283$334$398$331
Travelers$287$355$357$478
Farmers$288$340$377$393
Allstate$318$374$416$522
Liberty Mutual$398$475$517$634
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GEICO car insurance is the most affordable until you compare rates for DUI convictions. DUIs drive up your rates by at least 25%.

However, State Farm is the cheapest company for DUI convicted drivers, followed by Progressive and American Family. Meanwhile, Liberty Mutual and Allstate are the most expensive companies regardless of driving record.

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Why is my auto insurance so high with a clean record?

Insurance companies may charge expensive rates regardless of your driving record. This may be because the car insurance company wants to build a trusting contract with the customer.

In other words, the auto insurance company wants to see if you are a safe driver. So, you will need to keep your policy without having any traffic infractions and accidents.

How does credit history affect auto insurance rates?

Your car insurance company may consider your credit history to determine your insurance rates. According to the Federal Trade Commission (FTC), good credit is associated with low risks of filing claims.

Therefore, drivers with good credit pay significantly less than drivers with poor credit. Here is an example of credit-based auto insurance rates.

Average Monthly Credit-Based Auto Insurance Rates by Company
CompaniesMonthly Rates Based on Good CreditMonthly Rates Based on Fair CreditMonthly Rates Based on Bad Credit
USAA$152$185$308
State Farm$181$238$413
GEICO$203$249$355
American Family$224$264$372
Nationwide$244$271$340
Progressive$302$330$395
Farmers$306$325$405
Allstate$322$382$541
Travelers$338$362$430
Liberty Mutual$366$467$734
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USAA is the cheapest company in the United States, but it is only available for members of the U.S. Armed Forces and their families (immediate family). But State Farm and GEICO are the following companies that provide cheap auto insurance.

What is a coverage level, and how does it affect auto insurance rates?

The coverage level is a short way of saying what coverage limits you have on your policy. For example, the minimum car insurance requirement in most states is 25/50/25.

The 25/50/25 is an abbreviation that describes the coverage amounts. Here’s what it means:

  • $25,000 for bodily injury of one person per accident
  • $50,000 for bodily injury of multiple people per accident
  • $25,000 for property damage per accident

These limits correlate to the lowest coverage level. However, a medium coverage level is 50/100/50, and a high coverage level is 100/300/100.

When you raise your coverage level, it increases your car insurance rates. The degree of those rising costs varies for each company.

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What is commute mileage, and how does it change auto insurance quotes?

Commute mileage is another way of saying annual mileage. Car insurance companies use commute mileage to determine how often you drive.

For instance, an auto insurance company asks for annual mileage to determine the distance from your home to your job location. Drivers with high commute mileage usually pay more for car insurance per month.

But if you limit your commutes and choose ride sharing options, you can save at least 5% off car insurance.

How much are auto insurance rates by the state?

Car insurance rates vary for each state. Let’s look at the average auto insurance rates based on the latest National Association of Insurance Commissioners (NAIC) reports.

Average Monthly Auto Insurance Rates by State
StatesAverage Monthly Liability RatesAverage Monthly Collision RatesAverage Monthly Comprehensive RatesAverage Monthly Full Coverage Rates
Alabama$37$28$14$79
Alaska$47$31$12$90
Arizona$48$25$16$89
Arkansas$36$29$17$82
California$45$36$8$88
Colorado$49$25$17$91
Connecticut$59$32$11$102
Delaware$69$28$11$107
District of Columbia$58$41$19$118
Florida$76$26$11$113
Georgia$55$30$14$98
Hawaii$39$27$9$75
Idaho$32$20$10$62
Illinois$40$27$11$77
Indiana$34$22$11$67
Iowa$27$19$16$62
Kansas$32$23$21$76
Kentucky$47$24$12$83
Louisiana$73$37$19$128
Maine$30$23$9$62
Maryland$55$31$13$100
Massachusetts$52$34$12$98
Michigan$72$37$13$121
Minnesota$39$20$16$76
Mississippi$41$29$18$88
Missouri$38$24$16$79
Montana$34$23$21$77
Nebraska$33$21$20$74
Nevada$64$27$10$100
New Hampshire$35$26$9$70
New Jersey$76$33$11$119
New Mexico$44$24$15$84
New York$71$34$15$120
North Carolina$31$26$11$67
North Dakota$25$22$20$67
Ohio$35$24$10$69
Oklahoma$40$27$20$88
Oregon$53$20$8$81
Pennsylvania$43$29$13$85
Rhode Island$68$36$11$116
South Carolina$50$24$16$89
South Dakota$26$19$24$69
Tennessee$37$27$13$77
Texas$49$33$19$101
Utah$45$23$10$78
Vermont$30$26$11$68
Virginia$38$25$12$74
Washington$53$24$9$86
West Virginia$43$28$18$88
Wisconsin$33$20$12$65
Wyoming$29$24$23$75
National Average$48$29$13$90
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Michigan and Louisiana are the most expensive states in America. Meanwhile, Iowa and Maine are the cheapest states in the nation.

Why is my auto insurance deductible so high?

You can choose your deductible, but car insurance companies may recommend a deductible amount. Deductibles are from $0 to $1,000. Higher deductibles produce cheaper rates, but low deductibles generate more expensive rates.

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How much are auto insurance rates based on vehicle make?

The car you drive is a significant factor that determines insurance rates.  Some vehicles are statistically less likely to endure severe damage during an accident, such as Ford F-150s and GMC Sierras.

Also, auto insurance companies consider the value of your vehicle. Cars with higher values often produce more expensive insurance rates.

Let’s look at the average cost of car insurance for the most popular cars in the United States.

Monthly Auto Insurance Rates by Vehicle and Coverage Option
VehiclesMonthly Comprehensive RatesMonthly Collision RatesMonthly Liability RatesMonthly Full Coverage Rates
Ford F-150$26$38$33$109
Chevrolet Silverado 1500 $26$45$37$122
Honda Civic$22$53$37$127
Honda Accord$22$40$33$108
Toyota Camry$25$48$33$118
Nissan Altima$26$48$33$119
GMC Sierra 1500$27$48$33$120
Toyota Corolla$25$45$33$115
Honda CR-V$22$33$28$94
Dodge RAM$29$45$37$126
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The Honda Civic is the most expensive vehicle, but the Honda CR-V is the cheapest. But Ford F-150 has the most affordable auto insurance for trucks.

Your car insurance rates will vary, though. The latest vehicles have higher values and costly rates, but older models have more affordable rates.

Why is my auto insurance quote so high after adding a vehicle?

Some vehicle types can produce more expensive rates. Sedans (passenger cars) are more likely to encounter car accidents, so insurance rates for most of those cars are more expensive than average.

If you have a luxury or sports car, your rates could be even more costly per month. Use the VIN during the quote process to narrow car insurance costs.

How do I get cheaper auto insurance rates?

You can secure cheaper rates through car insurance discounts. When you get a quote, do not buy it right away.

Speak with an agent over the phone or in person and ask about deals you can add to your auto insurance quote. Some of the best discounts include a safe driver discount and a good credit discount.

You can get safe driver (also called a defensive driver discount) discounts when you have a clean driving record. Some companies provide savings up to 35%.

A good credit discount provides at least 20% off your car insurance bill, too. However, each company is different when calculating how much you save.

See what other discounts are available and stack as many as you can to save hundreds of dollars per year.

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Why is my auto insurance so high: The Bottom Line

Specific factors increase your car insurance rates, such as a bad driving record, poor credit, and no insurance history. The good news is that each of these areas can improve over time.

In the meantime, focus on getting any available discounts. If you cannot get any deals from an insurance company, you can always shop around until you find a company with reasonable auto insurance rates.

Now that you know why auto insurance is so high, use our free online quote tool to find the most affordable insurance companies in your area.

Frequently Asked Questions: Why is my auto insurance so high?

Do you want to learn more about why auto insurance is so high? Read these answers to frequently asked questions to learn more.

#1 — What can I do if my auto insurance is too expensive?

You take off specific coverage options to save money. For example, you can switch to liability-only coverage and save 53% on car insurance.

#2 — Is $500 a month too much for auto insurance?

It depends on your personal factors. If you have a clean driving record and a steady car insurance history, $500 may be too expensive. Shop around until you can find affordable rates.

#3 — Which type of auto insurance should you avoid?

Do not buy car insurance coverage that you do not need. For instance, a person with a 20-year-old vehicle should not get full coverage insurance.