How Much Does Car Insurance Cost In The US

Meta: There is no extract number for car insurance cost. So, the thumb rule is to check carefully what you’re going to buy. This post can help just that!
It’s not easy to determine the average cost of car insurance. You cannot just take a look at the number and confidently claim that “This is the standard rate offered by most car insurance companies!” While this is possible, it won't provide you with the information you truly need unless what you want is just a very general quote that could be off by hundreds or even thousands of dollars.


There are some factors that affect the average cost of car insurance in the US. For example, car insurance cost will differ greatly from state to state. For more detailed, check this post!

Minimum Car Liability Insurance by State

If you’re wondering if the minimum car liability required in your state is enough, then the answer will be “NO”. That’s because the state minimum liability tends to be insufficient to cover losses and potential liability claims.

This leads to another question “what happens if your insurance coverage is not enough?” Here is the answer: it typically comes out of your budget.

As you look at the state minimum car liability, you will usually see four basic types of coverage included in the insurance. They are:

  • * Bodily Injury Liability: This coverage is defined per person and per accident.
  • * Property Damage Liability: This coverage is defined per accident. It does not cover damage to your own car, it is meant to cover damage that you become responsible for.
  • * Personal Injury Protection (PIP or No-Fault): This coverage is also defined per person and per accident. It might include limits for: in-home services, medical expenses, medical rehabilitation, disability or loss of income, funeral burial or cremation costs, etc.
  • * Uninsured/Underinsured Motorist Protection: This is another coverage defined per person and per accident.
Most states only require the first two types of coverage listed above:
  • *Bodily Injury Liability
  • *Property Damage Liability
You can check the detailed list of state minimum car liability below to see what is required for your state's minimum car insurance requirements.





When you look at the Minimum Liability Limits, you see 3 numbers separated by two “/”. The first number refers the bodily injury liability limit per person, the second number refers the bodily injury liability limit per accident, and the third one is the property damage liability limit, in thousands.

Take Alaska (AL) for example. Imagine that you, unfortunately, cause a car accident in this state that totally damages a car and makes three people go to hospital. In this case, your available insurance will cover the first two victims who file a claim. The coverage for medical payments and liability costs will be up to $25,000 in total, and the one for property damage costs will be $25,000.

Car Insurance Averages by State

Last year, Louisiana had the highest car insurance rates, which was up to $2,699 per year. The reason for this high rate is that many bodily injury lawsuits are filed each year. The ones cost $50,000 or less will go before judges elected by the people. Because these judges often side with consumers, car insurance companies lose money.

This year, the highest car insurance rates come from Detroit, MI. The particular figure is $400-$500 on average for a month of car insurance coverage.

Ten states were named by Insure.com as having the highest yearly car insurance rates for last year. The first state is Louisiana as mentioned. The second was Michigan. Following it was Georgia and Oklahoma. The fifth name was Washington DC with over $2000 per year in annual car insurance rates.

Conclusion

Remember that those figures above represent only the required minimums. Thus, our advice for you is to select coverage above and beyond the minimums so that you're fully protected. For example, with the bodily injury liability, insurance experts suggest that the coverage limits should be at least $100,000 per person and $300,000 per accident.

Hopefully, this post gives you enough information about car insurance cost. Thank you for reading!


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