Average cost of car insurance in 2026
The average cost of car insurance is about $1,717 a year for full coverage and $879 for liability only in 2026 dollars. The most complete public data is the National Association of Insurance Commissioners' Auto Insurance Database Report, released in February 2026 with 2023 premiums: $1,438.60 combined and $736.65 for liability.[1] Insurance prices have risen since then: the BLS consumer price index for motor vehicle insurance was 19.4% higher in October 2026 than its 2023 average, though it fell 5% in the 12 months to September 2026.[2]
| Coverage | NAIC 2023 | Estimated 2026 | Per month |
|---|---|---|---|
| Full coverage (combined) | $1,439 | $1,717 | $143 |
| Liability | $737 | $879 | $73 |
| Collision | $464 | $553 | $46 |
| Comprehensive | $238 | $284 | $24 |
In Texas, the example above, full coverage for a clean 40-year-old with average credit comes to about $2,061 a year; the national figure for the same driver is $1,717. The state averages for all 50 states are on average cost of auto insurance.
How to calculate car insurance for your profile
To calculate car insurance, start from your state's average and multiply by how much insurers charge for your risk factors compared with a typical driver. The multipliers below come from state regulators who publish what every insurer charges for the same sample drivers: we compare each insurer's price for one profile with its own price for the baseline driver in the same ZIP code, so the insurer and location cancel out.[3][4][5][6]
| Factor | Typical multiplier | Range between insurers |
|---|---|---|
| Age 16–19 | × 2.60 | 2.00–3.10 |
| Age 20–24 | × 1.60 | 1.40–2.00 |
| Age 25–29 | × 1.10 | 1.00–1.17 |
| Age 65–74 | × 0.95 | 0.89–1.07 |
| Age 75+ | × 1.11 | 1.00–1.26 |
| One speeding ticket | × 1.20 | 1.10–1.34 |
| One at-fault accident | × 1.49 | 1.35–1.61 |
| Ticket and accident | × 1.96 | 1.77–2.19 |
| DUI (second offense, SR-22) | × 2.40 | 1.50–2.90 |
| Excellent credit | × 0.67 | 0.61–0.73 |
| Poor credit | × 1.20 | 1.13–1.29 |
| Full coverage vs. minimum liability | × 3.05 | 2.66–3.45 |
A teenage driver in the same Texas example would pay about $5,359, and an at-fault accident adds roughly half again. These are averages across insurers; one company can surcharge a ticket far more than another, which is why the range column matters.
Some states ban some factorsCalifornia bases rates first on driving record, miles driven and years of experience, and gives good drivers at least 20% off.[7] Hawaii bars age, sex, driving experience and credit as rating factors,[8] and Massachusetts bars credit information.[9] The calculator drops those factors in those states.
How much is car insurance by vehicle type?
For full coverage, the car itself matters because collision and comprehensive pay to repair or replace it. In California's 2026 survey, the same driver paid about 14% less to insure a small SUV than a midsize sedan, and about 46% more for a luxury or sport sedan.[3] For liability-only policies, Texas insurers priced pickups the same as cars.[4]
| Vehicle | Multiplier | Texas example (clean, 40, full) |
|---|---|---|
| Midsize sedan | × 1.00 | $2,061 |
| Compact car | × 0.99 | $2,041 |
| Small SUV | × 0.86 | $1,773 |
| Pickup truck | × 0.94 | $1,938 |
| Hybrid | × 1.05 | $2,164 |
| Electric sedan (Tesla Model 3) | × 1.23 | $2,535 |
| Luxury or sport sedan | × 1.46 | $3,009 |
Is car insurance getting cheaper? The price trend
Car insurance prices rose faster than almost anything else in 2023 and 2024 and have started to fall. The BLS consumer price index for motor vehicle insurance peaked at a 22.6% yearly increase in April 2024 and was 5% lower in September 2026 than a year earlier.[2]
| Period | Index | Change vs. a year earlier |
|---|---|---|
| 2023 average | 715.9 | – |
| 2024 average | 843.1 | +17.8% |
| 2025 average | 893.5 | +6.0% |
| September 2026 | 846.1 | -5.0% |
| October 2026 | 854.6 | – |
A falling index does not mean every renewal goes down; it is an average across all policies, and individual premiums still move with claims in your area.
Minimum car insurance vs. full coverage
Minimum liability is the cheapest legal policy: in the calculator it runs about 0.86 times the state's average liability premium, while full coverage costs roughly 3.0 times a minimum liability-only policy for the same driver in California's survey.[3] Full coverage pays to fix your own car; minimum liability pays only others, up to low limits. Every state's minimum is listed on average cost of auto insurance.
Car insurance cost per month: what a typical bill looks like
Divide the yearly premium by 12 for the monthly cost: about $143 a month for average full coverage. Many insurers charge a small installment fee for monthly payment, so paying for six or twelve months at once is usually a little cheaper. Insurance is one line in the full cost of owning a car; the car affordability calculator subtracts it from your budget before the car payment.
- Compare at least three quotes. In every regulator survey we used, the most expensive insurer charged two to five times the cheapest for the same driver.
- Raise liability limits before adding extras. Going from minimum limits to 100/300/100 adds only about 16%.[4]
- Drop collision on an old car once its value is close to a year or two of collision premiums; the car depreciation calculator estimates that value.
Frequently asked questions
How much is car insurance a month?
About $143 a month for full coverage at the 2026 national average, and about $73 for liability only.
How much is full coverage car insurance?
The NAIC's 2023 U.S. average for liability, collision and comprehensive was $1,438.60; adjusted to October 2026 prices that is about $1,717 a year.
Is this car insurance calculator a quote?
No. It estimates a typical premium from public averages and regulators' price surveys. Only a licensed insurer or agent can quote your price.
What raises car insurance the most?
Being a teen driver (about × 2.60), a DUI (× 2.40), and living in a high-cost state. An at-fault accident adds about 49%.
Sources
- Auto Insurance Database Report 2022/2023
- CPI-U, Motor vehicle insurance, U.S. city average (series CUUR0000SETE)
- 2026 Automobile Insurance Comparison Tool (Auto Premium Survey)
- HelpInsure.com auto policy comparison and Auto Policies FAQ
- Nevada Consumer's Guide to Auto Insurance Rates, 2024 Edition
- Sample Annual Motor Vehicle Insurance Premiums
- California Insurance Code §1861.02 and §1861.025 (rating factors, good driver)
- HRS §431:10C-207, Discriminatory practices prohibited
- M.G.L. c.175E §4 (motor vehicle insurance rate classifications)