Auto insurance costs are on the rise and customers are feeling the squeeze. The average driver in the U.S. pays $1,084 for six months of coverage, or about $181 per month, according to January 2026 data from insurance comparison site The Zebra.
That's an increase of 18% from the year prior.
The increased cost of replacement vehicles and parts, more severe accidents and rising medical expenses and legal fees have all contributed to higher prices, according to the Insurance Information Institute.
With premiums rising across states and providers, experts recommend getting price quotes whenever your policy is up for renewal.
How much is car insurance?
Where you live can impact the price you pay for insurance. States with the highest average premiums for six months of coverage include:
- Florida: $1,819
- Louisiana: $1,634
- Missouri: $1,521
States with the lowest average premiums for six months of coverage include:
- Vermont: $654
- New Hampshire: $715
- Idaho: $728
Individual rates are influenced by numerous factors, including your age, gender, marital status, location, driving record, claims history and credit history, as well as the age, make, and model of your vehicle.
Rates also vary by company: Geico and Auto-Owners are among our picks for the cheapest car insurance companies.
Geico Auto Insurance
Policy highlights
Geico offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Availability
Geico auto insurance is available in all 50 U.S. states and Washington, D.C.
Accident forgiveness
Accident forgiveness is automatic if you remain accident-free for five years. It can also be bought as an upgrade when you buy or renew your policy.
Terms apply.
Read our Geico auto insurance review.
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Why is car insurance so expensive?
Car insurance premiums have risen due to a number of factors:
- Inflation: The cost of repairing and replacing vehicles — and paying medical and legal bills after accidents — has risen even faster than inflation.
- Car prices: New car prices remain near an all-time high, with the average new vehicle's price peaking in December at $50,318, according to Kelley Blue Book data.
- Repairs: As car technology has advanced, repairing or replacing a car has become more costly.
- More accidents: The number and severity of collisions declined in 2025, but the numbers are still high, according to the National Highway Traffic Safety Administration.
- Medical bills: If you're liable for a collision, your insurer often has to pay for the other drivers' hospital bills. With healthcare costs rising, policyholders across the board are facing higher premiums.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Geico auto coverage is available in all 50 states and Washington, D.C., with 16 discounts and add-ons like roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Progressive offers an array of riders, including rideshare insurance and a Deductible Savings Bank that deducts $50 each policy period you go without a claim. It also offers mechanical breakdown insurance, which covers unexpected major system failures.
How to lower your car insurance
Despite sky-high rates, there are several ways to lower your premiums.
1. Look for discounts
Many insurers offer discounts for students, homeowners, safe drivers and members of the armed forces. Getting homeowners insurance from the same provider as your car insurance can save you as much as 25%. As you evaluate insurers, review their discount list to see if any fit your specific needs.
2. Pay your premium in full
Paying your 6-month or 12-month premium in full will help you avoid installment fees, and many insurers offer a rate discount for upfront payments.
3. Don't buy more insurance than you need
Full coverage is usually the smarter choice, but if your car is worth less than 10 times your premium, you might be better off with just liability-only insurance. In addition, your credit card or AAA membership may already cover roadside assistance and rental car reimbursement.
4. Improve your credit score
Insurers associate your credit history with your likelihood of filing a claim and, in most states, your credit score factors into your premiums. The higher your credit score, the lower your car insurance cost. Raising your score by paying bills on time and checking your credit report for errors could reduce what you'll pay.
5. Raise your deductible
Your deductible is the dollar amount you must pay before your insurance company kicks in its share. Increasing a $200 deductible to $500 could reduce collision and comprehensive coverage costs by as much as 30%, according to the Insurance Information Institute. Raise it to $1,000 and you could save more than 40%. Be sure you can afford to pay the extra out-of-pocket expense, though.
6. Comparison shop
Pricing changes frequently, so compare rates every time your policy is up for renewal. Get three to five quotes with the same coverage and deductible to ensure you're getting the best deal.
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Car insurance FAQs
Is $200 a month for car insurance expensive?
It depends on where you live. The nationwide average for full coverage car insurance is $181 a month, so $200 doesn't seem particularly expensive. In Vermont, coverage averages $104 a month, so $200 would be on the pricier side. In Florida, where monthly premiums average about $303, though, it would be on the low end.
What type of driver is the most expensive to insure?
New drivers and teenagers are the most expensive to insure. In January 2026, the average rate for a six-month policy with a teen driver was $2,846.
What is the cheapest type of car insurance?
The most affordable car insurance is a liability-only policy, also known as minimum coverage. It only pays out for damages or injuries to another car, driver or passenger. Every state but New Hampshire requires motorists to have liability coverage to be on the road.
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