- How much is car insurance per month?
- Average car insurance cost by state in 2024
- How much does car insurance cost by age?
- What are some of the main factors that impact car insurance rates?
- What does the cost of Lemonade Car cover?
- What car insurance am I required to have?
- How can I lower my car insurance rates?
- Which states currently offer Lemonade Car insurance?
- FAQs
The national average cost of car insurance in 2024 is roughly $767 per year (or $64 per month).* This average rate is for a minimum coverage policy—meaning it only meets the minimum requirements for an auto insurance policy in that state.
On the other hand, full coverage car insurance—a combination of insurance coverages designed to ‘fully’ cover you in the event of an accident—costs about 156% more than minimum insurance coverage. A full coverage policy would include protections that go beyond your state’s minimum legally mandated coverage, but that would give you extra peace of mind in many different scenarios.
Let’s take a look at all the different coverage options you can choose from, plus consider the factors that impact car insurance prices.
How much is car insurance per month?
Well, it depends. The national average cost of car insurance, for a minimum coverage policy is $64 per month, or $767 per year, according to ValuePenguin.* But how much you pay for car insurance can vary widely based on several factors— including your age, where you live, your driving record, type of vehicle, and coverage level.
For example, living in an area with heavy traffic or high crime rates, having a history of accidents or insurance claims, and driving a high-value or high-performance car can lead to higher premiums. On the flip side, drivers with clean records, living in low-risk areas, and driving more common, less costly vehicles can often find lower rates.
Average car insurance cost by state in 2024
Check out the average cost of car insurance in your state below, depending on the type of policy you get. Minimum coverage represents a liability-only policy, which is the coverage that your state will require you to have before you can hit the road. Full coverage includes liability coverage, as well as comprehensive and collision coverage.
While comprehensive and collision coverage are not legally required, if you’re leasing or financing your vehicle your lender will typically require both coverages.
| State | Minimum coverage average premium per month | Full coverage average premium per month |
|---|---|---|
| Alabama | $60 | $165 |
| Alaska | $55 | $136 |
| Arizona | $90 | $224 |
| Arkansas | $52 | $157 |
| California | $48 | $156 |
| Colorado | $75 | $212 |
| Connecticut | $91 | $196 |
| Delaware | $107 | $207 |
| District of Columbia | $79 | $174 |
| Florida | $101 | $249 |
| Georgia | $66 | $153 |
| Hawaii | $51 | $137 |
| Idaho | $34 | $102 |
| Illinois | $71 | $176 |
| Indiana | $44 | $126 |
| Iowa | $37 | $139 |
| Kansas | $51 | $166 |
| Kentucky | $99 | $191 |
| Lousiana | $79 | $227 |
| Maine | $42 | $92 |
| Maryland | $91 | $171 |
| Massachusetts | $63 | $172 |
| Michigan | $154 | $386 |
| Minnesota | $62 | $157 |
| Mississippi | $55 | $150 |
| Missouri | $57 | $159 |
| Montana | $48 | $181 |
| Nebraska | $39 | $159 |
| Nevada | $114 | $247 |
| New Hampshire | $45 | $96 |
| New Jersey | $92 | $168 |
| New Mexico | $53 | $163 |
| New York | $88 | $169 |
| North Carolina | $44 | $109 |
| North Dakota | $43 | $155 |
| Ohio | $44 | $111 |
| Oklahoma | $55 | $177 |
| Oregon | $91 | $176 |
| Pennsylvania | $50 | $155 |
| Rhode Island | $101 | $220 |
| South Carolina | $67 | $151 |
| South Dakota | $29 | $168 |
| Tennessee | $42 | $129 |
| Texas | $58 | $153 |
| Utah | $82 | $188 |
| Vermont | $35 | $103 |
| Virginia | $60 | $133 |
| Washington | $54 | $128 |
| West Virginia | $55 | $142 |
| Wisconsin | $42 | $128 |
| Wyoming | $31 | $120 |
How much does car insurance cost by age?
Check out the average annual cost for full coverage car insurance, depending on a driver’s age in 2024.
| Age | Average annual cost for full coverage |
|---|---|
| 16 | $613 |
| 17 | $542 |
| 18 | $481 |
| 19 | $365 |
| 20 | $329 |
| 21 | $274 |
| 25 | $200 |
| 30 | $179 |
| 35 | $175 |
| 45 | $171 |
| 55 | $165 |
| 65 | $162 |
| 75 | $188 |
| 85 | $227 |
When it comes to car insurance, age plays a significant role in determining how much you’ll pay for coverage. New drivers often face higher premiums primarily due to their inexperience on the road. Insurers perceive them as higher risk, which translates to steeper costs. This is especially true for teenage drivers who are just starting out and are statistically more likely to be involved in accidents.
However, as drivers age and gain more experience, their rates typically decrease.
Yet, the trends shift again for senior drivers. As we age, certain risk factors like slower reaction times and potential health issues come into play, which might cause insurance rates to rise once more. It’s a delicate balancing act, where your insurer weighs the risks associated with both ends of the age spectrum.
What are some of the main factors that impact car insurance rates?
There are several factors that impact rates for car insurance with Lemonade Car, including:
Your driving record
If you’ve gotten speeding tickets or a DUI recently—or have been involved in many accidents—it’s likely you’ll be considered high-risk by car insurance companies and will pay higher rates for car insurance than someone with a clean driving record.
On the flipside, if you’re an excellent driver with super safe driving habits—like easing around turns, and being gentle on the brakes at stop lights—it could help lower how much you pay for car insurance during renewals at Lemonade Car (granted no new driving violations or claims come up between renewals). Because at Lemonade Car, the way you drive matters.
Your car
The age, make, model and mileage of your car also influence your insurance costs. A car that’s newer is worth more, so the insurer’s potential liability could be higher. Any time an insurer thinks they might have to pay out more on an insurance claim, they’ll price the new policy higher.
But sometimes there are ways to reduce the burden of driving a car that’s statistically more expensive to insure. If you drive a hybrid or electric car, for example, you could be eligible for a car insurance discount on your Lemonade Car policy.
The drivers you include
Adding additional drivers to your policy may affect your premium, depending on their driving history and other factors. For instance, adding a new driver who just got their license to your policy (who hasn’t yet built a driving history) could lead to higher auto insurance rates.
Check out who you should cover on your policy here.
Your driving habits
We use location-based technology to tailor car insurance rates based on how you drive. The better you drive over time, the less you’ll pay. Learn more about how Lemonade Car is utilizing location-based services.
How much you drive
Our location-based technology helps us understand how much you drive, on average. If you don’t spend much time behind the wheel, you might end up paying less on coverage than someone with a long daily commute.
Your coverages
Nearly all states require that drivers have at least some form of car insurance. Many drivers choose to add additional coverage types to their policy to keep them more protected on the road. The more car insurance coverage types you add to your policy, the higher your monthly premiums—but keep in mind, if one of these coverages comes in handy, you’ll probably end up paying way less out of pocket if you end up filing a claim.
Your coverage limits
A limit is the maximum amount an insurer would pay out in a covered claim; you can set different limits for your different coverages. If you pick higher limits, the insurer takes on a greater risk—they might end up paying out a lot more in the event of an accident and subsequent claim. Therefore, your monthly premium will be higher if you have a high limit on your policy.
Your deductible
A car insurance deductible is the amount you pay out-of-pocket before insurance coverage kicks in. With a Lemonade policy, it could be anything between $250 and $2,000. Choosing a higher deductible will generally result in lower premiums, since it means you’d be responsible for more of the initial costs in the event of an accident.
What does the cost of Lemonade Car cover?
If you want to take a deep dive into all of the coverage types offered by Lemonade Car, we’ve got you covered here.
If you’re short on time, we’ll give you the TL;DR version of the core Lemonade Car coverage types below:
Liability coverage
If you have renters or homeowners insurance, you might already be familiar with this type of coverage. In car insurance, liability insurance coverage is broken down into two parts: bodily injury liability and property damage liability.
Bodily injury liability coverage. If you accidentally injure someone else who is not a passenger in your car, this will cover their medical bills
Property damage liability coverage. If you damage someone’s car or personal property, this will cover the cost to repair or replace what was damaged
Comprehensive coverage
Also known as “act of god” coverage, comprehensive insurance coverage helps pay to fix damage to your car, or possibly replace it, following an incident that wasn’t a car accident.
What does that mean? Well, if your car is stolen, vandalized, or has an unexpected run-in with an animal, for example, comprehensive coverage kicks in.
Collision coverage
Collision coverage helps pay to repair or replace your own car if it’s damaged in an accident with another vehicle or object, especially if you’re the one who’s responsible. If you’re technically at fault for the damages to your car, your collision coverage will kick-in to cover repairs, and get you back on the road.
Medical Injury Protection (MedPay)/Personal Injury Protection (PIP)
Both medical payments coverage (MedPay) and personal injury protection (PIP) can help cover the costs of medical expenses—like ambulance fees, doctor and hospital visits, and health insurance co-pays—from a covered car accident, but there are some key distinctions.
The main difference is that PIP can additionally cover a percentage of lost wages, public transportation to and from doctor’s appointments, or the costs of essential services you can’t perform while recovering from your injuries.
Also, PIP is sometimes referred to as no-fault insurance because it covers medical expenses from an at-fault accident, no matter who is at fault.
Keep in mind: Even if you have full coverage, which usually combines multiple endorsements such as comprehensive and collision coverage, that doesn’t mean you’re covered for everything, nor does it guarantee your claim will be approved.
What car insurance am I required to have?
Every state has its own minimum auto insurance requirements, typically including liability coverage for bodily injury and property damage. Some states also require uninsured motorist coverage and personal injury protection (PIP) to cover medical expenses and lost wages, regardless of fault.
While collision and comprehensive coverage are not legally required, they are recommended for added protection against accidents and non-collision-related incidents like theft. If you’re leasing or financing your car, these coverages are usually required. To comply with the legal requirements and secure the best coverage, evaluate your state’s minimum requirements. While insurance requirements and limitations are determined by the states, you don’t need to sweat the details. When you apply for Lemonade Car, we’ll automatically get you hooked up with the auto insurance coverages you need, and offer extra coverages to help you customize your policy so you feel protected behind the wheel.
How can I lower my car insurance rates?
Every day you drive with Lemonade is quite literally an opportunity to save on your car insurance rates, and lower your car insurance premiums. Seriously.
Lemonade Car is designed with drivers like you in mind. We offer a plethora of ways to put you on the road to lower rates, including:
- Discounts: Lemonade will automatically apply a bundle discount on any combination of our insurance products, including renters, homeowners, and pet insurance.
- Low-mileage lifestyle: We reward low-mileage drivers with lower premiums.
- Driving behavior: Safe driving habits can positively impact your premiums at renewals.
- Coverage and limits: You can easily customize your coverage level and deductible when you sign up for a Lemonade policy, and at any time during your six month policy term, all on the Lemonade app. Keep in mind that lowering your limits or raising your deductible might save you some money on your premiums, but it could also mean paying more if you’re in an accident and need to file a claim.
Get the best coverage without breaking the bank…
The story of Goldilocks and the Three Bears taught us that we shouldn’t settle for anything that doesn’t feel “just right.” None of those bears drove cars, but we still feel like they’d agree with us here: The right car insurance policy is about finding the perfect balance of affordable and excellent coverage.
If you’re interested in learning more about a policy with Lemonade Car, the easiest way to explore your coverage options—and what you’d pay—is by applying for a quote. It’s fast, easy, and even a little fun.
Which states currently offer Lemonade Car insurance?
We’re live in the following states: Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington.
FAQs
How much is car insurance for a new driver?
Since new drivers have a lack of experience on the road, they are considered a higher risk for insurance companies. This high risk can lead to increased premiums, which can decrease over time as a new driver builds a safe driving history. For example, according to Insurance Business Magazine, the average cost of car insurance for a brand-new driver is $1,104 for minimum coverage. After just one year of being licensed, the average cost of car insurance for a new driver decreases to $888.
How does driving behavior impact car insurance premiums?
Safe driving habits can help lower your car insurance premiums over time, while risky behaviors like speeding and hard braking can increase costs.
What role does location play in car insurance rates?
Where you live impacts car insurance rates due to factors like local traffic conditions, crime rates, and accident statistics. These factors can influence the likelihood that you’ll need to file a claim, which can lead to higher premiums.
Do I need additional coverage if my car is older?
If your car is older and has depreciated significantly in value, you might consider dropping comprehensive and collision coverage to save on premiums, especially if the repair costs could exceed your car’s value.
How does my credit score affect my car insurance rates?
Many insurers consider your credit score when determining premiums. A higher credit score can often result in lower premium rates because insurers will see you as less of a risk financially.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states.
*https://www.valuepenguin.com/average-cost-of-insurance, Accessed September 2024.
