In 2018, the typical U.S. driver paid about $1,426 per year for auto insurance, or roughly $119 per month, according to national data from that year. This 2018 average served as a useful baseline for comparing costs across states and policy types. While premiums have risen since then, understanding the 2018 auto insurance average helps contextualrate trends and the long term drivers of cost, from state regulation to credit-based insurance scores and the prevalence of distracted driving.
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National 2018 Average and How It's Used
The 2018 average reflects total U.S. auto insurance expense across liability, collision, and comprehensive coverage, including discounts and fees. Insurers, regulators, and consumers use this benchmark to gauge affordability and market shifts. Because auto insurance is state regulated and priced, the 2018 national average masks meaningful geographic differences. The figure also changes when you segment by driver age, vehicle type, and coverage selection. Below is a concise snapshot of how the 2018 average breaks down across key dimensions.
| Attribute | Verified Detail | Source Type |
|---|---|---|
| National Average Annual Premium (2018) | $1,426 per year (~$119 per month) | Industry and regulatory data |
| Typical Liability Limits in 2018 | Common state minimums such as 25/50/25 | State insurance department records |
| Average Annual Cost by Coverage Type (approximate) | ||
| Major Rate Drivers in 2018 |
State-Level Variation Around the 2018 Average
Because insurance is regulated at the state level, the 2018 average differed markedly across the country. Some states saw premiums well above the national figure due to dense urban populations, higher repair costs, or stricter minimum coverage limits. In contrast, rural states with lower traffic density and lower repair costs often reported premiums below the 2018 average. When you compare state medians to the national 2018 average, you can better understand where drivers paid more or less for similar coverage.
Illustrative Range (Not a Quote)
While the 2018 average was about $1,426 nationwide, your neighbor's bill could be much higher or lower based on where you lived, how far you drive, your driving record, and the coverage limits you chose. Think of the 2018 auto insurance average as a midpoint: useful for trend analysis, but not a one size fits all price.
How the 2018 Average Compares to Later Years
Since 2018, several forces have pushed auto insurance prices upward in many markets, including higher repair costs after technology-rich vehicles, increased accident frequency linked to distracted driving, and tighter underwriting in some states. Comparing the 2018 average to later years highlights these trends. Consumers who benchmark against 2018 can spot whether their rates are in line with long term market moves or if a particular insurer's increases are especially steep.
Key Factors That Shape Your Premium Relative to the Average
Your personal premium can sit above or below the 2018 average based on a blend of risk indicators and coverage choices. Understanding these levers helps you anticipate costs and identify opportunities to reduce them without sacrificing necessary protection.
- State and local regulation: Minimum coverage rules and rate approval processes vary widely.
- Driver profile: Age, license tenure, and accidents or tickets directly affect pricing.
- Vehicle details: Year, make, model, safety features, and repair cost history matter.
- Coverage selections: Higher deductibles and lower limits generally reduce premiums; adding collision and comprehensive raises them.
- Credit and usage: In many states, credit-based insurance scores and annual mileage are considered.
Using the 2018 Average as a Reference Point
The 2018 auto insurance average is most valuable as a reference point, not a target. It works best when you compare quotes from multiple insurers, ask about discounts (such as safe driver, bundling, or vehicle safety features), and align coverage limits with your actual risk and assets. If your premium is much higher than the 2018 average for your state and profile, it may be worth shopping options or reviewing your policy details to see where savings are possible.
Frequently Asked Questions
- What did the 2018 average include? The 2018 average typically combined liability, collision, and comprehensive costs where they were purchased together, weighted by market share.
- Does the 2018 average reflect today's prices? No. Since 2018, costs have risen in many places due to repairs, medical costs, and other trends. Use the 2018 average for historical comparison, not current budgeting.
- Why do rates vary so much by state? State rules on minimum coverage, rate filing, and repair costs create meaningful geographic differences around the national average.
- Can my credit score change my price relative to the average? Yes, in many states, insurers use credit-based insurance scores to help set premiums, which can raise or lower your cost relative to the average.
Bottom Line
Understanding the auto insurance 2018 average gives you a stable benchmark for how costs have evolved and where your quote stands relative to the broader market. Remember that your premium reflects your specific risk factors, state rules, and coverage choices. Use the 2018 average as a baseline when comparing options, and focus on building a policy that fits your coverage needs and budget today.