Definition: The average cost of automobile insurance for a person in good health, living in an area with moderate climate, and driving a car registered to a driver who has been in regular service since 2014 would be $538 per year or 26% below the national average. A large part of this cost is spent on deductibles (premiums for specific types of injuries or illnesses that may not be covered by your insurance policy) and copays (fees that are charged to pay for doctor visits, medication, lab tests, and other medical expenses). An additional 12% of the premium goes towards non-covered costs. The cost per year also includes the amount you pay for your car's maintenance or repair services. The average cost of automobile insurance is an estimate based on a large number of individual cases and can vary greatly from person to person, depending on factors such as location, driver history, driving habits, health status, age, and other variables. The actual cost may be higher or lower than this figure due to unforeseen circumstances such as accidents or claims that are not covered by your policy.