U.S. Auto Insurance Statistics 2026
Last updated 2026-04-01 · NAIC Auto Insurance Report 2023
What this means for you
Auto insurance premiums rose 19% in 2023 — the largest single-year increase in over two decades, driven by vehicle repair costs, parts shortages, and increased claim severity.
Michigan remains the most expensive state by far at ~$2,900/yr, largely due to its no-fault insurance law requiring unlimited lifetime medical benefits.
Teen drivers (16–19) pay an average of $4,800/yr — nearly 3× the national average — due to disproportionately high crash rates.
Switching carriers at renewal saves an average of $400–$600/yr for equivalent coverage. Most insurers don't offer loyalty discounts; they offer acquisition discounts.
What the Data Says You Should Do
Compare auto insurance quotes from top carriers — rates vary by up to $1,200/yr for identical coverage. Use our comparison to find your best rate.
Auto Insurance
Compare quotes — same coverage, lower rate
Switching carriers saves an average of $400–$600/yr. Rates vary up to $1,200/yr for identical coverage.
Auto Loans
Refinance if your rate is above 7%
A better credit score since origination can cut $50–$100/mo off your payment.
Bundle & Save
Home + auto bundle saves 10–25%
Most carriers offer significant multi-policy discounts.
Dig deeper
Auto Insurance Cost by State (2026)
Michigan drivers pay $2,900/yr while Vermont pays $980/yr for the same car. Here's the full state-by-state breakdown of average auto insurance premiums.
Auto Insurance Cost by Age (2026)
Teen drivers pay $4,800/yr for car insurance. By 25, that falls to $1,900/yr. Here's the full age breakdown and why the gap is so large.
Auto Insurance Cost by Vehicle Type (2026)
Luxury SUVs and sports cars cost the most to insure. Electric vehicles now average $2,100/yr — 19% above the national average. Here's the full breakdown.
Full Coverage vs Liability Insurance Cost (2026)
Full coverage costs $1,771/yr vs $644/yr for liability-only. Here's the break-even formula for deciding when to drop comprehensive and collision.
FAQ
What does the average American pay for car insurance per month?
The national average is about $148/mo ($1,771/yr) for full coverage in 2023 (NAIC). Liability-only averages about $54/mo. Your actual rate depends on state, driving history, vehicle, and credit score.
What states have the cheapest auto insurance?
Vermont ($980/yr), Idaho ($1,020/yr), Wyoming ($1,050/yr), Maine ($1,050/yr), and Iowa ($1,070/yr) are consistently the cheapest. Low population density and fewer uninsured drivers reduce risk — and rates.
Why is Michigan auto insurance so expensive?
Michigan's no-fault law requires insurers to pay unlimited lifetime medical benefits for accident injuries — one of the most generous mandates in the country. Reform legislation in 2019 allowed drivers to opt for capped benefits, which has begun to lower rates.
How much does car insurance go up after an accident?
A single at-fault accident typically raises premiums 30–40% at renewal. The increase persists for 3–5 years depending on the carrier and state. Filing a claim for damage under $2,000–$3,000 is often not worth it given the premium increase.
Does credit score affect auto insurance rates?
In most states, yes — significantly. Drivers with poor credit pay 76% more on average than those with excellent credit for the same coverage (LendingTree, 2023). California, Hawaii, and Massachusetts prohibit credit-based insurance scoring.
Sources
For general guidance only — individual results vary. Not financial, legal, or tax advice.