When it comes to car insurance, costs can quickly add up. But, auto insurance is one of those essential expenses that you usually can’t altogether avoid. If you’re planning to get a new car insurance policy, you may be wondering what states are the cheapest states for car insurance premiums. Several states allow drivers to save on this necessary expense. Check out our list of cheapest states for car insurance premiums: 

How We’re Determining the Cheapest States for Car Insurance Premiums 

There’s a lot of factors that can determine the price of car insurance. These factors can include weather, traffic congestion, economic conditions, and competition between car insurance companies. States with cheaper car insurance premiums tend to have mild weather, less traffic congestion, fewer fatal accidents, and less vehicle theft. 

Are you wondering which states have lower auto insurance rates? We’ve outlined the cheapest states for car insurance premiums below: 

Maine

Maine is the state with the cheapest car insurance premiums. If you want to move, this may be the place to go. The average cost for car insurance in this state is $861.37 per year. That’s a whole lot less than the most expensive state’s insurance cost. What keeps Maine’s car insurance rates so low? This state doesn’t have a lot of vehicle theft, and a high percentage of drivers on the road are insured. 

Cheapest States for Car Insurance Premiums
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New Hampshire

Next up is New Hampshire. It’s not costly to insure your car in this state. The average annual cost for auto insurance coverage is $896.57. This state doesn’t require its drivers to carry car insurance coverage, which is likely a factor that impacts the lower premium pricing. Drivers are still responsible for the costs associated with causing an accident, so it’s a good idea to invest in coverage. 

Ohio

Another one of the cheapest states for car insurance premiums is Ohio; On average, drivers pay $941.36 per year for coverage. Ohio also has lax car inspection laws. There is no required annual car inspection in this state. Some counties in the state require emissions testing to be done. Why is car insurance cheaper here? The state’s population includes a lot of older drivers, which means fewer accidents. In addition, most drivers have a short commute to work, meaning they spend less time on the road and have a smaller chance of getting into an accident. 

Virginia

Virginia is next on our list. It’s affordable to insure a car in this state. The average annual cost for car insurance coverage is $945.68. This state has a lot of insurance carriers, so the rates tend to be more competitive than other states. Virginia also highly regulates insurance companies, so that drives costs down. 

Idaho

If you plan to live in Idaho, you’ll be happy to know that it’s also a cheap place for car insurance premiums. On average, the annual price for car insurance premiums is $952.10. Idaho has a lot of older, more experienced drivers, which helps to keep the average rates low. 

Cheapest States for Car Insurance Premiums
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North Carolina

North Carolina is another state where it’s cheap to insure a vehicle. The average yearly cost for car insurance premiums is $997.72. One factor that keeps North Carolina car insurance premiums low is their contributory negligence law. This means that if a driver’s own negligence contributed to the car accident, they’re unable to sue for damages. You can get more information about rates and coverage requirements for car insurance in North Carolina here.

Indiana

Indiana is another state that offers lower-priced car insurance premiums. On average, drivers pay an annual cost of $1,000.57. The pricing can vary significantly throughout the state, between smaller towns and bigger cities. Drivers in smaller cities and towns can take advantage of the lowest rates.  

Iowa

For drivers in Iowa, the rates are affordable. The average cost to insure a vehicle for the year is $1,027.23. What keeps rates low here? This state doesn’t have a high population density, so that helps to lower vehicle insurance prices. The largest group of licensed drivers in Iowa are between the ages of 55 and 64, which means more experience and fewer accidents. This is another factor that influences the lower rates. 

Cheapest States for Car Insurance Premiums
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Washington

If you’re thinking of making a move to Washington, you’ll be happy to know that the average yearly car insurance cost is $1,052.45 in this state. Washington has one of the highest seat-belt use rates in the entire United States, so this is one factor that impacts the lower rates. They also have fewer fatal crashes compared to many other states. 

Alaska

Finally, Alaska is another suggested place to live if you want cheaper car insurance premiums. On average, the annual price for car insurance coverage is $1,077.50. Alaska requires its drivers to carry a higher than average mandatory auto insurance coverage, which is likely part of the reason why this state isn’t higher on our list of cheapest states for car insurance premiums. 

These are the cheapest states for car insurance premiums. It’s easy to see why some drivers stay living in the above states! If you’re planning a move, it can be worthwhile to consider moving to one of these states. You can compare other state car insurance prices with our helpful car insurance guides.  

 

Natasha Gabrielle