Auto insurance is one of those bills you can’t avoid, but it doesn’t have to break the bank. If you’ve ever asked, “how much is auto insurance a month?” you’re not alone. While monthly premiums vary based on where you live, what you drive, and your personal history, we’re here to help you stop guessing, break down the numbers, and learn how you can keep your rate low.

The Average Monthly Cost of Auto Insurance

On average, Americans pay about $150 per month for auto insurance. But that number changes depending on the coverage you choose:

• Minimum Liability Coverage: $50 to $70 per month
• Full Coverage (Liability + Collision + Comprehensive): $150 to $170 per month

That means a safe driver with an older car could pay less than $1,000 a year, while someone with a newer vehicle and full protection might pay closer to $2,000.

What Affects Your Monthly Auto Insurance Cost?

Unfortunately, monthly rates are rising for drivers across the country. Knowing what is causing these increases can help you fight back and keep more money in your pocket.

Auto insurance premiums vary more than you realize. Two drivers with the same exact driving record and vehicle may pay wildly different rates simply because one is older or because of variables involving their residence.

You can have two drivers with the same exact personal and vehicle factors, but enroll in coverage at different carriers, paying for the same exact coverage, but with a difference of around $400 per month.

The bottom line? Several factors go into determining how much auto insurance costs per month. Here are the main ones you should be aware of:

Driver-Specific Factors:

• Age (teen drivers pay the most, retirees often pay the least).
• Gender (in some states, men pay slightly more due to higher accident rates).
• Driving record (tickets, DUIs, and accidents raise rates).
• Credit score (in most states, lower scores mean higher premiums).
• Marital status (married drivers often get lower rates).

Vehicle-Specific Factors:

• Make, model, and year (luxury and sports cars cost more).
• Safety features (anti-theft, airbags, driver assist can lower premiums).
• Likelihood of theft (cars often stolen, like certain sedans, cost more to insure).

Location:

• State laws, local traffic density, and crime rates all matter.
• Example: Rural Missouri drivers may pay $90/month, while urban drivers in Texas could pay over $200/month for the same coverage.

The Impact of Driving History

Your record is one of the biggest influences on how much you pay per month:

• At-Fault Accident: Rates often rise 30%–50% and stay elevated for 3–5 years.
• Speeding Ticket: A single ticket may raise rates 10%–20%. Multiple tickets can double premiums.
• DUI: The most costly violation, causing rates to double or even triple. High-risk policies may be required afterwards.

A clean driving record, by contrast, unlocks safe-driver discounts and keeps your premiums low. This is why safe driving habits are always encouraged. Not only do you save money each month, but you’re keeping everyone on the road safe.

Coverage Type and Deductibles

Your coverage choices directly affect your monthly bill:

• Liability-Only: Cheapest option, meets state minimums but doesn’t protect your car.
• Full Coverage: Includes liability, collision, and comprehensive, covering your car against crashes, theft, and weather damage.
• Deductibles: For the most part, higher deductibles will lower your monthly premium. For example, raising a deductible from $500 to $1,000 could save $20–$30 per month.

Even though having more coverage might raise how much you pay for auto insurance each month, through multi-policy discounts, drivers save more on average.

Furthermore, having the right level of protection is more important than saving a few bucks each month, as being underinsured is a surefire way to expose yourself to thousands of dollars in out-of-pocket expenses after an accident.

How to Lower Your Auto Insurance Cost per Month

You have more control than you think. To lower your monthly costs:

• Bundle auto and home insurance, or bundle auto and renters insurance.
• Raise your deductibles responsibly.
• Ask about discounts (safe driver, good student, low mileage).
• Install safety or anti-theft devices.
• Shop around, as you may be quoted $120/month from one insurer and $180/month from another.

Auto Insurance Average Cost per Month by State

Where you live plays a huge role. Here’s a snapshot of averages:

• Cheapest States: Maine, Vermont, and Idaho enjoy lower rates, and are all around $80–$100/month.
• Most Expensive States: Michigan, Florida, and Louisiana drivers cough up more cash for coverage, averaging $220–$300/month.
• Middle Ground: Texas, Colorado, and Tennessee drivers fall more in the middle. Depending on your driving history, expect to spend between $120–$160/month.

Even within a state, city drivers usually pay more than rural drivers due to traffic, theft, and accident risks. Where you live matters, and even similar drivers in the same town may face differing costs because of their residence.

How Carriers Impact Your Monthly Auto Premiums

Carriers calculate risk in different ways, which is why quotes can vary widely for the same driver. Some weigh driving history heavily, while others focus more on location, vehicle type, or credit score.

These differences mean two people with identical profiles can see very different premiums. Comparing multiple quotes ensures you don’t overpay each month.

For these reasons and more, we’ve partnered with several top-rated, trusted carriers to help deliver the lowest monthly cost on auto insurance for drivers.

Through our established relationships and industry-leading tools, Free The Insurance helps drivers quickly compare and identify the best protection for their vehicles at the lowest price in their area.

7 Smart Questions to Ask About Monthly Auto Insurance Costs

Beyond knowing the averages, smart drivers ask forward-looking questions:

1. The Real Cost of an Accident: How much would my premium increase after a claim? The long-term cost may matter more than the monthly bill today.
2. The Impact of a High Deductible: Is my deductible realistic for my budget if an accident happens tomorrow?
3. Understanding Coverage Types: Do I know exactly what’s covered, from liability to uninsured motorist protection, and what my limits are?
4. How to Maximize Discounts: Are there less obvious discounts, like paying in full or joining a telematics program, that could shrink my monthly bill?
5. The Claims Process: What’s the average response time for claims? Fast processing matters as much as a low monthly rate.
6. The “Other” Factors: Beyond age and tickets, how will things like my mileage, marital status, or credit score affect my monthly rate?
7. Renewal Surprises: What could cause my premium to rise next year even if I have no claims, and how do I keep it steady?

Asking these questions helps you move beyond just the average cost of monthly car insurance and choose coverage that truly works for your budget and peace of mind.

Compare and Lower Your Auto Insurance Cost per Month

While the amount you pay for auto insurance each month might vary, understanding your risks can help you keep your bill down.

Here at Free The Insurance, we help drivers compare top-rated auto insurance companies to ensure our clients receive the lowest possible price in their area. Often, drivers can cut their monthly bill by 40%.

Save more on car insurance each month in just a few clicks. Get an auto insurance quote and find lower coverage with ease.

Sources:

NAIC. Accessed September 2025.