What Is a Car Insurance Premium?

Your car insurance premium is how much you pay for your vehicle’s coverage. It’s based on your driving record, vehicle and coverage amounts, among other factors.
Author:
Lily DiGregorio
Lily DiGregorio,Staff copywriter
Lily DiGregorio
Staff copywriter specializing in auto and home insurance for The Hartford.
Reviewed By:
Ben Ewbank
Ben Ewbank,Head of Personal Lines State Product and Pricing
Ben Ewbank
Head of Personal Lines State Product and Pricing at The Hartford.
LinkedIn Profile
Updated: 10/07/2025
Read Time: 6 minutes
what is a car insurance premium?
Quote Today
Start Quote

Key Takeaways

  • Car insurance policy premiums are based on personal factors, like your location or discounts applied, as well as things outside of your control, like repair costs.
  • While there is no one-size-fits-all price when it comes to car premiums, The Hartford’s customers pay between $121 and $162 a month for car insurance on average.2 
  • From average rates by state to what happens at renewal, The Hartford is here to answer all of your car insurance premium questions.

What Factors Influence Your Premium in Car Insurance?

Every car insurance company calculates your car premium differently. What is an auto insurance premium based on? Factors that typically influence how much your car insurance costs include your:
 
  • Driver history: Accidents and violations can raise car insurance costs.
  • Vehicle type: From newer to older cars, what you drive will impact what you pay.
  • Average miles driven in a year: Some insurance carriers offer savings if you don’t drive often, as your risk of getting into an accident is lower.
  • Coverage limits: How much protection you have on your policy will affect how much you pay for insurance. Our car insurance calculator can help you estimate the coverage you need based on your insurance goals.
  • Deductible amounts: The lower your car insurance deductible is, the higher your monthly payment will be. This also means that the more you increase your deductible, the lower your monthly bill becomes.
  • Discounts: The Hartford offers car insurance discounts just for AARP members, including savings of over $800 when you get a car and home insurance bundle from us.**
  • Location: Each state has different required coverage amounts, traffic trends and weather patterns—all of which can influence your car insurance price.

Average Auto Insurance Premium

On average, The Hartford’s customers pay between $121 and $162 a month for car insurance.3 Keep in mind: you may choose to pay monthly, every 6 months or annually for coverage.
 

Average Car Premium by Age

Here are the average costs that The Hartford’s customers pay for auto insurance by age:4
Age The Hartford Avg. Annual Premium The Hartford Avg. Monthly Premium
50-59 $1,942 $162
60-69 $1,517 $126
70+ $1,450 $121

Average Car Premium by State

Since car insurance prices can vary based on where you live, here are the average costs our policyholders pay for auto insurance by state:‡‡‡
State Avg. Annual Premium Avg. Monthly Premium
AK $1,607 $134
AL $1,578 $132
AR $1,311 $109
AZ $1,209 $101
CT $1,382 $115
DC $2,287 $191
DE $1,781 $148
GA $1,875 $156
HI $1,305 $109
IA $1,020 $85
ID $1,050 $87
IL $1,144 $95
IN $1,001 $83
KS $1,427 $119
KY $1,534 $128
LA $2,278 $190
MA $982 $82
MD $1,674 $139
ME $928 $77
MN $1,258 $105
MS $1,211 $101
MT $1,445 $120
ND $1,245 $104
NE $1,141 $95
NH $1,090 $91
NJ $1,704 $142
NM $1,419 $118
NY $1,679 $140
OH $985 $82
OK $1,675 $140
OR $1,166 $97
RI $1,774 $148
SC $1,668 $139
SD $1,616 $135
TN $1,274 $106
TX $1,519 $127
UT $1,155 $96
VA $1,278 $107
VT $1,005 $84
WI $986 $82
WV $1,376 $115
WY $1,299 $108

How Car Insurance Premiums Are Calculated

Car insurance premiums are calculated based on a variety of risk factors that help insurers estimate how likely you are to file a claim. What is a premium in car insurance going to look like for you? It will depend on:
 

Driving Habits and Record

Your current driving habits and your claims history can impact your insurance premiums. So, if you’ve had a lot of claims in the past, you’ll likely pay higher rates for car insurance. If you have a clean driving record or fewer accidents, you’ll typically pay less.
Driving safely benefits everyone and can help you save on car insurance. Maintain a clean driving record for five years and you can save up to 10% on your auto insurance policy with The Hartford.
 

Type of Car You Drive

The type of car you drive can influence how much you pay for insurance. For instance, you can save money if your car has more safety features, as these can cost less to insure. From car theft to repair costs, you may have to pay higher premiums if the type of vehicle you drive is commonly stolen or is expensive to fix.
At The Hartford, it’s not just how you drive, it’s what you drive. You may be eligible for auto insurance discounts if your car is a hybrid or electric vehicle.
 

Types of Coverage, Limits and Deductibles

The more types of car insurance coverage you choose, the higher your premiums will be. But having enough protection to enjoy peace of mind behind the wheel is priceless.
 
Most states require minimum liability insurance amounts for bodily injury and property damages. If you have a lease or loan on your vehicle, you may also be required to carry collision insurance and comprehensive insurance coverages.
 
The Hartford offers customizable coverage options and benefits to extend your protection on the road, including:
 
 

Personal Details

When you request a car insurance quote, your insurer will likely ask you for your:
 
  • ZIP code, since location is used to generate your unique price.
  • Age and gender, so your insurance company knows your basic personal details.
  • Marital and employment status, including whether you’re retired or use your vehicle for a personal business.
  • Car’s year, make and model, since this will impact your quote amount.
  • Vehicle use, so your insurer knows whether you commute daily or just use your car for errands.
  • Licensed drivers, to make sure anyone who will be driving is covered on your policy.
  • Credit history, because insurance companies use parts of your credit history to help calculate your premium.
  • Claims and insurance history, to help inform your insurer how safe you’ve been behind the wheel, which can impact your price.
 

Car Insurance Discounts

What is a car insurance premium discount? Most insurance companies offer premium discounts to help reduce how much you pay for car insurance per month. For instance, The Hartford offers car insurance discounts and exclusive benefits specifically for experienced drivers. In fact, you can save up to 10% just for being an AARP member.†
 

What Can Affect Car Insurance Premiums During Renewal?

Auto insurance policies typically last six months or a year. Once they’re up, car insurance companies contact their customers for renewal. At this time, your insurer will review your coverages, limits and policies. Afterward, your car insurance may go down or up, depending on various factors.
 
So, when it’s time to renew, what is a car insurance premium affected by? Many things can influence your premium, like having multiple car insurance claims filed during your policy period. Any traffic violations, like speeding during your policy period, can impact your premium. There are also external factors to consider when generating your price, like repair costs or how severe the accidents in your area tend to be.
 

Car Insurance Premium Definition vs. Quote Definition

Your car insurance premium is the amount you’ll pay your insurance company for coverage regularly, either every six months or annually. An insurance quote is an estimate of what you’ll pay for your coverages.
Many drivers get multiple quotes from auto insurance companies to compare offerings and premiums when shopping for a policy. These quotes are not final, and car insurance premiums can increase or decrease as you continue through the buying process.
what is auto insurance premium

Get a Quote for Car Insurance Today

Did you know The Hartford is the official provider of the only national auto insurance program endorsed by AARP? For over 40 years, we’ve offered exclusive benefits and discounts to help lower car insurance costs for AARP members. To get your personal AARP member price and learn about our insurance products, get a car insurance quote from The Hartford online or call us at 888-546-9099.

Frequently Asked Questions About Car Insurance Premiums

Car insurance can usually be bought as a yearly policy or every six months, which means a six-month premium is the cost of your car insurance over that time period.
Car insurance premiums can typically be paid either via a monthly payment plan or a lump sum, depending on your preference and the insurer’s options. So, how is car insurance paid if you choose monthly payments over annual billing? Most providers offer flexible plans to fit your budget. Monthly payments may be easier to manage, while paying in full often comes with a discount.
A car insurance premium is how much you pay for your policy, while a car insurance deductible is the amount you must pay after a covered loss before insurance coverage kicks in to cover the rest.

Related Articles

 
 
2,3,4 Auto insurance rates by age range from 9/1/22 to 8/31/23.
† Average savings amounts are derived from 6-month policy terms and based on information reported by customers who switched to The Hartford's newest rate plan between 9/1/22 and 8/31/23. This data is also used to determine the number/percentage of individuals who saved money when they switched. Your savings may vary. Rate differences for AARP members and non-members vary by state and AARP membership tenure.
** Average savings amounts based on information reported by customers who switched to The Hartford from other carriers between 9/1/22 and 8/31/23. Your savings may vary. Average auto insurance savings is $577 and average home insurance savings is $236. Rate differences for AARP members and non-members vary by state and AARP membership tenure. Auto/Home discount is available only to policyholders who have both their auto and home (or condo or renters) insurance through the AARP Auto & Home Insurance program from The Hartford. The Hartford does not write new business in all areas, including the states of CA and FL.
 
§ Availability of RecoverCare benefit and benefit levels vary by state. The Hartford RecoverCare Advantage® is a registered mark of The Hartford.
 
§§ Terms and conditions apply.
 
‡ Terms and conditions apply. Accident Forgiveness and the Disappearing Deductible are not available to CA policyholders.
 
‡‡ Terms and conditions apply. Availability varies by state.
 
‡‡‡ Based on one car and driver; individual rate/premium/savings will vary based on actual coverage selections and characteristics of vehicle(s)/driver(s).
 
Additional disclosures below.
AARP® Auto Insurance
Quick Links
FAQs
For AARP® Members
Additional Resources
Summaries of coverages and policy features are for informational purposes only. In the event of loss, the actual terms and conditions set forth in your policy will determine your coverage.
 
AARP and its affiliates are not insurers. Paid endorsement. The Hartford pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP membership is required for Program eligibility in most states.
 
The AARP Auto Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA, by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MA, by Trumbull Insurance Company; and in PA, by Nutmeg Insurance Company and Twin City Fire Insurance Company. The AARP Home Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA by Property and Casualty Insurance Company of Hartford; in WA, by Trumbull Insurance Company; in MA, by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, and Hartford Accident and Indemnity Company; and in PA, by Nutmeg Insurance Company. The Hartford does not write new Home business in all areas, including the states of CA and FL. Savings, benefits and coverages may vary and some applicants may not qualify. The Program is currently unavailable in Canada and U.S. Territories or possessions.
 
1 In Texas, the Auto Program is underwritten by Redpoint County Mutual Insurance Company through Hartford of the Southeast General Agency, Inc. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by Redpoint County Mutual Insurance Company. The Home Program is underwritten by Hartford Insurance Company of the Southeast.
 
* Customer reviews are collected and tabulated by The Hartford and not representative of all customers.