Average Cost of Car Insurance 2026

Written by  Carol Pope

Edited by  Naomi Barr

+ 1 More

Updated Sep 04, 2026

In 2026, the average cost of full coverage car insurance is $177 a month, or $2,124 a year. For minimum coverage, drivers pay about $68 a month, or $816 a year.

Although your price will vary based on your personal info, comparing average car insurance rates can help you see if you’re overpaying for coverage.

Average car insurance rates by state

Vermont is the cheapest state in the country for full coverage car insurance. Nevada is the most expensive. In these states, drivers pay a monthly rate of $101 and $280, respectively. 

Where you live has a huge impact on how much you pay for car insurance. Car insurance companies will charge higher or lower rates depending on factors like: 

A state’s car insurance requirements also impact the average price of a policy. Some states require a lot less liability coverage than others. That can help drivers get a cheaper rate than they would in other states, albeit for less coverage. 

Cheapest car insurance companies in each state

According to our data, in roughly half of U.S. states, either State Farm or Travelers typically has the lowest average rates for most drivers. But be sure to compare quotes from a wide range of companies. That way you can figure out which insurance companies are cheapest in your area.

While some other major companies might be cheaper, smaller regional insurers can also offer better prices because they specialize in the risks in your area. 

Average car insurance rates by company

Of the companies we analyzed, Erie and USAA were among the cheapest for car insurance. However, Erie is only available in Washington, D.C., and 11 states , and you primarily have to be affiliated with the military to qualify for USAA . 

Company		Minimum coverage	Full coverage	LendingTree score
	Erie	$44	$131	4/5
	Country Financial	$61	$134	5/5
	Travelers	$59	$135	4.5/5
	State Farm	$56	$144	4.5/5
	American Family	$51	$146	4/5
	Auto-Owners	$51	$154	5/5
	Progressive	$69	$160	4/5
	Geico	$65	$173	3.5/5
	Nationwide	$76	$190	3/5
	Farm Bureau	$57	$195	4/5
	Amica	$107	$235	3.5/5
	Allstate	$104	$248	3/5
	AAA	$93	$255	2.5/5
	Farmers	$101	$258	3/5
	USAA**	$39	$125	4/5

Average car insurance rates by driving record

Insurance companies use historical data to make predictions about how likely it is that a claim is in your future. A bad driving record is a red flag to an insurance company and can adversely affect your rate for three to five years — and sometimes 10 years or more, in the case of DUIs.

Average car insurance rates for teen Drivers

Based on 2026 car insurance rate data, car insurance for teens is the most expensive of all the groups we analyzed. Drivers ages 16 to 19 have the highest accident risk of any other age group, according to the U.S. Centers for Disease Control and Prevention. Inexperience and risky behavior leads to much higher car insurance premiums. 

An 18-year-old driver pays an average of $497 a month for full coverage car insurance and $208 for minimum coverage. In both cases, that’s about 200% more than the average rates for a 30-year-old driver.

Average car insurance rates for bad credit

Insurers typically find bad credit riskier than a DUI.

The average monthly full coverage insurance rate for a driver with bad credit is $345. That’s 5% higher than the average DUI rate, and it’s 95% more than someone with a clean record pays. 

In most states, insurance companies are allowed to use credit-based insurance scores to help determine your car insurance premium. While not the same as your FICO Score, credit-based insurance scores typically use the same factors, like your payment history.

Cheapest car insurance companies for bad credit

American Family has the lowest average rates for drivers with bad credit. Its monthly rate is $241, making it 30% cheaper than average. Travelers may also be a good choice. On average, it’s only about $8 more a month than American Family.

What to do when your car insurance rate goes up

Nearly 60% of drivers say car insurance is a burden, according to a LendingTree survey. No doubt it is frustrating when your car insurance goes up even when your driving record or car hasn’t changed. 

If you’re struggling to keep up with the rising cost of car insurance, here are five things you can do that might help: 

Get quotes from at least 3 companies

Shop around every time your policy renews, even if your rate didn’t go up. Insurance companies update their rates regularly, so a company that was expensive in the past might be the cheapest option for you now. 

Review your coverage

You may be paying for coverages that no longer make sense — like gap insurance on a fully owned car. Some drivers also drop collision coverage once their car is at least 10 years old. As a car’s value declines, the potential payout may no longer justify years of premiums and the deductible. 

Lowering your liability limits, however, is not ideal. Even minor accidents can mean expensive medical and car repair bills. If you’re at fault and you don’t have enough liability coverage to pay for the other party’s damages, you’re on the hook for the difference.

Raise your collision deductible

Raising your collision deductible can save money. But be careful not to set it too high to avoid financial strain after an accident. And if you have an auto loan, most lienholders don’t allow deductibles above $1,000.

Raising your comprehensive deductible should also bring down your premium, but probably not by much. Comprehensive is generally inexpensive, so it may be best to leave as is.

Check your annual mileage

The more you’re on the road, the more likely it is that you could be involved in an accident. That’s why lower-mileage drivers usually pay lower premiums. 

If you work from home and do little traveling, then pay-per-mile insurance could reduce costs. There are some downsides — like having to track your driving with a plug-in device or app — but a LendingTree survey found that 66% of drivers are willing to share data to get a lower rate. 

Improve your credit score

Drivers with poor credit often pay higher premiums than drivers with a DUI. If you’ve improved your credit score and you live in a state that allows credit-based insurance scores, it may be worth checking your insurance rates again.

Insurance companies don’t always update your credit information automatically, so you may need to ask your current insurer if it can review your policy using your updated credit information. You can also compare quotes from other insurers, which should reflect your new credit score.

Methodology

LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of hundreds of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.

Coverage limits

Minimum liability policies provide liability coverage with the state’s required minimum limits.

Full coverage policies include collision, comprehensive and liability coverage:

How we create LendingTree ratings

Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third-party customer service ratings and app/website experience. We weighted these categories based on what customers value in an insurance company.

For third-party customer service ratings, we included Complaint Index scores from the National Association of Insurance Commissioners (NAIC) and financial strength ratings from AM Best. NAIC Complaint Index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from AM Best reflect the ability to pay out claims.

See our car insurance ratings methodology and full editorial guidelines for further details. 

** USAA is only available to current and former members of the military, spouses and children of USAA members, and employees of certain federal agencies.