What is the average cost of car insurance?

"Auto insurance will vary greatly on many factors: make/age of vehicle, safety features (airbags, etc), age and driving record of the individual, with possible discounts for being a homeowner. It will also depend upon if you are requesting liability only vs. full coverage. It's difficult to quote an average without knowing specifics."


According to data from the National Association of Insurance Commissioners (NAIC), the average cost of car insurance in the U.S. was $795 in 2007. When compared to average costs by state, however, it's clear that location can make a big difference.

For example:

New York: $1,047

Texas: $808

California: $800

The average car insurance price assumes that all insured vehicles include liability coverage, the minimum auto insurance requirement in most states, but does not reflect the total of liability as well as collision and comprehensive coverage -- because not all auto policies include all three coverage types.

The NAIC reports that states with greater premiums tend to be highly urban -- with higher wages and price levels -- and possess a higher traffic density.

Other factors that affect the cost of insurance include: auto insurance laws, labor costs for repairs, car-theft rates and liability coverage requirements.