One of the most common questions drivers ask is: “How much is car insurance monthly?” The monthly cost of car insurance depends on several factors such as your age, location, driving record, and the type of coverage you choose.
In this detailed guide, we will explain average monthly car insurance costs, what affects your rates, how to get cheap car insurance, and which companies offer the most affordable plans.
What Is the Average Monthly Cost of Car Insurance?
On average, car insurance costs between $110 and $220 per month in the U.S. The cost changes based on whether you choose liability-only insurance or full coverage car insurance.
Liability-Only Insurance (Cheapest)
Average monthly cost: $50 to $70 per month
This is the minimum required by law in most states and covers damages to others.
Full Coverage Car Insurance
Average monthly cost: $150 to $250 per month
Full coverage includes liability, collision, and comprehensive insurance. It provides maximum protection but costs more.
Factors That Affect Monthly Car Insurance Rates
Car insurance premiums are not the same for everyone. Here are the major factors that influence your monthly auto insurance rates:
1. Age of the Driver
Young drivers (18–25) pay the highest rates.
Older, experienced drivers get cheap rates.
2. Driving Record
If you have tickets, accidents, or DUI charges, your monthly car insurance will be expensive.
3. Location
If you live in an area with high traffic, theft, or accidents, your premiums will increase.
4. Type of Car
Luxury cars, sports cars, and high-performance vehicles cost more to insure.
5. Coverage Type
Full coverage = Higher cost
Liability-only = Lower cost
6. Credit Score
A high credit score helps you get cheap car insurance rates.
7. Annual Mileage
The less you drive, the cheaper your monthly premium.
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How Much Is Car Insurance Monthly by Age?
Here is a rough estimate of monthly rates by age:
- 18–25 years: $200 – $350 per month
- 26–35 years: $130 – $200 per month
- 36–45 years: $110 – $170 per month
- 46–60 years: $100 – $150 per month
- 60+ years: $90 – $140 per month
Young drivers pay more because they are considered high-risk.
How Much Is Car Insurance Monthly by Coverage Type?
Liability-Only Insurance:
$50 – $70 per month
Perfect for older cars or low-budget drivers.
✔ Full Coverage Car Insurance:
$150 – $250 per month
Includes theft, accident, and natural disaster protection.
High-Risk Drivers Insurance:
$250 – $400 per month
Drivers with poor records or DUIs pay the highest premiums.
How Much Is Car Insurance Monthly by State?
Insurance rates differ from state to state. For example:
- Cheapest States: Maine, Ohio, Idaho
- Most Expensive States: Michigan, Florida, Louisiana
States with more accidents, crime, and insurance claims have higher premiums.
Top Companies Offering Affordable Monthly Car Insurance
Some companies are known for offering low monthly premiums:
1. Geico
Known for the cheapest monthly car insurance rates.
2. State Farm
Great discounts for good drivers.
3. Progressive
Perfect for high-risk drivers and comparison shoppers.
4. Allstate
Offers strong full coverage options.
5. USAA
Cheapest for military families.
How to Reduce Your Monthly Car Insurance Cost
Here are smart ways to lower your monthly premiums:
1. Compare Multiple Car Insurance Quotes
Always compare at least 5–6 insurance companies.
This is the quickest way to find cheap monthly insurance.
2. Increase Your Deductible
Higher deductible = Lower premium.
3. Buy Only the Coverage You Need
Avoid unnecessary add-ons.
4. Improve Your Credit Score
A strong credit score reduces monthly rates.
5. Bundle Home + Auto Insurance
Get a big discount when you combine policies.
6. Install Safety Features in Your Car
Anti-theft devices and dash cams lower premium.
7. Avoid Accidents and Tickets
Safe drivers always get cheaper monthly rates.
8. Take a Defensive Driving Course
Many companies offer discounts for completing a driving course.
Is Monthly Car Insurance Cheaper Than Annual?
Paying monthly may seem easy, but insurers usually charge extra fees for monthly installments.
If possible, paying yearly can help you save 5–10%.
However, for people who prefer smaller payments, monthly insurance is still a good option.
Why Monthly Car Insurance Varies So Much
Your rate is unique to your:
- Driving profile
- Vehicle type
- State laws
- Insurance history
- Company rates
That’s why one person may pay $100 per month while another pays $250.
Final Thoughts on How Much Car Insurance Costs Monthly
The monthly cost of car insurance in 2025 depends on age, state, driving history, and coverage type. On average, drivers pay between $110 and $220 per month. Young drivers and high-risk drivers pay the highest premiums, while experienced drivers with clean records enjoy cheap monthly auto insurance.
To get the best and most affordable monthly insurance rates, always compare quotes, maintain a clean driving record, choose the right coverage, and take advantage of discounts.
With the right strategy, you can easily find cheap monthly car insurance that fits your budget and offers strong protection.