{"id":2255,"date":"2022-04-13T10:00:38","date_gmt":"2022-04-13T15:00:38","guid":{"rendered":"https:\/\/going-places.thegeneral.com\/how-much-should-i-pay-for-car-insurance\/"},"modified":"2025-08-27T10:04:57","modified_gmt":"2025-08-27T15:04:57","slug":"how-much-should-i-pay-for-car-insurance","status":"publish","type":"post","link":"https:\/\/www.thegeneral.com\/going-places\/blog\/car-insurance\/how-much-should-i-pay-for-car-insurance\/","title":{"rendered":"How Much Should I Be Paying for Car Insurance?"},"content":{"rendered":"\n

Wondering how much you should be paying for car insurance? Read on to learn about average car insurance costs across the country and how insurers decide on your rate.<\/span><\/i><\/b><\/p>\n\n\n\n

You\u2019re probably wondering if you can get a better deal on your car insurance. You might think your current car insurance is reasonable, but\u202fare you paying more than you should be? It\u2019s the Goldilocks dilemma\u2014some drivers are paying too much for car insurance, a few are paying too little, and you want to pay the amount that\u2019s just right. Keep reading to learn if you are paying the appropriate amount for the kind of coverage you need based on your driving record.<\/span><\/p>\n\n\n\n

Average Car Insurance Cost in 2022<\/strong><\/h2>\n\n\n\n

The average car insurance cost depends upon the state you live in. According to Nerdwallet\u2019s 2022 rate analysis, the national <\/span>\u202faverage for car insurance<\/span><\/a>\u202fis $1,630 per year. However, if you live in California, the average annual cost of car insurance was $1,967; Connecticut, $1,659; Florida, $2,775; Kentucky, $2,423; New Jersey, $1,901; Texas, $1,725 and Louisiana was a whopping $2,986.<\/span><\/p>\n\n\n\n

These numbers reflect state\u202f<\/span>averages<\/span><\/i>\u202fthat are based on rates for 40-year-old drivers with good credit and a clean driving record who purchase liability, comprehensive, collision, uninsured\/underinsured motorist protection, and any additional state-mandated coverage. Many residents of these states will pay more for car insurance, and some will pay less because\u202f<\/span>every<\/span><\/i>\u202fdriver\u2019s situation is unique.<\/span><\/p>\n\n\n\n

How Much Does Car Insurance Cost?<\/strong><\/h2>\n\n\n\n

Car insurance costs are not one-size-fits-all. A driver with a clean driving record, good credit, and no lapse in insurance coverage is going to pay less than someone with numerous accidents or tickets, less than stellar credit, or a car insurance lapse.<\/span><\/span><\/p>\n\n\n\n

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Car insurance depends on your age<\/strong><\/h3>\n\n\n\n

Drivers under the age of 25<\/span> can expect to pay more for car insurance than older motorists.<\/span><\/span>\u202fYoung males<\/span><\/span><\/span><\/a>\u202fwill possibly pay more for car insurance than young females. However, older female drivers may end up paying more for car insurance than their male counterparts. That said, some states do not permit insurers to take gender into account when determining premiums, so check with your insurer to determine the specifics for your state<\/span>.<\/span><\/span><\/p>\n\n\n\n

Car insurance depends on your zip code<\/span><\/b><\/h3>\n\n\n\n

Your zip code plays a role in how much you\u2019ll pay for car insurance. If you live in an urban area with a lot of vehicles and a considerable number of accidents, you\u2019ll pay more than you would if you lived in a rural area with little traffic. You could even pay more if you live somewhere with poor highway maintenance or a lot of bad weather. Poor road maintenance increases the number of accidents and damage to cars, and bad weather is responsible for many crashes.<\/span><\/p>\n\n\n\n

Car insurance depends on SR-22<\/strong><\/h3>\n\n\n\n

Drivers required to file\u202f<\/span><\/span>SR-22 forms<\/span><\/span><\/a>\u2014<\/span>or the equivalent<\/span>\u2014<\/span>with their state\u2019s Department of Motor Vehicles are going to pay more in car insurance. <\/span>Filing t<\/span>he SR-22 form <\/span>does not cost that much, per se, but it indicates<\/span> that<\/span> the driver committed some form of driving violation. This may include DUI, at-fault accidents, driving without a license or insurance, or a lot of traffic tickets in a relatively short amount of time. <\/span>T<\/span>hese violations<\/span> can <\/span>cause premiums to rise a great deal <\/span>as long as<\/span> the SR-22 requirement is in effect. The good news is that SR-22 requirements are temporary so you can expect your rates to go back down in time<\/span>.<\/span><\/span><\/p>\n\n\n\n

Types of Car Insurance<\/strong><\/h3>\n\n\n\n

Every state requires drivers to carry a minimum amount of Bodily Injury Liability coverage in order to drive. If you can only afford the minimum amount, that will affect the cost of your car insurance. In many cases, it\u2019s not a good idea to only carry a minimum amount of insurance. If you\u2019re in a serious crash and you\u2019re found at fault, not having enough insurance\u2014making you an underinsured motorist\u2014may result in the other party taking legal action if your insurance can\u2019t cover their damages. <\/span><\/p>\n\n\n\n

Besides\u202f<\/span>liability insurance<\/span><\/a>, you will likely need collision and comprehensive insurance if you lease your car or are still making payments on it. That\u2019s not a state mandate, but typically a requirement of your lease or loan agreement. If you own your car outright, you don\u2019t have to carry collision and comprehensive insurance. However, you may be facing a financial loss if a collision occurs, your vehicle is damaged, and you\u2019re responsible for paying for repairs out of your own pocket.<\/span><\/p>\n\n\n\n

The types of car insurance you need will make a big difference in how much you\u2019ll have to pay in auto coverage. Certain states require uninsured or underinsured motorist coverage, which offers protection in case of a collision with an uninsured driver but raises rates for everyone.<\/span><\/p>\n\n\n\n

Understanding How Rates are Set<\/strong><\/h2>\n\n\n\n

One key to knowing\u202fhow much car insurance\u202fcosts is to understand how\u202f<\/span><\/span>car insurance companies<\/span><\/span><\/a>\u202fset their rates. Besides those already mentioned, other factors<\/span> that <\/span>insurers consider<\/span> c<\/span>an<\/span> include:<\/span><\/span><\/p>\n\n\n\n