Auto insurance is an important expense for most drivers, but it’s one that can fluctuate year to year, depending on a variety of factors. According to a recent study by Bankrate, the national average for full coverage auto insurance – which includes liability, collision, and comprehensive coverage – is $2,014 in 2023. This is an increase of 2.6% from the previous year.
However, the cost of auto insurance can vary significantly from state to state. For example, in Illinois, the cost of full coverage auto insurance has increased by 16.7%, or $258, to $1,806. Meanwhile, in Alaska, drivers have seen a 15.4% increase in premiums, which equates to an additional $260, bringing the average cost of full coverage to $1,946. In Florida, the increase is 15.2%, with drivers now paying an average of $421 more per year for full coverage, bringing the total to $3,183. In fact, Florida and New York are the only two states where the average premium has surpassed $3,000.
However, not all states have seen an increase in auto insurance premiums. In both New Jersey and Massachusetts, the average cost of full coverage has actually decreased in 2023. New Jersey drivers have seen a drop of 7.2%, bringing the average cost down to $1,754. In Massachusetts, the decrease is 2.6%, with drivers paying an average of $1,262 for full coverage.
It’s important to note that the exact cost of auto insurance can vary based on several factors, including the make and model of your vehicle, the coverage options you choose, your age, and your driving record. For example, if you have a new, expensive car, you may pay more for collision and comprehensive coverage. Similarly, if you have a poor driving record or a history of accidents, your premiums may be higher. Conversely, if you have a clean driving record and are over the age of 25, you may be eligible for discounts on your premiums.
while the national average for full coverage auto insurance has increased slightly in 2023, the actual cost of insurance can vary significantly from state to state, and even from driver to driver. It’s important to shop around for the best rates and coverage options, and to understand how various factors can impact the cost of your premiums.