The average cost of car insurance, and what the numbers mean

The most recent official figure for what Americans spend on car insurance is $1,281.92 per insured vehicle per year, the NAIC's national average expenditure for 2023, published in February 2026. A policy with liability, collision and comprehensive averaged $1,438.60 that year, and AAA's 2026 estimate for full coverage on a new car, for a driver with a clean record, was $2,098. Prices rose further after 2023 before easing in 2026, so today's typical bill sits above the NAIC figure, and your own price can be far higher or lower depending on your driver profile, car, location and coverage.

The official averages

From the NAIC 2022/2023 Auto Insurance Database Report:

The average expenditure is lower than the combined premium because not every driver buys collision and comprehensive. A Triple-I analysis of the 2023 NAIC data found about 80% of insured drivers buy comprehensive and 77% buy collision (III). Liability here includes no-fault, uninsured motorist and medical payments coverage.

Why the official figure is out of date, and by how much

The NAIC's data runs about two years behind. To see what has happened since, use the Bureau of Labor Statistics price index for motor vehicle insurance, which tracks the price of the same coverage over time. By our calculation from BLS data, the index in August 2026 was 18.5% above its 2023 average. It peaked in February 2026 and fell 5.1% in the year to August 2026.

That does not mean the 2023 average plus 18.5% is today's average. The CPI holds coverage constant, while actual spending also reflects people raising deductibles or dropping coverage. The NAIC found that from 2019 to 2023, spending rose 19.24% while the CPI component rose 36.56%. The direction is clear, though: the same coverage costs more now than it did in 2023, even after the declines of 2026. See why car insurance got more expensive, and where prices stand in 2026.

What "full coverage" costs

There is no official average for full coverage, because "full coverage" is not a defined product; it usually means liability plus collision and comprehensive. See what full coverage car insurance actually means.

AAA's Your Driving Costs study gives a defined example. Its 2026 edition estimated the average full-coverage insurance cost at $2,098 a year, for a driver under 65 with more than six years of driving experience and no accidents, living in a suburban or urban area, with 100/300 liability, $100,000 property damage, $25,000/$50,000 uninsured motorist coverage and $500 deductibles, as summarized by the Insurance Information Institute. AAA's study prices new vehicles, and physical damage coverage on an older, lower-value car usually costs less. AAA notes methodology changes make the 2026 figure not directly comparable with 2025 (AAA).

The range by state

State averages differ by more than two to one. In 2023 NAIC data, average expenditure ranged from $807.77 in North Dakota to $1,864.63 in Florida. The full top and bottom 10 are in the most and least expensive states for car insurance. Relative to income, the Insurance Research Council found U.S. households spent 1.51% of median household income per vehicle on auto insurance in 2022, and projected about 1.7% for 2024 (IRC).

What moves your price away from the average

Your premium reflects the insurer's base rates in your state multiplied by your own rating factors; see how car insurance rates are calculated. The biggest swings come from:

• Drivers on the policy, especially teens.
• Driving record and claims, which add surcharges for several years.
• Location: city or suburb, and your state's legal system.
• The car: repair cost, theft rate and safety.
• Coverage choices: limits and deductible amounts, and whether you carry collision and comprehensive.
• Credit-based insurance score, in states that allow it.

Estimating your own cost: a worked example

Here is a hypothetical way to think about a household budget, not a market average. Say you insure two cars and get these annual quotes from one insurer for 100/300/100 liability with uninsured motorist coverage:

• Liability and uninsured motorist, car 1: $720
• Liability and uninsured motorist, car 2: $680
• Collision and comprehensive on the newer car, $500 deductibles: $900
• Multi-car and multi-policy discounts: minus $230

Total: $2,070 a year, or $1,035 per car. Raising the newer car's deductibles to $1,000 might cut the $900 to about $760, saving $140 a year in exchange for $500 more out of pocket per claim; the deductible break-even calculator shows the break-even. Dropping collision and comprehensive on an older car could save more; the Should I drop full coverage? calculator helps decide.

How to find your real number

1. Decide your coverage first: liability limits sized to your assets, then deductibles you can afford.
2. Get at least three quotes for identical coverage, using the car insurance quote comparison worksheet.
3. Ask about discounts you qualify for.
4. Re-check at each renewal, especially while national prices are falling, as they were through August 2026.

Key takeaways

• The NAIC's latest national average expenditure is $1,281.92 per vehicle (2023); a policy with liability, collision and comprehensive averaged $1,438.60.
• BLS data shows car insurance prices in August 2026 were 18.5% above their 2023 average, though falling year over year.
• AAA's 2026 full-coverage estimate for a defined driver on a new car was $2,098 a year.
• State averages range from about $808 to $1,865, and individual premiums vary far more.
• Averages are context; only quotes for your own situation tell you what you will pay.