Which States Have the Cheapest Car Insurance?


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Car insurance companies consider all sorts of factors to assess risk and set rates for different drivers. Here at The Zebra, our team pulled and analyzed millions of auto insurance rates in order to get some clarity on what factors impact who, where, and how much. (You can find everything in The State of Auto Insurance 2016 report right here.) One significant factor that comes into play in determining how much you’ll pay for your auto insurance is where you live. The difference in average car insurance premium between the cheapest state and the most expensive state is a whopping $1,323 per year! Yikes! 

Curious where you state lands on our list? Below are the top 10 states with the cheapest car insurance and average annual premiums:

1. Ohio — $764

Rock and Roll Hall of Fame in Cleveland, Ohio — states with the cheapest car insurance
Rock and Roll Hall of Fame in Cleveland, Ohio (photo credit: Ohio.org)

Good to know: DUI arrests are below the national average. Texting while driving is prohibited across the state.

Ohio state minimum coverage requirements:
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident
Property Damage $25,000 per accident

2. North Carolina — $817

Biltmore North Carolina — states with the cheapest car insurance
Biltmore (photo credit: VisitNC.com)

Good to know: In North Carolina, the percentage of uninsured drivers is 9%, well below the national average of 12%.

North Carolina state minimum coverage requirements:
Bodily Injury $30,000 per person
Bodily Injury $60,000 per accident
Property Damage $25,000 per accident

3. Idaho — $919

Shoshone Falls Along Snake River Idaho — states with the cheapest car insurance
Shoshone Falls (photo credit: Wikipedia)

Good to know: Annual DUI arrests are lower than the national average. Texting and driving has been banned across the state.

Idaho state minimum coverage requirements:
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident
Property Damage $15,000 per accident

4. Maine — $937

Fresh Maine Lobster — states with the cheapest car insurance
Fresh Maine Lobster (photo credit: VisitMaine.com)

Good to know: Uninsured drivers make up about 5% of drivers in Maine, much lower than the national average of 12%. Texting and driving is banned across the state.

Maine state minimum coverage requirements:
Liability
Bodily Injury $50,000 per person
Bodily Injury $100,000 per accident
Property Damage $25,000 per accident

Uninsured/Underinsured Motorist
Bodily Injury $50,000 per person
Bodily Injury $100,000 per accident

Medical Payments
$2,000 per person

5. Iowa — $971

Driftless Area Scenic Byway Iowa — states with the cheapest car insurance
Driftless Area Scenic Byway (photo credit: TravelIowa.com)

Good to know: Young drivers with learner’s permits are restricted from using cellphones while driving. Across the state, texting while driving is prohibited.

Iowa state minimum coverage requirements:
Bodily Injury $20,000 per person
Bodily Injury $40,000 per accident
Property Damage $15,000 per accident

6. Indiana — $996

Indianapolis 500
Indianapolis 500 (photo credit: VisitIndiana.com)

Good to know: Texting while driving is banned for all drivers across the state. Drivers under the age of 18 are prohibited from using a cellphone at all.

Indiana state minimum coverage requirement:
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident
Property Damage $10,000 per accident

7. Virginia — $1,002

Jamestown Day
Jamestown Day (photo credit: Virginia.org)

Good to know: The number of uninsured drivers in Virginia is 10%, just below the national average of 12%. Texting while driving is banned across the state, and drivers under the age of 18 are prohibited from using cellphones while driving.

Virginia state minimum coverage requirements:
Liability
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident
Property Damage $20,000 per accident

Uninsured/Underinsured Motorist
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident
Property Damage $20,000 per accident

8. Illinois — $1,003

Chicago River from Michigan Avenue Bridge
Chicago River from Michigan Avenue Bridge (photo credit: Wikimedia)

Good to know: Across the state, both hand-held cell phones and texting while driving are prohibited.

Illinois state minimum coverage requirements:
Liability
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident
Property Damage $20,000 per accident

Uninsured/Underinsured Motorist
Bodily Injury $25,000 per person
Bodily Injury $50,000 per accident

9. Massachusetts — $1,004

Boston Tea Party Museum
Boston Tea Party Museum (photo creditL MassVacation.com)

Good to know: Only 4% of Massachusetts drivers are uninsured, significantly lower than the national average of 12%. Texting while driving is prohibited.

Massachusetts state minimum coverage requirements:
Liability
Bodily Injury $20,000 per person
Bodily Injury $40,000 per accident
Property Damage $5,000 per accident

Uninsured Motorist
Bodily Injury $20,000 per person
Bodily Injury $40,000 per accident

Personal Injury Protection
$8,000 per person

10. Utah — $1,015

Arches National Park Utah
Arches National Park Utah (photo credit: VisitUtah.com)

Good to know: Uninsured drivers make up just 6% in Utah, much lower than the national average of 12%.

Utah state minimum coverage requirements:
Liability
Bodily Injury $25,000 per person
Bodily Injury $65,000 per accident
Property Damage $15,000 per accident

Personal Injury Protection (PIP)
$3,000 per person

 

All remaining states, from least to most expensive average annual car insurance premiums:

11. Wisconsin — $1,021
12. Missouri — $1,086
13. Arizona — $1,096
14. Alabama — $1,103
15. Montana — $1,115
16. New Hampshire — $1,117
17. Vermont — $1,125
18. Tennessee — $1,138
19. Nebraska — $1,142
20. Hawaii — $1,150
21. New Mexico — $1,158
22. Wyoming — $1,176
23. Washington — $1,177
24. South Dakota — $1,213
25. Georgia — $1,219
26. Oregon — $1,224
27. Minnesota — $1,227
28. Alaska — $1,229
29. Kansas — $1,254
30. South Carolina — $1,261
31. Pennsylvania — $1,274
32. Nevada — $1,307
33. Arkansas — $1,309
34. North Dakota — $1,377
35. Colorado — $1,398
36. West Virginia — $1,442
37. New York — $1,472
38. Maryland — $1,500
39 (tied). District of Columbia — $1,575
39 (tied). California — $1,575
41. Mississippi — $1,616
42. Connecticut — $1,625
43. Rhode Island — $1,671
44. Florida — $1,690
45. Louisiana — $1,741
46. New Jersey — $1,746
47. Texas — $1,762
48. Kentucky — $1,925
49. Oklahoma — $1,990
50. Delaware — $2,073
51. Michigan — $2,087

 

When it comes to saving on auto insurance, regularly comparing rates is your best bet to ensure you’re paying the lowest premium for the coverage you need.

Your credit score, relationship status, your vehicle of choice, and your driving habits are just a few other factors that can impact how much you pay for your auto insurance. See more in our free, comprehensive State of Auto Insurance report.