Average Car Insurance Cost per Month: What the Number Means
Dividing the NAIC's 2023 national average expenditure of $1,281.60 by 12 gives about $106.80 per month. That average auto insurance cost is an expenditure statistic assembled from insurer data, not a current quote for a standard driver or a recommended budget. It combines different states, vehicles, drivers, coverage choices, and policy conditions, and it describes 2023 rather than today's market.
Why two drivers can pay different amounts
Insurers use underwriting to decide whether to accept a risk and rating to set its price. State rules differ, but location, household drivers, driving history, vehicle characteristics, use and mileage, selected coverages, limits, deductibles, discounts, and the insurer's filed rating plan can all matter.
- Match drivers, vehicles, address, and annual mileage when comparing quotes.
- Use the same liability limits and optional coverages.
- Compare deductibles alongside premiums.
- Ask whether installment or policy fees are included.
Turn a premium into an ownership budget
Normalize every quote to a monthly and annual amount, then place it beside the payment, fuel, routine maintenance, registration, parking, and a repair reserve. Cost per mile can add context, but insurance is not purely usage-based and a low per-mile figure does not prove the policy is adequate.
Example: a $1,800 annual quote
$1,800 per year equals $150 per month and $0.15 per mile at 12,000 annual miles. With a $450 payment, $180 fuel budget, and $100 maintenance estimate, the entered monthly vehicle cost is $880 and insurance is about 17.0% of it. A $1,000 deductible remains separate cash exposure if a covered claim occurs.
What to check before you decide
- National averages are delayed statistical context, not individualized pricing.
- Only an insurer or licensed producer can issue a quote; policy documents and state law control coverage.
Sources behind this guide
These official and primary sources let you verify rules, definitions, and terms that may change.
NAIC — 2023 average auto insurance premium supplement↗NAIC — Consumer auto insurance shopping tool↗NAIC — Auto insurance consumer information↗