A new report on the average cost of auto insurance in America by ValuePenguin has revealed which US states pay the least (and the most) for auto insurance, among other eye-popping findings.
According to the report, the average cost of auto insurance in America is $58 per month, or $693 annually, for a minimum-coverage policy. Among the US states, Michigan is the most expensive for auto insurance, at $196 monthly for minimum coverage. Meanwhile, the cheapest average rates can be found in South Dakota, at $28 monthly for minimum coverage.
In terms of full-coverage auto insurance, the results are slightly different. The top three US states for cheapest full-coverage auto insurance costs are Vermont ($92 monthly), Maine ($93 monthly) and Idaho ($99 monthly). By comparison, the most expensive states for full-coverage insurance are Michigan ($399 monthly), Florida ($238 monthly), and Rhode Island ($229 monthly).
ValuePenguin also found that among the major insurers offering auto insurance, the cheapest is Auto-Owners, with an average rate of $36 monthly for minimum coverage. On the other side of the spectrum, Farmers was identified as having the most expensive auto insurance prices for both minimum and full coverage.
Generally speaking, young drivers will pay more for auto insurance, ValuePenguin noted – this is because inexperienced drivers tend to get into more accidents behind the wheel. To put things into perspective, the rate comparison website noted that an 18-year-old driver pays over twice as much for auto insurance as a 25-year-old driver. Drivers aged 16 would pay an average of $584 annually for full coverage auto insurance, while those aged 35 would pay only $143.
While a driver’s gender does have an impact on their auto insurance rates, ValuePenguin noted that its effect on drivers who are 30 or older are minimal, having observed that there was little variation in rates around that age bracket. But among younger drivers, men can be charged 13% higher rates than women; ValuePenguin suggested that this is because they drive more often, have more speeding tickets, get into more accidents, and receive more DUIs. Meanwhile, nonbinary drivers pay slightly more than women drivers.
Using a 20-year-old driver as the template, ValuePenguin found that women pay an average monthly rate of $126, followed by nonbinary drivers with $129, and then men with a significantly higher $142.
According to ValuePenguin, the Honda CR-V is the cheapest automobile to insure, with a monthly rate of $156. Surprisingly, the Ford F-150 truck is the second cheapest automobile to insure, with a monthly rate of $164.
