Average car insurance cost in the U.S.

Premium and expenditure: two different averages

The NAIC publishes two national averages, and they answer different questions.

Combined average premium ($1,438.60)

The NAIC adds together the average premiums for liability, collision and comprehensive coverage. The result is the average cost of a policy that includes all three coverages. It is the better guide to what a “full coverage” policy cost on average.

Average expenditure ($1,281.92)

The NAIC takes the total premium written for liability, collision and comprehensive and divides it by the number of vehicles insured for liability. Every insured vehicle carries liability, but not every one carries collision or comprehensive, so this figure is lower. The NAIC describes it as an estimate of what consumers spent, on average, on auto insurance.

Neither is better than the other, and they should not be added or averaged together. If you want a sense of what a policy with full coverage cost, look at the combined average premium. If you want a sense of what drivers actually spent across the market, look at average expenditure.

How the national averages changed, 2019 to 2023

Both averages dipped slightly in 2020, then rose each year. The largest increase came in 2023: the NAIC reports the combined average premium rose 14.42% from 2022, and average expenditure rose 13.99%. Average expenditure in 2023 was 19.24% higher than in 2019.

The same NAIC release reports that the cost of claims also rose: the average loss per collision claim increased 17.6%, from $6,113 in 2021 to $7,191 in 2022. This page uses the NAIC's most recent full auto insurance database report, so it cannot tell you how average prices have moved since 2023.

Averages vary widely by state

In 2023, the median state combined average premium was $1,268, and the median state average expenditure was $1,114, according to the NAIC. Combined average premiums ranged from $926.02 in Maine to $1,993.81 in Florida.

The NAIC cautions that direct comparisons between states should be treated with a high degree of caution, because states differ in laws, traffic, costs and the mix of drivers and vehicles. Car insurance cost by state lists the 2023 averages for all 50 states and Washington, D.C.

Why an average is not your price

The NAIC calculates these figures from total premiums and total insured vehicles, with no distinction for the driver, the vehicle, or the limits and deductibles chosen, all of which significantly affect what a policy costs. An average blends together young and experienced drivers, clean and troubled records, economy cars and luxury cars, minimum and generous coverage. It does not describe any one of them.

Your price comes from an insurer's rating of your own situation, and different insurers will rate you differently. How much is car insurance? explains the factors involved.

Averages, quotes and Insura's estimate

• NAIC averages are historical statistics compiled from insurance industry data. They describe a whole market in a past year.
• A quote is an insurer's offer for your specific situation. It is the only price you can buy a policy at.
• An Insura estimate comes from the calculator, which uses Insura's own illustrative model. That model is not built from or calibrated to these NAIC figures. For example, its reference profile starts at $168 a month, which is a model assumption described on the methodology page, not an NAIC statistic. An estimate and an average will not necessarily agree.

All three are different things. See the insurance disclaimer for the limits of Insura's estimates.