Car insurance prices are up for drivers nationwide. And many of the reasons why are out of your control, like the increasing number of fatal car accidents on the road or the frequency of natural disasters and their impact on auto insurance claims. But you can minimize the impact on your bank account if you compare car insurance rates to find a policy that fits your budget.
Comparing car insurance rates is the best way to ensure you’re getting the best price on something you’re probably required to have. But while most insurers look at the same factors to determine pricing, each one has their own “secret sauce” when it comes to setting rates. That’s why two companies can charge wildly different rates for the same driver.
Compare car insurance rates
It’s hard to determine which factors have the most impact on your car insurance rate. As we mentioned earlier, the formulation of rates is a lot like the “secret sauce” that most restaurants put on burgers and sandwiches — the ingredients may be the same, but the mixtures are always a little different. We can tell you what most of those ingredients are, but we can’t tell you which one is most important with a particular insurer.
Each insurance company evaluates personal factors in its own way and keeps its methods as hidden as possible. But to help you find the best price for the insurance you want, we can show you average annual rates for minimum and full coverage car insurance. To help narrow it down even further, we’ve shared average rates for drivers with various driving experiences and credit histories in every state and for every major auto insurance company.
Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.
Compare car insurance rates by age
Your age can have a big effect on your car insurance rate. For example, you might already know teen drivers have some of the highest car insurance rates on average, but they aren’t the only ones. Although your rates will likely decrease once you hit your thirties, most drivers tend to see higher rates once they reach their 70s.
Below are the average costs of full and minimum coverage, by age, for drivers with good credit and a clean driving history.
| Age | Average cost of full coverage | Average cost of minimum coverage |
|---|---|---|
| 20 | $4,196 | $1,450 |
| 30 | $2,220 | $704 |
| 35 | $2,148 | $685 |
| 40 | $2,090 | $672 |
| 50 | $1,940 | $634 |
| 60 | $1,867 | $621 |
| 70 | $2,052 | $709 |
Compare car insurance rates for 20-year-olds
Drivers around the age of 20 typically get higher car insurance rates because they are more likely to get into accidents than older drivers, on average.
To get more insight into how your age affects your car insurance, we compiled average annual rates from nine of the 10 largest private passenger auto insurers in the country based on market share data from the National Association of Insurance Commissioners. Data for Liberty Mutual was not available.
Average annual rate for 20-year-olds, by company
Rates vary from company to company. For example, full coverage from State Farm for a 20-year-old costs $3,194 a year, on average, while the average price from Allstate is $5,515.
Dive deeper below by comparing annual rates for 20-year-olds by state. Rates are averaged across the country separately for full and minimum coverage.
| Company | Full coverage | Minimum coverage |
|---|---|---|
| Allstate | $5,515 | $1,564 |
| American Family | $2,729 | $1,423 |
| Farmers | $4,647 | $1,697 |
| Geico | $3,725 | $1,177 |
| Nationwide | $4,759 | $1,686 |
| Progressive | $3,977 | $1,369 |
| State Farm | $3,194 | $1,114 |
| Travelers | $3,506 | $1,035 |
| USAA* | $2,374 | $749 |
Average annual rate for 20-year-olds, by state
Average car insurance rates for a 20-year-old driver vary significantly from state to state. Some states, like Hawaii and North Carolina, have average rates under $1,800 a year for full coverage. In other states, such as Louisiana and Rhode Island, car insurance costs more than $7,000 a year, on average, for the same driver.
See how your state stacks up below.
| State | Full coverage | Minimum coverage |
|---|---|---|
| Alabama | $4,701 | $1,515 |
| Alaska | $3,408 | $1,002 |
| Arizona | $4,319 | $1,525 |
| Arkansas | $4,385 | $1,375 |
| California | $3,042 | $939 |
| Colorado | $5,455 | $1,507 |
| Connecticut | $5,567 | $2,412 |
| Delaware | $6,277 | $2,420 |
| Florida | $6,372 | $1,596 |
| Georgia | $5,080 | $1,894 |
| Hawaii | $1,640 | $495 |
| Idaho | $2,810 | $921 |
| Illinois | $3,786 | $1,312 |
| Indiana | $2,991 | $1,045 |
| Iowa | $2,904 | $691 |
| Kansas | $4,356 | $1,266 |
| Kentucky | $6,821 | $2,400 |
| Louisiana | $7,104 | $2,717 |
| Maine | $3,092 | $1,173 |
| Maryland | $5,941 | $2,499 |
| Massachusetts | $3,148 | $1,096 |
| Michigan | $6,394 | $2,106 |
| Minnesota | $3,521 | $1,247 |
| Mississippi | $3,919 | $1,249 |
| Missouri | $5,428 | $1,636 |
| Montana | $5,529 | $1,273 |
| Nebraska | $3,862 | $986 |
| Nevada | $5,903 | $2,501 |
| New Hampshire | $3,662 | $1,202 |
| New Jersey | $5,801 | $2,141 |
| New Mexico | $4,166 | $1,249 |
| New York | $4,950 | $2,155 |
| North Carolina | $1,776 | $677 |
| North Dakota | $3,684 | $999 |
| Ohio | $3,052 | $1,176 |
| Oklahoma | $4,672 | $1,290 |
| Oregon | $3,719 | $1,771 |
| Pennsylvania | $3,982 | $1,183 |
| Rhode Island | $7,975 | $3,056 |
| South Carolina | $5,358 | $2,143 |
| South Dakota | $3,139 | $663 |
| Tennessee | $4,267 | $1,295 |
| Texas | $5,149 | $1,834 |
| Utah | $4,932 | $1,908 |
| Vermont | $3,429 | $850 |
| Virginia | $4,092 | $1,511 |
| Washington | $3,635 | $1,445 |
| Washington, D.C. | $4,327 | $1,622 |
| West Virginia | $4,549 | $1,348 |
| Wisconsin | $3,487 | $1,004 |
| Wyoming | $3,186 | $646 |
Compare auto insurance rates for 35-year-olds
Because drivers around the age of 35 get in fewer accidents than younger drivers, they typically can get lower car insurance rates than 20-somethings.
Average annual rate for 35-year-olds, by company
Aside from USAA (which is only available to military, veterans and their families), State Farm provides the lowest price for full coverage for 35-year-olds, at $1,431, on average.
Allstate comes in the highest at $3,110, on average.
The chart below compares national average annual car insurance rates for 35-year-olds by company. Keep in mind that not all of these companies are available in every state.
| Company | Full coverage | Minimum coverage |
|---|---|---|
| Allstate | $3,110 | $933 |
| American Family | $1,547 | $774 |
| Farmers | $2,807 | $939 |
| Geico | $2,009 | $603 |
| Nationwide | $2,016 | $673 |
| Progressive | $2,075 | $744 |
| State Farm | $1,431 | $450 |
| Travelers | $1,751 | $568 |
| USAA* | $1,120 | $341 |
Average annual rate for 35-year-olds, by state
While average car insurance rates fluctuate by state, 35-year-olds in several states — including Idaho, Maine, Massachusetts and Vermont — can pay less than $1,400 a year, on average, for full coverage policies. Similar drivers in other states could pay up to $3,300 a year for full coverage, on average.
Only two states have rates higher than $3,300 a year for 35-year-old drivers with full coverage car insurance: Florida, Kentucky and Louisiana.
See how your state stacks up below.
| State | Full coverage | Minimum coverage |
|---|---|---|
| Alabama | $2,269 | $681 |
| Alaska | $1,955 | $475 |
| Arizona | $2,155 | $711 |
| Arkansas | $2,160 | $569 |
| California | $1,659 | $506 |
| Colorado | $2,698 | $636 |
| Connecticut | $2,604 | $1,070 |
| Delaware | $2,601 | $1,031 |
| Florida | $3,605 | $1,006 |
| Georgia | $2,509 | $845 |
| Hawaii | $1,631 | $492 |
| Idaho | $1,349 | $408 |
| Illinois | $1,747 | $554 |
| Indiana | $1,433 | $463 |
| Iowa | $1,596 | $328 |
| Kansas | $2,290 | $631 |
| Kentucky | $3,357 | $1,073 |
| Louisiana | $3,399 | $1,063 |
| Maine | $1,323 | $483 |
| Maryland | $2,998 | $1,136 |
| Massachusetts | $1,394 | $480 |
| Michigan | $3,229 | $1,103 |
| Minnesota | $1,931 | $701 |
| Mississippi | $1,950 | $563 |
| Missouri | $2,706 | $738 |
| Montana | $2,831 | $534 |
| Nebraska | $1,788 | $422 |
| Nevada | $3,058 | $1,147 |
| New Hampshire | $1,557 | $494 |
| New Jersey | $2,809 | $1,146 |
| New Mexico | $2,127 | $576 |
| New York | $2,600 | $1,180 |
| North Carolina | $1,487 | $565 |
| North Dakota | $1,869 | $513 |
| Ohio | $1,423 | $502 |
| Oklahoma | $2,438 | $589 |
| Oregon | $1,888 | $905 |
| Pennsylvania | $2,266 | $544 |
| Rhode Island | $3,300 | $1,272 |
| South Carolina | $2,715 | $965 |
| South Dakota | $1,593 | $318 |
| Tennessee | $1,997 | $554 |
| Texas | $2,398 | $774 |
| Utah | $2,240 | $855 |
| Vermont | $1,376 | $361 |
| Virginia | $1,922 | $682 |
| Washington | $1,759 | $617 |
| Washington, D.C. | $2,260 | $819 |
| West Virginia | $2,075 | $616 |
| Wisconsin | $1,683 | $465 |
| Wyoming | $1,553 | $289 |
Compare car insurance rates for drivers with a DUI
After a DUI, your auto insurance rate will go up — in some cases by 75% or more. But one thing you can control is your choice of insurance company. A DUI can affect car insurance rates for 3 to 10 years, so it’s a good idea to shop around for the best price after getting a DUI.
Average annual rate for drivers with a DUI, by company
Below you can compare average car insurance rates from different companies for 35-year-olds before and after a DUI. Keep in mind that not all of these options are available in every state.
| Company | Drivers with a clean record | Drivers with a DUI |
|---|---|---|
| Allstate | $3,110 | $4,190 |
| American Family | $1,547 | $1,977 |
| Farmers | $2,807 | $3,838 |
| Geico | $2,009 | $4,464 |
| Nationwide | $2,016 | $4,287 |
| Progressive | $2,075 | $2,623 |
| State Farm | $1,431 | $2,370 |
| Travelers | $1,751 | $2,807 |
| USAA* | $1,120 | $2,159 |
Average annual rate for drivers with a DUI, by state
In Alaska, the average insurance cost for drivers with a recent DUI is 37% higher, on average, than for similar drivers with no incidents — $726 more a year, in fact. However, a DUI in North Carolina almost tripled average rates in our analysis, adding more than $4,000 to the annual cost of full coverage car insurance for 35-year-old drivers.
See below for how your state measures up.
| State | Drivers with a clean record | Drivers with a DUI |
|---|---|---|
| Alabama | $2,269 | $3,942 |
| Alaska | $1,955 | $2,681 |
| Arizona | $2,155 | $3,578 |
| Arkansas | $2,160 | $3,292 |
| California | $1,659 | $3,682 |
| Colorado | $2,698 | $4,702 |
| Connecticut | $2,604 | $7,511 |
| Delaware | $2,601 | $4,922 |
| Florida | $3,605 | $5,187 |
| Georgia | $2,509 | $4,612 |
| Hawaii | $1,631 | $3,176 |
| Idaho | $1,349 | $2,173 |
| Illinois | $1,747 | $3,248 |
| Indiana | $1,433 | $2,909 |
| Iowa | $1,596 | $2,780 |
| Kansas | $2,290 | $3,518 |
| Kentucky | $3,357 | $6,769 |
| Louisiana | $3,399 | $6,311 |
| Maine | $1,323 | $2,680 |
| Maryland | $2,998 | $4,966 |
| Massachusetts | $1,394 | $2,618 |
| Michigan | $3,229 | $8,297 |
| Minnesota | $1,931 | $3,241 |
| Mississippi | $1,950 | $3,451 |
| Missouri | $2,706 | $4,134 |
| Montana | $2,831 | $3,993 |
| Nebraska | $1,788 | $3,424 |
| Nevada | $3,058 | $4,913 |
| New Hampshire | $1,557 | $3,483 |
| New Jersey | $2,809 | $5,395 |
| New Mexico | $2,127 | $3,116 |
| New York | $2,600 | $4,371 |
| North Carolina | $1,487 | $5,527 |
| North Dakota | $1,869 | $3,468 |
| Ohio | $1,423 | $2,941 |
| Oklahoma | $2,438 | $3,981 |
| Oregon | $1,888 | $3,434 |
| Pennsylvania | $2,266 | $4,264 |
| Rhode Island | $3,300 | $6,966 |
| South Carolina | $2,715 | $4,263 |
| South Dakota | $1,593 | $3,020 |
| Tennessee | $1,997 | $4,187 |
| Texas | $2,398 | $3,642 |
| Utah | $2,240 | $3,463 |
| Vermont | $1,376 | $3,296 |
| Virginia | $1,922 | $3,856 |
| Washington | $1,759 | $2,970 |
| Washington, D.C. | $2,260 | $3,714 |
| West Virginia | $2,075 | $4,221 |
| Wisconsin | $1,683 | $2,894 |
| Wyoming | $1,553 | $2,830 |
While your car insurance rate will almost always increase after a DUI, it’s clear that the amount it increases will depend partially on where you live.
Compare auto insurance rates for drivers with poor credit
Your credit history is one of the largest factors affecting your car insurance rate. (California, Hawaii, Massachusetts and Michigan don’t allow insurers to use credit when determining car insurance rates.) Carriers use credit history to determine how likely you are to file a claim.
Average annual rate for drivers with poor credit, by company
While rates may double for some drivers with poor credit, know that every company considers credit differently. In fact, an insurance company may evaluate your credit differently depending on which state you live in.
Drivers with poor credit insured by Allstate and Nationwide could pay an average of 42% more a year in our analysis compared with similar drivers with good credit. Meanwhile, State Farm’s average price for full coverage more than doubles for drivers with poor credit compared with those with good credit.
Below you can compare average full coverage rates for 35-year-old drivers with poor credit by company.
| Company | Drivers with good credit | Drivers with poor credit |
|---|---|---|
| Allstate | $3,110 | $4,408 |
| American Family | $1,547 | $2,570 |
| Farmers | $2,807 | $4,407 |
| Geico | $2,009 | $2,938 |
| Nationwide | $2,016 | $2,866 |
| Progressive | $2,075 | $3,590 |
| State Farm | $1,431 | $3,484 |
| Travelers | $1,751 | $3,152 |
| USAA* | $1,120 | $2,013 |
Average annual rate for drivers with poor credit, by state
Certain states prohibit the use of credit in setting car insurance rates, and how insurers treat credit differs from state to state. For example, state regulators in one state may allow more wiggle room for credit-based pricing than others, which leads to variations by state as well as by company.
Our analysis revealed that:
- In North Carolina, a driver with poor credit pays about 35% more than one with good credit, on average.
- Having poor credit in either Alabama or Pennsylvania raises the average insurance rate 70% compared with drivers with good credit.
- Average rates for those with poor credit in Wisconsin were 110% more than average rates for drivers with good credit.
Below you can compare average full coverage rates for 35-year-old drivers with poor credit by state.
| State | Drivers with good credit | Drivers with poor credit |
|---|---|---|
| Alabama | $2,269 | $3,858 |
| Alaska | $1,955 | $2,686 |
| Arizona | $2,155 | $3,495 |
| Arkansas | $2,160 | $3,836 |
| California | $1,659 | $1,659 |
| Colorado | $2,698 | $4,481 |
| Connecticut | $2,604 | $4,270 |
| Delaware | $2,601 | $4,530 |
| Florida | $3,605 | $5,735 |
| Georgia | $2,509 | $4,006 |
| Hawaii | $1,631 | $1,631 |
| Idaho | $1,349 | $2,328 |
| Illinois | $1,747 | $2,807 |
| Indiana | $1,433 | $2,501 |
| Iowa | $1,596 | $2,727 |
| Kansas | $2,290 | $3,979 |
| Kentucky | $3,357 | $6,156 |
| Louisiana | $3,399 | $5,960 |
| Maine | $1,323 | $2,299 |
| Maryland | $2,998 | $4,461 |
| Massachusetts | $1,394 | $1,394 |
| Michigan | $3,229 | $3,229 |
| Minnesota | $1,931 | $3,728 |
| Mississippi | $1,950 | $3,335 |
| Missouri | $2,706 | $4,391 |
| Montana | $2,831 | $4,272 |
| Nebraska | $1,788 | $3,349 |
| Nevada | $3,058 | $4,385 |
| New Hampshire | $1,557 | $2,884 |
| New Jersey | $2,809 | $5,189 |
| New Mexico | $2,127 | $3,542 |
| New York | $2,600 | $5,287 |
| North Carolina | $1,487 | $2,002 |
| North Dakota | $1,869 | $3,458 |
| Ohio | $1,423 | $2,516 |
| Oklahoma | $2,438 | $3,761 |
| Oregon | $1,888 | $3,153 |
| Pennsylvania | $2,266 | $3,845 |
| Rhode Island | $3,300 | $5,670 |
| South Carolina | $2,715 | $4,761 |
| South Dakota | $1,593 | $3,023 |
| Tennessee | $1,997 | $3,482 |
| Texas | $2,398 | $4,157 |
| Utah | $2,240 | $3,956 |
| Vermont | $1,376 | $2,512 |
| Virginia | $1,922 | $3,306 |
| Washington | $1,759 | $1,858 |
| Washington, D.C. | $2,260 | $3,718 |
| West Virginia | $2,075 | $3,726 |
| Wisconsin | $1,683 | $3,539 |
| Wyoming | $1,553 | $2,706 |
California, Hawaii, Massachusetts and Michigan don’t allow insurers to use credit when determining car insurance rates. In Washington, the legal code around this issue is being debated.
Compare car insurance rates for drivers with an accident
Your driving history can affect auto insurance rates in different ways from one company to another. It’s a good idea to compare how each insurer’s car insurance rates stack up against the rest if you have a recent accident.
Average annual rate for drivers with an accident, by company
Comparing car insurance rates after a crash shows how differently insurers treat accidents. For example, rates for American Family and State Farm are less than 30% higher on average for drivers with an at-fault accident compared with a driver with a clean record. Meanwhile, our data shows Geico increases rates by 60% on average for drivers with a recent crash compared with our base profile.
Below you can compare average full coverage rates for 35-year-old drivers with a recent at-fault accident by company.
| Company | Drivers with a clean record | Drivers with a recent at-fault accident |
|---|---|---|
| Allstate | $3,110 | $4,405 |
| American Family | $1,547 | $1,972 |
| Farmers | $2,807 | $3,953 |
| Geico | $2,009 | $3,216 |
| Nationwide | $2,016 | $3,171 |
| Progressive | $2,075 | $3,029 |
| State Farm | $1,431 | $1,833 |
| Travelers | $1,751 | $2,403 |
| USAA | $1,120 | $1,590 |
Average annual rate for drivers with an accident, by state
State regulators set limits on how much a company can increase your car insurance rates after a crash. Let’s say you caused an accident that resulted in $10,000 worth of damage. In some states, that could cause average annual rates to spike by $1,600 or more, while in other states the increase is far less.
For example, drivers in Iowa with full coverage policies and one recent at-fault accident paid $506 more per year, on average, than drivers with no accidents. Meanwhile, drivers in Texas paid $1,668 more per year, on average, after causing an accident than incident-free drivers.
Here are the average full coverage rates for 35-year-old drivers with a recent at-fault accident by state:
| State | Drivers with a clean record | Drivers with a recent at-fault accident |
|---|---|---|
| Alabama | $2,269 | $3,332 |
| Alaska | $1,955 | $2,501 |
| Arizona | $2,155 | $3,170 |
| Arkansas | $2,160 | $3,032 |
| California | $1,659 | $2,699 |
| Colorado | $2,698 | $3,985 |
| Connecticut | $2,604 | $4,018 |
| Delaware | $2,601 | $3,468 |
| Florida | $3,605 | $5,233 |
| Georgia | $2,509 | $3,735 |
| Hawaii | $1,631 | $2,174 |
| Idaho | $1,349 | $1,952 |
| Illinois | $1,747 | $2,533 |
| Indiana | $1,433 | $2,099 |
| Iowa | $1,596 | $2,102 |
| Kansas | $2,290 | $3,420 |
| Kentucky | $3,357 | $4,827 |
| Louisiana | $3,399 | $4,898 |
| Maine | $1,323 | $1,925 |
| Maryland | $2,998 | $4,370 |
| Massachusetts | $1,394 | $2,618 |
| Michigan | $3,229 | $4,805 |
| Minnesota | $1,931 | $2,759 |
| Mississippi | $1,950 | $3,122 |
| Missouri | $2,706 | $3,780 |
| Montana | $2,831 | $3,917 |
| Nebraska | $1,788 | $2,660 |
| Nevada | $3,058 | $4,386 |
| New Hampshire | $1,557 | $2,319 |
| New Jersey | $2,809 | $4,380 |
| New Mexico | $2,127 | $2,956 |
| New York | $2,600 | $3,704 |
| North Carolina | $1,487 | $2,439 |
| North Dakota | $1,869 | $2,680 |
| Ohio | $1,423 | $2,112 |
| Oklahoma | $2,438 | $3,325 |
| Oregon | $1,888 | $2,859 |
| Pennsylvania | $2,266 | $3,292 |
| Rhode Island | $3,300 | $3,442 |
| South Carolina | $2,715 | $3,879 |
| South Dakota | $1,593 | $2,221 |
| Tennessee | $1,997 | $2,987 |
| Texas | $2,398 | $4,066 |
| Utah | $2,240 | $3,501 |
| Vermont | $1,376 | $1,889 |
| Virginia | $1,922 | $2,954 |
| Washington | $1,759 | $2,495 |
| Washington, D.C. | $2,260 | $3,217 |
| West Virginia | $2,075 | $2,978 |
| Wisconsin | $1,683 | $2,320 |
| Wyoming | $1,553 | $2,161 |
One thing’s for sure: Your rates will probably increase after an at-fault accident, so be sure to include the accident when you compare car insurance rates.
How to compare car insurance quotes
First of all, every car insurance quote you receive should be free — whether it’s from Geico, Farmers or a small insurer you’ve never heard of. Some auto insurers require a down payment to start your policy, but whether you’re comparing car insurance online or with an agent, a simple quote estimate should always be free of charge. Here’s how to start comparing quotes.
1. Gather your information
To quickly and easily compare car insurance online, you should have the following on hand:
Personal information, which includes the address, date of birth, occupation, driver’s license and marital status of everyone you want included on the policy.
Vehicle information: Mileage, date of purchase and vehicle identification number (VIN) for each car. If you haven’t purchased the car yet, have mileage, make, model and year handy.
Driving history: Include all claims, violations and tickets you’ve had over the past five years, plus any completed driving courses.
Current or previous insurer’s name for anyone on the policy or in your household. Some insurers won’t cover you without some coverage history, and if you want to exclude anyone living with you from the policy, you’ll need to prove they’re covered elsewhere.
2. Choose the right liability car insurance coverage levels
Auto insurance is financial protection, and not just for the investment you made when you bought your car. After a really serious accident, bills for property damage and injuries can easily reach into hundreds of thousands of dollars. If you happen to cause this kind of wreck, the victims could sue you. And in this situation, assets such as your savings and even your home could be seized.
Liability auto insurance protects you from that worst-case scenario by providing a cushion between your assets and the amount you’re on the hook for. That’s why choosing the right liability limits is the most important part of a car insurance quote comparison. NerdWallet typically recommends having at least as much liability coverage as your net worth.
But liability coverage levels come in threes — you’ll probably see something like 50/100/50 or 250/500/250 included in most policies. You can think of these limits as: individual injuries/total injuries/property damage. (Insurers are a little more technical with the names, calling them bodily injury liability, total bodily injury liability and physical damage liability.)
Liability insurance comes in thousand-dollar increments, so when you choose an auto insurance policy with 100/300/100 limits, you’ll be choosing:
- $100,000 for bodily injuries per person in a crash that you caused.
- $300,000 total for all bodily injuries in a crash that you caused.
- $100,000 for damage to any property in a crash that you caused, including cars, buildings and objects like mailboxes and lampposts.
When choosing liability car insurance coverage, try to make sure the middle number is equal to or greater than the value of your net worth. This should also be the highest number in your policy’s coverage limits.
Understand car insurance requirements in your state
Any car insurance comparison tool you use should have your state’s minimum car insurance requirements pre-loaded into its options. In certain states, you may be required to have a car insurance policy that includes personal injury protection (PIP), medical payments coverage (MedPay) or uninsured/underinsured motorist coverage — or two of the three. If you have MedPay you don’t need PIP, and vice versa.
States requiring PIP or MedPay are generally referred to as “no-fault” states. This means that when injuries occur, each driver in a crash makes a claim with their own insurance company to pay for them. The at-fault driver’s liability insurance will then kick in to cover any expenses beyond the PIP or MedPay limit.
3. Decide if you need full coverage car insurance
Liability coverage doesn’t pay for your car or injuries — or for any injuries your passengers sustain — if you cause a wreck. This is why you may want “full coverage” car insurance, especially if your car isn’t paid off yet.
However, full coverage insurance isn’t actually a type of coverage. It typically refers to policies that include liability coverage plus comprehensive and collision coverage.
In other words, you can’t just click a “full coverage” button when comparing insurance quotes online or buy something called a full coverage auto insurance policy. You’ll need to add collision and comprehensive coverage in the amounts you want, which will also increase the amount you’ll need to pay.
If you add either collision or comprehensive coverage to your policy, you’ll need to choose deductible amounts for each. These deductibles are amounts you will need to pay out of pocket for each claim you make, similar to a deductible when you go to a doctor’s office or pick up a pharmacy prescription. (The difference is they tend to be significantly higher than either of those examples.)
Collision insurance pays for:
- Damage to your car in an accident you cause.
- Damage to your car if you hit an object such as a fence or pole.
- Damage to your car if someone else hits you. Another option in this case is to make a claim against the other driver’s liability insurance.
Comprehensive insurance pays for the value of your car if it’s stolen and not recovered, and damage from:
- Weather such as tornadoes or hail.
- Floods.
- Fire.
- Falling objects.
- Explosions.
- Crashes with an animal, such as striking a deer.
- Riots and civil disturbances.
4. Collect and compare car insurance quotes
You’ll want to get car insurance quotes from at least two or three companies available in your area. If you want to be sure you’re getting a good deal, consider comparing quotes from regional companies as well as the big companies such as Allstate, Progressive and State Farm.
To make sure you’re getting comparable quotes, make certain that each insurance quote includes:
- The same levels of liability and uninsured/underinsured motorist protection.
- The same deductibles for collision and comprehensive coverage, if you’re buying them.
- The same drivers and cars.
- All discounts you’re eligible for (most insurers list the discounts they offer on their websites).
How to choose an insurance company
Let’s assume you’ve compared rates and found the cheapest car insurance companies for you. But before you buy a policy, you’ll want to consider a few other factors besides price.
The best insurance companies offer more than just affordable rates. They also provide reliable and helpful customer service as well as a simple way to update your policy or file a claim.
Here are a few things to check before buying an auto insurance policy:
- Confirm your insurer has any extras you’re looking for, like a mobile app or accident forgiveness.
- Check a company’s financial strength to ensure it can pay out your claim if you need to file one. You can find a carrier’s financial strength using a rating firm like A.M. Best.
- Look at customer complaint records on the National Association Of Insurance Commissioners’ site.
Compare car insurance companies
You can use NerdWallet’s reviews to compare car insurance companies and find the best fit for you. NerdWallet has researched policy options, consumer complaint data, customer satisfaction ratings, financial stability and other key factors for all of the country’s top auto insurance companies. We also researched many smaller, regional insurers.
| 21st Century | AAA | Allstate |
| American Family | Amica | Auto-Owners |
| Chubb | Connect | Country Financial |
| Dairyland | Direct Auto | Encompass |
| Erie | Farm Bureau | Farmers |
| Geico | The General | Georgia Farm Bureau |
| Good2Go | The Hanover | The Hartford |
| Infinity | Liberty Mutual | Mapfre |
| Mercury | Metlife | Metromile |
| Nationwide | NJM | Progressive |
| Root | Safe Auto | Safeco |
| Shelter | State Auto | State Farm |
| Texas Farm Bureau | Travelers | USAA |
FAQs For Compare Car Insurance Rates
Why do you need to compare auto insurance quotes?
Comparing car insurance quotes is the best way to ensure that you’re getting the most for your money. Auto insurance companies look at similar factors but weigh them differently, so you’ll get differing quotes from each.
We recommend you shop around and compare rates for car insurance about once a year — this is your best bet at getting the cheapest rate. If you’ve been in a recent at-fault accident, received a speeding ticket or are about to move out of state, shop around again.
Can you get car insurance online?
Yes, buying car insurance online can be easier and more convenient than buying from an agent face-to-face. Most major insurance companies offer online quotes and let you adjust your policy details to see different prices. Remember to use a car insurance comparison tool to shop around and compare rates from at least three insurers before buying a policy.
Does an auto insurance rate change depending on your gender?
It depends. Some states — California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania and Michigan — have banned the practice of calculating auto insurance rates based on a person’s gender. But in other states, women may pay more, on average, for car insurance compared with men with similar driving records. For young adults, the trend is flipped — young men tend to pay more than women.
But switching companies can wipe out that price difference, so your best bet is to shop around to find the cheapest insurance rate you can.
How much should you be paying for car insurance?
The average cost for auto insurance is $2,148 annually, or about $179 a month, according to NerdWallet’s 2023 rates analysis. However, your car insurance premium will vary based on factors like location and age.
Is auto insurance cheaper for homeowners?
Oftentimes, yes. Most insurers offer discounts for customers that bundle home and auto insurance, while others offer a separate discount just for being a homeowner. Bundling policies might also make it easier for you to keep track of your coverage and claims.
Combining policies is usually best reserved for drivers with a solid driving history. If you have multiple traffic violations, poor credit or other negative marks on your driving record, you might be better off shopping for auto insurance and homeowners insurance from separate companies.
How do you get cheap rideshare insurance?
Many auto insurance companies offer rideshare insurance as an add-on to your current policy. Prices vary by company, with policies ranging from roughly $10 to about $27 a month. If your insurer doesn’t offer the option, your best bet is to switch to one that does and stay properly covered.
If you’re unable to get rideshare insurance in your state, you may need to purchase a commercial insurance policy to ensure that you have the full coverage required.
Do you need to compare auto insurance rates if you move out of state?
While it may come as a surprise, one of the largest factors affecting your car insurance costs will be something you wouldn’t change just for cheaper car insurance — where you live. However, it does have a very big impact and should be part of financial planning if you move out of your area. For that reason, it’s good to do a car insurance quote comparison anytime you move, even within the same state.