it is illegal (in all states?) to drive without insurance, and due to your age you're at a "higher" risk category since you're under age 25. Rate factors also include speeding tickets, accidents (regardless of "at fault" - you cost the insurance company money). The other factors which play into the cost / month include the payout limits (personal injury, uninsured,etc.), total deductible, make/model/year of car, and it's safety features. some companies reduce your monthly payment if you show you have good grades; take drivers ed; attend special "safe" driver seminars, etc. insurance is a complex system, the best thing you can do is shop around comparing quotes, and asking smart questions. my insurance is about 1000$ (esurance) / year; it used to be around 1400$ a few years ago (but it also had more features to the policy such as full-tort). oh yeah, rates also vary based on the location of your vehicle. if you don't use your car during the school year (say you're living on campus), you can apply for a discount.