How Much is Car Insurance in 2022?
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One of the largest deciding factors for drivers needing to purchase car insurance is the price. Auto insurance premiums vary greatly depending on several factors including the insurance company, your demographic background and driving history.
In 2022, along with many other costs it’s expected that the average cost of car insurance will rise, meaning now is the perfect time to take a look at what’s happening in the insurance industry.
How much is car insurance in 2022? Keep reading to find out.
What Factors Impact the Price of Your Car Insurance?
Car insurance providers use several factors to determine how much you pay for car insurance. Here are some of the most common factors insurers consider:
- Location: Insurance prices vary by state, but they can also change depending on your zip code. If the area you live in is a busy, urban city with higher theft rates, you’ll pay more for car insurance. However, you’ll pay less for auto insurance if you live in a small, rural town with low crime rates, for example.
- Driving History: Your driving record is one of the most important factors in determining the cost of your insurance premium. Drivers with a spotty driving history full of traffic violations or tickets are classified as “high-risk drivers” by their insurance companies. As a result, you’ll pay more for insurance than a driver with a clean record.
- Credit Score: Although this factor is controversial, many states allow insurers to use your credit score when determining car insurance rates. On average, drivers with lower credit ratings are more likely to file a claim with their insurer, so they pay more for auto insurance than drivers with higher credit scores.
- Age: Until the age of 25, younger drivers should expect to pay more for car insurance due to inexperience and increased accident risk. In addition, drivers will start to see higher rates when they reach retirement age, as insurers begin to view them as a higher-risk population.
- Gender: You’ll find that car insurance rates are generally higher for men than women, as men are more likely to engage in risky driving practices. Keep in mind that the disparity in cost shrinks as you age. You’ll see the biggest difference in cost in drivers aged 16-25.
- Marital Status: Car insurance rates typically decline once you get married, and couples often save further by combining their policies and qualifying for a multi-car discount.
Why is My Car Insurance Rising in 2022?
The cost of living is increasing throughout the United States. This can be seen in just about everything from the price of groceries to gas to car insurance. Auto insurance premiums are increasing due to inflation, supply chain disruptions, labor shortages and drivers returning to pre-Covid driving habits. But beyond these reasons, here are some more specific car and driving insurance related reasons why you might be seeing a rate increase.
- You had a collision in 2021: Whether you were at fault or not, being involved in a collision can cause your rates to rise.
- You received a ticket in 2021: Receiving a ticket for a moving violation goes on your driving record, and this results in a rate increase.
- You moved to a new city: Changing zip codes will increase your insurance premium if your new city has a higher crime rate or more traffic.
- There was a lapse in your car insurance: If you fail to meet the minimum requirements for coverage in your state, this is seen as a lapse in insurance, which drives up your premium.
- Your discounts are expiring: Many discounts and deals offered to drivers expire over time, such as the good student discount upon graduation from college.
- You provided inaccurate information: Avoid providing inaccurate information to your insurance provider. When they perform a background check, this will reveal issues with your information, and your insurer will certainly increase your premium.
How Much Does Car Insurance Cost by Company?
Each insurance company has its own method of calculating your monthly premium, so if you get quotes from different insurance companies you’ll likely receive widely different prices. We recommend shopping around to get the best rates for a policy that matches your needs in order to make the best decision.
Here are auto insurance rates for state minimum coverage and full coverage insurance from some well-known auto insurance companies.
|Insurance Company||State Minimum Coverage Cost (Annual)||Full Coverage Cost (Annual)|
As the table shows, Geico is the cheapest option for both minimum coverage and full coverage insurance, while Farmers is the most expensive option. While these are the average prices for car insurance for most Americans, you want to get personalized quotes to see what you could be paying for your insurance.
Be sure to compare rates to find the most affordable option for you and your family. You can get started by entering your zip code below and we’ll compare rates from 60+ insurance companies in a matter of minutes.
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Average Car Insurance Costs by State 2022
Where you live is an important factor for car insurance rates. Even within the same state, drivers in different zip codes can get different quotes from car insurance providers.
Here are the average car insurance costs for state minimum and full coverage insurance by state:
|State||State Minimum Coverage Cost (Annual)||Full Coverage Cost (Annual)|
As you can see, the state you live in can have a major impact on how much you pay for car insurance.
New York ($1,828), Michigan ($1,908), and New Jersey ($1,287) offer some of the most expensive auto insurance premiums in the country when you look at the cost for state minimum coverage. On the other end, Vermont ($341), Wyoming ($274), Iowa ($326), and South Dakota ($326) charge the least for state minimum auto insurance.
Is Auto Insurance Required in Every State?
Except for Virginia and New Hampshire, every state in the country requires drivers to have a minimum amount of liability insurance before getting behind the wheel. Depending on your state, you may also need to hold additional types of coverage, such as uninsured and underinsured motorist coverage and personal injury protection (PIP).
While some drivers choose to stick to their state’s minimum requirements to save money on auto insurance, this could be risky. With the low levels of protection that many states require, an accident could leave you without the protection you need. To avoid a costly situation, it’s recommended that you purchase enough insurance coverage to protect your assets.
Average State Minimum Car Insurance Cost
The state minimum coverage requirements vary by state. Many drivers choose this more affordable coverage option just to ensure they have enough insurance to drive legally. Driving without insurance will usually result in a fine, suspended license — or worse — so it’s best to at the bare minimum maintain this coverage level.
The average cost of car insurance for state minimum coverage in the United States is $60 a month. This gives you a general estimate of what you can expect to pay, but factors like your vehicle, gender, age, or location could lead to you paying more or less.
The best way to know how much you should be paying for state minimum car insurance is to compare rates between different companies. You can get started by entering your zip code below.
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Average Full Coverage Car Insurance Cost
When you want more coverage than the state minimum, that’s when full coverage car insurance comes into play. Full coverage car insurance is typically recommended when you have a costly vehicle or one that is still being financed by a lease or loan.
You may also choose to add additional coverage such as GAP insurance to your full coverage insurance policy.
On average, drivers looking to secure full coverage insurance will pay $166 a month for their premium. While this is certainly more costly than state minimum insurance, it can pay off in the long run by reducing how much you pay out of pocket in the event of an accident.
Cost of Car Insurance by Vehicle Age
The age of your vehicle can have a direct impact on how much you pay for auto insurance.
This chart details average monthly car insurance costs for vehicles that are brand new up to 15+ years old.
|Cost By Vehicle Age||Average Monthly Premium|
|Less than 1 Year||$86|
As you can see, insurance rates remain fairly steady up until they’re 6 years old. At that point, rates begin to drop and that trend continues. On average, vehicles less than one year old will pay $86/mo for insurance, while those 15 years or older will pay $10 less at $76/mo.
Cheapest Cars to Insure in 2022
If you’re on the market for a new vehicle, consider that the type of car you drive can help you save on your insurance premium. Even if you’re not in the market for a new vehicle, but you want to lower your premiums, you might consider trading in your car for something that costs a bit less to insure.
Since the type of vehicle you drive directly impacts your car insurance rates, choosing a cheap car to insure is the first step in finding a great deal on auto insurance.
Drivers will find that pickup trucks, station wagons, and SUVs are the most affordable cars to insure due to their sturdy nature and inexpensive parts.
If you know what kind of cars to look for (and which ones to avoid), you can save some serious cash on your insurance premiums this year. Here are the cheapest cars to insure in 2022:
- Ford Escape: $118 per Month
- Jeep Renegade: $127 per Month
- Toyota Tacoma: $132 per Month
- Honda CR-V: $136 per Month
- Kia Soul: $137 per Month
- Chevrolet Silverado: $138 per Month
- Buick Encore: $140 per Month
- Kia Sportage: $140 per Month
- Ford F-150: $144 per Month
- Mazda CX-5: $148 per Month
Most Expensive Cars to Insure in 2022
Now that we’ve taken a look at the cheapest cars to insure, let’s see which cars fall on the more expensive side of the car insurance spectrum. In general, sporty cars like convertibles and coupes will cost more to insure since they’re associated with faster and reckless driving. However, some sedans may also be more expensive, as they’re popular and even more likely to be stolen.
While this doesn’t necessarily mean that you should avoid these cars at all costs, drivers looking to save money on car insurance may want to consider this before purchasing one of the cars on this list.
Here are the most expensive cars to insure in 2022:
- Dodge Charger: $239 per Month
- Honda Accord: $232 per Month
- Tesla Model: $227 per Month
- Dodge Challenger: $207 per Month
- Nissan Altima: $206 per Month
- Honda Civic: $198 per Month
- Nissan Sentra: $196 per Month
- Hyundai Elantra: $190 per Month
- Hyundai Sonata: $185 per Month
- Chevrolet Malibu: $184 per Month
Car Insurance Rates for Married Drivers vs. Single Drivers
Your relationship status can have a direct impact on your car insurance rate.
|Cost By Relationship Status||Average Monthly Premium|
If you tied the knot in 1982, 2002, or 2022, you can expect to save money on your monthly premium. As you can see in the table, married drivers pay an average of $20 less per month than single drivers. In one year, that equals a savings of at least $240!
Car Insurance Rates for Young Drivers
Teen drivers and young drivers fall into a high-risk category in the eyes of insurance providers due to their lack of driving experience. As a result, they’ll generally pay more for car insurance than drivers with more experience on the road.
On average, drivers around 16 years of age can expect to pay around $3,341 a year in car insurance, while drivers at 25 will pay $862. This stark difference is because drivers will generally see a dip in auto insurance costs when they reach 25 years old.
Car Insurance Costs for Older Drivers
Although older drivers will enjoy reasonable insurance premiums throughout their adult lives, they start to see an uptick in price when they reach the retirement age of 65. On average, drivers 65 and older will pay $734 a year for auto insurance.
Car Insurance Costs by Credit Score
Did you know your credit score can either help or hurt you in terms of how much you pay for auto premiums? Drivers with good credit pay an average of $716 for their yearly premium, while those with bad credit will pay almost double at $1,221 a year. That’s a difference of $505 a year!
Car Insurance Rates Based on Your by Living Situation
You might be surprised to know that your living situation can impact the cost of your auto insurance. Here’s a breakdown of car insurance premiums for drivers who rent, own a home, or live with their parents.
|Cost By Housing Situation||Average Monthly Premium|
|Live with Parents||$99|
As you can see, drivers who own a home pay about 15% less than drivers who rent their home or apartment. Drivers who live with their parents pay $27 more than those who own and $15 more than drivers who rent. This disparity could be attributed to the fact that younger drivers are more likely to live at home, and this high-risk group faces more expensive rates. Also, insurance companies may see drivers who own a home as more responsible or unlikely to engage in dangerous driving behaviors and therefore charge more affordable rates.
Common Car Insurance Discounts
No one wants to pay full price for car insurance. This is why it’s essential to know about all the discounts you might be eligible for to lower the cost of auto insurance.
This list gives a brief overview of some of the most common car insurance discounts that drivers can earn. Ultimately, you want to speak with your current or potential auto insurance company to find a list of all discount opportunities they have.
- Good Student Discount: If you’re a high school or college student you can save money on auto insurance by simply getting good grades. Most insurers require students to maintain a B average or 3.0 GPA to qualify for this discount.
- Multi-Policy Discount: Insurance companies offer discounts for drivers with a homeowners or renters policy who combine with their auto insurance policy. You can save up to 25% on your insurance premium with this discount.
- Multi-Car Discount: Do you have multiple vehicles you need to insure? If so, putting them on the same policy can result in 25% or more savings on your insurance premium.
- Good Driver Discount: Safe drivers will be happy to know that insurance companies reward you for your good driving. If you haven’t had a ticket or accident for three years or more, you may qualify for a discount ranging between 10%- 40%. They may also use a telematics device to track your driving habits. This program can score you a discount of up to 30% on your policy.
- Payment Discounts: One of the easiest ways to qualify for a payment discount is to pay for your policy in full or two lump sums. Some insurance companies offer discounts for drivers who sign up for automatic payments or a paperless discount when you choose to receive all your statements online.
- Anti-Theft Discount: Taking measures to protect your vehicle can get you a 15%-20% discount on car insurance. Installing features like a car alarm or vehicle tracking system can qualify you for this discount.
- Usage-Based Discount: If you’re someone who drives less than 7,500 miles per year, you might qualify for a usage-based discount or pay-per-mile car insurance. This type of insurance uses a device to track how many miles you drive per month. Your premium is then calculated using a low base rate combined with costs based on your mileage.
- Accident-Free Discount: Insurance companies reward drivers with no accidents on their record. If you’ve been at-fault accident-free for three years or more, you can enjoy a discount of up to 30% on your insurance premium. Drivers with accident forgiveness can continue enjoying this discount even after they’ve been in an at-fault collision.
- Safe Driving Class Discount: Taking a defensive driving class could save you up to 10% on car insurance. Before choosing a course, check to ensure it’s state-approved and one your insurance company will accept.
How to Find Cheap Car Insurance in 2022
By now, you’ve probably figured out that although you can get an estimate of your car insurance costs, each driver’s situation is different.
However, you can do a few things to find affordable car insurance that gives you the coverage you need to drive safely.
- Review Your Policy: If you have an existing insurance policy, take time to review your policy with your agent. Find out all the ins and outs of your coverage levels, limits, and any discounts you qualify for. Make a note of your policy’s effective dates and when your renewal dates are. If your renewal date is coming up soon, it’s time to prep yourself for an increase or start shopping for a cheaper policy.
- Shop Around: If you’re given your 2022 policy renewal and notice that there’s been an increase, this is the perfect time to start shopping around with other insurers. While you want to give your existing company a chance to lower your rates or see if you qualify for discounts, don’t be afraid to check out the competition. Getting quotes from a few companies can help you find a lower premium with a policy that meets your needs.
- Use Discounts: Several discounts are available to drivers from all walks of life. Reviewing your current discounts can give you ideas on areas you can save with your current insurer. If you’re shopping around, ask each insurance company what discounts they offer and how that will affect your premium.
In an effort to secure cheap car insurance in 2022, you certainly want to compare auto insurance rates. We can help you compare rates of 65+ insurance companies in a matter of minutes.
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Frequently Asked Questions
Will car insurance go up in 2022?
Yes, the average car insurance rate is expected to rise in 2022.
How much does car insurance cost each year?
The average driver will pay $1,592 per year in auto insurance. If you spread this payment over 12 months, you can expect to pay around $133 per month. Keep in mind that a rate like this is only extended to drivers with good credit, and rates can vary wildly based on various factors.
How much should I pay for full coverage car insurance?
The national average for full coverage car insurance falls at $166 per month. While this is the average, you may find yourself paying more (or less) based on factors like your driving record, credit score, or zip code.
Are car insurance rates rising every year?
It’s safe to say that car insurance rates are rising every year in some states, but in others, rates have seen a steady decline.
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