The 10 Cheapest States for Car Insurance
There are many reasons why some states and particular ZIP codes have higher or lower auto insurance premiums than others. Legal requirements, traffic congestion, weather, and competition are some of the factors that lead to different rates.
Legal Requirements
Most states require a minimum amount of liability insurance coverage, but the specific requirements vary by state. Different coverage requirements can lead to higher or lower premiums in those states.
Traffic Congestion
In general, consumers in urban areas can expect to pay higher insurance rates than those in rural areas, as increased congestion leads to higher crash rates. Urban areas may also be more prone to car break-ins, theft, and vandalism.
Because of these factors, states with lower population densities can see lower insurance rates. Within states, car insurance customers in rural ZIP codes can expect to see lower prices than those in urban areas.
Weather
Drivers in states that have a history of severe weather are likely to have higher car insurance premiums than those in milder climates. States that frequently experience flooding, or the effects of hurricanes, can see the costs of those weather perils reflected in their insurance rates.
Winter weather and its impact on roads can cause vehicle damage and contribute to high insurance costs. In the central U.S., hail damage can lead to higher premiums for comprehensive auto insurance policies.
Competition
Car insurance customers in states where there is lots of competition among car insurers are in a great position to see lower annual average car insurance rates than those in areas where only a few firms are competing. Not all insurance companies do business in all 50 states and the District of Columbia.
Some of the best ways to get the cheapest rate are in your hands, like having a good driving record and choosing the right coverages and deductibles.
But drivers who live in these 10 states have a built-in advantage when it comes to finding cheap car insurance.
1)
Maine has the lowest auto insurance rates in the nation, on average. Our data shows that the average annual car insurance rate for Maine drivers is $949, which is $594 less than the national average of $1,543. Auto-Owners Insurance has the cheapest sample rate in Maine: $620 per year on average.
Cheapest Car Insurance Companies in Maine
Company | Average Rate |
|---|---|
Auto-Owners Insurance | $620 |
USAA | $645 |
Travelers | $816 |
State Farm | $912 |
Geico | $940 |
2) Idaho
Idaho’s average annual rate of $992 is $551 lower than the national average of $1,543. Sentry has the cheapest average annual rate in Idaho at $474.
Cheapest Car Insurance Companies in Idaho
Company | Average Rate |
|---|---|
Sentry | $474 |
State Farm | $637 |
USAA | $674 |
Auto-Owners Insurance | $739 |
Geico | $807 |
3) Vermont
According to our study, the average annual rate for car insurance coverage in Vermont is $1,053. Compared to the national average of $1,543, Vermont drivers pay $490 less per year than the average U.S. driver.
USAA, which is exclusive to the military community, has the lowest sample rate in our study at $705 per year. Most drivers will find the lowest rate with Auto-Owners Insurance, which has an average annual rate of $784.
Cheapest Car Insurance Companies in Vermont
Company | Average Rate |
|---|---|
USAA | $705 |
Auto-Owners Insurance | $784 |
Geico | $813 |
American Family | $842 |
State Farm | $856 |
4) Ohio
Ohio drivers will find average car insurance rates to be around $1,083 per year, according to our analysis, $460 less than the national average rate of $1,543. Grange has the cheapest sample rate we found for Ohio drivers: $720 per year, on average.
Cheapest Car Insurance Companies in Ohio
Company | Average Rate |
|---|---|
Grange | $720 |
USAA | $731 |
Erie | $803 |
Geico | $871 |
Nationwide | $878 |
5) Wisconsin
The state average is $1,145, $398 less than the national average rate of $1,543. The cheapest sample rate in our study of Wisconsin auto insurers is $730 from USAA. Since USAA policies are exclusive to the military community, most drivers will find the lowest prices with Geico. Its average annual rate is $857.
Cheapest Car Insurance Companies in Wisconsin
Company | Average Rate |
|---|---|
USAA | $730 |
Geico | $857 |
West Bend Mutual | $907 |
Secura | $946 |
AAA | $1,003 |
6)
According to our data, the average car insurance rate in North Carolina is $1,165 per year, $378 less than the national average rate of $1,543. Erie has the cheapest average annual rate in North Carolina at $770 per year.
Cheapest Car Insurance Companies in North Carolina
Company | Average Rate |
|---|---|
Erie | $770 |
North Carolina Farm Bureau | $897 |
Nationwide | $909 |
National General | $1,075 |
Geico | $1,086 |
7)
The state’s average annual car insurance rate is $1,190, $353 less than the national average of $1,543. USAA’s sample rate, $677, is the cheapest in our study. Most Indiana motorists will find the lowest rate with Geico, at $877 per year on average.
Cheapest Car Insurance Companies in Indiana
Company | Average Rate |
|---|---|
USAA | $677 |
Geico | $877 |
State Farm | $977 |
Auto-Owners Insurance | $1,038 |
Indiana Farmers | $1,094 |
8)
With an average annual rate of $1,215, drivers in Iowa pay $328 less than the national average. The cheapest sample rate we found for Iowa is $780 per year, on average, from State Farm.
Cheapest Car Insurance Companies in Iowa
Company | Average Rate |
|---|---|
State Farm | $780 |
West Bend Mutual | $811 |
USAA | $1,007 |
Travelers | $1,065 |
IMT | $1,142 |
9)
The average rate drivers in Hawaii can expect is $1,241 annually. When compared to the national average of $1,543, Hawaii drivers pay $302 less. Geico has the cheapest average annual rate in Hawaii: $862.
Cheapest Car Insurance Companies in Hawaii
Company | Average Rate |
|---|---|
Geico | $862 |
USAA | $951 |
State Farm | $1,041 |
Statewide Average | $1,241 |
Farmers | $1,356 |
10)
According to our data, the average annual rate is $1,264, which is $279 cheaper than the national average of $1,543. Most drivers in Tennessee will find the lowest price with Auto-Owners Insurance, which has a sample rate of $999 per year on average. The only insurer cheaper is USAA, at $840 per year, but its policies are exclusive to the military community.
Cheapest Car Insurance Companies in Tennessee
Company | Average Rate |
|---|---|
USAA | $840 |
Auto-Owners Insurance | $999 |
State Farm | $1,051 |
Erie | $1,143 |
Tennessee Farmers | $1,227 |
Looking for ways to keep your car insurance rates low? Beyond choosing to live in a state with cheap car insurance, there are other actions you can take to ensure you choose the most affordable rate for your car insurance.
Here are just a few ways to keep your car insurance rates low, no matter where you live and drive:
- Shop around for the best rates. Experts suggest getting a quote from at least three different car insurance companies before you purchase a policy. Choose the company that gives you the best coverage for the most affordable rate.
- See if you qualify for discounts. Car insurance companies offer rate discounts for a variety of circumstances like having multiple drivers, maintaining a clean driving record, signing up for autopay, or having an anti-theft device. Investigate what your options are to take advantage of these discounts.
- Maintain a good driving record. When you maintain a good driving record, you show your car insurance company that you are less of a risk, which can result in a reduced insurance rate. Pay attention on the road and minimize distractions in the car to avoid accidents or moving violations, which can increase your car insurance costs.
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