Car insurance premiums can vary significantly between insurance companies due to the rating factors they use, the statistical information they look at, their own claims experience and the cost of doing business. We’ll explain this in detail, and provide examples of how rates can differ, sometimes by a lot, sometimes by a little, depending on the company.
Auto insurance rates vary from one insurance company to another because each uses its own unique formula to assess risk and determine how much you pay. All insurance companies will base your rate on the following variables, but no two companies will have the same exact end result:
- How much risk you present to an insurance company
- What it costs your insurer to conduct business
- How much money your insurance carrier estimates it will need to pay all claims during the year
For example, you’ll see in the chart below that the cheapest price for the same policy can be hundreds of dollars less than the most expensive.
Enter your state in the search field to see how much average rates differ by company for a full coverage policy:
| State | Company | Average Annual Rate |
|---|---|---|
| Alaska | State Farm | $979 |
| Alaska | Geico | $1,075 |
| Alaska | Progressive | $1,080 |
| Alaska | Allstate | $1,304 |
| Alabama | Geico | $759 |
| Alabama | Mid Century | $1,172 |
| Alabama | Nationwide | $1,197 |
| Alabama | Allstate | $1,257 |
| Alabama | State Farm | $1,572 |
| Alabama | Progressive | $1,840 |
| Arkansas | Geico | $980 |
| Arkansas | State Farm | $1,165 |
| Arkansas | Farmers | $1,176 |
| Arkansas | Nationwide | $1,483 |
| Arkansas | Progressive | $1,594 |
| Arkansas | Allstate | $1,821 |
| Arizona | Geico | $977 |
| Arizona | Progressive | $1,047 |
| Arizona | Farmers | $1,195 |
| Arizona | State Farm | $1,392 |
| Arizona | Nationwide | $1,719 |
| Arizona | Allstate | $1,807 |
| California | Geico | $944 |
| California | United Financial | $1,128 |
| California | Nationwide | $1,379 |
| California | Nationwide | $1,756 |
| California | Farmers | $1,932 |
| California | State Farm | $1,967 |
| Colorado | Geico | $813 |
| Colorado | State Farm | $1,241 |
| Colorado | Farmers | $1,516 |
| Colorado | Progressive | $1,559 |
| Colorado | Allstate | $1,889 |
| Connecticut | Geico | $946 |
| Connecticut | Nationwide | $1,254 |
| Connecticut | State Farm | $1,463 |
| Connecticut | Progressive | $2,026 |
| Connecticut | Allstate | $2,462 |
| Connecticut | Foremost | $2,478 |
| DC | Geico | $713 |
| DC | Progressive | $1,496 |
| DC | State Farm | $1,518 |
| DC | Nationwide | $1,977 |
| DC | Allstate | $2,913 |
| Delaware | Geico | $1,134 |
| Delaware | Progressive | $1,333 |
| Delaware | Nationwide | $1,492 |
| Delaware | State Farm | $1,872 |
| Delaware | Allstate | $2,398 |
| Florida | Geico | $1,192 |
| Florida | State Farm | $1,611 |
| Florida | Progressive | $1,754 |
| Florida | 21st Century Centennial | $1,972 |
| Florida | Allstate | $2,584 |
| Georgia | Geico | $762 |
| Georgia | Nationwide | $1,303 |
| Georgia | State Farm | $1,372 |
| Georgia | Progressive | $1,563 |
| Georgia | Allstate | $1,701 |
| Hawaii | Geico | $857 |
| Hawaii | State Farm | $1,023 |
| Hawaii | Allstate | $1,389 |
| Hawaii | Progressive | $1,646 |
| Hawaii | Farmers | $2,376 |
| Iowa | Amco Ins Co | $645 |
| Iowa | Geico | $693 |
| Iowa | Farmers | $933 |
| Iowa | State Farm | $945 |
| Iowa | Progressive | $1,286 |
| Iowa | Allstate | $1,589 |
| Idaho | Geico | $713 |
| Idaho | Farmers | $800 |
| Idaho | State Farm | $845 |
| Idaho | Progressive | $848 |
| Idaho | Depositors Ins Co | $863 |
| Idaho | Allstate | $1,577 |
| Illinois | Geico | $590 |
| Illinois | Amco Ins Co | $678 |
| Illinois | State Farm | $1,011 |
| Illinois | Illinois Farmers | $1,170 |
| Illinois | Progressive | $1,193 |
| Illinois | Allstate | $1,375 |
| Indiana | Geico | $651 |
| Indiana | Illinois Farmers | $748 |
| Indiana | Progressive | $854 |
| Indiana | Nationwide | $866 |
| Indiana | State Farm | $1,095 |
| Indiana | Allstate | $1,569 |
| Kansas | Nationwide | $814 |
| Kansas | Geico | $823 |
| Kansas | State Farm | $1,166 |
| Kansas | Farmers | $1,249 |
| Kansas | Progressive | $1,682 |
| Kansas | Allstate | $1,718 |
| Kentucky | Geico | $881 |
| Kentucky | Nationwide | $1,631 |
| Kentucky | Progressive | $1,693 |
| Kentucky | State Farm | $1,734 |
| Kentucky | Allstate | $2,822 |
| Louisiana | Geico | $1,540 |
| Louisiana | State Farm | $2,023 |
| Louisiana | Allstate | $2,316 |
| Louisiana | Progressive | $2,881 |
| Massachusetts | Geico | $865 |
| Massachusetts | State Farm | $884 |
| Massachusetts | Progressive | $1,272 |
| Massachusetts | Allstate | $1,742 |
| Maryland | Progressive | $1,102 |
| Maryland | Nationwide | $1,114 |
| Maryland | Geico | $1,199 |
| Maryland | State Farm | $1,357 |
| Maryland | Allstate | $2,177 |
| Maine | Geico | $517 |
| Maine | State Farm | $948 |
| Maine | Progressive | $1,025 |
| Maine | Allstate | $1,212 |
| Michigan | Geico | $1,027 |
| Michigan | Progressive | $1,714 |
| Michigan | Titan | $2,177 |
| Michigan | Allstate | $2,849 |
| Michigan | State Farm | $3,135 |
| Michigan | Farmers | $3,999 |
| Minnesota | Geico | $935 |
| Minnesota | Illinois Farmers | $1,030 |
| Minnesota | Allied | $1,188 |
| Minnesota | State Farm | $1,190 |
| Minnesota | Progressive | $1,295 |
| Minnesota | Allstate | $1,483 |
| Missouri | Allied | $724 |
| Missouri | Geico | $800 |
| Missouri | Farmers | $1,051 |
| Missouri | State Farm | $1,279 |
| Missouri | Progressive | $1,303 |
| Missouri | Allstate | $1,769 |
| Mississippi | Geico | $894 |
| Mississippi | Nationwide | $1,184 |
| Mississippi | Progressive Gulf Ins Co | $1,268 |
| Mississippi | State Farm | $1,353 |
| Mississippi | Allstate | $1,917 |
| Montana | Geico | $848 |
| Montana | Progressive | $1,112 |
| Montana | State Farm | $1,149 |
| Montana | Depositors | $1,238 |
| Montana | Mid Century | $1,244 |
| Montana | Allstate | $1,753 |
| North Carolina | Progressive | $622 |
| North Carolina | Geico | $704 |
| North Carolina | State Farm | $845 |
| North Carolina | Farmers | $1,046 |
| North Carolina | Nationwide | $1,071 |
| North Carolina | Nationwide | $1,205 |
| North Carolina | Allstate | $1,230 |
| North Dakota | Allied | $753 |
| North Dakota | Geico | $897 |
| North Dakota | Progressive | $1,047 |
| North Dakota | State Farm | $1,132 |
| North Dakota | Allstate | $1,502 |
| North Dakota | Mid Century | $2,560 |
| Nebraska | Allied | $711 |
| Nebraska | Geico | $978 |
| Nebraska | State Farm | $1,003 |
| Nebraska | Mid Century | $1,192 |
| Nebraska | Allstate | $1,393 |
| Nebraska | Progressive | $1,403 |
| New Hampshire | Geico | $550 |
| New Hampshire | Nationwide | $867 |
| New Hampshire | State Farm | $1,036 |
| New Hampshire | Progressive | $1,465 |
| New Hampshire | Allstate | $1,588 |
| New Jersey | 21st Century Centennial | $762 |
| New Jersey | Geico | $1,104 |
| New Jersey | Progressive | $1,255 |
| New Jersey | Allstate NJ | $1,761 |
| New Jersey | State Farm | $1,847 |
| New Mexico | Geico | $894 |
| New Mexico | Progressive | $998 |
| New Mexico | State Farm | $1,177 |
| New Mexico | Farmers | $1,251 |
| New Mexico | Allstate | $1,948 |
| Nevada | Geico | $1,342 |
| Nevada | Mid Century | $1,537 |
| Nevada | Progressive | $1,663 |
| Nevada | State Farm | $1,726 |
| Nevada | Victoria | $1,955 |
| Nevada | Allstate | $2,256 |
| New York | Geico | $993 |
| New York | Progressive | $1,160 |
| New York | Allstate | $1,587 |
| New York | State Farm | $1,855 |
| New York | Nationwide | $2,098 |
| New York | Foremost | $2,858 |
| Ohio | Geico | $619 |
| Ohio | State Farm | $881 |
| Ohio | Farmers | $887 |
| Ohio | Progressive | $999 |
| Ohio | Nationwide | $1,015 |
| Ohio | Allstate | $1,310 |
| Oklahoma | Geico | $1,050 |
| Oklahoma | Farmers | $1,327 |
| Oklahoma | State Farm | $1,416 |
| Oklahoma | Allstate | $1,918 |
| Oklahoma | Progressive | $2,506 |
| Oregon | Geico | $933 |
| Oregon | State Farm | $1,043 |
| Oregon | Nationwide | $1,121 |
| Oregon | Progressive | $1,238 |
| Oregon | Farmers | $1,594 |
| Oregon | Allstate | $1,656 |
| Pennsylvania | Geico | $703 |
| Pennsylvania | Nationwide | $711 |
| Pennsylvania | State Farm | $1,284 |
| Pennsylvania | Allstate | $1,729 |
| Pennsylvania | Progressive | $3,183 |
| Rhode Island | State Farm | $1,132 |
| Rhode Island | Geico | $1,292 |
| Rhode Island | Nationwide | $1,678 |
| Rhode Island | Progressive | $2,092 |
| Rhode Island | Allstate | $2,246 |
| South Carolina | Geico | $1,050 |
| South Carolina | Allstate | $1,178 |
| South Carolina | Nationwide | $1,200 |
| South Carolina | Progressive | $1,359 |
| South Carolina | State Farm | $1,511 |
| South Dakota | Geico | $708 |
| South Dakota | Nationwide | $938 |
| South Dakota | Mid Century | $982 |
| South Dakota | State Farm | $1,052 |
| South Dakota | Progressive | $1,110 |
| South Dakota | Allstate | $1,562 |
| Tennessee | Geico | $764 |
| Tennessee | Nationwide | $796 |
| Tennessee | State Farm | $1,131 |
| Tennessee | Progressive | $1,223 |
| Tennessee | Mid Century | $1,576 |
| Tennessee | Allstate | $1,794 |
| Texas | Farmers | $905 |
| Texas | Geico | $1,027 |
| Texas | Colonial | $1,247 |
| Texas | Progressive | $1,328 |
| Texas | State Farm | $1,348 |
| Texas | Allstate | $1,949 |
| Utah | Geico | $684 |
| Utah | Mid Century | $1,016 |
| Utah | Allied | $1,119 |
| Utah | Allstate | $1,353 |
| Utah | Progressive | $1,503 |
| Utah | State Farm | $1,518 |
| Virginia | Nationwide | $744 |
| Virginia | Geico | $894 |
| Virginia | State Farm | $969 |
| Virginia | Allstate | $1,102 |
| Virginia | Progressive | $1,150 |
| Vermont | Geico | $485 |
| Vermont | Nationwide | $789 |
| Vermont | Progressive | $1,103 |
| Vermont | Allstate | $1,183 |
| Vermont | State Farm | $1,255 |
| Washington | Nationwide | $1,028 |
| Washington | Geico | $1,075 |
| Washington | Progressive | $1,092 |
| Washington | State Farm | $1,160 |
| Washington | Farmers | $1,335 |
| Washington | Allstate | $1,455 |
| Wisconsin | Geico | $663 |
| Wisconsin | State Farm | $914 |
| Wisconsin | Mid Century | $1,021 |
| Wisconsin | Artisan | $1,176 |
| Wisconsin | Allstate | $1,484 |
| Wisconsin | Nationwide | $2,851 |
| West Virginia | Geico | $1,149 |
| West Virginia | Progressive | $1,238 |
| West Virginia | State Farm | $1,309 |
| West Virginia | Nationwide | $1,327 |
| West Virginia | Allstate | $1,853 |
| Wyoming | State Farm | $1,128 |
| Wyoming | Geico | $1,287 |
| Wyoming | Farmers | $1,688 |
| Wyoming | Allstate | $1,874 |
*Rates were fielded by Quadrant Information Services from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, married, clean record and good credit, driving 2016 Honda Accord. Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.
Assessing your risk
Weighting different factors about you
Insurance companies assess several factors to determine your likelihood of experiencing an accident or loss, or how much of a risk you pose. Not all companies consider the same factors. Additionally, some companies attach more significance to certain factors than others. That means your rates will vary from one insurance company to another depending upon each insurer’s rating factors and the weight they place on the different factors.
The following factors influence car insurance rates as insurers commonly use them to assess if you are a high-risk driver or not:
- Your age
- The make and model of your car
- Your driving record
- Where you drive and keep (garage) your car
- Your claims history
- Your credit rating
Car insurance companies use statistics to assess risk
Auto insurance companies analyze statistical information about millions of drivers. They then use it to identify characteristics of drivers who are more likely to file claims that the company would have to pay. The statistical information that insurance companies collect regarding driver types can differ, making insurance rates vary.
When calculating how much you pay, insurance carriers also usually group you with other people whose age, sex, occupation and experience are similar to yours. If you fall in a group considered low-risk, you are likely to pay less for coverage than if you are put in a group considered high-risk.
Insurers plan for future claims costs
The amount needed by the insurer to cover the costs of accidents or losses that may happen in the future also plays a role in determining your rate, and also varies by company. Since insurance companies can’t see into the future, they must use past claims history and experiences to help determine future losses that they will have to pay out on. Because each company has had different claims experiences with the groups of people they insure, the rates charged by different companies are never identical.
CarInsurance.com’s rate analysis shows that it pays to spend some time shopping for your policy after a claim or moving violation.
The cost of doing business
There is also the varying cost of doing business as an insurance provider that is considered when rates are set. Each company’s cost of doing business (how much they pay to sell and service policies) and their financial goals are different, resulting in different prices being charged.
Comparing rates is the best way to save on car insurance
Car insurance premiums can vary widely between insurance companies due to the rating factors they use, the statistical information they look at, their own claims experience and the cost of doing business. That’s why to get the best rates you need to do a car insurance comparison, and see which companies have the lowest rates for the coverage you want.
You can estimate car insurance costs by deciding how much coverage you need, taking into account your age and where you live. Enter your ZIP code and in the tool below, and you’ll see average car insurance rates for the coverage level selected. You’ll also see the highest and lowest rate fielded from up to six major insurers – for the same policy. This shows you how much you can save by comparison shopping.
Car insurance companies and customer service
Knowing why car insurance rates are never the same for any two insurance companies provides an incentive to comparison shop. But never select an insurer on price alone — consider how you will be treated when you have to use your insurance and file a claim. Here are how major insurers scored, out of 100, on Insure.com’s Best Car Insurance company survey of 3,700 consumers. Participants were asked about value for price, customer service and claims handling.
| Rank | Company | Overall Score |
|---|---|---|
| 1 | USAA | 89.98 |
| 2 | American Family | 88.34 |
| 3 | Allstate | 88.34 |
| 4 | CSAA Insurance Group | 88.09 |
| 5 | Mercury | 87.71 |
| 6 | Auto Club of Southern California (Auto Club Enterprise Insurance Group) | 87.67 |
| 7 | Liberty Mutual | 87.17 |
| 8 | The Auto Club Group (ACG) – AAA | 86.84 |
| 9 | Progressive | 86.56 |
| 10 | Erie | 86.31 |
| 11 | Geico | 86.00 |
| 12 | The General | 85.81 |
| 13 | Farmers | 85.24 |
| 14 | State Farm | 84.76 |
| 15 | Esurance | 84.56 |
| 16 | Nationwide | 84.40 |
| 17 | Metlife | 84.29 |
| 18 | Safeco | 83.35 |
| 19 | Hartford | 82.80 |
| 20 | Travelers | 81.34 |
— Michelle Megna contributed to this story.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.