Expensive Auto Insurance: What's The Costliest Coverage?

The cost of car insurance is rising, and it can be challenging to find an affordable policy that meets your coverage needs. The cheapest car insurance rates in our study are offered by USAA, Erie, Auto-Owners, and Nationwide. These insurers have competitive sample premiums in multiple driver categories, including some categories that are typically costly to insure.

The average annual cost of a car insurance policy among insurers we analyzed is $2,068, compared to $1,459 a year ago.

USAA has the lowest sample premiums in our study, but its policies are only available to current and former members of the military and their families.

Car insurance rates are highly individualized. Your age, driving history, location, and many other factors influence your costs. Premiums also vary widely by insurer. Some insurers do, on average, have cheaper rates than others for certain groups of motorists, so a specific company may offer the least expensive coverage for your particular situation.

The Hanover Insurance Group offers the most expensive car insurance, with an average of $7,302 per year. Michigan is the country's most expensive state for auto insurance.

The cost of car insurance depends on various factors, including location, age, driving record, credit history, gender, marital status, and vehicle type.

To get the cheapest car insurance, it is essential to shop around and compare quotes from multiple companies. It is also important to ask for discounts, increase your deductible, and understand state requirements.

Sports cars and luxury vehicles are the most expensive to insure

The make and model of your car is one of the factors that affect your insurance rates. The more expensive your car is to repair, the more expensive it will be to insure.

The Dodge Charger is the most expensive car to insure, according to one source. Full-coverage insurance for a Dodge Charger costs an average of $354 per month or $4,242 per year.

Another source names the Tesla Model S Performance as the most expensive car to insure among top-selling 2021 vehicle models.

The Hanover Insurance Group offers the most expensive car insurance

The Hanover Insurance Group offers a variety of protection options at competitive prices. With the Platinum Experience, customers can access a wide range of protection options and the benefits of packaging all their insurance needs into a single account. The Hanover Insurance Group also offers Connections auto insurance, which can be customized to suit individual needs, and Hanover Prestige, which is designed for higher-value homes and autos, offering powerful protection, flexibility of choice, and caring service.

The Hanover Insurance Group's auto insurance policies include a long list of extras, with options to add even more. The company offers coverage through independent agents in 20 states.

Michigan is the country's most expensive state for auto insurance

Michigan: The Country's Most Expensive State for Auto Insurance

Michigan is the ninth least expensive state to live in the U.S., with an inflation rate of 2.6% and a cost of housing 22.9% below the national average. However, it is the most expensive state for auto insurance.

The Rising Cost of Car Insurance

Insurers have been experiencing increasing costs in the years following the COVID-19 pandemic, which has unfortunately led to increased costs for drivers. Vehicle supply chain shortages have made car repairs much more expensive, and there is also an increase in the frequency and severity of car accidents.

The Cheapest Car Insurance Companies

The cheapest car insurance companies in the U.S. are USAA, Erie, Auto-Owners, and Nationwide. However, USAA policies are only available to current and former members of the military and their families. Erie Insurance is the cheapest option for good drivers, female and male teen drivers, female and male senior drivers, drivers after a speeding ticket, and drivers after an accident. Progressive is the cheapest option for drivers after a DUI, and Nationwide is the cheapest option for drivers with poor credit.

Michigan: The Most Expensive State for Auto Insurance

Michigan is the most expensive state for auto insurance, with an average annual rate of $2,150. This is 4.4% above the national average of $2,068.

The Dodge Charger is the most expensive car to insure

The Dodge Charger is an iconic muscle car that has been around for over a decade now. The 2021 Dodge Charger Hellcat Redeye, which sits at the top of the Charger lineup, is the most expensive Charger ever, starting at $80,090. However, the cost to insure a Dodge Charger depends on several factors, including age, location, driving record, and coverage limits and deductibles.

The Charger's powerful performance and muscle car style come at a cost when it comes to insurance. The Charger's quick acceleration and strong brakes can lead to higher insurance rates, especially for younger or less experienced drivers. The large engine and high-performance features may also result in higher repair costs, which can impact insurance rates.

While the Dodge Charger offers a combination of performance, comfort, and style, it may not be the most affordable option when it comes to insurance. The powerful V8 engines and quick acceleration can lead to higher fuel consumption, which can also affect insurance costs. Additionally, the Charger's aging platform and sensitive suspension can impact handling and overall safety ratings, potentially increasing insurance premiums.

To get the most accurate insurance quote for a Dodge Charger, it is essential to consider factors such as age, driving history, location, and desired coverage limits. Comparing quotes from multiple insurance providers and considering available discounts can help find the best rates. It is also important to note that insurance rates can vary based on individual circumstances, and it is always recommended to shop around and compare different insurance companies to find the most suitable coverage at the best price.

Florida is the most expensive state for car insurance

Florida's car insurance rates are 40% more than the national average, and the average premium rose by almost $160 in 2023 over the previous year.

State Farm has the cheapest car insurance rates in Florida, with an average annual rate of $138 per month.

Frequently asked questions