Wealthy PotAverage Car Insurance Cost: The Official Numbers
The official US average for car insurance is $1,281.92 a year per insured vehicle, from the National Association of Insurance Commissioners. Two things about that number deserve saying immediately: it is for 2023, because official insurance data takes years to compile, and premiums have moved a great deal since. What is surprising is the direction they are moving now. This page gives the official figures, shows how stale they are, and uses current federal price data to say what has happened since.
The Short Answer
- $1,281.92 a year per insured vehicle is the official NAIC average, for 2023.
- That was a 14.0% jump on 2022, the sharpest rise in the series.
- But federal price data shows premiums falling 5.1% in the year to August 2026. The run-up has reversed.
- Households spent $1,993 on vehicle insurance in 2024, per the BLS, but that covers all the vehicles in a household.
- State averages range from $807.77 in North Dakota to $1,864.63 in Florida.
The Official Average
State insurance regulators collect premium data through the NAIC, which publishes an average expenditure per insured vehicle. This is the only national average produced from insurers' actual reported premiums rather than from sample quotes.
| Year | Average expenditure per insured vehicle | Change |
|---|---|---|
| 2019 | $1,075.08 | +1.6% |
| 2020 | $1,047.76 | −2.5% |
| 2021 | $1,062.31 | +1.4% |
| 2022 | $1,126.79 | +6.1% |
| 2023 | $1,281.92 | +14.0% |
What "average expenditure" means matters. NAIC divides the total written premium for liability, collision and comprehensive by the number of liability car-years. Because some insured vehicles carry liability only, with no collision or comprehensive, the figure is pulled below what a fully-covered policy costs. NAIC's separate measure for a policy carrying all three coverages, the combined average premium, was $1,438.60 for the same year.
The Lag Problem, and the Twist
The 2023 NAIC figure was adopted in December 2025 and announced in February 2026. By the time you read it, the data is roughly three years old, which would not matter much in a stable market. Car insurance has not been a stable market.
The Bureau of Labor Statistics tracks motor vehicle insurance prices monthly in the Consumer Price Index, and that series is current. It shows the premium surge of 2024, then a deceleration, and then something most coverage has not caught up with:
- Prices rose steeply through 2024, the year after the NAIC figure above.
- In the twelve months to August 2026, the index fell 5.1%.
So the honest summary is not simply "the official number is too low." Premiums rose hard, peaked, and have been declining through 2026. If your renewal came down this year, that is the market, not an error.
A warning about arithmetic. It is tempting to take the 2023 NAIC average and inflate it by CPI to estimate today's figure. NAIC cautions against exactly that: CPI holds the amount of insurance constant, while the expenditure measure also moves as people drop coverage or raise deductibles in response to price. Between 2019 and 2023, CPI for auto insurance rose 36.6% while NAIC's average expenditure rose only 19.2%. A CPI-based extrapolation would overstate what people actually spend, so we are not publishing one.
How States Compare
| Most expensive | Average expenditure | Least expensive | Average expenditure |
|---|---|---|---|
| Florida | $1,864.63 | North Dakota | $807.77 |
| Louisiana | $1,754.03 | Maine | $856.28 |
| New York | $1,752.55 | Idaho | $863.91 |
| New Jersey | $1,573.21 | Iowa | $872.61 |
| Georgia | $1,555.10 | Hawaii | $888.07 |
Florida's average is 2.3 times North Dakota's. The spread reflects differences in required coverages, litigation environment, weather and theft risk, and population density. NAIC attaches its own caution to these comparisons: because states differ in what their drivers buy and what the law requires, direct state-to-state comparisons "should be treated with a high degree of caution."
What Households Actually Spend
A second federal source measures the household side. The BLS Consumer Expenditure Survey found the average household spent $1,993 on vehicle insurance in 2024, up from $1,775 in 2023, a rise of 12.3%.
That is a bigger number than NAIC's $1,281.92, and the two are not in conflict. NAIC counts one vehicle; BLS counts a household, and the average household runs close to two vehicles. Use the NAIC figure to think about a car, and the BLS figure to think about a household budget. Vehicle insurance at roughly $166 a month sits alongside the car payment and fuel in the transport line of average monthly expenses.
What Drives Your Own Premium
No national average will predict your bill, because pricing is individual. The factors insurers generally weigh:
- Where you live, down to the ZIP code, which is why state averages vary so much.
- Your driving record, especially at-fault accidents and moving violations.
- The vehicle: repair costs, theft rates and safety ratings.
- Coverage choices: liability limits, and whether you carry collision and comprehensive at all.
- Your deductible, which trades a lower premium for more out-of-pocket exposure in a claim.
- Mileage, and in some states factors such as credit-based insurance scores, which a few states restrict or prohibit.
One structural point that averages obscure: carrying only the state minimum liability is cheapest and can be the most expensive decision you ever make, because a serious at-fault accident can exceed the limit and reach your assets. That is the gap umbrella insurance exists to close.
FAQ
What is the average cost of car insurance?
$1,281.92 a year per insured vehicle, per the NAIC's most recent published data, which covers 2023.
Is car insurance still going up?
No. After steep increases through 2024, the BLS index for motor vehicle insurance fell 5.1% in the year to August 2026.
Why is the official average lower than quotes I see?
Two reasons. It is 2023 data, and it averages in vehicles carrying liability only. NAIC's figure for a policy with liability, collision and comprehensive was $1,438.60 in the same year.
Which state has the most expensive car insurance?
Florida, at $1,864.63 a year. North Dakota is cheapest at $807.77. NAIC cautions that states differ enough that direct comparisons need care.
How much does the average household spend on car insurance?
$1,993 in 2024, per the BLS Consumer Expenditure Survey. That covers all vehicles in the household, so it is not comparable to the per-vehicle figure.
This article is for general information and is not insurance advice. Figures are from the National Association of Insurance Commissioners, the BLS Consumer Expenditure Survey and the BLS Consumer Price Index, all checked on 2026-09-24. Premiums are individually rated; your own cost will differ from any average.
