Average Car Insurance Cost in 2025

The average cost of car insurance for minimum liability coverage is $68 per month, and for full coverage it is $225 per month. Annually, the cost figure translates to $816 per year for minimum coverage, and $2,700 per year for full coverage.

Insurance companies view age as a key risk factor when determining rates. Younger drivers, especially teens and those in their early twenties, tend to pay more because limited driving experience often leads to a higher likelihood of accidents. 

Older drivers, typically over age 65, may also face higher premiums due to slower reaction times and potential health-related concerns. Since both younger and senior drivers are statistically more likely to be involved in accidents, age plays a significant role in car insurance rates.

You always have the option to just purchase the minimum liability-only car insurance coverage. However, before opting for the minimum, it is recommended that you review your choice of coverage with an insurance agent.  

If you have any additional coverage in your car insurance policy, you can drop that, or you can opt for lower coverage limits. Apart from that, you can consider higher deductibles, mileage-based usage, and other cost-saving steps to get a car insurance quote that you can afford.

Minimum coverage is cheaper, averaging $68 per month in 2025, but it only covers the state-required liability limits. It may not protect you against repair, replacement, or medical costs. Full coverage or add-ons may be worth considering for better protection.

You can lower your car insurance costs by taking proactive steps. Maintaining a clean driving record, completing a defensive driving course, and considering mileage-based coverage can all help reduce premiums. 

Other strategies include raising your deductible, carrying only the coverage you truly need, and asking your insurer about discounts or bundling options. These small adjustments can add up to significant savings over time.

Insurance costs fluctuate due to inflation, repair costs, accident trends, and state regulations. Personal factors like your driving record, age, and claims history also affect whether your rate goes up or down each year.

If you haven’t made any car insurance claims over the past 1 year, your insurance rate is likely to go down by 5% to 20%. If you don’t make any claims, then your car insurance rate is likely to subsequently decline by 5% each year.  

However, these savings aren’t guaranteed. Reduction of your car insurance rate will be considered by evaluating multiple other key factors.

Yes, car insurance rates can significantly vary across states. States with high population density, accident rates, or insurance regulations tend to have higher-than-average rates compared to rural or less populated areas.