Which States Have the Cheapest Auto Insurance Rates?

The top three states that have the cheapest auto insurance rates are Maine, Ohio, and Wisconsin. The states with the cheapest car insurance rates typically have a cheaper cost of living and moderate weather, including less risk for natural disasters. Read our guide for more information on states that have the cheapest auto insurance coverage, including a free comparison tool so you can start comparing auto insurance quotes in your state.

FREE Car Insurance Comparison

Secured with SHA-256 Encryption

Rachel Bodine graduated from college with a BA in English. She works as an associate editor and writer for 4autoinsurancequote.com for over a year and enjoys creating content that offers expert advice on car insurance topics.

Full Bio →

Written by

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs...

Full Bio →

Reviewed byLeslie Kasperowicz
Former Farmers Insurance CSRhttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/4autoins-live/6ea5d860-leslie-kasperowicz.jpg

UPDATED: Aug 25, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Auto insurance rates vary widely between states. America is a diverse country with a wide range of weather conditions, driving hazards, and laws. Insurance companies take all of these factors into account when calculating the insurance rates they offer in a particular state.

Which states have the cheapest auto insurance rates? Without further ado, let’s answer that question.

Top 15 States With the Cheapest Auto Insurance Costs

states with cheapest auto insuranceAuto insurance company Insure.com compiles an annual study of the states with the cheapest auto insurance costs. Typically, we see the same states appear at the top of that list year after year. Michigan has been the most expensive or second most expensive state for six years in a row, while Louisiana and California also frequently appear in the top 10.

Based on data from 2016, here are the top 15 states with the cheapest auto insurance costs (total cost per year)

1) Maine: $808

2) Ohio: $900

3) Wisconsin: $912

4) Idaho: $935

5) New Hampshire: $941

6) Vermont: $942

7) North Carolina: $987

8) Iowa: $989

9) Virginia: $1020

10) Illinois: $1035

11) Hawaii: $1049

12) New York: $1050

13) Missouri: $1056

14) Utah: $1061

15) Alaska: $1078

The national average policy cost, by the way, is $1325.

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Why Are Some States More Expensive Than Others?

Insurance costs vary widely between states. You can probably guess why some of the above states are more expensive than others. In general here are some of the reasons the states above appeared on our list of the cheapest or most expensive states:

Weather: Driving on icy or snowy roads for 4 or more months of the year vastly increases your risk of getting into an accident.

Urban Versus Rural Areas: Urban drivers are far more likely to get into an accident than rural drivers. Hawaii, Alaska, Iowa, and Idaho have few major cities, which is one reason they may appear on the list above.

Different Legal Requirements: Some states simply have different laws and auto insurance requirements. In some states, insurance companies are required to cover a wider range of things in the event of a collision, for example.

Cost of Living: The cost of living varies widely across America. Insurance rates reflect that.

Quality of Drivers: Some states have worse drivers than others. Certain states may have relaxed driver’s license requirements, for example, while other states are strict about who they allow on the road. Fortunately for us, this isn’t a subjective question: The National Highway Transportation Safety Administration regularly lists the states with the best and worst drivers, based on crash data like fatalities per miles traveled, failure to wear seat belts, drunken driving, careless driving, and failure to obey traffic signals. Based on this information, the worst states based on driver quality include South Carolina, North Dakota, Delaware, New Mexico, Alabama, Arizona, and Montana based on data from 2016.

Natural Disasters: Louisiana frequently appears at the top of the list because most of the state is prone to flooding and hurricanes. Other states have higher insurance rates because of other natural disasters. California has higher property insurance rates across the board because of the risk of earthquakes, for example.

Of course, there are always exceptions to these rules. Many people are surprised by how (relatively) cheap auto insurance is in Alaska and Hawaii, for example – two states with some of the highest costs of living in America. This can be traced to the lack of major urban areas, among other differences.

Texas has one of America’s most shocking driving stats: every day for the past 16 years, at least one person has died on a state road in Texas. In November 2016, that accounted for a streak of 55,578 deaths since November 7, 2000.

Ultimately, insurance rates vary widely between states. Make sure you compare auto insurance quotes when moving to a new state – you could be eligible for enormous cost savings if you pick one of the states with the cheapest auto insurance rates.

Are you looking for free insurance quotes?

Your one-stop online Car Insurance guide. Get a Free Quote Now!

(855) 898-5028