Stock photo of a man waiting on side of road for auto insurance company to arrive

How Much Is Car Insurance for the Average US Household?

All drivers need car insurance. But where are Americans most likely to spend the most to purchase it? doxoINSIGHTS breaks down the amount that U.S. households pay for auto insurance bills. doxo’s U.S. Auto Insurance Market Size and Household Spending Report analyzes the numbers at the national, state and city levels, both in terms of overall market size and average cost per household at both the monthly and annual levels.

doxoINSIGHTS industry report: U.S. Auto Insurance Market Size and Household Spending Report 2021

Download full report here.

Check the full report for additional details on national bill payments, and how much auto insurance costs in comparison to other regular expenses, like utilities, rent, cable and internet, mobile phone costs, and five more key household bill pay categories. It also breaks down the scale of the auto insurance industry market size: $235 billion spent in the US per year on the bill category, out of the $4.4 trillion total that Americans spend on household bills.

How much is the average car insurance bill in the US?

doxoINSIGHTS’ report on the industry reveals that the average American household spends $186 a month on auto insurance services. Also, 82% of households pay a combined auto insurance bill in the first place. This brings the average annual auto insurance cost per US household is $1,830.

Car Insurance Costs for the Average US Household
Average Monthly Car Insurance Bill % of Households w/ Car insurance Bill Average Annual Car Insurance Expenses per HH
$18682%$1,830

Below, see a breakdown of car insurance costs across the most and least expensive states, major metro areas, and smaller cities and towns.

Wyoming is the most expensive state for car insurance bills

Wyoming tops the list of the most expensive states for car insurance costs, with an average monthly bill of $335, far and away the highest cost out of all 50 states and the District of Columbia. Alaska comes in second place, at $262 per household. Both states receive heavy snowfall in the winter; car insurance companies generally receive more claims in areas with inclement weather, which may drive up premiums. Maryland, Hawaii, and New Jersey round out the list of the top 5 most expensive states to purchase auto insurance.

5 Most Expensive States for Auto Insurance

Rank (1-51) State* Average Monthly Bill % of Households w/ Bill Average Annual Expenses per HH
1Wyoming$33592%$4,014
2Alaska$26283%$3,141
3Maryland$25486%$3,047
4Hawaii$24683%$2,950
5New Jersey$22684%$2,709

*From rankings of all US states + the District of Columbia. See full report, page 11 for complete state rankings.

States located in the West and Midwest make up the list of the most affordable states for car insurance. Idaho auto insurance expenses are the lowest, at $136 a month on average, followed by New Mexico, at $141 a month. Next come Missouri, also at $141 a month, followed by Oklahoma ($144) and Kansas ($148).

5 Most Affordable States for Auto Insurance

Rank (1-51) State Average Monthly Bill % of Households w/ Bill Average Annual Expenses per HH
47Kansas$14884%$1,773
48Oklahoma$14481%$1,734
49Missouri$14184%$1,694
50New Mexico$14184%$1,692
51Idaho$13688%$1,627

Washington DC is the most expensive metro for car insurance

The five most expensive major metros for car insurance are all located on or near the East Coast. Washington DC tops the list, at $266 per month on average, followed by New York City, at $262. Two Florida metros come next: Miami, at $245 per month, and Orlando, at $238. Pittsburgh, perhaps surprisingly, rounds out the top 5, at $219.

5 Most Expensive Major Metros for Auto Insurance

Rank (1-25) Metro Average Monthly Bill % of Households w/ Bill Average Annual Expenses per HH
1Washington DC$26684%$3,190
2New York$26279%$3,142
3Miami$24585%$2,942
4Orlando$23888%$2,857
5Pittsburgh$21987%$2,624

From rankings of 25 most populous Combined Statistical Areas in the US. See report page 18 for complete metro rankings.

The least expensive major city for auto insurance expenses is Kansas City, where residents pay $132 per month on average. Houston comes in at a fairly distant second place, at $155 per month, more than $20 more expensive than Kansas City. Columbus, Ohio follows Houston, at $155 as well. Sacramento, California follows Columbus, with St. Louis rounding out the “top 5 most affordable” list.

Also refer to doxo’s op-ed in CBT News for a more detailed look at the share of household income that residents of different metros pay for car ownership costs (auto insurance plus auto loans). Orlando and Miami, for instance, are at the top of the list of the cities where residents spend the highest proportion of their income on car ownership.

5 Most Affordable Major Metros for Auto Insurance

Rank (1-25) Metro* Average Monthly Bill % of Households w/ Bill Average Annual Expenses per HH
21St. Louis$16281%$1,950
22Sacramento$15677%$1,875
23Columbus$15584%$1,860
24Houston$15580%$1,860
25Kansas City$13284%$1,586

Santa Cruz is the most expensive city for car insurance

Among the smaller cities and towns ranked by doxoINSIGHTS, Santa Cruz, California takes the spot as the most expensive city in the rankings, with an average monthly bill of $488. Myrtle Beach, in South Carolina, follows, at an average monthly rate of $331. Anchorage, Alaska comes in next, at $327, followed by Hilo, Hawaii, then Punta Gorda, Florida.

5 Most Expensive Smaller Cities for Auto Insurance

Rank (1-374) City / Town*Average Monthly Bill % of Households w/ Bill Average Annual Expenses per HH
1Santa Cruz, CA $48881%$5,854
2Myrtle Beach, SC $33195%$3,976
3Anchorage, AK $32783%$3,921
4Hilo, HI$31583%$3,785
5Punta Gorda, FL $30983%$3,706

*Ranked among the 374 US Census Bureau Core Based Statistical Areas with populations over 40,000. See report page 20 for complete list.

5 Most Affordable Smaller Cities for Auto Insurance

The most affordable smaller city at the bottom of the rankings is Laredo, Texas. In Laredo, residents can expect to pay an average of $66 per month in car insurance bills. In fact, out of the top 5 most affordable cities for car insurance, 4 of them are located in Texas. Sherman comes in third place, at $76 per month, Brownsville comes fourth, at $80, and El Paso fifth, at $82. Ames, Iowa, coming in second place, at $73 per month, is the only town on the “most affordable” list not located in Texas.

Rank (1-373) City / Town* Average Monthly Bill% of Households w/ BillAverage Annual Expenses per HH
370El Paso, TX$8277%$981
371Brownsville, TX$8082%$954
372Sherman, TX$7684%$908
373Ames, IA$7383%$873
374Laredo, TX$6683%$797

Market size and more: the scale of the industry

The full Auto Insurance report contains more detailed data as well, including industry market size rankings in all the different geographical divisions broken down above. Also see more details on how car insurance spending stacks up in comparison to other household bill costs, such as utilities, cable and internet, and mobile phone.

During the COVID-19 pandemic, some people may require assistance trimming regular expenses in order to save money. doxoINSIGHTS’ report can be a valuable resource for consumers seeking to make decisions like this, allowing them to compare average expenses in different cities and states. They can also use doxoINSIGHTS’ regional bill comparison database to compare average costs for over 900 towns and cities across the country.

The numbers from the full Auto Insurance report are drawn from anonymized data from doxo’s 6 million users paying over 100,000 billers across more than 30,000 zip codes in the United States. Read more about doxoINSIGHTS’ methodology here.

If you have any questions about doxoINSIGHTS, please email aria.thaker@doxo.com.

, , , , , , ,

Leave a Reply

Your email address will not be published.

Fill out this field
Please enter a valid email address.

Menu