Cheapest Auto Insurance by State: Where to Find the Best Deals on the Road

Auto insurance isn’t exactly the most exciting part of owning a car. But it’s one of the most necessary. And if you’ve ever opened a bill and thought, “Wait, why am I paying this much just to drive legally?”, you’re not alone. The good news? Depending on where you live, your auto insurance could cost way less than you think. Today, we’re cruising through the cheapest auto insurance by state. We’ll explore which states offer the lowest premiums, why costs vary, and how to get the best bang for your buck. No matter your zip code.

Why Auto Insurance Rates Vary So Much

Before diving into the state-by-state breakdown, it’s worth understanding why your neighbor in Ohio might pay half of what your cousin in Michigan does. Here’s the deal:

• Population density: More people means more accidents. Cities drive rates up.
• Traffic and accident statistics: Areas with higher crash rates usually pay more.
• State laws: Some states require more coverage than others.
• Uninsured drivers: More uninsured drivers in your state? Insurers charge more to cover the risk.
• Weather risks: Tornado alley or hurricane zones? Expect higher premiums.

Now that we’ve set the stage, let’s see which states are doing your wallet a favor.

Top 5 States with the Cheapest Auto Insurance

Here the cheapest auto insurances by state:

1. Maine – The Undisputed Champion of Cheap

Average annual premium: Around $980

Low population, less traffic, and fewer claims. Maine keeps it simple and affordable. The state requires minimal liability coverage, and with fewer accidents overall, insurers pass the savings on to you.

Coverage tip: Even though minimum coverage is cheap, consider full coverage if your car’s value is still high.

2. New Hampshire – Freedom from Mandatory Insurance (Sort of)

Average annual premium: About $1,040

New Hampshire doesn’t actually require auto insurance. Crazy, right? But most drivers still buy it to protect themselves financially. With less government-mandated coverage, average costs stay low.

Coverage tip: Even though it’s optional, driving uninsured can backfire badly in accidents. Liability coverage here is cheap. Don’t skip it.

3. Vermont – Quiet Roads, Quiet Premiums

Average annual premium: Around $1,085

Vermont drivers enjoy less traffic, low accident rates, and affordable insurance. It’s peaceful in more ways than one.

Coverage tip: Consider uninsured motorist coverage. It’s not expensive in Vermont, and it protects you from drivers who aren’t as responsible.

4. Ohio – Big State, Small Costs

Average annual premium: About $1,110

Despite being home to major cities, Ohio manages to keep auto insurance rates impressively low. The competition among insurers here is fierce, which keeps premiums down.

Coverage tip: Ohio has decent minimums, but adding comprehensive coverage doesn’t cost much more. Worth it for peace of mind.

5. Idaho – Rural and Reasonable

Average annual premium: Roughly $1,120

With fewer cars on the road and low crime rates, Idaho drivers benefit from lower risks and cheaper insurance. The state’s minimum requirements are also modest.

Coverage tip: Be careful with only meeting the minimums. Add collision coverage if your car’s on the newer side.

Honorable Mentions

While those top five states offer the lowest average premiums, others deserve a quick shoutout for staying budget-friendly:

• Wisconsin – Around $1,150/year
• Iowa – Close to $1,170/year
• North Carolina – Roughly $1,190/year
• Hawaii – Surprisingly affordable, even with strict no-fault laws

Each of these states blends good driving habits, reasonable legal requirements, and a dash of insurer competition to keep prices low.

States with the Most Expensive Auto Insurance (Just for Comparison)

Let’s flip the map for a second. If you’re wondering how good your rate really is, check out what drivers pay in the most expensive states:

• Michigan – Over $2,700/year (yikes!)
• Florida – Around $2,500/year
• Louisiana – Just under $2,400/year
• California – Nearly $2,300/year
• New York – Roughly $2,100/year

These states deal with high accident rates, insurance fraud, and stricter coverage laws. Not fun.

How to Lower Your Rate—No Matter Where You Live

Even if you’re not lucky enough to live in Maine or New Hampshire, there are ways to keep your costs down:

• Shop around – Don’t just auto-renew. Compare quotes annually.
• Bundle policies – Combine home and auto to get discounts.
• Raise your deductible – If you rarely file claims, this can lower premiums.
• Maintain a clean driving record – Fewer tickets = better rates.
• Use usage-based apps – Insurers now reward good driving habits directly.

Final Thoughts

Finding the cheapest auto insurance by state isn’t just about geography. It’s about understanding the system and making smart choices. Whether you’re driving the icy roads of Vermont or coasting through Idaho’s wide-open highways, one thing’s clear: Your location plays a major role in what you pay.

But don’t just settle for what your state averages. Shop around, explore your options, and remember. Cheap doesn’t mean bad. The right policy for the right price is out there. And now you know where to start looking.